Arcosa, Inc. — Call Transcript 2026

Good afternoon, everyone. Welcome to Crédit Agricole S.A. Fixed Income Investor Call, commenting the Q4 result and the full year 2025. I am Romain Beillard, in charge of the FI DCM in Paris, and I have the pleasure to have two Crédit Agricole S.A. representatives with us today. Florence Quintin de Kercadio, she's part of the Debt Investor Relation for Crédit Agricole S.A., and Olivier Bélorgey, Deputy CEO and CFO for Crédit Agricole CIB, and Group Head of Treasury and Funding for Crédit Agricole Group. So I think you are all familiar with this exercise now. So thanks again for joining the call today. We will open the floor for Q&A at the end of the session, and I leave the floor to Olivier to comment the results. Thank you, Romain. Good afternoon, everyone. As Cécile Mouton, the Head of Investor Relations, is not available unfortunately today, sorry for that, I will have the pleasure and responsibility to run the entire presentation, and Florence will help me and support me during the Q&A session. Let's start slide five with the key messages and key elements of these Q4 and 2025 results. First of all, to say that our financial annual results are very strong, supported by, as usual, I would say, a very dynamic commercial activity, and despite the additional corporate tax charge, which at Crédit Agricole Group level, represent almost EUR 300 million, EUR 280 million exactly. The very good news behind these results, strong results and this dynamic activity, we will come back on that, consist in the evolution of the net interest margin of the French retail. We will come back on that. On top of that, we have, I would say, our strong pillars, which remain exactly the same, meaning a very strong solvency ratio, very strong liquidity, and a very good and impressive return on tangible equity for Crédit Agricole S.A., as well as a good asset quality. So if we go further and in some details, in terms of revenues, the revenues at group level stands at almost EUR 40 billion, +3.9% versus last year in terms of annual results, while at Crédit Agricole S.A. level, they stand at roughly EUR 28 billion, +3.3%. The good news is that, as you can notice, the evolution at group level is higher, 3.9, that at Crédit Agricole S.A. level, this is clearly due to the evolution and positive evolution of the net interest margin at the French retail business level. For the quarter, for Crédit Agricole Group, almost EUR 10 billion, +1.6%, and for Crédit Agricole S.A., -1.8%, almost EUR 7 billion. The Q4 at Crédit Agricole S.A. has been impacted by some one-off elements, which are diluted at group level, thus, this negative evolution of the revenues. I won't come back in detail on these one-off. I think that you've already seen them and read them during the equity call or when already looking at our press release and so on and so forth, but of course, I will be ready for questions in this regard. The other element, perhaps, that I will comment on this slide, I won't comment of all, of course, all these figures. Cost of risk, 28 basis point at group level. Once again, we will come back on that. Slightly higher than the 25 basis point that we have disclosed as our main hypothesis for the medium and for the medium-term plan. It's in line with the macroeconomic environment, but we still consider that the 25 basis point is what should be the through the cycle level for the group. In terms of commercial activity, I was talking about it; it's very dynamic. In terms of customer capture, more than 2 million gross customer capture, so 2.1 million for France, Italy, and Poland. This is coherent with our MTP target of +8 million across four years for the solely French market, but clearly, this is coherent. In terms of retail banking loan production, both on corporate and SME and home loans, we will detail that; it is also very dynamic, +15%. It's even quite surprising in the current uncertainty that we have that kind of growth, but it is what we effectively have delivered in 2025. In terms of insurance and asset management activity, we reach record level in terms of commercial activity with, for insurance, a record level of premium above EUR 50 billion for the first time, EUR 52 billion, +20%. And for Amundi, net inflows at EUR 88 billion, it's almost one point. It's a little bit more than one point time, more than the previous year. And for the CIB business, it's record over quarter, both at the quarter level and annual results. As we have already many times commented, we've made a certain number of bolt-on acquisitions all these years, and during the MTP presentation, we had from yourself a certain number of questions around the return on investment about all these acquisitions. So we have provided here for these annual results what we have calculated as the return on investment for