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

Good morning, everyone. Welcome to all our guests present today in Monroe as well as all joining us virtually. It is a pleasure to have you with us today for Crédit Agricole S.A. Investor Day hosted by Olivier Gavalda. Before we begin, let me briefly outline today's agenda. We will start with a 1.5 hour presentation, and this will be followed by 1 hour of our Q&A session. [Operator Instructions]. But without further delay, please join me in welcoming Olivier Gavalda, Chief Executive Officer of Crédit Agricole S.A.

Thank you, Cecile. Good morning, and welcome, everyone. I'm very happy to be with you today along with Jerome with Clotilde and the rest of the team. I stand in front of you today to share our ambitious vision for the future, not just for 2028, but for the years ahead. We are at a turning point and the choices we make now will pave the way to tomorrow's growth. So what are our main ambitions for the years to come? First of all, we want to be a leading bank in Europe. We are already one of the biggest players on the continent. We want to make the most of it. We want to leverage our presence in several countries. We want to act as a consolidator of the European banking market. And I guess you are all aware that we are highly attentive to what happens in the Italian market. If we were to be approached by Banco BPM for a combination, we would view this very favorably. But in no case, we would accept to sell Crédit Agricole Italy for cash. We are a long-standing player in Italy, and we are committed to continue supporting our 6 million Italian customers. Beyond the Italian market, we want to be not just a bank in Europe, but the bank for Europe. Secondly, we want to lead in new technologies, not just using it, but mastering it to enhance security, improve efficiency, personalized services and create entirely new possibilities for our customers. We will innovate while staying true to ourselves by adding a human age to the digital excellence. The third and the last, we aim at staying the leader in transitions. We have always guided society through big changes. Environmental, social, demographic shifts bring challenges. They also bring the opportunities. We are determined to lead the way. We will not leave anyone behind. Our universal banking model works for everyone from small households to huge companies, we will democratize solutions for all. As you can see, we are a conquering bank one that broadly expands its horizon and seizes new opportunities. This is not just about growth for growth's sake, but about creating value for our clients, our shareholders and our communities. These long-term ambitions drive us to establish 3 major targets on my side for 2028. The first, expanding our client base to reach 60 million customers, allowing our business line to equip them with more solutions. The second generates around 60% of our revenues out of France with a stronger footprint in Europe and beyond. And the third, achieving operational excellence with a cost-income ratio below 55%, demonstrating both our efficiency and ability to deliver high profitability. These highly ambitious targets reflects our commitment to build an agile, performing and client-centric Crédit Agricole to ensure a sustainable growth. We have every quality needed to succeed. To start, we have a solid roots and a meaningful Raiser that puts clients and society first. This is not just talk. It is our DNA. Our mutual and cooperative history as well as our very stable shareholder base allow us to contribute short-term profitability and investment for the long term. In today's volatile world, having such strategic long-term vision is a genuine competitive advantage. It also positions us as a natural investor in innovation and as a consolidator of our industry in Europe. Secondly, we benefit from a decentralized model. It fosters efficiency, thanks to a precise management of both cost and performance at the most granular level. It also allows us to adapt quickly to new context. Contrary to many competitors, we make decisions at the grassroots level exactly where our clients and their needs are. This proximity enhances our understanding of local markets and fosters innovation. That's also why our entities made more than EUR 19 billion of acquisition during the last 10 years. Identifying business opportunities and making synergies at all levels of our organization is a fundamental strength. Decentralization also creates a sense of ownership and responsibility among our employees, stimulating their engagement and creativity. This is another major strength we have, highly committed employees. We are in the first position among French banks in terms of employee engagement. People are the backbone of everything we do, and we are proud to attract talent from all over the world. Last but not least, the Crédit Agricole Group universal banking model is highly powerful. Thanks to this model, we are solid and diversified with already 54 million clients and 8 business entities among the leaders in the European market. Our group is highly resilient and relies on solid financial fundamentals as demonstrated by our leading position on CET1 in Europe. This enables us to absorb shocks and keep going. This model steadily delivers results. The growth of our revenues surpassing European banks over the last 10 years demonstrates our high capacity to generate growth over the years to come. For all these reasons, we are in position to consolidate to lead and to shape the future of banking. As you may have understood, I hope, we will realize our ambitious goals for 2028 and set the foundations for the years to come by capitalizing on these strengths. We will also achieve it by implementing a clear and focused strategic plan with on 2 fundamental pillars. First pillar, acceleration. We will expand on playing field both geographically and into new business domains. We will tap into new markets. We will diversify our service offerings while leading the way of transition. Second pillar, transformation. We will move faster and better perform. How? By optimizing our IT and processes, by embracing digital innovation and by becoming more agile across our whole organization. This will make us more efficient, more adaptable, better able to meet changing customer needs and market demands. Together, these complementary pillars will propel us forward. They will help us to reach our ambitious commitments. That said, it's time now for me to give the floor to the team. They will provide you with more details on the implementation of the first pillar, acceleration, and we will start with our retail banking activity in France, where the objective is to gain market share. Please welcome Gerald Gregoire, Deputy General Manager of Crédit Agricole S.A. in charge of Customer Development and Innovation division; and Serge Magdeleine, CEO of LCL. Thank you.

Good morning, everyone. First, I would like to remind you that Crédit Agricole has been the largest French retail bank for years. And obviously, we have the intention of expanding. To illustrate our leadership, we have in France, 32 million French customers, and our group issues 1 out of 3 mortgages in France. As impressive as these numbers are, we know that we haven't tried maturity in our market. We know that we can expand and we can grow because our value proposition continues to increase and renew. For example, as you know, in terms of renewable energy and accompanying our clients as a hedge. As we increase our contact points, particularly with digital, this gives us more opportunities to better serve our clients and attract new customers. As an example, we have almost 11 million clients who use the app daily, and the LCL hub is used by 3.3 clients daily. During our strategic plan, we expect to add 8 million new clients. And in order to go later, we have decided to better articulate the positioning of our 3 banks, Crédit Agricole, LCL and BforBank. First, the regional banks, which have a close link with the territories where we are present, present for 1 out of 3 French person, present for 1 out of 3 small businesses and corporations and obviously, for 8 of 10 farmers. We are a French universal bank, responding to all the needs and serving everyone. And we have a specific ambition, making our universal bank for all to the universal bank for each. We wish also to continue cultivating the distinctive dimension of our value proposition, the broadest and deepest in the market. And we will continue to facilitate and develop digital touch points with our clients while maintaining access to human advice for important operation for our clients. In a few words, our customer promise is buy side all the time for what really matters, for example, for support for all housing projects and retirement planning. So now I will hand it over to Serge, who is going to speak about LCL positioning.

