Crédit Agricole S.A. (ACA) Earnings Call Transcript & Summary

Hello everybody here today, although virtually. I hope we can meet again soon. I'm going to switch to French, but the presentation will be translated as we go along. [Interpreted] So thank you for coming in large numbers to this workshop, which now can be said to be traditional. This year's workshop is about the consumer finance; and Jerome Hombourger, who is Deputy CEO, will be -- make a short introduction. Thank you.

[Interpreted] Good day. I'm also very happy to welcome you for this workshop. It's the third of its kind, and this year we decided to speak about consumer finance. So I have with me, and they are the ones who will be mainly speaking, we have the Credit Agricole consumer finance team that will be making the presentations. I will just make a few words of introduction. First of all, to talk about the SFS operational department and services, which is one of the 4 main business lines of Credit Agricole Inc. or S.A. You see it represents nearly 13% of our net income. Now the second typical feature here is that it is at the heart of the creation of synergies within Credit Agricole and within Credit Agricole Inc., as you can see. We expect from it about 1/4 of these very famous revenue synergies, which have been helping us since 2019 to grow our top line. On the next page, a few details the business of consumer credit, CACF, which is Credit Agricole Consumer Finance, just a few short words about this. First of all, to tell you that this business is developing not only its own business, which will be described at length, but at the same time is key in the support provided to the group's retail banks to develop their business of consumer finance with their customers. This is true focus Credit Agricole case and for Credit Agricole Italia in Italy. Secondly, as I said and I'll come back because it's key, this consumer finance is really at the heart of our synergies between the various business lines within the group. Let me mention the insurance business, which benefits hugely from the distribution capacity of CACF as well as the payments business line. As you know, obviously, payments and consumer finance are intertwined. Thirdly, and there again, my colleagues will come back to it far more at length. The consumer finance is really at the heart of our thinking and of our work in order to develop what we call our client or customer project, which is about the excellence in the client relation in order to develop innovation. And you will see and hear many examples in this regard. So let me end with this quick introduction. I am staying with you for the whole workshop. Therefore I'll be able to answer, if necessary, to a number of questions, which would be addressed more particularly to me later on. And immediately, let me turn it over to Stephane Priami, who is the Deputy CEO of Credit Agricole Inc., in charge of the SFS division and CEO of Credit Agricole Consumer Finance. Over to you, Stephane.

[Interpreted] Good day to all of you. Very happy to be with you this afternoon and share with you CACF strategy and our ambition for the coming years. We'll be with Valerie Wanquet, Jerome Hombourger and Richard Bouligny and will be alternating in this presentation. I joined in January this year as CEO of CACF. It was a difficult year, you can suspect, of course. But it was so full of exciting things that we want to share with you this afternoon. I have a 35-year career in the group in nearly in every business line's case: regional marketing, general inspectorate, compliance, and I spent 5 years as the CEO of Sofinco. So I know quite well the business lines of consumer finance. So we will present the history of CACF around several points. First of all, come back to CACF's outline so that you get a good grasp and good information about geographical locations in our business. Then I'll come back around the 2019, 20 -- 2014 or '19 years, not to go back to the past, but we will see many interesting elements for the current period and for the coming period. And we'll see mainly the reasons behind the success of CACF and the key points that allow us to be confident about the future. And then we'll get an update about one key element this year, which was the COVID crisis. And we will explain what we carried out so that you can see that the company is solid and was quite resilient. And then we'll be focusing on the coming years, which truly for us, the priority to growth and to development. We really want to develop CACF for the coming years. We'll be translating this because it's important into financial targets. And that we -- till will be the end of this presentation, but before your Q&As, I will wrap it up. So coming back now to the presentation of CACF. CACF or CA Consumer Finance. We are present where we want to be, namely, in places where growth and the functioning of consumer finance team to us interesting and also in areas where we can benefit from our major partnerships in order to ensure them a presence in the main countries, especially in Europe. Well, at CACF, or consumer finance, there are 3 vessels, Sofinco, Agos and FCA Bank, which represent a major share of the business. And there are other entities that are smaller, but which are holding up well in their market in countries that are significant for us, such as Portugal; Spain, not long ago, by the way, Spain; Germany. And outside, I would say of Europe, we also have location in Morocco and another joint venture in China, which is an old joint venture with which we are very happy. And there are 2 other locations. I'll mention one in the Netherlands. But as you see, we decided now since September to leave from the Netherlands. And we have a location which does a lot of consumer credit but not linked to CACF, which is Credit Agricole Poland. But we mentioned this, of course, to be comprehensive about the consumer finance business line. This slide is interesting. It shows what I was mentioning, that is, there are 3 entities that are significant in terms of volume of business and contribution to profitability, Sofinco, [indiscernible] and CFCA Bank (sic) [ FCA Bank ]. And we see that the other entities are profitable and active. And we have as well one recent business, SoYou in Spain, and one which is suffering a little bit from the market in Morocco. Further reminder, you will note that this year, with the COVID nearly in every entity, we gained market shares, and we'll come back to that. This is certainly due to the modernity, which is specific to us, the digital element and the commitment of our staff which help us achieve these results. Now a graph now to show you that for us, the choice is significant. We chose to be essentially in Europe because the model is fine with us. It's a model where we want to be in direct relation with the client. It's very much a Credit Agricole model, and we are present also where we can have direct relations with customers, which is the case in China. We've indicated this graph to show you that in our choice criteria, the risk is a major element. We are not present in geographical regions, which opted for different growth/risk balance. We are in Europe, and you will see we are doing our business in Europe quite decently. But in a region where we have the risk under control essentially because the share of the [ renewable ] has reduced dramatically, especially in France, and because other businesses such as credit cards is less developed in Europe. So CACF business is comprehensive or present in the range of the possible offers. In terms of consumer credit, it involves amortizable credit, a traditional one would adjust quite well to certain types of properties. And of course, we also have the so-called credit renouvelable, which produces a level which is still very important. And 2 elements also which are -- have been important, which is the buyback of loans or credits, which has developed a lot. When we talk about this, about buying debt, this might not sound to be in a very good state. That's not the case. Most of this market is made up. I'll give you an example. Typically, the person who will be retiring in 1 or 2 years and who still has loans that are amortized and wants to spread out, knowing that the pension revenues will be down by 30% or 40%. So when they spread out their expenses, they make sure that their debt are bought back. So to spread this up with more maturities, but lower. This is very interesting. Very often, we also are present in the LOA, the leasings through joint venture in the automotive business with Agos, Sofinco. And we also are doing business in the LOA, which is the leasing and purchasing. This is something we put in place several years ago. We're present also on technological goods, iPhone, iPad, et cetera. And there are 2 commercial activities that we manage, one which is key for us and for our customers in terms of insurance products. And we have also a savings business outside of France in order to be able to ensure our self-reliance in terms of cash. The range and the offers are wide, present in nearly every country, as I just described. And saying this, we have 3 sales -- or distribution systems, and that's also very interesting, if we want to understand where the challenges of our business. So first, distribution is the short circuit, the direct one, if you want, which allows us to have the end customer face to face directly, who contact us generally because they saw something on the web about us or there were some targeting actions. We get back these customers and give them their consumer credit. They turn out to be very interesting, and historically we do a lot of cross-sell and upsell. This will be our growth prongs in other circuits, but in the short circuit that anyway we do cross-sell and upscale. That's when the customer is with Sofinco, we have many data concerning him or her. So it's quite easy to give them -- to ask him to join us for other, for insurance maybe or ramp up early credit in regard to the loans already acquired. The second distribution channel is quite significant for us. That's the partnership channels. They are numerous. They are in the retail business, in the auto industry. They could be also businesses on the outskirts of cities who, sooner or later, need consumer credit to help their customers buy their goods. So they provide us these customers. This is why we call this long circuit, and this is a business which is quite significant and which has grown tremendously. So the interesting here is to give out the first loan, which is important for us and possibly insurance, if possible. But this is a progress we need to make, and we'll talk about this for the future. We need to improve in relation to what is done in the short term. We can make progress quite hugely with the cross-sell and upsell. The third business is the white label or service providing, but provide all of the added value which is necessary for consumer credit. It could go from the scoring aspect to through the Internet to the tool to key in, in cash or without our partners until collection, and everything we can do when you're involved in consumer credit. Historically, we do this very well for the LCL and Caisses Regionales, where we acquired such experience. We do this also abroad, Agos, for example, works with Banca Popolare di Milano and Credit Agricole Italia, where we provide that service with a range that is comprehensive. This is a major access that we want to further develop of providing across Europe because we believe that we have the right tools for that and because we feel it's the right moment. And as you can see as well, and I will prove this to you later on for the time being, just believe my words, so we have really grown tremendously in the digital and in data in the digital ecosystem, not only in the -- on the web or in underwriting, but also in every ecosystem that helps drive customers on to our Internet sites, whether through listings or, as I said before, through targeting or retargeting. So this is certainly a key factor and something that allowed us a very strong resilience during this crisis year. Now we will come back to the history between and 2014 and 2019. Valerie will show you the very good performance of CACF during these 5 years of performance in terms of profitability, in terms of sales, in terms of business. So what is the origin, as a matter of fact, of that success story? Well, we identified 6 or 7 of them. The first one is the customer base. We have a customer base that is extremely powerful. I'll show you this. Soon, we have a partnership base. Our partners in the long circuit are diversified, very often prestigious and have a quality customer base. And we have that digital expertise that helps us to deal with these customers. Then we have a joint venture model with FCA Bank and our subsidiary in China, which is very profitable in a high performance, which has boosted our business there. And you will see with a degree of resilience to risk, which is very strong. And then the insurance business regarding an entity with Sofinco, 20% of the net banking income comes from the insurance fact. And also the commitment of our teams in moments such as those we are experiencing now all of us. As a manager of a company, I believe this is what matters the most. And in terms of commitment and involvement of our staff, we have very good results, and I will show you this in a few minutes. And then we'll spend some time on the financial performance on the base of customers, 14 million customers. Usually, the data are very well enhanced. We have many elements on these customers. So it's a working base, which is significant, in addition to being not fixed because each year, we have major acquisition actions. You can entity, entity that what comes from the short circuit, the direct customers and what comes from the long circuit. And these figures are adding up mechanically in a way. And then to give you an example, we have about 300,000 customers who are cross-sold on a regular basis. So this customer base has led us -- has been coming through our partnerships and through the short circuit. We have diversified partners in every sector of the economy and generally quite prestigious. Of course, the direct distribution that is the Credit Agricole brands or the brands of our partnership, Wafasalaf, for example, in Morocco. And after that, there are the retail banks in the group that distribute our consumer loans or credits. And we have an automotive share which is significant, such as GAC in China. And Fiat cancellation with FCA. But we also have brands where we are major actors like Suzuki, Piaggio, Fiat and you will note as well. And it is prestigious brands such as Ferrari and Maserati. It's not inconsistent with the consumer credit. In France, the Maserati business is financed through consumer loans now a distributor of consumer goods or properties. This is a long circuit that is more traditional with beautiful Fnac Darty, IKEA, Roche Bobois. You can read that risk each time. These are customers who are fine with us, that we like. They present degrees of risk that we control quite well, that we can manage, and then that present customers who often are of good quality. What is lacking in this list, but the Apple brand, which we haven't mentioned. Then they are institutional. This is a key factor. It will be one of our growth drivers. We already work today outside of the banks of the group of our partners. We work for institutions such as GMF in France, and this is a major development driver for us. Maybe now to show you the power of the partnerships that we have, especially in difficult periods such the one now, there's a short video that was prepared for you with Enrique Martinez, the CEO of Fnac Darty. [Presentation]

