Understanding our third quarter 2024 results

Letter to shareholders N°143

Dear shareholders,

We are publishing solid quarterly results that continue to show strong improvement. The execution of our strategic plan one year after its presentation is impacting our results in a positive and tangible way. 

Our revenues for the quarter were EUR 6.8 billion, up by +10.5% vs. the third quarter of last year¹. The increase is notably thanks to the solid performance of our businesses with a strong rebound of the net interest income in France and another remarkable contribution from Global Banking and Investor Solutions, in particular in the Equities and Transaction Banking businesses. 

Furthermore, operating expenses are stable and the cost-to-income ratio decreased sharply relative to the third quarter of 2023, coming in at 63.3%. The net cost of risk was also contained to 27 basis points over the quarter, in line with our estimates. 

Group net income over the quarter was EUR 1.4 billion, and ROTE stood at 9.6%, up compared to the third quarter of last year. Our capital ratio improved once again to 13.2%² at end-September, and the liquidity profile remained robust, with a Liquidity Coverage Ratio (LCR) of 152%.

At the end of September 2024, we booked a provision for distribution equivalent to EUR 1.66³ per share. 

For the past year we have been working relentlessly. Our teams are mobilized and we have made progress in three fundamental areas: capital build-up, improvement of profitability, and the reshaping of our business portfolio. We continue to implement our various strategic initiatives such as BoursoBank’s development, which registered 300,000 new clients over the quarter, LeasePlan’s integration within Ayvens, the creation of Bernstein and the partnership with Brookfield in Global Banking and Investor Solutions, and furthermore, the merger of our networks in France and the digitalization of our networks in the Czech Republic. The rollout of our ESG⁴ roadmap is also progressing in a satisfactory manner, reflecting the collective efforts being made by all business lines towards a sustainable future. 

There is still a lot to be done, but we are moving forward in the right direction and I am fully convinced of our ability to achieve our commitments. Our goal remains unchanged: a sustainable performance that will create long-term value.

I would like to thank you for the trust you have placed in our Group and for your long-term commitment at our side.
 

Slawomir Krupa
Chief Executive Officer

_{1 +5.8% excluding exceptional proceeds recorded in Corporate Centre (~EUR 0.3bn)
2 Including IFRS 9 phasing, proforma including Q3 24 results
3 Based on a pay-out ratio of 50% of the Group net income, at the high-end of the 40%-50% pay-out ratio, as per regulation, restated from non-cash items and after deduction of interest on deeply subordinated notes and undated subordinated notes
4 Environmental, Social and Governance}