Thank you, Gerald. Good morning, everyone. It's a real pleasure to be here today to share a new chapter of LCL story that fits with the brand complementarity Gerald has just presented here. LCL's new story is built around a clear ambition to be the bank for all those who take initiative and who move forward. At LCL, we believe banking today is not no longer defined by age, by income or by background. It is defined by attitude. It is defined by the will to act, to build, to create, to move ahead. Our mission is simple: to be the partner of everyone who undertakes something in life, in work, in business. And to deliver on that mission, we are reinventing the way we serve our clients with a new 3-tier relationship model designed around their expectations and the level of autonomy. First, we are introducing a 100% digital self-care offer for independent tech-savvy clients who want a smooth, simple and fully online experience. They value autonomy, speed and control, and we will give them exactly that. Second, we are strengthening our premium offer directly in line with Crédit Agricole DNA with a dedicated generalist adviser who knows the client personally, follow them over time and provides truly tailored advice. It's a human high-touch experience for clients who expect more from their bank. And third, we are creating a hybrid model, bringing together the best of both worlds, a local team available in branch for daily banking needs and specialized experts on our remote platforms for more complex issues like lending or investment. This is banking that's flexible, efficient and seamlessly connected. With this triple offer, every client can choose and I insist can choose the relationship that fits their life, digital when they want autonomy, human when they need support. This is how we make LCL more agile, more digital and more relational than ever before. It's how we become the bank for all those who move forward from students taking their first steps to entrepreneurs shaping the future. At LCL, we are building a bank that moves at the pace of those who act because when our clients move forward, so do we. And now BforBank, our digital bank. As you know, we recently decided to reunite BforBank. And now our acquisition customer is now in line with our provision with 200,000 new customers this year. And to further strengthen its complementary with our regional banks and LCL, BforBank is accelerating the development of its innovative savings and investment offering, leveraging more than 15 years of expertise. After having presented the complementary positioning of our brands, now it's time to speak about the way in which we will work to significantly attract our 4 strategic segments. First, the young clients; second, affluent customers; third, agriculture segment, professional, small and medium businesses; and fourth, mid-cap companies. First of all, in the youth market, which is essential for renewing our customer base, we will launch a new and disruptive approach that meets the trends and habits of our youngest clients. Our value proposition will be 100% mobile, mobile community-based and driven by proactive AI. We want to be the leading bank for young people. At the same time, LCL recently launched a dedicated app for MNF to offer them a different experience while offering protection to their parents. Let's jump to the second column on the slide. The affluent market ranging from mass affluent people to high net worth is growing fast in value and in diversity. The recent development of independent advisers network shows the need for new initiative offers. To support affluent customers' projects, Crédit Agricole Group will join forces to develop a globally coordinated expertise, providing access to the best solution for our customer needs. We will make exclusive investment solutions available, including fully digital advisory management and private assets. Our ambition on this segment is to reach plus 1 million gross customer capture. Regarding the professional and SME market, we also aim to attract an additional 1 million clients. We are confident that this goal will be achieved if we address our clients' entire value chain, going beyond financial services. For example, through our different business lines like [ Collector ] for management services, call in Merchant Payment solution or our new offer, the Human Resources Bank that coordinates the value proposition of our different business lines, Crédit Agricole Assurance, Worklife and Amundi in terms of employees offerings. The last strategic market where Crédit Agricole Group aims to strengthen its position is the mid-cap segment. In France, mid-cap companies, so-called LTE account for 1/3 of corporate revenues and value added. The group has a strong foothold with over 30% penetration and nearly 22% market share in credit outstandings. The position needs to be strengthened in becoming the trusted banking partner of this mid-cap. We have a clear ambition. We want to have 1 mid-cap out 3 choosing Crédit Agricole Group as their trusted bank in France, leveraging the following drivers: First, joining forces for coordinated client approach between LCL CACIB and Crédit Agricole regional banks, I mean, creation of client teams, alignment of commercial strategies and establishment of a dedicated coordination and engagement unit within Crédit Agricole SA, then deploying our cash management expertise and strengthening our equity financing solutions nationwide through the creation of AS corporate advisory. Thank you for your attention.

Thank you, Gerald. Thank you, Serge, to present the new growth opportunities that we aim to create in Europe. Please welcome Hugues Brasseur CEO of Crédit Agricole Italy; and Stephane Priami, Deputy General Manager of Crédit equalize in charge of International Banking and Sales division. Thank you.

Good morning, everyone. Let's begin with Italy. We still have a huge space for organic growth on our second domestic market. In the meantime, we can accelerate and improve the amount of synergies through all the products factories in Italy. Our 2 key targets are focused on 2 main key figures. The first one is a growth, growth of our portfolio of clients, reaching a portfolio of EUR 6.5 million, which means to be close to 1 Italian out of 9. Today, we are already more than 1 Italian of 10. The second one is to contribute at least for 20% of the global income of Crédit Agricole SA. To meet these targets, we want to strengthen customer capture, focusing on individuals through Crédit Agricole Italia, Agos and [indiscernible] Bank. on individuals with high potential through Crédit Agricole Italia, Amundi and Crédit Agricole Insurance. Finally, also on professional and corporate with CACIB. We are going to develop a specific digital platform for professionals sign the still space to become market leader on this specific topic in Italy. To achieve this, we're going to capitalize on our digital platform, our leading bank. Moreover, we are recently starting an ambitious plan of cross-selling on our portfolio of clients across all business lines to increase synergies. To achieve this, we're going to leverage on a few key drivers. The first one is clearly the better use of data that we are going to share across entities. Second one is based on a better efficiency of the distribution channels and the product offering. Today, Crédit Agricole brand is considered as one of the most recognized in the market. We are a leader in the different surveys, ranking #1 for client satisfaction and among the best for digital app. As a group, we want to reach a strong, attractive and long-term positioning. In the meantime, we remain attentive to external growth opportunities.

Thank you, Hugues. Good morning, everyone. I'm very happy to be here today to discuss about Crédit Agricole's growth in Europe. To begin, let me remind you that Crédit Agricole have a strong presence in Europe still and yet, generating 40% of its revenue, European revenue outside France, and we manage 15 million clients in Europe. This European footprint has 2 origins. The first is our leading product factories like CACIB, Amundi, Crédit Agricole Personal Finance Mob, but also all the producers of the group. We operate, for example, for Crédit Agricole Personal Finance and Mobility in 20 countries with banking license in every country and a large base of clients. We are also present as a universal bank in 3 major country in Europe, Italy, but also Ukraine and Poland. So our strategy for Europe is to leverage this strong European presence and to seize the opportunity of the market, the European market and the growth of the European market. We want to build this approach on our existing presence and to end with a new initiative. First, we want to continue to push all our business in Europe. And we want to create 2 new things. The first is to launch a platform, digital platform for savings and deposits. This platform will be cover 8 countries and we will want to start in Germany in Q2. Our ambition with this platform is to reach EUR 40 billion of saving on deposits. In the same idea, we want to expand our digital offer Blank for professional. It's a platform for professional working very well in Italy from 1 year now and to make this platform as an offer for all European countries. And after we wanted -- we want to expand this platform, professional platform to agricultural sector for serving make a best servicing for farmers. Second initiative, we want to create Crédit Agricole Deutschland by aggregating all our existing presence and to enhance with a new project. For a reminder, in Germany, it's 1 million customer now and notably through Crédit, our loan company in Germany. And we manage EUR 11 billion of loans, consumer finance and automotive loans, but also EUR 15 billion of savings and deposits. It's a huge starting point. And we want to enhance this position with the new platform I presented to you, platform for saving and deposit, platform for professional platform for all agricultural farmers and also day-to-day operation, banking, day-to-day operation with our technological platform BforBank. We want also to unify the customer base because it will be very important if you want to make cross-sell and upsell. We plan a launch in Q3 '26, and we want to reach 2 million clients in Germany. Following this launch in Germany, we will pursue expansion with additional countries where the Crédit Agricole has an established presence. Our ambition for Crédit Agricole in Europe is very strong, but it's because it's built on solid foundations. First, digital expertise, digital and data. As you know, Crédit Agricole Personal Finance and Mobility and BforBank know very well all the technology for digital and data management. But we have also all the support we will have all the support of the group as our product factory in savings, insurance and in reality in all core businesses. And just, but it's very important, we have a presence in Europe, a very strong presence, as I've shown to you. We have customers, we have clients. We have team very committed. And we know very well the market and the deep foundation of each market, notably in major country like Germany. So as a conclusion, let me say to you that all the Crédit Agricole teams will be fully committed to accelerating our European expansion. Thank you. And now I leave the floor back to Hugues.