[Interpreted] So you have here a good example of a successful partnership which should be lasting for at least 10 years. Of course, this is based on lots of engagement, dedication and skills, but also a lot of digital technology. Digital customer journeys involve 3 things. They involve, first, digital journeys to be accessed directly by end customer. This of great importance. Number two, digital customer journeys that can be incorporated into the customer journeys of our own partners. Always a bit complicated to fit within an existing management system, but it's very successfully done. And another important factor is that digital technology for us is instrumental for us to work from home, work from a distance, especially after the lockdowns and commercially right from the beginning of the lockdown measures in France and elsewhere. Gradually, we're able to work from a distance, work from home with these tools, including with our end customers. So these tools basically use an ecosystem because, of course, they are intertwined with other tools. We have 2 sources to capture customers and new business to cross-sell and trade with our 15 million existing clients. The first is what we call the cold data. That is a data lake with queries and lots of cross-referencing of data to identify the right points of contact, the right marketing moments and right channels. Very useful in marketing terms, but very useful also in risk measurement, risk assessment to calibrate the risk and credit scoring. And then you have the hub data, which are the most valuable in marketing terms. And thanks to data management platforms and good and well-targeted marketing actions, you target the shoppers and customers when they surf the Internet. And all this is of importance. We consider that we've reached a good level of digital maturity in our organization. And in passing, we believe that we have less to invest in those tools to disseminate them, of course, capitalize on them and not to invest in developing them. And this was the result of an ecosystem which was developed based on the right ideas, on the smart ideas from employees. And we have labs, for example, in Sofinco, where some employees with great ideas help develop solutions. One employee in Sofinco, as an example, rather than asking a customer with payment arrears, rather than sending their checks like in the old time to authorize and enable customers to repay their loan installments by credit card. This didn't come from outside consultants or top managers, but from the bottom up, from employees. And we have a second vector for generating innovations around our partnership with Google, with YouTube and other large corporations, and we have very close collaboration with universities now. Speaking about it is one thing, demonstrating it is another. So you have here a listing which was done for France for Sofinco, which gives you the rating of the bank across a number of criteria: Usability, fluidity, efficiency, support. And Sofinco comes out as the financial website which combines the greatest number of these attributes, the easiest to trade for customers. So the next slide basically brings us to another environment. And we will now show you the performance of our automotive joint ventures from 2014 to 2019, which accelerated the growth of Credit Agricole Consumer Finance.

[Interpreted] Thank you, Stephane. It is very nice to be able to present the results in the automotive business. As you can see, we've showed robust performance. And the performance and efficiency of our JVs was outstanding in late 2019. Outstandings was close to EUR 43 billion. That is EUR 42.7 billion, including EUR 33.2 billion originating in our automotive joint ventures, showing an improvement of automotive outstandings by more than 62% in the last 5 years. And this was driven by the momentum and dynamics in our joint ventures, up 85% in outstandings in the same period. All this built upon very robust fundamentals, which are shown here on the right-hand side. NBI at 4.3% revenues on outstandings. Cost of risk, which remained very robust, very resilient. Cost/income ratio, 30 basis point of cost of risk, but not increasing by more in 2020. And pretax net results with contribution improving by 18% on average, contribution by the automotive joint ventures, improving their contribution of 18% per annum in the last few years. You are here focusing on the ecosystem, which has been successfully operating the automotive ecosystem. We have one gem. We have one golden nugget for which we wanted to zoom in. This is Leasys. This is the long-term rental company for the FCA Bank group. This gem is meeting the needs and trends of the market, meeting the needs and the changes in lease, which basically have shifted from owning a car to using a car, providing support to the new types of car to electric car and electrified car. So Leasys operates on its core business of long-term rental business with developing new types of solutions, short-term rental services, car sharing, car subscriptions, including new services to support the acquisition of electric vehicles. And you have the example of My Dream Garage, which basically is a dedicated offer, making it possible for electric car renters to use another car than the electric car for 60 days per year. So making it possible to -- for shoppers to buy electric cars or rent electric cars. So Leasys, with its very flexible range of products and services, has turned from a long-term rental company to a fully flexible rental company from a few hours to a whole lifetime. And you have on the right-hand side, the contribution to FCA Bank's growth, with FCA Bank's growth being 11% on average. Well, the Leasys has been contributing double this rate. That is 22% of contribution. So a gem and a very successful one. So I suggest we go to Rome, Italy, the head office of Leasys, to hear Giacomo Carelli, the CEO of FCA Bank, who will tell us more. [Presentation]

[Interpreted] So as you can see, this performance makes us extremely proud of this Leasys company and the joint venture business. Now I will give the floor to Jerome Hombourger, who will tell us about the insurance part of the business.

[Interpreted] Thank you, Stephane. Insurance business is a source of diversification in our business model. It's a second business line in the Credit Agricole Consumer Finance, building upon robust base starting from its diversification. And you have here the product mix were built around creditor protection insurance, so protection of financing, protection of property and people. It is a business, which has posted more than 5% of collected premiums per year. It is performance, which builds upon the de-multiplication of best practice inside consumer finance, building upon the insurance operating division in the Credit Agricole Group, and tapping into the best possible practices and initiatives in the various geographies to capture the needs and expectations of our customers. So our goal is to reach EUR 1.2 billion in insurance premiums, and these dynamics and momentum, building upon a more balanced product mix and a business model, which we've wanted to have more balanced sources of revenues with the fees on the one hand and the profit sharing on the other hand to manage the economic cycles. And also, we build upon the engagements and commitments of the teams on innovation in services, and our business line is very much focused on innovation in the field of insurance and in the field of additional services. And we'll tell you more about it.

[Interpreted] Now I would like to focus on one point of great importance to me. Until a few years ago, it was a bit difficult to quantify. That is the commitment and engagement of employees. It's become more easy to measure after the engagement and recommendation indices were introduced. So for consumer finance, we've had a long history in these ERI surveys. 91 -- 81% is our ERI score, much above the average in Europe in the financial services. And we are extremely proud of this score because in the question items, which are asked or questions on trust in corporate strategy, understanding the strategy, commitment and engagement in the company, these are fundamental parameters, which have enabled us to weather the crisis. Another source for boosting employee engagement is that we commit even more to develop the community or society pillar. You know that Credit Agricole has 3 pillars, including the society pillar with one long-standing theme of inclusion, banking inclusion, financial inclusion including, of course, consumer credit for us with lots of education to explain to the future prospective loan takers, what consumer loans are about, how they work. And it is an opportunity for us to reducing excess debt, over-indebtedness in the countries where we operate. The second area where we had a long-standing presence in society commitments is the fact that every business entity chooses its own areas for assisting and supporting. During the crisis, we invested more than EUR 1 billion to help the old people's home, nursing homes, the Red Cross and other NGOs and relief organizations. And the consumer finance teams have been working hard via a number of charities and humanitarian activities to be present in society, not just to give money, but to give time as well. One innovative area is individual. That is impact on climate. We want to play a leading role to improve things in 2 ways. Number one, to improve the way we operate with assets, the carbon footprint of each one of our entity and unit to reduce it. And number two, we offer consumer credit. That is we need to help jointly with our partners, of course, the consumers to consume as responsibly as possible so that consumption is as beneficial to the planet. This is what we do while trying to develop so-called circular economy, trying to come up with actions and measures jointly with our partners to use and consume our tools in a sustainable manner as possible. With respect to the next slide, I will call Valerie Wanquet, who -- and you have seen the 4 speakers. And Valerie will review the financial results, the financial results of this strategy from 2014 to 2019 with a key point basically, financial robustness. It is what counted in early 2020 when we had to face up to this harsh crisis.

