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June 23, 2022

Credit Agricole aims net income of over €6bn by 2025

French banking major Credit Agricole has said that it will aim to generate a net income in excess of €6bn by 2025 as part of its latest strategic plan.

The lender will target a return on tangible equity (ROTE) of more than 12% between 2021 and 2025.

The lender posted an underlying net income of €5.4bn last year.

Crédit Agricole CEO Philippe Brassac said: “It is now easier to think long-term than it is to predict the short-term. Thanks to our universal banking model, we continuously outperform, and this allows us to support each of our customers and to act for tomorrow.

The lender also unveiled plans to launch two new business lines focusing on renewable energy and healthcare.

“By creating two new business lines to make energy transition accessible to all, and to facilitate access to care and ageing services, we are extending our mission as shapers of the future,” Brassac said.

Credit Agricole added that it expects annual revenues to grow by approximately 3.5% on average between 2021 and 2025 compared with an average of +5% per year over the last six years.

The French banking giant added that it would continue to target a dividend pay-out target of 50% in cash.

By 2025, Credit Agricole plans to increase its retail customer base by over one million and allocate nearly €20bn for information technology and digital spending.

Jérôme Grivet, deputy managing director of Crédit Agricole in charge of Steering Division, said: “2025 Ambitions” is about strong growth. This is notably made possible by accelerating our technological, digital and human transformation.

“To this end, we are allocating around twenty billion euros to IT and digital sending over the period, including one billion euros in investment programs for technological transformation.

The bank noted that it sees strong potential for its business in Italy and further augments the capabilities of CA Italia, which is the sixth largest commercial bank in Italy with a market share of 5.5%.

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