Thank you, Stephane. I'm going to talk once again of growth and mid-corp because we want also to develop new [ terries ] of growth on rep and mid-caps by exporting new know-how. Our goal is to capture at least 200 additional strategic mid-cap clients out of France. We want to support the reindustrialization in high stakes regions and sectors. 2 pillars. The first one consists in leveraging the group's areas of excellence in Europe's strategic sovereignty priorities. It means agri-Food, defense, tech and energy. We already know that at least EUR 1,500 billion are going to be invested in the coming years. The second one is to focus on regions with strong trade flow and to support the future reconstruction of Ukraine. In fact, 2 specific triangles. France, Italy, Germany and the second one, Germany, Poland and Ukraine. And this represents 3,000 mid-caps and 60% of GDP. How are we going to be successful? We are going to implement a pan-European approach by creating a European coordination structure, by defining strategic ambitions on the mid-cap market in each country where the group's investment bank is present, by extending our setup to key countries without a universal bank presence, starting with Germany and finally, by developing synergy across all business lines operating locally. Thank you for your attention.

Thank you, Hugues. Thank you, Stephane. The next presentation will deal with how we want to strengthen our presence in as well as extend our product range and footprint. To develop these points, please welcome Jean-François Balaÿ, CEO of Crédit Agricole CIB. Thank you.

Ladies and gentlemen, good morning, everyone. Let me begin this section highlighting that Crédit Agricole Group has been present in the APAC region for almost 150 years. Our ambition is to accelerate regional insuring. Asia is one of the fastest-growing wealth management markets, and we want to address this growing selling pools. First, with Amundi, leveraging on our new partnerships with asset owners and wealth managers, but also expanding the existing joint ventures in India, in China and also in South Korea. Second, with Indosuez, which benefits from a strong brand recognition in the region by strengthening its capabilities and expanding its investment solution for ultra-high net worth individuals, but also investment professionals. This especially in Southeast Asia. For CACIB, we also want to leverage our footprint in the region with all of our clients, be it large corporates, financial institutions or sponsors. We intend to grow on the back of our global leading franchise in real asset sectors such as infrastructure, project financing, telecom, power and et cetera. In all those sectors, we intend to support our clients in the energy transition. Our capital market capabilities are also at the forefront of our growth ambitions with our ability to raise liquidity for the group and also provide market solution to all our clients. We are also extending our offering to new geographies. For example, CACIB's ambitions in the region are twofold. First, continuing the development of the Follow the Sun model with the Malaysian platform. Second, opening a commercial branch in Singapore to broaden our services to clients. Then to summarize, the ambition of the group in the APAC region for '28 are very clear. Amundi targets EUR 150 billion in net inflows. CACIB aim at a dynamic expansion with a CAGR growth in excess of 5.5% and OFZ targets EUR 20 billion of assets under management. The second strategic priority I will present is the expansion of our playing field. We definitely want to continue expanding our product range and footprint. The private Crédit segment is growing fast. It increased by 50% in the last 5 years, mainly in the U.S., reaching USD 3 trillion globally early '25, and it is expected to reach circa $5 trillion by '29. We are naturally sizing the potential of opportunities in this market. There is a strong client demand for private assets. Here is how we want to benefit from this situation. First, Crédit Agricole Assurance is accelerating its investment in private assets to enhance the yields offered to their policyholders. Second, Audi and Austria Wealth Management are positioning themselves as leading players in developing investment solutions for private and institutional clients, contributing to the democratization of private assets. In that respect, Amundi just announced this morning a strategic partnership with EC, a European leader in private assets. The partnership includes a 10-year distribution agreement, giving Amundi's clients privileged access to EC's expertise and wide range of strategies. Amundi and EC will develop joint offerings designed to provide wealth clients with access to private assets. Finally, CACIB, thanks to its leading franchise in real assets, is originating real assets, matching investor appetite and also providing enhanced support to hedge funds -- funds, sorry. We are also accelerating our development in payments, collection and cash management solution. That means, first, integrating technological shift in our commercial offers to meet market demand. Second, developing nonfinancial payment services. I will give 2 examples. One, with SCO, which is a strategic alliance between Crédit Agricole and Worldline; two, with Crédit Agricole on electronic invoicing. Third, continuing upgrading our platform on cash management to deliver best-in-class products and services in France and in Europe, leveraging on blockchain technology when relevant. Then to summarize, our ambition for '28 in these areas are: first, doubling card payment volumes versus market growth; second, increasing by 20% transfers and direct debit volumes. Thank you for your attention.

Thank you, Jean-Francois. Thank you very much. We now come to the final level of the first pillar acceleration, which is about transitions or types of transitions. And to present it, please welcome Eric Campos, Chief Sustainability and Impactful Officer; and Nicolas Denis, CEO of Crédit Agricole Insurance. Please welcome.

Ladies and gentlemen, in 2019, Crédit Agricole made a major strategic choice to become a key market maker for supporting the world transitions. Today, I will present how Act 28 amplifies this ambition by shifting from a sustainable economy to a regenerative economies with ambitious quantified targets. Our 2022-2025 plan structured our action around 3 fundamental pillars: transition towards a low-carbon economy, social cohesion and inclusion and agricultural and agri-food transitions. This strategy has demonstrated that the financial institution can be a true driver of societal transformation, and these results speak for themselves and position us ideally to accelerate further. First, we strongly reaffirm our commitment to keep on continuing our commercial activities in line with the 2050 net zero trajectories issued and publicly disclosed in 2023 and 2024. In 2025, we are taking a decisive step forward. We are willing to move towards an economy that regenerates rather than simply reducing negative impact. Our quantified commitments reflect this ambition around 3 strategic pillars: leadership in the ecological transition economy with a green-to-brow ratio of 90:10 for every euro financing fossil fuels will finance 9 in the ecological transition by 2028. EUR 240 billion in outstanding commitments dedicated to financing transition by end '28. And 2 strong initiatives for green businesses, launch of the climate and Nature forces, which is a network of internal expertise to develop innovative method and computation for climate and biodiversity, launch of critical natural capital initiatives, which is a pioneering program to design natural-based solutions and ecosystem restoration. Second, intensification of the inclusive economy, 600,000 homes retrofitted for energy efficiency by 2028, ensuring a just transition in all territories and developing financial product accessible to all. Third, support for territorial growth sector, supporting local innovation, strengthen local reindustrialization and support the agreed transition with an objective of EUR 1 billion in revenues from sustainable finance. These figures illustrate our commitment to the real economy an economy that creates sustainable employment, for example, its retrofitted home generates direct activity in close geographies, an economy that delivers tangible transformation, EUR 240 billion financing the transition on the ground, an economy that generates shared value, EUR 1 billion in revenues proves that transition goes hand-in-hand with performance. We believe we are not just traditional financial player. We are a low-carbon energy strategist with a green-to-ground ratio of 90:10 in 2028, a trusted partner for local and economic ecosystem and a catalyst that places people at the heart of every decision. Our conviction is clear. Finance can and must be a tool for economic, social and environmental development with Act 28 plan. Crédit Agricole confirms its pioneering role in Europe. Our 25 targets demonstrate that regenerative finance is not only necessary but also create sustainable value for all our stakeholders. Thank you for your attention.