[Interpreted] Thank you very much, Stephane. So after this quick review of the key assets in consumer finance and its pillars, I will now review the key financial performance indicators. As Stephane put it, we have approached the health crisis with very robust financial parameters. Number one, we had very buoyant business activity in late 2019, more than 92 billion in AUMs and loan origination close to EUR 45 billion, with good contribution and good net income. As Richard said, this growth was largely driven by the insurance business and the automotive industry, with insurance accounting for 17% of our NBI and the automotive JVs with good growth of 18% per annum, which Richard mentioned has been contributing to the bottom line with respect to the equity line to EUR 292 million. Above this, we have very robust ratio, cost/income ratio at 49.3%, and cost of risk on outstandings following the turnover of Agos at a low level, 128 basis points in late 2019. So all in all, our financial performance has been very satisfactory, with a net income group share of EUR 644 million, growth that I would call exciting. And RONE, R-O-N-E, of 17.7%. So this has been one of the key factor for improving profitability. That is our control of risk. We showed here the change in our ratios since the last crisis from 2012 to 2019. Cost of risk, which is showed here on the left-hand side in the economic picture with joint venture integration, went from 410 basis points to -- down to 100 basis points in 2019, with spectacular turnover turnaround for Agos with cost of risk of 110 basis points. This structural improvement can be seen in our NPL ratio, which went down by more than 5 points over the same period. So this success, we owe to a number of structural measures, both with Agos and the rest of the group throughout the cycle, starting with credit granting with stricter scoring, all the way to debt collection, which is a key part in consumer finance with a very steady receivable assignment policy, which cleans our stock of nonperforming loans. And we benefited from a better balanced product mix with a share of revolving loans going down by 8 points over our total AUMs. These structural improvements can be seen when we compare with our direct peers. And you have here, once again, the economic performance with the line-by-line joint venture view. And when we compare with bank 1 with a similar profile as ours and bank 2, which is more focusing on automotive NBI on AUMs, our ratio was satisfactorily close to bank 1. With respect to cost/income ratio, one of the key assets for consumer finance, we are much below bank 1, but we come closer to bank 2, which benefits from a cost/income ratio of 30% on the automotive business. And the same goes for cost of risk on outstandings. So the control of our financial ratios are fundamental factors in financial performance.

[Interpreted] Thank you, Valerie. End of 2017, early 2020 as from the January 1, we had to manage the first COVID China in -- COVID crisis in China. And after that, it unfolded continuously throughout the year as was the case for everybody. Now some highlights regarding CACF. The first one this ability nearly during the first day to manage massive remote working, it was very efficient and commercial. It was able to continue, and the staff could continue to deal with customers remotely. It's important. I showed you the digital ranking, for example, of Sofinco. So behind us, there are traditional competitors. There are some fintechs as well that the reality is that in such a crisis, you must be able to muster team CACF, its 10,000 employees. We managed to do this massively by redistributing the functions depending on the needs, especially in March and April where our commercial activity was not great. We managed proactively and in a very specific and series with our customers moratoria. Nearly 400,000 moratoria were handled. This allowed customers, first of all, to weather the storm or the wave or it enabled a contribution to the economy, and then also we handled very professionally. This moratoria will help us, and it helped us by the way to break out of it in a quite favorable way. It led also to customer satisfaction rising strongly. We were with our customers during their hardships, and we were close to our partners and to our customers during the recovery when there were some improvement periods. And this translate into a referral index going upward. And all of this has encouraged our people in having a very positive opinion about the action of their company in relation to themselves, to the customers and towards the society at large and the economy. As you know, this in -- this period commercially was hard. So what did it give rise to commercially? Then I'll ask Valerie, so that she presents the impact in terms of risk now, commercially, in terms of sales in other words. Next slide. Yes. Before that by the way, there's a video I want to share with you, which builds on 2 messages from the group's HR managers from CACF, which show the commitment of our teams during this difficult period. [Presentation]

[Interpreted] So being close to our customers, this is what we attempted to do each time the recovery periods where possible. The -- what we will show you now on the left-hand side does illustrate that. Obviously, as everyone did, we had 2 months that were tough. April was extremely tough, and half of March and half of May were also complicated. On the other hand as from the beginning of the lockdown, we were already preparing with the sales teams, partners, the moments for the recovery. Anyway, we try to prepare ourselves in terms of communication, et cetera. The effect appeared very quickly. And as from June, we find again levels of production and new money, which are quite strong. Well, initially, people thought that it was just to bounce back or to dead cat's bounce. But you can see then that, again, we are in a period of normal production or new money, which is active as well. Well, it's normal and active, yes and no. But in June, we're still 85% of our staff working remotely, which shows again to what extent the digital capacity and the modernity of CACF has allowed to manage issues. Now again, if we isolate the third quarter, which is even more marked as you see, because apart from Agos, Wafasalaf, , FCA Bank, which I will tackle in a few minutes, everyone is making progress compared to last year, so in relation to a year without any COVID. And I would like perhaps to specify 2 things for FCA Bank. So the minus 4 is not huge. And by the way is there's some catch-up there. And Wafasalaf, as you know, the situation of lockdown and COVID management was difficult, more difficult than in other countries. So Wafasalaf is suffering from this directly. And for Agos, the minus 13% of business is mainly in the short circuit. And despite all of this with stabilization of Agos' market shares. So no worries, Agos really was in sync with the market. Another recent piece of information now on Sofinco, the wave of lockdown in November didn't have the same impact compared to April. You see the business and number of cases of us in April was minus 65% in April right from the first phase of the lockdown. In the second wave, we are around 10%. And by the way, the business is -- has been up and running now for 10 days in a very strong way, including compared to last year. Now these elements, of course, are significant. They are about the company, the way it's organized, how we manage our sales in a period, which is going in a choppy way with different steps, lockdown, end of lockdown, et cetera. It's important to look at the impact of the COVID on risks of CACF for 2020. I'll turn it over again to Valerie.

[Interpreted] Of course, our cost of risk in 2020 increased compared to 2019. It was multiplied by 1.5 at the end of September to reach the ratio of 188 basis points. Now essentially, that rise is related to the normative provisions that we took on sound and nonperforming outstandings based on IFRS. It includes notably the forward-looking that is anticipating deterioration of the economy. The -- we have 76% of the hedging. At the same time, and it was mentioned by Stephane, we massively rallied around our customers to support individual people and professionals, especially auto dealers, so we granted more than 1.5 billion of moratoria. Having said this, we see in our operational indicators, and thanks to the effectiveness of our collection teams, that the moratoria are refunded on time. At the end of September, there was 75% that were coming and 98% were reimbursed. So this major rallying was made possible, especially thanks to abundant cash. It is one of our strengths, as you know, our ability to self financing, which has risen markedly around 59% in 2014, up until close to 90% now and still 84% at the highest level of the crisis. We reached that self-financing, thanks to refinancing sources, a highly diversified policy. Certainly, we are present in the markets, especially we are one of the leaders in the European market of securitization. And you can see the ranking of 2019. But we also are involved in collecting deposits from our retail customers and the institutionals, mainly in Germany, we collected more than EUR 9.3 billion of these deposits, as you see in this slide. It eroded slightly during this crisis, which is still very resilient. We did it on purposely because these resources are more expensive than the market resources. So both the control of our risk and the control of our cash enables us to be very confident about the end of the sanitary crisis.

So at this stage, we moved to a company from 2014 to 2019, structured itself, acquired lots of robustness. Profitability levels turned out to be quite high and above all with 2 modernity elements: the human factor and the digital factor. These elements, as we are showing you, to weather the prices in a fairly adequate way. And this is a starting point, which is very good for us as from 2021, to make sure we have strong growth prospects. So what are these ambitions about our future growth? I will yield to Valerie and speak about the financials in a while. But in -- of course, about this growth, we will push forward in our medium-term plan. We will provide some acceleration points to our medium-term plan. Now in terms of digitizing. On the digitalization, essentially, we will circulate all our good digital practices to all of the CACF, and all the business lines of CACF. We wish to reinforce our activity in the cross-sell of the loan circuit. I told you before that unlike the short sell -- the upsell and the cross-sell on the -- we have a potential of progression, which is very strong. On the automotive, we want to amplify and develop what we do with our joint ventures, but at the same time because that's a reality, there's a need to work much more on the automotive market in the business units, such as Agos, CreditPlus and Sofinco in reality outside of the joint ventures, and of our subsidiary in Portugal. The CACF entities don't have the natural market share in the automotive sector. We will take major initiatives to find again or find at all these market shares. A third prong, which is very important, is servicing. Servicing, while we used to do it, we have shown you before our activity, it is very strong in the regional case. In LCL, very strong in Italy. It's also very strong in many places. We are used to servicing. And we believe that, today, we are at the point of focus of 2 central elements: the first one is that we have tools that are digital, we have the expertise in this field, the ability to propose innovative solutions to the market; and secondly, we believe that all the reorganization that is taking place in the financial or banking or insurance market in Europe can create, can develop further activities of consumer finance. And we can -- they can count on us as a service provider, we can do this in a very relevant way, so we want to push this forward. In our medium-term plan, we talked about societal commitment, and we talked about green financing, we materialize a little bit further at this, and we quantified it. I will turn it over to Jerome, again.

So the digital, how will it make it possible for us to speed up and drive the growth presented by Stephane. So we invested in the past in digital tools, which are at the heart of the intensification of our client related by combining the human with the most modern tools. Digitizing means journeys. Thanks to digital tools, want to improve customer experience, make it as simple and smooth as possible. And for this, we have worked -- well, prompted by our partners, you saw this, we have a few pure players and companies considered as the most modern in terms of customer experience, especially those based in California. Thanks to them, we learned and we're pushing the overall of our customer journeys to make it as sound and fluid. We also are thinking about this renovation of our client journey. We want to route it around mobile-first. And for several years, we considered the mobile as being the interface tool that is central in the relationship we have with our customers on a daily basis. It's in the pocket. This mobile-first strategy, we'll pursue it and strengthen, upgrade the omnichannels, create a relationship and interaction and contact from a branch from -- through the phone and through the web, all of these, make sure it is seamless and make sure it is the most modern way as seen by the customer. So you can have fluid and simplified experiences with customers only if we work on ourselves, and we have some macro processes that will deliver our services on 2 major processes seen by customers as being a source of progress. And where we need to intensify the relation we can have with them, we decide to work on fully overhauling the onboarding, that's very important, and of awarding so that we can reduce not only the waiting period and also the -- we have started actions on this. We have ambitions that are very strong. In the long [ circuit ] with the partners, we want to have a time to yes of under 15 minutes, 1-5, and on the short circuit and in the automotive, the time to yes below 48 hours. We believe it's a major differentiating factor with regard to experience of customers. If we do our work well, if we work on our processes by simplifying and automating logically, we create customer satisfaction. And this is a satisfaction, we want to measure it. We have already, where we listened to our customers in a significant way. We want to enhance it, not to understand better through verbatim what customers perceive and better understand through the verbatim what the customers would like to have and work and improve. So we are in a circle, which is virtuous. Now the goals associated with the digital ambition is that -- which we want to have by 2021, 70% -- sorry, 70% of digitized production, we're already at 63% at the 2019. And have 15 -- less than 15 minutes time to less in the short circuit and 48 hours or less on the short circuit. And as Stephane said, an ascertain ambition and driven by all the managers of the CACF, be #1 in terms of the strategy across all our markets. Now digitizing the business. As I said, you have here a process flow chart being for the loan granting process for the automotive business. This process came out in the voice of consumer surveys, came out as cumbersome, lengthy. And we asked our employees as part of the bottom-up process to work jointly with our customers to improve it and you handle the rest. On the right-hand side, the resulting process with fewer FTEs, working on additional creation of value, we have more satisfaction. We have time to yes, less than 48 hours for this process. So this was a question of automating processes and engaging employees to provide high customer satisfaction. As you know, one key component in our business model is partnerships. And partnerships to generate new business and cross-selling these customers is a key source of our performance. We want to keep supporting this model by finding new partners, retaining them in a pan-European manner, building upon our strong geographical presence and our strong expertise and know-how. We organized this new business acquisition to do that by building upon our modern and robust tools and experience in digital tools. And we'll be working on increasing the offer payment and consumer loan convergence because the point of sale, be it physical or online, point of sale are key touch points for customers to open new solutions for personal loans, for services, for support, for additional options, and we are jointly developing this with our partners to increase diversification and differentiation. And we'll be working on 2 areas: allocation and rental -- rental services and subscription, which is a key innovation for providing new types of use and additional services. So all these takes on more purpose and meaning if after new business acquisition, the expanding of the range, digitization of process, if we can cross-sell via the data management tools we've developed, we can, today, build upon data intelligence and data management tools to better understand how to cross-sell and how to better organize the support we can provide to customers, to meet their needs, how to best attack them, how to best anticipate and develop the solutions. And I suggest we illustrate our point. Thanks to our digital tools, thanks to our data link and data labs, our key data management expertise and a close connection and collaboration we have with sales and marketing tools, we have developed a tool, which is highly symbolic of what we at CACF offer. It's a common joint tool for all employees from the CEO down to the account officer, providing us with the best possible cross-sell tool, best possible performance management tool. So I suggest we have Richard now tell us about the automotive business.

Thank you, Jerome. Now to go on with the automotive business. We told you how powerful our joint venture we're operating. We want to accelerate the expansion in our business units and our development goal is to focus on the universe of mobility. And there are 2 main areas: the first is to boost our range of products and services in existence; and the second will be to build upon our partnerships and to support our partners with respect to boosting our range of products and services. To demonstrate a point when we told you that leases was a gem, a golden nugget, we will be adapting to mobility trends, shifting from owning a vehicle to using it by extending our long-term leasing solutions, that we are creating a specific organization dedicated to long-term rental, which will be called CA Rent, Credit Agricole Rent, to support this new trend and to amplify the range and robustness of our credit solutions to hybrid, to electric and rechargeable vehicles for both personal and corporate lines. So it will be a big source of growth and development for next year. We will be accelerating our business in the secondhand markets via online business development. We have one very nice fine, best practice in one of our business units, which is focusing on the secondhand market, which is Credibom in Portugal. We've launched a marketplace, which is specifically dedicated to secondhand cars, which is called Pisca Pisca, and one of our source of growth will be to internationalize this marketplace across all our operations across all our countries. Finally, we'll be expanding the range of services in support of our products by creating the largest possible range of services across the 3 possible layers and level of services, covering financing, of course, including creditor protection insurance or borrowers protection as well as the flexibility services, extending the terms, maturities, why not. Also services on financing property. We are focused on cars, of course, but conventional financing, extending warranties, managing tires, for example, financing servicing. And in the past, I would have told you about managing fuel, but I'll tell you about managing energy and, of course, protecting people and financing to people and supporting our partners is the critical move. Our partners first, the car makers, our first partners by serving them as a true captive. It is important that our partner car makers have a captive without having their own bank, building upon the digitizing of the customer journeys via our innovative tools. And our best example is the partnership we have established with Tesla where we are full digital in our services, and Valerie mentioned it before, it was important for us to support the dealers' networks of the car brands, and we used innovative tools to do that, to support the dealerships. And we did that from the beginning of the crisis, and we hope to take them through the end of the crisis. And we'll be providing lots of support and assistance to all of our distributor and retailer partners with whom we are trading already and with whom we'll be trading by supporting their sales networks and tools, but also by providing tools for them to help retain their shoppers and customers. And thanks to our innovative tools and to our customer-centric culture, we'll play a key role in transforming the act of buying a car. No doubt, a car is no longer bought as it was before the crisis. In fact, you don't buy the same types of cars. Today, they are more electrified or more electric than in the past. And we won't be delivered the car in the same manner. So we have a role to play in this shift, thanks to our new tools, innovative tools, electronic signature and digital tools for both retail and the commercial customers. Jerome, over to you for servicing.

Thank you. You have understood it well that we've gained experience with the retail banks in France and Italy on the back of years of cooperation, collaboration. We've acquired special knowledge, know-how and expertise, which we want to disseminate across all our operations outside of France to capture more partnerships, including financial and banking institutions. So we have a value chain with a number of components and all of these components we want to disseminate. And this experience, in fact, accounts for some EUR 21 billion in AUMs. And we got organized to do that by setting up a group-level team to work on developing the offer, on developing the distribution model, on developing an acquisition plan, a new business plan, and these offers are currently being deployed on the back of our innovation, and we'll be focusing on meeting the needs and specifics of the various countries while deploying our powerful sales and marketing forces around the -- our insurance products and services as well in the context of these banking partnerships. Our key differentiator is for these banks and financial institutions to accelerate new business on consumer loans and on the back of our solutions, which are sources of further growth for which we'll be providing special support and assistance. So our goal is very ambitious: to acquire more than 10 new banking partners by 2022, and for the retail banks in the group to generate 1 additional market share -- 1 additional percentage points, sorry, of market share versus 2018. So we have a high level of ambition as well to fuel our growth and going forward, focusing on community and society needs and requirements. As Stephane said, we want to play a key leading role around green finance, green financing. I won't tell you how important and how buoyant and strong and vibrant this business is around the world. Now how will we do it? Why should we do it? We are fully legitimate as we already have existing business operations around private wind farms, wind energy and other types of business. It will have 2 main areas: one, on automotive, as Richard mentioned, what we'll be doing, providing support to develop new trends around new types of user needs and the so-called clean cars or clean vehicles. We want to play a leading role in financing these vehicles with our joint ventures, with our partner brands, with our distribution channels and independent retailers and agents in Europe, the so-called hybrid electric or thermal engines, low consumption and engines. The second area will be to work with private individuals to support their energy transition, their energy renovation, home renovation were through all products to contribute to improving their homes. We want to be a key player in supporting them via our financing and creating solutions. Saying it is important. Doing it is more important. Communicating it is also very important. This is why we signed in the early part of this year with the French public authority, a so-called charter called Faire, translating into English as to do or doing. And we have lots of initiatives in France and elsewhere, showing the fact that we want to be a key player on personal energy transition and will be -- and we have ambitious goals on the order of EUR 1 billion a year of loans generated by green finance 2022. Now focusing on our ambition for 2022, starting with France with Sofinco. Our goal at Sofinco is to generate organic growth around 3 drivers. The first of these drivers will be to increase synergy within the Credit Agricole Group, retail banks, building upon our tools, our modern systems, facilitating customer journeys across retail banks with a tool called DigiConso in the Insurance business, as Jerome said earlier, which is a key component. We are a key -- an important distribution -- distributor of insurance products. Sofinco needs to improve its cost income ratio and reduce its cost, and we want to prioritize our partnerships as part of our business model. That is to expand the business base to cross-sell as a tool for economic performance. Agos in Italy, pursuing organic growth, building upon 2 areas. The first is the short distribution channel, building upon the Internet channel to go online and to support the shift to online via partners in our direct business and the long distribution channel on servicing, leasing and financing in the automotive markets. As Richard said, we have spaces for further growth and development. And real theme across these business activities will be insurance product and servicing where we have high ambition jointly with Agos. Then we have CreditPlus in Germany. CreditPlus is a challenger in its market. You've seen the market share, it's a challenger for whom we have great ambitions with respect to business development by gaining market share. And also by building upon the knowledge and expertise and know-how of the group, sharing best practice in terms of servicing jointly with the German financial institutions and by expanding the range of CreditPlus services, including revolving solutions. In the Iberian Peninsula, we want to maintain and reinforce our leadership in the car market, in the new and in the secondhand car market, with the Pisca Pisca operation we heard above, and to diversify our business through new partnerships across the 2 automotive joint ventures with FCA Bank. We want to enhance the value of the strategic partnerships, and we've written that was a strategic partnership, building upon Leasys, which is our golden nugget, which is a true modern innovative new tool for China, which is an impressive market by essence. We want to develop new offerings, including leasing solutions.

Thank you, Jerome. And to illustrate how consistent our business development plan is across our business units and to focus more specifically on servicing, let us hear Belgin Rudack who is the CEO of CreditPlus Bank in Germany.