Thank you, Eric. Good morning, everybody. As Eric Campos explained to you, we aim to prepare the world for the next generation. Indeed, the world is changing. We are entering the demographic winter. Demographic aging is one of the greatest challenges of our times, reshaping economies, societies and the way we live. As a leader in savings and retirement across Europe and France, Crédit Agricole carries a major responsibility to protect, empower and support both its clients and society in navigating this deep transformation. Let me share you a few figures to illustrate this issue. First, globally, the number of people of 60 will double by 2050 compared to 2020 and those over 80 will triple. Second, in France, 1/3 of the population will be over 60 by 2030. Demographic aging accelerates wealth transfers, strength public systems and creates new demands for quality of life. In face of this demographic challenge, Crédit Agricole is committed to being a source of support and security for its clients, guided by 3 key pillars: securing asset transmission first; second, reinventing retirement; and third, fostering healthy aging. So first pillar, wealth transfer. In France, over EUR 3 trillion is expected to change hands in the next decade. To ensure this transfer happen securely, we are focusing on the following levers: strengthening family relationships within our bank networks, digitalizing all the client journey, developing tailored transmission solutions and of course, engaging all our private banking advisers. Our aim is clearly to become the trusted partner for this intergenerational wealth transfer. So now let's speak about our second pillar, retirement savings. As you know, the demographic transition is putting strong pressure on pension systems, especially in France. Thus, a recent study conducted by Crédit Agricole Assurance in partnership with EFO highlights growing public concern with 73% of respondents in France expressing deep concern and skepticism about the current system. In this context, our approach combines different principle by geography. Across Ral Europe, first, we will deliver events solutions for all public and private pension schemes. This is key for Amundi strategy, and that's why Amundi has created a specific dedicated business line. In Italy, we'll accelerate growth with new offers tailored for individuals and corporate with Crédit Agricole Italy, Crédit Agricole Vita and Amundi. In France, we will strengthen our leadership in individual retirement saving with the payer. It will come with seamless physical approach, offering clients to engage either digital journeys through mobile first or be supported by their banking adviser. We will also accelerate through collective retirement offers. We developed a specific approach called La Banque, the Human Resource Bank jointly with Crédit Agricole Assurance and Amundi with specialized banking adviser in our banks. We want to become a leader both in individual and group retirement planning in Europe. This ambition comes with 2 clear goals: become the indisputed leader in group and individual retirement outstandings in France and specific for Amundi, achieve more than EUR 75 billion in net inflows across Europe. We are living longer and the issue is also to be aging well, which is our third pillar. We are committed to supporting seniors and caregivers at every stage of the life by designing health insurance solutions tailored to seniors and retirees, ensuring a smooth transition to individual coverage at retirement and expanding Crédit Agricole [indiscernible] built on 2 strong access, access to health care and healthy aging in all our territories in France and create innovating leading solutions such as senior co-living with family and dedicated caregiver support through Pacifica. As you understand, our success relies on the perfect balance of proximity, expertise and innovation powered by the strength of our group and a strong synergy between the banks of the group, Crédit Agricole insurance and Amundi. It's a question of trust, of caring and of protecting. Thank you for your attention.

Thank you, Eric. Thank you, Nicolas. It is time now to move on our second pillar of the project, of the plan, transformation. For this, please welcome Gregory Ephelin, Deputy General Manager of Crédit Agricole S.A. in charge of Transformation, Human Resources And Transition division; and Olivier Biton, Director of technological transformation of Crédit Agricole. Please.

Good morning, everyone. We are now going to talk about transformation. Transformation of our industrial, technological and HR approaches in order to reach the ambitions and the targets for 2028, but also to prepare for the future. I would like to emphasize 3 critical challenges that we define about transformation strategy. First, speed, speed and speed. In today's fast-evolving financial landscape, speed is not just an advantage, it's a necessity. We are committed to significantly accelerating our time to market, ensuring that our innovations and solutions reach our clients faster than ever before. Second, efficiency. Efficiency is at the heart of our transformation. We are implementing robust value-driven management practices, focusing on optimizing our processes and resources. By leveraging data, technology and streamlined governance, we aim to maximize value creation and operational performance. Speed, efficiency and finally, strategic autonomy and core in Europe. Our strong European roots are unique assets. They employ us to pursue strategic autonomy, ensuring that our decisions and innovations are aligned with the interest of our clients and communities across Europe. This autonomy is essential for safeguarding our independence, fostering resilience and supporting the long-term ambitions of the group in a rapidly changing geopolitical and regulatory context.

Good morning. So now to support speed and efficiency, we will launched group-wide industrial capabilities powered by advanced technology. As you might know, Credit Agricole stands as a major technology player. We dedicate more than EUR 5 billion per year to technology. Our strength lies in our ability to empower each business line with significant autonomy, including, of course, IT resources. Yet as data and AI become strategic imperatives, we've decided to equip the group with new cross IT capabilities that will serve all our businesses. We are launching 2 key initiatives. The first one will be a group-wide data marketplace. This platform will accelerate data sharing between all entities, breaking down silos and enabling every part of the group to leverage the full value of our collective data assets. The second one will be an AI factory. This initiative will provide AI assets and tools to all entities, allowing them to focus mainly on adopting AI in business processes. However, our ambition goes way beyond transforming processes with AI. We are committed to bringing every member of our staff along in this journey. We will provide training for all our colleagues and equip them with AI assistance tailored to their roles, ensuring everyone benefits from these new capabilities. This will reduce administrative tasks by 20%, allowing our teams to focus on delivering greater value to our customers.

But beyond serving the needs of our entities, these new technical capabilities that Olivier just presented are also the bedrock for new high-impact growth initiatives. We have decided to create a dedicated business line of focus on digital trust that covers solutions, that guarantee stakeholders' reliability, propose secure digital identity solutions and digitalize business processes in a trustworthy manner like electronic signatures, for example. This new business line will serve the group's entities in an industrialized way and where relevant, extends the services to the broader market. Digital trust is a critical issue in Europe and Credit Agricole, as a trusted third party has a unique role to play in setting the standard for security, privacy and reliability in digital interactions. The second initiative concerns the group KYC platform. In response to rapidly evolving regulatory requirements and the growing importance of digital identity, we are developing a group-wide KYC platform. This platform will guarantee that we can deliver on our promise of digital trust to clients while also driving operational efficiency in compliance processes. These new cross-functional capabilities are just enablers for our entities. There are strategic assets that position Credit Agricole as a forefront of digital trust and regulatory excellence, supporting both our clients and our operational ambitions.

So now on this slide, you can see that the subtitle states that we want to be more agile, more efficient and responsive. That's quite a program. In fact, cost efficiency is a key driver of speed by ensuring that every euro we invest delivers maximum value, we empower our project teams to make better decisions, simplify both our products and our technological ecosystem. We will also continue to consolidate our infrastructure to make sure that our technological backbone remains robust, scalable and cost efficient. But to truly accelerate our time to market, we must also focus on the earlier stages of the project cycle when new solutions are being designed. We have already implemented large-scale agile transformation within our IT teams. What we will do now is extend these agile practices to the business teams that are the most impacted by these transformations. Our ambition here is clear. We want to cut our time to market in half.

And to act faster to improve performance and accelerate our time to market, we also need to instill a lasting culture of simplification. In today's environment, all banking groups faced intense regulatory pressure and a growing complexity in their operating landscape. Without a continuous effort to simplify, the necessary mastery of risk can result in added complexity so that weighs heavily on our teams and ultimately reduces our performance. That's why the group general management here is fully committed to simplification. Embodied in our plus 1, minus 1 principal, every new process or requirement must be balanced by a corresponding simplification elsewhere. To give you some examples. That means you create a new committee, you can sell another committee. You want a new report, you [ read it ] another one. You create a new offer, you can sell an old one that no longer fits customer needs and so on. It's simple, but very demanding. This discipline ensures that we do not allow complexity to accumulate and that our teams remain agile and focused on value creation. We are also questioning the way our support functions operate with a dual aim of improving performance across the entities and above all, enabling the 20,000 staff in this world to be even more effective in supporting those who are directly serving our clients. By making simplification a core management principle, we are safeguarding the benefits of our transformation efforts and empowering all our teams to deliver their best for the group and its clients. We have talked so far about the industrial and efficient approach of transformation. I will now say a few words of our organization to support innovation. As you know, at Credit Agricole, innovation is embedded in every business line in a decentralized approach. However, certain topics require a different or more coordinated approach. That's why we continue to capitalize on 2 main types of structures. First, we will further develop our startup studio La Fabrique, which has already given rise to breakthrough start-ups and disruptive offerings that reinforce the group's development. And second, we'll amplify the development of services offered to third parties outside the group particularly in technology. Amundi Technology is the most emblematic example of this strategy, providing innovative solutions to institutional clients and strengthening our position as a technology provider in the financial sector. When it comes to tokenized finance, we have decided to strengthen the strategic coordination of this topic, which involves many subsidiaries of Credit Agricole S.A. We have capitalized on the MiCA approval obtained by CACEIS as well as the expertise of CACIB and Amundi to accelerate our development in this field. This coordinated approach will enable us to offer a comprehensive range of tokenized financial solutions, meeting the evolving needs of our clients while respecting our duty to advice.