Hello, everybody. It's a pleasure for me to talk about our white label solution. At CreditPlus, we have a diversified and well-balanced business model. 50% is long channel and 50% is short channel. This is our strength. In the long channel, we offer customers white label solutions for big partners. In these partnerships, our partners use our best-in-class digital front end and benefit from our innovative technological solutions. In the automotive sector, for example, we have partnerships with Piaggio and Suzuki. Our solution for Suzuki is called Suzuki Finance Service of CreditPlus Bank. We are very happy that we are winning new partners. And in November, we will start an exclusive partnership with Peugeot Motorcycles in Germany. We also offer our white label solutions for banking partners. Here, for example, we work together with BW-Bank, a significant player and well-known bank in Germany. BW-Bank use our consumer loan services and our front-end with its own branding. In 2019, we realized almost EUR 40 million new business and over EUR 5 million net banking revenue with them. Due to our high customer and partner orientation, we are also able to renew partners such as AXA Bank, who have chosen to work with us, and we have a strong promising pipeline. What do we offer our partners in the white label sector? We offer them all our digital services. That means functions such as Doc'Up, with which our partners can upload and send documents in seconds; or digital signature, which enables paperless contract conclusion at the retailer. Why do partners use white label solutions? I think branding is a driver here. Our partners want to accompany their customers with their own brand in the financing environment, but they lack the technology, expertise and know-how. And here, we come to play as experts. We help our partners to increase their sales and give their customers a perfect customer journey. For CreditPlus, we also get valuable customers and customer data. This, in turn, allows us to introduce these customers to our short channel to cross-sell and accompany those customers for further financial needs.

Well, I will now turn it over to Valerie again, so that we hear the financial outlook for this development plan. Over to you.

After having seen all the development levers considered over the medium term, how the -- now let's see how they translate into goals over the medium term. We have still 3-year goals. We want to reach them for 2023 with 1 year of difference compared to our 2022 medium plan, especially regarding the outstanding since we have in 2020, a problem due to the health crisis. Thanks to initiatives that were presented to you now. Thanks to our strategic project, based not only on growth, but also controlling our fundamental ratios. We want to reach as from 2022, our targets. This is our assumption of the cost of risk. And we have -- want to have it under control in our profitability, which we want to reach at 15% in 2022. While certainly, there are many uncertainties. The environment is complex. But let's see now how our capacity to control these goals play out. Let me start with our revenue or net margin of risk, we have seen 2 periods. The first one have already explained it from 2014 to 2017, the structural improvement was there. And the second period, more recently, is characterized by rate-related drops and volatility. And in this environment of lower rates and with strong competitive pressure, we are planning a small erosion of our margins, but strong resilience, especially I draw your attention to the September 2020. The dotted line curve represents our margin restated from the impact of the COVID. So we ambition a margin at 4.5% economically, and we believe we should stay around those lens in the future, thanks to revenue diversification mentioned by my colleagues and also continuing the optimization of our financing. Let's go now to expenses. We have a program in terms of operational effectiveness called [ Nest ], and which aims both to improve the quality in relation to our customers, the time to yes improvement is an example that was illustrated, but also significant savings regarding our expenses. There are several families of actions presented here, of course, controlling external expenses challenging demand. We're putting out supplies on competition, for example, shared services and also regrouping our tools, especially the IT ones, whenever that is possible. This cross-cutting program comes along with the proactive program, country by country, in order to move to our cost efficiency ratio, which is 46%, especially at Sofinco, where we ambition to bring down by -- from 54% to 50%, this cost/income ratio. Our automotive business is at 30% in terms of cost/income ratio and should remain there. And all with all these actions, we have the ambition of reaching an economic cost/income around 40% over 3 years. Now in terms of the cost of risk, we are continuing our structural actions, firstly, improving our customer knowledge with mainly here the uses of tools, automating, also things that should allow us to continue to fight against fraud with automatic ID controls. For example, here, you can see the savings at Sofinco in France should be EUR 6 million in this field of fight against the fraud. In 2022, now we want to enhance and modernize our scoring tools. We are speeding up and transforming this with, for example, the diversification of the data we use for scoring via open banking, thanks to aggregators, or by using data coming from social networks and also techniques of artificial intelligence, machine learning, for example, to use all these data. And thirdly, optimizing our collection, nervous efficient collection, especially in regard to early connection, better segmentation of our customers, which should allow us to have savings, for example, here in France, EUR 7 million to EUR 20 million over 3 years in regard to collection yield. Now to Stephane for the conclusion.

Well, for the conclusion, you will find a summary in writing. What I want to convey here is a conviction. From 2014 to 2019, I think, we built a solid group with CACF. Profitable, a powerful leader in the European market and well balanced, well structured. We also have, and what is very important, we have driven modernity onto social aspects on managing our people and our personnel and on the digital, anything related to data and innovation ecosystems. Now the crisis that has just unfolded was weathered satisfactorily by CACF with a starting point, interesting in 2021 because the crisis showed also 3 things: first of all, the importance of what is digital; secondly, the importance of the commitment of our staff; and thirdly, the consumer finance market is still bullish and consumers need this, and we've seen it at each reopening, even partly of the economy, consumer loans or credits picked up again. Now more modern, probably closer to our customers, driven by committed employees at any rate. We are confident about the fact that CACF is quite well equipped to face that future. Clotilde, now over to you.

Thank you, Stephane, very much. Thank you for this presentation. Now let's move to the Q&A session. Let's start with questions over the phone by analysts, you can -- you may ask questions in English or in French as you wish.

[Operator Instructions] There are 3 questions and the first one. Go ahead.

I have 3 questions. The first one, I would like to understand better industrially speaking, the reason between the gap -- of the gap between the short and the long circuit in terms of the acceptance rate. How much there's such a difference between 15 minutes and 48 hours or 2 days? Could you explain further the reasons about such a differential? Why such a gap? Is the scoring different? So could you explain a bit better that difference? Secondly, regarding your ambitions. About the automotive business, I didn't understand the structural difference between leasing and CRM. CRM is different from leasing. I don't see exactly what the difference is. And I'd like to know also because when you have Arval or such monsters who are very large, what is your ambition in terms of number of cars that would be leased or rented? Lastly, SCA which is -- has been traditionally aligned with the Fiat Group -- [ SEAT ], I mean. As you know, there's a link up project between Peugeot and Fiat. I'd like to know if such a link-up or tie-up is a source of opportunity? Or threat? Or doesn't represent anything?

Thank you for these questions. I'll -- so the difference in terms of the acceptance time limit depends on processes. Is it synchronous or asynchronous? For example, the IKEA one is synchronous. However, when you are in a -- with a car dealer, very often, it's asynchronous, which accounts for the difference. You have to reduce it to its minimum, the target for synchronous processes is 15 minutes. On asynchronous, 2 days, it's decent. Sometimes we are widely above it. And this is what we need to correct, especially by cross-cutting our best practices, for example, the IKEA solution or the Tesla solution, we need to generalize this to our other partners. The second question was about Leasys, if I recall? For Leasys, I will turn it over to Richard in a few seconds, the difference might sound a bit complex. It's very simple. Look, we are shareholders at the rate of 50% to FCA bank with FCA, which is our partner. And within FCA Bank, there are consumer credit activities in every European Fiat dealership And FCA Bank has developed an activity, first of all, of LOLD of leasing and then mobility via an entity called Leasys, which distributes across Europe, mobility tools for rentals or leases. When we talk about CA Rent, it's different. CA Rent is an entity that will be managing LOLD leases for the entities such as Sofinco, Agos, CreditPlus. First of all, we start with France next year. And we are distributing this to all our channels, for example, for Sofinco, could be Sofinco itself under the Sofinco brand, or we already at Sofinco one -- to EUR 1 billion to the automotive business. And we don't have any long-term leases, but on Sofinco, we'll be able to distribute [ CRM ], but perhaps also, as you know, we have a product that enables LCL regional banks to distribute cars in their network, so we are developing this. We will be able to add or plug into this the possibility of coming along with long-term leasing. So Leasys is something different from CA Rent even though we want to rely on the expertise of Leasys to do that. I'll yield to Richard now for the goals or targets.

Stephane has said so many things just to specify that in the world of long-term rentals, there are 2 main types of players. Leasys is part of one of the two categories and CA Rent will be part of the other category. The first types of players are the long-term rental companies. Leasys is the captive one of the group. So you see, [indiscernible] is a long-term player for [ Renault ]. CRM will be part of the second category in the same way as our Valores ALD, but with -- but Valores was created 31 years ago, and ALD was created 22 years ago. So in other words, in the long-term rental companies, multibrands, independent CRM will be in that category. So we are coming in a market of long-term rental is very mature when it comes to companies because ours was created 31 years ago. However, the good piece of news is that we are coming -- well, the trains are still in the stations with regard to long-term rental for personal, for private people. This is ramping up really in the case, by the way, of the COVID crisis, with the support of the -- of acquiring new technology vehicles, the hybrid ones, electric cars where customers feel more comfortable with these rental formula. So the good piece of news, we are totally on time when it comes to the launch of that activity for personal people, for private people. Now with regard to our targets, look, we're working now on the creation of that 100% Credit Agricole organization, 100% dedicated to long-term leases and do this probably at the end of the first half of 2021. And I think we'll come back to you. We will certainly write down the next stage of our story about this. Now on the creation of obviously, we are very positive about the recruitment of 2 beautiful European brands. Look, we have been working for many years with FCA. And in relation to your question, it's not topical because our agreements with FCA last until 2024, so we have enough time to see how it plays out. There are 2 things to add here. First of all, you saw it's a partnership that is efficient, profitable, and I think that CACF has played perfectly well the role as partners during the crisis. You saw the amount of moratoria that were granted to dealers, especially a good part for CA Bank dealers. We were proud to contribute to their support. So we were right there. We -- and secondly, I'd like to add that we are shareholders. It's not just a symbol -- a commercial contract, we are shareholders with FCA, that is Fiat, in FCA Bank on a basis of 50-50. You've seen the structure of the company. So the financial mobility that is required to bring about some moves. So this is not something on our radar right now or especially.

Next question, Jean Neuez from Goldman Sachs.

I'd like to ask you a question about your growth strategies. Starting now, we saw that there were growth of assets under management in line with historical trends in the presentation that summarizes the financial targets. I'd like to know what you think you can succeed in terms of split between the joint ventures relative to what you manage on your own? And above all, I'd like to know, for example, when you see tie-ups of banks as we saw in Spain, where you started a joint venture. What do you think about starting new joint ventures in the future, especially in Spain, where consumer finance was more highly penetrated than in other Continental European countries? So what do you consider in terms of your joint ventures? And geographically, regionally, in terms of new markets, what do you intend to do? My second question is in terms of your cost of risk, I'd like to know what you are able to see in terms of checks or controls? In terms of joint ventures versus what you plan in terms of "in-house"? Did you have control problems or some takeaways during the COVID crisis?

I will answer to the first question in the way I understood it. Well, today at CACF, we don't have any growth. We will in other countries then those where we have already entities. I gave you the reasons again, first of all, because we feel that today, we are present in markets which are profitable, that we can control in terms of cost of risk. And secondly, which also have a quality, which is to be within our model of distribution in terms of consumer distribution. We also look at the impact on our partners who are present in different European countries. So going beyond those countries is not part of our planning. So there are different kinds also of partnerships. The first partnership is the traditional partnership in the distribution like with the Fnac-Darty in the retail business that we could have in other countries where we are doing business. So we are working on this, no concern with that. We are ready to be extremely active there. Now the second type of partnership are those we mentioned, which are a major focus for us, which are the partnerships where we can sell our service to banks or to other financial institutions such as insurance companies and be paid for that. And make sure we provide a good quality of service and the professional tools we have. This is the -- our focus where we are focusing the most, by the way. And there's a third focus, which is joint ventures. Now in the countries where we are, we have joint ventures, which often are exclusive. So there you have partially the answer to your question. Let me add to this that our plan is focused rather on organic growth. But within that organic growth, we are adding these partnerships in white label, which we want to commercialize. Now for the risk, I will turn it over to Valerie.

On cost of risk, I would say, there is a difference with the automotive joint ventures in a structural manner. Automotive joint ventures are asset-based with respect to debt collection. You have differences depending on countries, but you have the possibility of repossessing the cars and selling it, the structural difference, as I mentioned. So during the health crisis, what we've done in a conventional manner, we've shared and pooled our risk management approaches, our reporting systems and our strategies across our business units and entities and the joint vendors have been part of the process. During the health crisis, we took a number of very strong measures. We increased the debt collection forces and resources. We very strongly engaged all of the employees to face up to the increase in moratoria. We shared and disseminated best practice in as quick a manner as possible, thanks to this collective habit of sharing best practice in our group, and we worked on updating all of our debt collection policies. So there's a fundamental difference between the asset base, i.e., automotive business and the non asset base. But generally speaking, the joint venture business units are fully incorporated into our risk management system, and this was proven during the health crisis.

The next question is from Delphine Lee from JPMorgan.

Well, I have 3 questions, in fact. I'll be brief, though. The first is to come back to Agos, to try and understand something. We heard that the crisis had a more significant impact on the outstandings this year. Can you give us some substance on how the business activity is fairing during this second lockdown period? Are you expecting an upswing next year? Or -- and can you give us some updated information on discussions you are having with the [ Banco ] BPM Group on the potential IPO upcoming? Or the equity stake? My second question is about Italy, on CreVal, to try and understand, what is your angle? What is your take on this acquisition? What does it mean tangibly for the consumer finance business activities of the group? My last question relates to what you mentioned on the market share. For the automotive business market share being slightly below the natural market share, which should be yours across the board. Can you quantify your goals in this respect over the medium term?

Well, let me answer the last question. On the market share, well, basically, we stand between 12.5% to 14%. If you take Agos and Sofinco in the aggregate on the automotive, their market share is between 8% and 10%. We still have leeway in France. EUR 1 billion in new business. I would like us to get closer to the EUR 2 billion mark within the next 2 to 3 years. So this gives you the direction and the goals we have for ourselves. With respect to the CreVal side of the business, as we have Jerome with us, Jerome will answer you.

[Interpreted] Jerome Grivet. With respect to CreVal, Delphine, says Jerome Grivet, as we said, when we presented the project, our ambition is to make CreVal one of our operation in retail services in Italy, which will be distributing all of the specialist services. And this already is the case for life insurance products and services. But when there are existing contracts between CreVal and some outside parties, we will see how the end life of these contracts will be managed, but our goal is that this should be an opportunity to extend our distribution capacity in Italy. And the acquisition and integration of CreVal will certainly be an opportunity to extend the distribution capability of Agos in Italy. With respect to Agos, I will give the floor to Jerome Hombourger.

[Interpreted] To make sure I understand well, your question was on the level of business activity of Agos. Now let me say that Agos, like many Italian businesses, in fact, took a big hit under the COVID crisis, which was quite harsh. Especially with the short distribution channel, Agos has a bit more than 230 sales outlets and branches and banking branches, so a very closely connected retail network with the customers, and the lockdown has a big impact on that. Quite quickly, Agos shifted its sales and marketing forces where it was needed, that is into debt collection to support the management and handling of customer requests with respect to reschedule of payments. But also, and this showed its agility, shifted its forces to e-commerce to online business, but our Italian business partners have websites, and they were able to shift part of the sales and marketing forces to work in business development and maintaining business activity levels. Not offsetting the impact of the crisis, making it possible to maintain, to sustain the business and even take new positions, providing a new differentiator. We went from 1 to 8 the sales and marketing forces dedicated to online business who are trained and qualified in supporting long-term relationships with remote selling with our clients. For the future sources of business development, Agos will deploy its forces in the automotive business, especially in the secondhand business in the insurance business where Agos was able to actively respond to the [ IVAS ] reform a few years ago. So we have a distribution capacity to provide insurance products and services to provide coverage for protection of people, of property, and Agos developed new services. And in the area of long distribution channels, while we are in the acquisition phase last year, this year and again next year, we got a partner like IKEA. So these major client acquisitions boost our sales and marketing activities. So we've reinforced our business development capacity with the digital journey capacity with our partners, on the premises of our partners and in the short distribution channel and new acquisitions with the largest range of services across all our products and services. And there was a question on Banco BPM and Gerald will take it.

[Interpreted] Yes, as you know, we have an agreement in place, following the share loan agreement, which was signed last year, re-signed last year with Banco BPM, which had a number of milestones. This milestone was pushed back based on common agreements, and the date for this was pushed back, and we will get back to you as to how we deepen and shore up our relationship with Banco BPM in the near future. Thank you very much.

[Interpreted] The next question will be asked by Lorraine Quoirez from UBS.

[Interpreted] Thank you for this presentation. I have 3 questions, in fact. The first is to know whether you can give us your analysis on the competitive landscape, especially following the COVID crisis. My second question is to know with respect to green finance, if someone wants to buy an electric car, what would be the lowest -- is a green loan less expensive than for the same type of loan for a diesel or a petrol engine car? And weather the cost of resources, I believe you issue green bonds, right? And whether the cost of these issuances are less costly than conventional issuances? And I understand that you will be maintaining your current margins based on the successful diversification of revenue. Should we expect lower margins in 2021 to facilitate and anticipate turnaround in 2023? Or are you aware that you'll be having and maintaining stable margins across the period that is all the way to 2023?

[Interpreted] With respect to your last question, says Stephane Priami, we presented to you and explained to you this 3-year plan of ours, so I won't tell you more about that. And now as to the previous question, I think that Jerome Hombourger can answer it with respect to the market.

[Interpreted] Thank you for your questions, says Jerome. You know that the consumer finance market in Europe, let me focus on Europe here is based on 2 special models, the model we have for ours would be [indiscernible] on long distribution channel as universal as possible and a differentiating model very much focused on the automotive market. These 2 big models and all competitors took an impact with the COVID crisis. I won't say whether they do better or less. It will be your queue to say. What I can tell you is that we've maintained our market shares. We've maintained our market shares. We've even gained market share in France. We've gained market share in Germany. So we are -- against these competitors, we are building upon a very strong differentiator, which is customer servicing and close connections with our customers. Stephane said it earlier. Versus our competitors, competition will be won by way of customer service -- customer support rather than lower rates, lower prices. Our customers want partners. And what's new after this crisis is the demonstration of closer bonding, closer connections, seeing that the best performing partners are those who offer the ability to listen to customers, offering quick services, fluid services with the most innovative range of products and services and largest possible range of products and services with new purchasing experiences, and this will be the differentiator. Now you have new entrants. You have new players on very specific areas, affinity players like [ Laval ]or more digital players, more digital fuel players who want to expand into our territory. Irrespective of the new entrants in this market in Europe, their tendency is to be a universal player, playing along the same rules as we do with sharing best practice and offering the most universal range of products and services to the broadest possible customer base. So differentiator will be the servicing. And remember that our Consumer Finance model is that of Credit Agricole of having the most comprehensive model, being very good at digital technology. We showed you that, that's something called. We are good performers in digital technology and we want to add the close customer connections. We've done 380,000 moratoria. You don't do that when you don't have fully engaged and very close customers. This is the only viable, only sustainable model, we believe. And there was another question on green finance and green loans. Almost forgot it. Let me answer here. With respect to the terms and conditions, when we issue terms and conditions on green loans, there are several options. Either the conditions and terms are provided on interest rates or on ancillary services or options like a service being offered free of charge to facilitate the green loan and the green purchase. So when we go towards lower rates or ancillary services, we do that jointly with our partner. So it is really a tandem offer, trying to come up with the best possible solution, to have the customer buy the car with the right most appropriate loan. But it's a package. There's no mechanism for special refinancing for green products that Credit Agricole Consumer Finance. The green bond, part of things, you will see this with Credit Agricole Inc., how they manage that, how we manage that, but the Consumer Finance plays its role in this. Our role is to play with our partners to best -- to sell the product and the credit to push and promote green finance as much as possible.

[Interpreted] Next question. We do not have any more questions in French, but we have a question in English. Your question from the English line comes from Giulia Miotto from Morgan Stanley.

So a couple of questions from me as well. The first one, I'm interested to understand what sort of data do you collect from your customers that helps you understand basically their needs beforehand? And how does open banking help you? And for example, are you able to see which customers are on unemployment support and therefore could be most at risk, should the government withdraw the stimulus? So that's my first question. Then the second question on cost of risk. So I understand your guidance for the 3-year outlook, but in -- if we look forward 12 months, can we say that 2020 was a peak? Or do you expect potentially higher cost of risk next year if and when unemployment picks up?