Okay. So let me turn now to another critical dimension of our transformation, how we will strengthen risk management while driving greater efficiency. On the left of the slide, we mean that by harnessing advanced data analytics and artificial intelligence, we are enhancing our risk controls. And at the same time, we want to reduce the operational burden on our teams. This enables us to achieve a higher level of risk mastery with better efficiency. When it comes to IT risk in the middle of the slide, our commitment to investments remains unwavering. Resilience must be continuously reinforced in an environment where the risks are constantly evolving and accelerating. For example, cyber threats are increasingly leveraging new technologies like Gen AI to attack. And of course, we are equally determined to use these innovations to defend. Another key priority mentioned here is ensuring that our standard and controls are constantly applied to our key suppliers. This is major to guarantee that and our end-to-end security. On the right of the slide, as Gregory highlighted in his introduction, reinforcing our policy in strategic autonomy will further strengthen our resilience in this uncertain environment. But at the same time, we want to emphasize that it presents a tremendous opportunity for Credit Agricole to contribute to the development of the European technology ecosystem both through our technological choices as a customer and through our investment capacities. To conclude this part related to our second pillar, transformation. It's essential to reaffirm that people are at the core of our model and our transformations. At a time when everything is accelerating and some predict the dehumanization of society, we are making the opposite choice. Our global talent pool is exceptional, and we are convinced that our future success depends on our ability to support and empower our people. First will be at the heart of this ambition. We'll carry on our empowerment approach into simplification initiatives and sustainable development. Also, we have decided to focus on developing our staff's skills while mapping target skills and corresponding training strategies, for example, to lead our digital transformation and also to support our international business growth ambition. As you know, Crédit Agricole culture is our strength. Our collective and team spirit, our strong universal values and the way we all focus on servicing our clients while embarking societal priorities is at the heart of our project. We shall nurture our collective spirit and enhanced sharing on a global basis. We have identified the opportunity to share our flagship location, a specific place where our staff will meet, share, collaborate with trust and enthusiasm demonstrating our cohesion across different expertise and geographies. By putting people first, we are ensuring that our acceleration and transformation are both sustainable and meaningful creating value for our clients, our employees and the group at the world. Thank you all for your attention.

Thank you, Gregory. Thank you, Olivier. Now it's time to assess the figures and to translate these ambitions and these action and welcome Clotilde L'Angevin, the CFO, the Deputy General Manager in charge of Finance and Steering. Come on.

Hello, everybody. I'm very happy to be here with you. So to reach the strong development ambitions that have been outlined here, we're going to build upon the strengths of the group. And besides our diversified and our universal development model, we can also rely on a strong capital and liquidity position for the group Credit Agricole. With our CET1 ratio at the level of the group at 17.6%, we are the most capitalized of European G-SIBs and we have a margin of 770 basis points above the SREP requirements. We are going to commit to stay above 17% throughout the plan. And this is made possible by the group's ability to retain 75% of its earnings. And we're also confident on our ability to maintain our CET1 ratio above 17% beyond 2028, thanks to our capacity to generate capital, including the CRR3 regulatory impact, I'm thinking about the output floor. TLAC ratio will be around 27% excluding eligible senior debt. And this strong group capital position is going to allow CASA to operate with a lower level of capital, as always, particularly thanks to the solidarity mechanism between the Crédit Agricole network members and also to our demonstrated capital circulation capacity. The liquidity position of the group is also very solid. We have stable, granular and diversified customer deposits. We have high liquidity reserves, and we have LCR and NSFR ratios that are very comfortably above the requirements. We're going to continue to manage them well in excess of these requirements within a range of 110% to 130% for LCR, which is an optimized manner. Why? Because we can rely on about EUR 130 billion additional non-HQLA reserves that can feed quickly into our LCR ratio. And a range of 110% to 120% for NSFR. So we've built this strong position, thanks to our demonstrated capacity to generate strong revenue growth. The CAGR for Credit Agricole S.A. revenue over the past 6 years was 5.7%. And it was driven mainly 70% by organic growth thanks to customer acquisition and equipment, but also by external growth operations, which amounted over 6 years to a total of about EUR 10 billion. And where we developed -- we delivered an ROI above 10% within 3 years, and these operations contributed to operational efficiency and to revenue growth. Now this revenue growth has fed into the growth of net income over the past 6 years with a CAGR of 7.3% to reach the starting point of our plan, which is EUR 6.9 billion in 2024 pro forma. And the profitability targets we display here continue to strongly increase. We have an ambitious net income group share target of at least EUR 8.5 billion at the end of our plan. This represents a cumulative growth of close to 25% compared to the 2024 baseline position. As it has been the case for many years, this growth in net income will come from a virtuous combination of dynamic revenue growth, strict monitoring of expenses and prudent risk management. Now revenues are going to grow by more than 3.5% per year over the plan in an uncertain environment and under the hypothesis of moderate economic growth in Europe. As always, when we define our medium-term targets, I'm talking here about organic growth. Costs. We have a cost-to-income ratio ceiling for 2028 of 55% and we will reach this by monitoring the jaws, which should be positive over the plan in each division. And of course, we remain cautious on cost of risk. And we maintain the previous assumption at 40 basis points for CASA which is, in fact, prudent in the light of the loan loss reserves that we have accumulated in recent years, which represent an absorption capacity of 1.6 years of cost of risk for CASA. And of course, since the equity-accounted entities now include Victory Capital, part of CAPFM mobility activities and starting in the fourth quarter of this year, our 20% share in Banco BPM, we guide for a 1.5x increase in their contribution by 2028. Now all of the business lines are going to contribute to the growth of revenues, which will reach more than EUR 30 billion by the end of the plan. And so I'm going to provide you with the key growth drivers in each business line. So in asset gathering, all of the businesses in this division will contribute to roll out a comprehensive range of savings and retirement solutions for our customers and will support the coming intergeneral transmission of wealth in Europe that Nicolas was talking about. Amundi is going to accelerate in ETFs in Asia, through JVs and direct distribution, in individual retirement and with third-party distributors. Amundi will also benefit from the continued development of technology revenues and of course, as Jean-Francois was saying, Amundi will develop in private assets with the ICG partnership that was just announced. Credit Agricole Assurance plans to strengthen multi-equipment in France and to grow outside of France, in P&C and Personal Insurance and through European partnerships, in particular, on mobility and with Banco BPM. And the savings and retirement outstandings, of course, will grow strongly. Indosuez will strengthen its offering in particular in corporate advisory following the integration of Degroof Petercam and will accelerate in Northern Europe and in Asia, and it's also going to continue to develop with ultra-high net worth individuals. Moving to the large customers division, CACIB will reinforce its leading positions in real asset financing and projects in energy transition and also in strategic autonomy and will further develop cash management and equity derivative solutions. It's going to reinforce its relationship with existing customers and strengthen its presence in Europe outside of France and finally, accelerate in the United States and in Asia. And CACEIS support customers in their transition to ETFs to real assets and to digital assets and will accelerate with pension funds in Europe. And CACEIS will also strengthen its position in Asia, leveraging on the integration of ISB with the follow-the-sun setup. In specialized financial services, CAPFM will continue to restore its margins in Personal Finance, and will develop new offerings linked to home renovation, health and services. And in mobility, it will further develop Credit Agricole Autobank with diversified partnerships will accelerate the development of leases and ramp up on GAC leasing, but will also develop services and insurance. And Credit Agricole Leasing and Factoring will accelerate on Factoring in Europe, and will expand on energy and circular economy solutions. And finally, in Retail Banking, LCL and Credit Agricole Italia will have slightly different growth stories. LCL is going to benefit from the increased its net interest income while Credit Agricole Italia revenues should increase more moderately over the period with an expected drop in NII in 2026, but followed by a recovery in 2027 and '28. Credit Agricole Italia is going to capture new customers, 650,000 and will accelerate in the high added-value specialized segments that Hugues was talking about, such as corporate and private banking segments all the while adapting its network to develop fees and to equip customers. And LCL, as Serge was saying, will transform its relationship model to capture customers, 1.5 million, including 360,000 entrepreneurs and will develop solutions for customer segments requiring strong expertise. So revenues, as you can see, are going to remain balanced among the business lines and customers. However, as a consequence of our intention to develop internationally, the share of Europe, excluding France, in our revenues will increase from 42% to 45%. The share of Asia will increase by 1 percentage point. And so all in all, our revenues generated outside of France will be close to 60% in 2028. So I talked about revenues. Moving to operational efficiency. Our cost management policy remains unchanged. It's based upon the strength of our decentralized model. Each business line aims to remain best-in-class in its market with a strict monitoring of its cost-to-income ratio. So some examples of business initiatives, an optimization plan in Amundi, productivity gains in the CIB, thanks to the acceleration of AI, thanks to the rationalization of IT or the optimization of the organization. Operational gains for CACEIS, for example, thanks to the differentiating follow-the-sun model into the enhanced use of AI and data. And both LCL and Credit Agricole Italia will roll out an ambitious transformation plan that will lead to IT and operational efficiency. So if we combine these levers, the synergies from the ongoing integration of the group and ISB and the joint initiatives Gregory was talking about the QAC platform. We should have reduced our cost base by 5% at the end of the plan, which leaves room for additional investments to support our developments. And our targets in 2028 is for the cost-to-income ratio to be below 55%. So we're going to support our growth ambitions by investing, but also by allocating capital to our growing businesses. The allocation of RWA over the plan is going to remain balanced between the businesses with an increase, in particular, in the most accretive businesses of asset gathering and large customers. So this is going to fuel the business lines profitable growth. And so based upon a normalized level of equity at 11% of RWA, all of our businesses will have double-digit [ RWAs ] in 2028. So we're going to focus on profitability. And this focus also goes for M&A operations because all of the figures that I presented previously, are based upon organic growth. Of course, we can also seize external growth opportunities, as Olivier was referring to in the beginning, if they comply with strict financial criteria, i.e., a return on investment of at least 10% within 3 years, accretive operations in terms of RoTE and of course, demonstrated integration capacity and synergy potential and compliance with our risk and compliance criteria. All of this will create value for our stakeholders and our shareholders, which Jerome, who I do not need to introduce will now describe.