[Interpreted] I will take these questions as, let us answer in French. Thank you for your question. On the type of data we collect to explain what type of data we collect to understand our infrastructure and our philosophy. At Consumer Finance, we invest in data, data collection and when we can use it, it is fundamental. We don't collect data if there's no need, client need or our own internal need to manage the business for cross-selling. We use data intelligence, structured data intelligence to enhance the type of management and the type of intelligence we get from handling the data. Now with respect to data, data management and data collection, we have business tools. We use a core banking system, which generates structured data. This structured data, we feed it into our [indiscernible] into our engines to do either the -- in anticipation of the customer needs to go for targeting, to go for segmentation. And we have DMP, data management platforms or anticipating contacts and contact points, whether they are weak or strong signals with a prospective client or an existing client on the way they have -- they want to structure their project. This data is being collected, being turned into structured data and feeds into an enhanced knowledge of customers, of customer journeys across distribution channels, points of sales. Mobile-first, as I said earlier, it can also be in the branch shares, it can be via forms. All these data is being reinjected into the process of systems along with the business applications and enhance our business knowledge. They serve, enhance the customer knowledge and they serve our ability to manage internally. So the data we collect are double types of data. These are business-related and service and project-related data. Under the data we retrieve from outside, having captured by way of our tools, by way of our partners, having captured data, which give us knowledge on the intents, the motives of the customer, strong and weak signal since you have data, which is cold or hot data, as Stephane mentioned, all this is fed into the data labs, data lake, which we've presented to you, which make it possible to work on origination for the data lake or for researching and creating innovation to enhance customer knowledge which is the data lab. Have I answered your question?

Is it possible, for example, for you to know whether someone is on an unemployment support scheme? So do you collect that type of data or not really?

Sorry. [Interpreted] Yes, we collect all kinds of data that help better understand who's the customer, what's their pathway and their behavior relative to a purchasing situation, who they are as individuals. As an element of a segmentation and what they do, how they do it. So what is their pathway. We have digital touch points, so-called economic data and behavioral data and other data, the interaction we have, which creates data -- these 3 dimensions: economic, behavioral and business line are combined algorithmically and predictively and are used internally to better serve the management of our customer knowledge. To draw a parallel with your question on risk, we have many data scientists at CACF in the various business units and also in the corporate center in head office and their usefulness is in looking at the data with 2 aims: the first one is a marketing aim, and the second aim is about drawing up, scoring and a high-performance awarding conditions. This is -- so how do we do our job? So 1 or 2 figures first. When you contact a [indiscernible] customer, for example, there's 70% odds that it be accepted and 30% that it be turned down. If you are on the web, where it's on a 50-50 basis. Therefore, we refuse many, many files or cases. We don't want to have our customers take risk or be in excessive debt or we believe it's not reasonable for them. So we are very demanding about the quality of the loans and credits we might take out and even more because we are part of the Credit Agricole than other institutions. So then what can we say for this year in this regard? First of all, as indicated by Valerie, we've taken a charge or provision for sound outstanding loans. So if there's a deterioration that comes along, we should be able to face up in the cost of risk this year. It's -- we have included this second figure I want to share with you is as of today, nothing leads us to think that there would be a risk deterioration. Every advanced or forward-looking indicators are green, 2 of them with regard to Argos. For example, it's true in Italy and in Germany as well. It's -- since September, the collection entry rate is down by 11% compared to last year, 11% fewer people who are part of collection and 5% more of people who move out of collection. So we have forward-looking or advanced indicators that are good than the future being uncertain. We are in a period that is complex. But as of today, nothing leads us to say that the risk is worsening, not at all. And in relation to unemployment, remember that in most European countries, those in which we have a business currently, there are tech, there are some unemployment incentives, if there are dismissals or in most countries in Europe, this is in place. So in addition, we are equipped to manage this kind of issue in normal periods, there are EUR 450 million of cost of risk. That's what we had in 2019, 2018. We are used to managing risk. It's part of our model at any rate. What I would like to stress here is that as of today, we have no advanced risk indicator that would make us think that we would deteriorate the cost of risk.

Your next question...

[Interpreted] Thank you for this very interesting presentation. I have 3 questions. First of all, on Slide 56, to come back to a previous question. With the reversal of provisions in the third quarter, you get the impression that there are no provision surpluses due to the COVID crisis. What matters is the training of Stage 3. So of all the forecasts about unemployment next year being what they are, don't you think that the cost of risk should be rising? Why would that connection with the unemployment rate that would deteriorate next year not work now on partners -- automotive partnerships? So to understand, the major size that you have in Europe, what is the strategic interest for Sofinco apart from cross-selling -- sorry, the interpreter does not hear everything. It's spotty now. And finally, on Slide 46, correct me if I'm mistaken, I don't understand why you show us the margin. I think the most important variable was competition and interest rates. Do you think that the pressure on your margin in France is worse than for your competitors? Now for the past 3 years, we see that pressure and it's difficult to compare the differences.

[Interpreted] Sorry, it was spotty for the translation. I will let Valerie answer your first and third question. Now regarding China. It's a question of point of view. We have a historical old partnership, which is [ unholding ] quite well, which is profitable and allows us to benefit from the Chinese growth. And as you saw, we have growth potential for servicing as well there. So in my view, this is something which is great for us. Valerie, please.

[Interpreted] Thank you. On this slide, you see the changes on a quarterly basis. I will not go over the details. Now in relation to your question in the third quarter, [ minus 100 ] I did not mention that during that period, we moved -- we put in place the new definition of defaults. So as a matter of fact, beyond the provision effect, there's a transfer bucket effect which is related to that. But if you look now at the cost of risk in the third quarter 2020 at [ 127 ] it is close to the third quarter of 2019 at [ 121 ]. If we put aside the scope effect with the new default implementation, we see that the operational indicators are good. And we have a wave of increased risk, which is in the second quarter during the health crisis. And at this stage, we are -- at the end of the moratoria, we have a good return to 98% across all the moratoria that were granted. Hopefully, it answers your question. Now on the margin. We've shown the decline in rates. It's the OAT curve. We could have chosen another one. We are saying that in the last 2 years, 2019, 2020, there's a sharp decline in rates to which we are exposed like the other major players, but with our resilient and diversified model, this decline in rates is very much softened, and we still have solid margins despite that lower rate environment. Certainly, there's a competitive environment, which is much stronger due to these rates, which is important in France especially. And on the business side in terms of diversification of our sources of revenues, and it has an impact by optimizing our refinancing cost. We want to be able to absorb that shock or dampen that shock.

[Interpreted] Anke Reingen, Royal Bank Canada.

[indiscernible] the presentation and taking my questions and apologies that we're asking in English. Just firstly, coming back on the question earlier from Lorraine about your 2023 targets. To be honest, I'm a bit surprised that, that pushed out in time, given all the initiatives they're targeting sort of like '22, where you're running at the 9-month stage. And I mean, you mentioned volume growth is lower, but are there any other factors why the profitability of the business slows down before it improves again in 2023? And then secondly, on the digital model, you said about 70% by the end of '21. I just wonder, given the current circumstances, do you think we will be looking at a much higher rate 2022? Or are there legal or procedural barriers that increases -- the digital percentage increases materially? And then just out of interest, what's your rejection rate for digital application relative to a nondigital application?

[Interpreted] Your first question. As I mentioned, there's a difference of 1 year, especially on the outstandings which related to the COVID crisis. So we're keeping up our 3-year growth of EUR 20 billion growth. It's the essential element in terms of the differential. Now with respect to profitability, our goal is to maintain it through different actions, especially offset that these eroding outstandings through other levers. We've talked about insurance in this regard, about servicing to other banks and the long-term leases, et cetera. And we are continuing and we are very efficient about this. We've shown it to you during the previous period through the cost-income ratio, controlling our expenses. And we were able to adjust very quickly to a change of the environment to adapt our structure and expenses during the crisis, and we controlled the risk, the cost of the risk. This is why we have 3-year ambitions, which are quite -- our goals, which are very ambitious to say the least. On the digital, if I understood your question, how to explain for such 115% growth and see if the differential wasn't done to technical or legal barriers. Let me tell you where we come from and where we got there. Now 4.5 years ago, we were about 15% or 17% of -- at the end of 2019, we are nearly at 40% and we want to be at 75% of digitized environment. Well, we broadened up as much as possible the digital element in a customer journey. Regardless of the entry or exit in this omnichannel, our customers go to their branch or they end through their phone or on a website. Whenever we can, we try to introduce an element -- the digital element to simplify the process, simplify the journey and make the experience smoother. But as you understood, we have physical journeys of our customers. In that case, they don't want to have a digital experience and we respect that. So at the same time, we provide support to the needs of the customers. There's a highly pushing element from us. And whenever we can add some digital element, but there are still places where the customer, for different reasons, will want to have a more traditional approach. And we expect that if we can do more, we'll do more. If we can do more, we'll do more. That's a message you should take away.

And the acceptance rate from personal application?

[Interpreted] The digital acceptance rate. I don't know if -- was it before, afterwards? I'm not sure I understood your question exactly.

Basically, how -- are you -- what's the difference? Are more loans rejected if they are requested via a digital channel or if it's going by a personal approach?

[Interpreted] As Stephane said, through the distribution channel, we have differentiated approaches, and this is what should be taken away in the explanation we can give you today. In other words, we pay attention, depending on the channels that we have based on our experience to have the right scoring model so that the awarding is as secure as possible. You will find differences physically or digitally or on the phone or full web, differences are related mainly to the customer segmentation. It may influence the digital. But once again, awarding scoring or the fraud scoring are put upstream to be able to justify and have the best onboarding with the customer. There are differences, as Stephane said, between the physical and the digital.

Your next question comes [indiscernible] Stefan Stalmann.