Thank you, Clotilde, and good morning, all. It's a pleasure for me to be for the fourth time in a row, here to present a medium-term plan, and I will gives you a breaking news, it's probably going to be the last time. I'm going to walk you a little bit through this last slide, which is presenting the building blocks of the value creation and presenting all the reasons why we claim that we have a lot of optionality embedded in this medium-term plan considering the results that we are going to accumulate. So let me start with the starting point, which is indeed the level of CET1 that we have end of 2024, 11.7%. It's been increased beginning of this year, it's for once a positive contribution from the regulation by 50 bps and then lastly, based on what all the team has presented and based on the figures that Clotilde has described a little bit more in detail. We, are going to create an additional 720 bps of capital over the course of the medium-term plan. So that's the starting point. Then second point, distribution, of course, and shareholder value that we intend to create. We are going to stick to our policy, which is in place in the last at least 10 years, which is to distribute, in cash, 50% of our earnings. And I remind you that even when banks were precluded from paying dividends, we've managed to remain shareholder friendly and to pay the dividend. So indeed, this 50% over a long period of time is quite attractive actually. So this will represent around 390 bps of capital distributed which is roughly 1/3 of the market cap of Credit Agricole S.A as of today. It includes, of course, the AT1 coupons that we'll have to pay also during this period of time. The innovation that we are going to introduce regarding the dividend is the fact that starting in 2026, we are going to pay an interim dividend. It's becoming seemingly a market practice and so we are going to apply this market practice. Third point, regulatory impacts are slowing down. So I told you that CRR was creating 50 bps of capital beginning of '25. It was after a lot of capital consumption in the previous years and it's before another 40 bps estimation that we've made of capital consumption for the coming years, including 10 bps for the famous FRTB that is regularly postponed. So we never know. Then, of course, we want to fuel our growth, and we will fuel the organic growth of our business lines. This is going to represent more or less 250 bps of capital over the coming years. Part of these 250 bps are linked to M&A transactions that have already been concluded and are integrated in our trajectory in 2025, the biggest one being the acquisition of the remaining 30% of the capital of CACEIS that we bought from Santander back 6 months ago. But you have also bits and pieces that you know, which are included in the 250 bps for a total of 70 bps. And so the remaining part of those 250 bps after the 70 bps is representing more or less the EUR 70 billion RWA that were presented previously with an associated profitability that is going to be permanently and for all business lines, double-digit return on normalized equity. We will, of course, continue to focus on optimizing our RWAs using all the possibilities that the market is offering, including, of course, the SRTs. It's a tool that we are already using, but probably much less than some of our competitors. And we have embedded in this plan the assumption that we are going to increase our efforts of using SRTs especially for CACIB and for CAPFM but we are also going to monitor the evolution of our trajectory, and we are ready to do more than what is embedded in the plan, if needed, if we have a decent price of release, of course, which is going to be a key metric that we are going to follow. And if we have a good use of the capital that we can free by increasing the level of SRTs. So this is definitely an area on which we have flexibility and the capacity to do more than what is in the plan nowadays. Last -- not last, fifth point, of course, and this has been said by Clotilde and I reiterated, we confirm that our target in terms of CET1 ratio for CASA is and will remain 11% and it's perfectly coherent with the fact that we are part of a bigger group, which is a systemic institution. It's not the case for Credit Agricole S.A. stand-alone and this bigger group has a very high solvency above 17%. It's our commitment to keep it above this level. So this is giving up a significant level of strategic flexibility. If you add up all the numbers, you will end up with the fact that we have probably around 150 bps of capital available. This would represent around EUR 6 billion to EUR 7 billion that we may use over the course of the plan for a value-creating external growth operations. We've talked a little bit before about the track record that we have regarding these operations. And of course, the commitments that we take also today is that we are going to stick to the same criteria in order to continue to create value. I want to insist on a very important point, these possible operations that we have not identified as of now, of course, are not included in our trajectory, not in the revenue growth, not in the level of profitability. So this is leading to a situation where we have this flexibility. And if we use it, we are going to generate additional revenues and additional profitability. And of course, I hear the question that you have in mind, what if we don't use it? The answer is quite clear, actually, if we don't use it, we have no vocation to accumulate capital at CASA. The entities of the group in which capital is piling up are the regional banks, and this is part of our global equity story. But at CASA, we do not intend to accumulate capital. I have no doubt that we will find relevant opportunity of growth in the course of the next 3 years. But if not, we have no ambition to accumulate capital at CASA. Lastly, I will conclude with this figure that I reiterate. We have a very prudent target in terms of return on tangible equity, 14%. And again, this target does not include the potential benefits of M&A transactions, does not include this benefit in terms of possible additional results and also does not include the fact that if we do these transactions, we are going to operate with a level of capital that would be closer to 11%. So here are the main elements I wanted to present to you today, and we will be ready with the team for your questions after the conclusion of Olivier, I guess.

Thank you, Clotilde. Thank you, Jerome. It was very clear. The presentation is now coming to its end. To conclude, I would like to remind you 3 main '28 objectives I initially set: One, expanding our client base to reach 60 million customers; the second, generating around 60% of our revenues out of France; and the third, achieving operational excellence with a cost/income ratio below 55%. To reach these targets and deliver a robust financial performance with net income above EUR 8.5 billion and the return on tangible equity, prudent, as said Jerome, above 14%. We have built an ambitious strategic plan. Let's be clear, none of this will be accomplished by Credit Agricole S.A. alone. We will succeed as a group in cohesion with regional banks, especially for our transformation. Please see us as one team. Our strength is collective. Credit Agricole S.A. entities act as a business partners for the regional banks. We help them to offer the best products to clients, while Credit Agricole S.A. benefits from the strong distribution network and the highly stable capital and financial fundamentals. Cohesion and collective action will enable us to reach the targets of our new plan. We have now reached the end of our presentation. Let's begin the Q&A session, and we'll start with questions from the auditorium.

Delphine Lee from JPMorgan. Could I maybe start with your ambitions in Europe, more generally speaking, I mean, and your M&A interest. In the past, you -- if you look at all partnerships and acquisitions you've done is to strengthen your product factories. You've been opportunistic in Italy as well. Just wondering now with the increased focus on Europe, is your M&A interest going to be a lot more on opportunities in Germany or Banco BPM? Just -- if you could elaborate a little bit on that. And my second question is on your revenue growth of more than 3.5%. A large part -- I mean, actually, the highest growth seems to be in large customers, but also SFS. So just wondering, like, is that due mostly because of more capital allocation, the volume growth, margin expansion, if you just can maybe elaborate slightly more on that because that's where the difference is, I would say, versus market expectation.

Thank you. Maybe for your first question, the strategic plan is focused on organic growth. And if we have opportunities to do an external growth Obviously, we have the capacity, as mentioned, Jerome, to have M&A operation and so on. It's not a question, but we want to focus our plan on organic growth. It's clear for us. And if we have opportunities in Italy, obviously, in Germany, obviously, in Poland also, we want to increase our footprint in Europe. It's clear because we want to become a leader in Europe. But this strategic plan is focused on organic growth. For the second question, can I give the floor to Clotilde or Jerome.

Yes. Thank you. Maybe in the first few elements. Indeed, we have strong growth in the large customers division, which is, in particular, due to CACIB, who has strong growth dynamics planned in this medium-term plan above 4%, whereas CACEIS is more on a plateau regarding net interest income. Now if we look at SFS, Specialized Financial Services, we have a little bit of everything that you were talking about. So we have a volume growth. We have a recovery in margins because we have our revenue on the outstanding that is increasing. We also have a strong increase, EUR 1 billion of revenues in insurance and services, which is also fees and commissions income is going to increase also. And of course, we also have the development in Crédit Agricole Leasing and Factoring, in particular, for renewable energy and on factoring. So all of these are going to drive into the growth. The allocation of RWA to the business remains very close to that, that we had previously. However, the equity accounted entities are going to increase in this business.

Anke Reingen from RBC. On capital, please, and your ROE target, just to confirm. So basically, the 14% RoTE at the lower end would correspond with you not having invested the EUR 5 billion to EUR 6 billion. So you're more running with the 12% core Tier 1 as that runs down, the ROE pushes up?

So exactly, we've simply computed the figures at the end of the plan in a situation where no M&A transaction would have been conducted and so we take the capital as it is, the net profit as it is, and we end up with this 14%. So it means, as I said, if we have additional results and if we have less capital because we've done positive value creative operations, we would improve the return.

Okay. And then on the RWA growth, it seems the EUR 17 billion seems quite high relative to your revenue growth. Does it already post-SRTs or is that pre-SRTs? And maybe on the 40 basis points of regulation, methodology changes? What are you seeing or is there a safety buffer?

So the EUR 70 billion does include SRTs as Jerome was saying. An increase in SRTs, we are, as you know, very low compared to the average of other European players in terms of the share of our loans that are securitized, it's 3.5%. So we're going to increase SRTs in particular, for CIB and for CAPFM. But we also have leeway and optionality to go further adjusting, as Jerome was saying, adjusting to the decisions we can take in particular, in terms of M&A. Now the EUR 70 billion growth that you're talking about you're saying that it seems important compared to the revenue growth. But I was -- as I was saying, when we have our target of net income, this target is driven by revenue growth, operational efficiency, et cetera, but also the times 1.5 in net in equity-accounted entities. So in fact, the indicator, revenue divided by RWA, is not a very relevant indicator in the medium term where we have plan where we have an increase in equity accounted entities.

Sharath from Deutsche Bank. I have two questions. Firstly, on your retail strategy -- sorry, digital strategy at BforBank. So do you think there is merit in pursuing this aggressively given the already competing pace or the penetration of peers? What makes you confident of being successful in the youth segment? The second question is on the strategic partnership that Amundi and Intermediate Capital Group have announced. Can you elaborate on the partnership? And why did you see the need to take a minority stake? Can we -- I mean, is there ambition to go beyond 9.9% stake?

Okay. Thank you for a question. I give the floor to Stephane for BforBank and for the young people to Gerald and for Amundi.

So thank you for your questions. So BforBank now -- what is the situation of BforBank, We have 400,000 clients in BforBank. And each month, it's 15,000 more. So it's starting off a good result. Now we want to accelerate in 2 or 3 different ways. First way, we want to make savings on loans more attractive for the clients of BforBank because savings on deposit is what customers want now. So it's very interesting. And the profitability of this part of offer is good. So BforBank will be a digital bank with all banking offers, but we want to acquire customers with saving on loan. Second element of acceleration. We want to reduce the cost to serve. So we will make a lot of efforts to have the same cost to serve as our competitors and to serve in the international way. We started 3 months ago to launch BforBank in Germany. So we have to see the result of this. And we want to take all the digital and technological asset of BforBank to build our bank in Europe, notably at first, Credit Agricole Deutschland for the everyday banking for the management of account of the customer will be on the asset of BforBank. So we are always very optimistic on BforBank, and we want to get the balance, the breakeven in '28 '29. So we will follow this.

Okay. It's clear. We want really to reach the breakeven in 2029, 2028 maybe, in dividing by the cost income and the cost to serve, and it's very, very important, and we are focused on that to improve the profitability of BforBank. Gerald, for the young people, for the innovation?

First, I would like to remind that we are a leader in France on the youth market and youth segment. So to further strengthen our position, we also know that we have to adapt our organization to the habits and trend of this kind of client. First of all, we are accelerating our digitalization. That's clear that the way to succeed in this segment. We also are working with all the business line to review our offers because we know that we have also to work on the access offer with all the business line to propose a competitive offer to younger clients. And finally, we also knew that we have to adapt our kind of communication to this kind of clients. That's why for now -- for one year, you use -- I don't know if you know, but Credit Agricole is certainly the most present bank in the social networks in France. And we want to intensify our presence in the social networks and you also use now new way of communication. So for this reason, we are confident to aim our objective to remain the French leader in the youth segment.

Thank you. And Nicolas Calcoen, Deputy CEO of Amundi for your third question.

Thank you for your questions. So this is very important partnership with ICG is designed to help us to have access to very high-quality products and expertise in private assets to complement our own internal offers. I'm thinking in particular of private debt or secondaries, but there are many, many good quality expertise that they have so that we can very rapidly benefit from the democratization of private assets that was mentioned by Jean-Francois earlier. So the stake we are taking is here to cement this partnership and to ensure a good alignment of interest. And we don't have any intention to go beyond the 9% stake that we announced.

Tarik El Mejjad from Bank of America. Just two questions from my side. First one, the universal banking model kind of aspects from the plan, reminds me from many, many years plans ago where universal banking was the new thing. So is this -- because of all this SIU and capital markets union that you feel this is the time to position across Europe and to capture that position a bit early? As I was surprised, there's no mention of SIU in the whole plan. I know it's 2028 plan, and this is probably coming after. But I just want to understand your turn here into more Europe. And the approach you took in Germany is more retail kind of very competitive part, I would say, of the German business. So what's your edge there? And then second question is on Italy. So I think you managed very well given the situation, and you've done what you can do from your side, just not all in your hands. But I mean, I guess, without going to scenarios, but let's say there's another M&A that's happened that doesn't involve you. How do you think you can protect your interest in terms of Agos, the non-life insurance and the different distributions you have in place?