[Foreign Language] more retail or more dealer-orientated? And the second point relates to the -- to your overall managed loan book. I'm not sure if I missed that information in the presentation, but could you give a rough indication of how much of your managed loan book is actually funding dealers versus retail borrowers? And the third question goes back to your insurance business. There are various numbers in various places of the presentation. You mentioned one is EUR 1.2 billion insurance premiums. There's about almost EUR 600 million of premiums in [indiscernible] And I can back out that in CACF, it's 17% of revenue, so that's almost EUR 400 million. But how do all these things add up to each other and is there maybe a gap? And related to this, if you're generating EUR 1.2 billion of insurance premium in a banking business, which excluding insurance, is probably around EUR 2.4 billion of banking revenue, essentially NII and fees, that seems like a very large cross-selling ratio, lots of insurance revenue relative to the banking business. Can you talk a little bit about what insurance products you sell predominantly, and whether the client typically separately signs these insurance contracts or whether they are part of, let's say, [ RET ] products where you pay just for one product that includes an insurance component that may not be so visible.

[Interpreted] I'll take the first question on China. The Chinese operation is totally self-financed. The group [ CSF ] does not intervene on Sofinco. So it finances itself in the market with securitization with great success with conventional means, interbanking and the like. Richard takes over now.

[indiscernible] has the 2 wholesale and retail financing activities. The business activity is mainly focused on retail financing. More than 2,200 dealers that is being served -- that are being served by [indiscernible] in China. This is the first automotive market in the world. Forecast is more than 22 million cars being financed for next year. Let me also take the opportunity to say that this is the #1 market in the world for electric vehicles. Half of the electric vehicles sold in the world are sold in China. So to us, this is a way to learn. It's a great learning curve for the -- with this type of financing. Now the Chinese market still is predominantly an OEM market. That is a new car market, which means that the retail share of this new retail business will keep increasing with new sources for growth like the secondhand car model, which doesn't exist yet. So the more we go from a new car market to a second renewal market or secondhand car market, the more secondhand business will be a source of renewed growth in China. And the more services to retain, for example, to service and to retain customers will grow as a component in the business model.

[Interpreted] Let me take over, says Jerome, for the insurance part of your question. And some educational information on insurance mechanisms. We distribute a bit more than 2 million, 2 million insurance products. We collect EUR 1.2 billion in premiums and the split -- there is a split between what is done with the Credit Agricole internal insurance units. And next to that, you have revenues, revenues you capture and you keep. So it's basically a funnel approach. We have EUR 1.2 billion in premiums. And basically, you have a bit less than EUR 600 million NBI for -- and we capture revenues on the back of that, which shores up the NBI for the Credit Agricole Consumer Finance. With respect to the diversification and development of products, we have conventional insurance products. We have the creditor protection insurance, CPI. We had 80% of our revenues originating in this product. Now in order to support the needs and requirements of our partners and customers, we want to move into protecting people, protecting people, protecting property and goods, extending warranties in a car, services offered or insurance services offered in order to use a new smartphone, for example, after 24 months, after 18 months. This is an expanded range of services, which is being built up by other internal sectors of the group or by partners of the group moving away from the niche markets, which basically boosts the sources of income by way of so-called -- the penetration rate, that is how many insurance products and services can be sold to existing customers. And basically, in order to do that, we benefited from the fact that we are multichannel, multiple channels. You can approach and touch customers by way of several distribution channels, which means we can expect to increase the penetration rate in the future and reach the level that Valerie presented to you.

No further questions on the call.

[Interpreted] We do have questions in writing and Clotilde will read them out.

[Interpreted] Now we have a first question in writing from [ Adia Gabourey ] from Alliance. The question is, where do you stand in your partnership with Bankia. And the second question is that you've been emphasizing the component of partnerships in your presentation, but are you lacking a source of growth inside the group? Why go for partnership while you could be growing organically or internally?

[Interpreted] As to your first question, says Stephane Priami, remember that Credit Agricole Consumer Finance wants to have a strong presence in Spain for the 2 reasons we mentioned: number one, profitability and the Spanish model of consumer finance, which is good to us. And we want to have a presence in large territories. If we want to respond to international calls for tenders. We are very happy with this partnership with Bankia. It didn't start off at the best moment, of course, you will remember, but we delivered more than honorable results. Sometimes, Bankia approached [indiscernible] and made a clear announcement that they didn't want to be part of our SoYou partnership. Well, starting from that, we affirmed our need and desire to have a presence in Spain, and there are 3 options on the table that anyone would put on the table. The first option is that we put -- we handle SoYou in run-off mode if we can't find the right solution. The second option is to continue with SoYou on a standalone basis without the Bankia partner and making sure we grow and develop the business standalone. The third option is to find another partner, and we are looking at the 3 options, knowing that in parallel, we are getting organized to find the best ways and means of exiting -- of having Bankia exit the platform. So much for where we stand today with Bankia. The second question, can you repeat it on partnerships?

[Interpreted] Why would you go for partners, whereas you have a potential for growth internally?

[Interpreted] Well, partnership is the answer, provide immediate purchasing. When purchasing generates consumer loans, it generates upfront benefits and a huge upside. Let me take a simple example. You have a car dealer. If the car dealer offers the consumer loan, you're almost certain to get it. If you let the customer go home and shop for the consumer loan, you're almost certain that the customer will base his decision based on the existing market share. So it is in our benefit to have the greatest number of partners because the partners make it possible for us to take advantage of the moment of purchasing so that our consumer loan product is chosen.

[Interpreted] We have 2 questions from Jacques-Henri Gaulard from Kepler. One is to Jerome, I think. Thank you for this presentation, which was very comprehensive, says Jacques-Henri. He said that the medium-term plans for 2022 were pushed by by [ '20 to 2023 ]. Is it reasonable to believe that all of the strategic medium-term plan goals will be pushed back for the whole of Credit Agricole will be pushed back to 2023?

[Interpreted] Answer by Jerome Grivet, Okay. Jerome Grivet will come to the rostrum to make sure he can be heard loud and clear. Thank you for this. Well, indeed, the goals of Credit Agricole Consumer Finance are partly, as Valerie explained, are partly pushed back to 2023 instead of the scheduled 2022. And the goal, which is being pushed back is a goal relative to volumes. That is the outstandings, the level of outstandings, knowing that the profitability goals and target will be maintained. So we'll be delivering those by 2022. So as you can see, the impact of the crisis in 2020 has not been massive on Credit Agricole Consumer Finance despite the hard work and hard efforts we had to undergo to weather this very difficult time. So at the level of Credit Agricole group, there's no plan or no idea that we would be pushing back our goals as they were announced for 2022. Of course, we regularly review our financial landing and forecast. And if at some point, we believe there's a need to update investor communication, the market communication we'll do so. But today, we believe that the targets and goals which were published in June of 2019 remain current.

[Interpreted] Thank you, Jerome, for this. We have a second question by Jacques-Henri, which goes as follows. I am very impressed by the way you've been handling hot and cold data. What about your use of privacy regulations in the way you handle data, which will be a key issue for the next 5 years?

[Interpreted] It is of great importance for us because we are part of the Credit Agricole Group of Companies, and ethics and respect for the rules and regulations is mandatory. The Credit Agricole Group published a charter for using data, which is very specific and binding as a code. It doesn't prevent us from conducting our business because we have lots of leeway to do lots of authorized things, especially when you get the consent of our customers, which is the case when we take action within this charter. But you're right, the rules and regulations are continually changing and society and societies are continually changing, require and demanding more transparency and openness in the way personal data is used. But it's important in customer servicing to find always the best way and means to keep operating while respecting the needs and requirements of customers and abiding by regulations.

[Interpreted] If I may add to what you said, Stephane, we got structured in Consumer Finance on data governance mechanisms, which involve complying with GDPR rules, abiding by the customer rules and the internal customer rules because we have internal data and external data. So we have a business line with data managers, very clear rules of the game, an operating framework, and we have our data protection officer who is standing next to me. And to illustrate this point and to illustrate the point that it doesn't prevent us from conducting our business while conducting a modern way of doing business, Stephane mentioned that we're the first financial institution, by way of protocol measurement by Google and outside rating industry, to reconcile the offline and online customer journeys in full in [ anonymity ]. So when we're able to combine the right level of professional standards and the right data management tools, we can move forward in increasing the knowledge of the customer journeys while respecting the clients, Stephane said.

[Interpreted] Another question by Guillaume Tiberghien at Exane. He'd like to know if you could explain your vision for margins in the next 2 years with a balance between pressure due to low rates. And on the other hand, the improvement, thanks to insurance and servicing. Could we get an idea the compared value of these 2 effects?

[Interpreted] Yes, obviously, it's theoretical but very close to reality. Roughly schematically, these loans that can be amortized, I mean, in general, these loans have the lowest margins. And then the kinds of loans that have good profitability such as long-term leases or short-term car leases then systems of the revolving and you have [ 3x CB ] where profitability is not bad. Now the challenge is that we can leverage that mix of products and then we direct our customers. For example, this is why upsell is important. Someone who has something that is amortized, if we can offer him a 3x or long-term leases or a revolving because they need some flexibility, we should do so. Now the other challenge in terms of profitability is the other equipment, especially insurance equipment. The figure for Sofinco 20% of the net banking income comes from the insurance. Therefore, the insurance is very important. It shows the margin effect, which is not so strong, then especially if you spread it out over the 4 or 5 categories that I shared with you and on which we can play a bit.

[Interpreted] Now the very last question by our CBC on servicing. What is the kind of fees that you get?

[Interpreted] Jerome on Servicing. The chain of value, I will not describe it fully. We can do service providing where we manage on behalf of a third party, which we do -- we pay through fees. And at the other end of the chain of value is that we can carry these outstandings, which we do already where we carry that. And then we get all the associated remuneration, such as financing or the insurance equipment or other equipment products presented by Stephane earlier. So we're both on commissioning when we just managed the outstandings and provide expertise, especially for white labels all the way to the traditional remuneration with some in-betweens. So it's on a variable geometry basis. It's -- we can -- we listen to the needs of the partners really to carry this out.

[Interpreted] Since the questions are over now, very honestly, frankly, I would like to thank you for spending this time with us. Hopefully, we have been able to share with you the elements that are important for you and for your business. We have been very happy to be able to present the strategy of this company. We believe in it. We are very confident about Consumer Finance. The crisis had shown to what extent it was a modern tool to support the economy and households, and we are confident about our ability of being one of the leaders. Thank you very much for attending. [Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]