Okay. Thank you for your question. First of all, for Germany, and obviously, for the Universal Bank, we are the champion of Universal -- of the model of Universal Bank in Europe, and we want to continue and to improve our footprint in Europe. And for Germany, it is the heart of the economy in Europe. That's why we want to invest, not only in retail banking, but generally, we have a strong objectives in Germany. For example, for the mid corporate, for the large corporate also for CACIB, the mid-corporate, we want to enter in this new and tap in the new market for us in Germany. And obviously, in the retail bank because we have already 1 million clients in Germany, and we want to make it more profitable in order to offer new products and the capacity of the group and it's our universal banking. Further savings and capital union, maybe you can add something, Jerome, and I answer...

No, of course, this savings and investment union is a topic that we follow a lot. It certainly would be an accelerator for different businesses for us, be it Amundi, be it also CACIB. Of course, it doesn't have a lot to do with the initiative that was presented regarding Germany because clearly, what we're talking about in Germany is much more collecting savings from individuals. And so it's not so much related to the savings and investment union.

Okay. For Italy, as I said before in my speech, we are obviously very attentive in what happens in the future. We are waiting for a proposal from BPM because I think a merger between BPM and Credit Agricole Italy make a lot of sense, make a lot of synergies, but this project is not on track. We are waiting for a proposal. In any case, our branch or division in Italy is going to solve -- we want to keep. That's why we have defined a project of organic growth because anyway, we are waiting for that. Maybe one day, it will happen. But today, it's not on track, and we want to organize to define our organic growth.

Jeremy Sigee from BNP Paribas. Just continuing that discussion talked about Germany, but I wanted to broaden it a bit to the European digital savings offering and also the European digital professional proposition. Two questions on those. Could you talk about the rhythm of launches in different markets that you have in mind? And then linked to that, what's your -- what do you lead with as you launch those services? Are you leading on pricing? Do you think you've got better technology, different packages of services? How do you take market share in those quite competitive markets?

Yes. It's a mix of the items -- of the elements. We have to be obviously very efficient in terms of price. But also with our digital expertise, we have built with BforBank, an IT platform, an European IT platform capable of opening, for example, an account in every countries in Europe and a very scalable IT platform with the capacity to handle IBAN in different countries. That's why we have to launch that in Germany. And obviously, with our digital expertise, with our price, the capacity of every business line to offer the best of the products in Germany. We are very confident to succeed. Wait and see. And for the pace, we are ready to launch, but I can give the floor to Stephane our platform in 2026 for the savings. And the IT platform of BforBank will be ready at the end of '26. And obviously, we are waiting for that. But maybe we can add some comments.

Perhaps 2 comments on your question. Thank you for your questions. First, our customer target in Germany will be a more affluent customer because if we see what we have done without agree to speaking in Germany, we have now 400,000 clients and saving and deposit. It represents EUR 15 billion. And it's affluent customers, EUR 30,000 each. So our customer vision is to give confidence to the customer because we are Credit Agricole and we want to take these clients and make upsell, cross-sell with other product, financial offer with Amundi or with other produce factories, but also other product as mobility services, et cetera, et cetera. We have to make a large base of customer of clients and Unify because we have this customer in a different part in our company in Germany. But if we make this, it will be -- if you will make this, it will be very rich for us. And we will extend with a platform, digital platform. First is saving and deposit, more industrial that the one we have now. We will add BforBank tools because for the everyday banking, it's very good tools. And also, we want to launch a digital platform for professional and next for agricultural clients. We will make this in 8 countries, the platform, the different platform, saving professional agricultural in 8 countries until the end of the plan. And we consolidate -- we will consolidate in some countries, first, Germany, but certainly, after in 2 or 3 other countries where Credit Agricole has a strong presence. So it's a double approach launch of a platform, a digital platform for saving for deposits for professional, for agricultural. And in some countries, we aggregate our model to Universal Bank. But it's a new way, it's a modern way because as you see acquisition of a large universal bank in Europe, it's not so easy. And the partnership will have limit. So we will take care of all opportunities, but we want to make organic growth with our starting point, and we have, as I have shown to you before we have a large presence in Europe.

Jacques Gaulard of Kepler Cheuvreux. I have one question really, which is linked to that. Your -- it's the first time in the 4 plants, we have that many developments on the regions and the countries. It's very interesting because you have indeed a very decentralized model. So how do we reconcile that? Because a lot of people are going to have to work together, which do not necessarily work together, the LCL CIB, in particular, is quite interesting. So maybe a little bit of telling us how you're going to effectively make that operate. And then -- how much of that 3.5% combined revenue do you think it can actually attribute to that? Is it like 0.2%, 0.3%, just to have a little bit of an idea.

Yes. It's -- the second pillar of transformation is one of the goal is to work together better than before because we have a strong business line, very efficient, very decentralized, but we have to progress in terms of capacity to work together. I take an example from the mid-cap, for example. We can add the know-how of CACIB in terms of defense, agri business or technology or energy, obviously. And we want to take this know-how and to develop that with LCL because LCL has a big strong trip, big narrow also for the mid-cap market. And together, we can build something in the European area. But we could take many examples of that. And that's one of the goal of the team, of the executive committee, it's my job, obviously, to work together and to impulse something new in the way to work collectively. Second question is for...

For the revenue growth. So we have a contribution of all of the businesses of this revenue -- to this revenue growth of 3.5%. More of it will come from outside of France. Within France, we're about around 2% of growth of revenues in France. But we have not -- we don't provide any decomposition of the contribution of the, for example, German or mid-cap initiatives because, in fact, all of these initiatives are going to feed into the growth of the different businesses. For the mid cast, we have LCL, we have CACIB, but we also have mobility solutions, leasing solutions for all of the solutions that Stephane was talking about, it feeds into fits into Creditplus, but also to leasing and factoring. So it's really a collective effort. And so that's why the contribution of all of these businesses will be strong to this effort -- to this international effort.

Matt Clark at Mediobanca. So some more questions on BforBank and these initiatives. Firstly, historically, you've tended to use legal entities for your product factories. So am I right to think that the BforBank initiative will be in the BforBank legal entity as it is and you'll operate branches in each of the markets that you're expanding to, if that makes sense, firstly, as a question or if not, how from a legal entity perspective, are you going to be operating? And then secondly, you've talked a lot about savings and investments, I guess, deposit gathering but not so much about the lending side of it. So for BforBank and to some extent, for the savings and investment platform, is there an intention to be lending on the other side of the balance sheet here and what products and to keep pace or not? What are you going to do with all these deposits you're gathering?

You can hide some comments. You can start, Jerome.

The first point, what Stephane said was that we intended to use the IT platform of BforBank in different countries because this platform is going to be very soon now completely up to date and is going to be able to operate with a multi IBAN setup. So it's not certain that we need to use the legal entity BforBank but we will need definitely to use the IT platform. And we have some legal entities already present in Germany, for example. So it's not a necessity for us to add up another legal entity in Germany. So this decision is not made yet, but definitely what is important for the project is to have access to the IT platform. Then when it comes to the business model that we see for BforBank, it's much more going to be targeting savings of the customers. So lending is not something that we want to avoid. But definitely, what is important for us is to collect savings, and this is where we think we can make a difference.

Just I can add one comment on your question. We want to use Germany, the credit franchise. They have already 20 branches in all the main city in Germany. They have 1 million customers in saving and in consumer loans. And we want to increase our footprint on their clients to propose them all the products we are capable of offering. That's the model. And as you say, legal entities, we don't know at this point if it's with Creditplus, with the SFS subsidiary or we have to create something. We don't know, but we have banking license and so on, and we are capable of doing that.