our past acquisitions. Of course, these figures have been audited by our auditors. So for the acquisitions that have more than three years, after three years, we were at 11% in terms of return on investment, and after more than three years, up to now, it's 13%. For the more recent acquisition, on the bottom of this slide, not yet after, so they do not have yet three years of life, we are already around 10% in terms of return on investment, so we are very confident that we will at least achieve the target and even go above it. And thus, in terms of where we stand versus the execution of the medium-term plan, 2025 being the first year of this medium-term plan anyway. So in terms of revenues, almost in line with an evolution 2025 versus 2024 on a pro forma basis, meaning pro forma of the first consolidation of Banco BPM and the application of CRR III. So for the revenues, almost 3.5% of, of evolution, a little bit less, to be honest, but this is the first year of the plan, and with all the investment we've made, and we will continue to implement, we are very confident that we will deliver what we have promised. In terms of net income Group share, already perfectly in line with the CAGR of this KPI, 5%. In terms of cost-income ratio, due to the pro forma, a high level, a high point in terms of cost income, but we clearly are totally confident that we will reach less than 55% in 2028. For the return on equity, on this pro forma basis, what we can show here is that we are already at 13.9%, meaning very close to the 14% we have delivered, which is, I would say, pretty normal. It's a little bit ambitious to just say that, but pretty normal, because we have very clearly stated and communicated that for this medium-term plan, we target 14% as a minimum, given the fact that we deliver during this plan, I would say, excess of capital that we intend to reinvest to provide more than what we have delivered in terms of our solely organic growth. So we are perfectly on track with the execution of this medium-term plan. I will now go pretty quickly through the next slide, because you know that by heart, and just perhaps stop here to mention that this slide is. We have actualized this slide for the revenue figures, not yet for the split, be it by business line or geographic axis. We will do that for the next presentation after Q1. And in terms of revenues, as you can see, this is once again a continuous story of growth in terms of NBI at group level. Once again, despite a lot of uncertainties and a lot of geopolitical environment, which is not so obvious, but we continue to grow and to deliver this kind of growth. Yes, sorry. Yes. In terms of cost of risk, as I was mentioning, we are today slightly above these the assumption that we show here, and we remind here left-hand side of this slide, which are, I remind, 25 basis point at group level and 40 basis point at Crédit Agricole S.A. level. Well, we cannot be always below the average. If there is an average, it's because there are some some moments you are above, some moments you are below. We've spent many years below, so for the moment, we are slightly above. But we remain with this hypothesis for the average period of the plan. Nevertheless, we also demonstrate and show here that we have loan loss reserves, which are very, very high compared to competition, and at group level clearly best in class in terms of loan loss reserve. So we have three years of loan loss reserves versus our NPL ratio. Perhaps here, just to remind you that we have stable outlook across the three main rating agencies, despite the fact that France sovereign has a negative outlook with Moody's, which means that for the foreseeable future we are comfortable with this kind of rating for Crédit Agricole Group. ESG, I won't take more time here, just to re-insist on the fact that, despite some pushback here and there, across the Atlantic, we remain totally committed to, to our ESG, plan, because we think that, it's, very important and essential for the planet to manage this energy transition. And, we remain focused, and anyway, it is still a very, important topic of discussions with, the majority of our clients. Well, to, to give, more, more details about our, commercial activity, so, once again, +2.1 million net gross customer acquisition for our retail network, in line with, what we, intend to deliver for, for the medium-term plan. But also very important, at the retail banking level, the loan production is and has been, in 2025, very dynamic. Once again, both at corporate level and for the home loan production. And for the home loan production, what is interesting is to see that we continue to originate home loans around 3% in terms of yield, while the back book is at 1.9%. So we clearly continue to reprice the loan book of all loans, which is the bulk of our assets for the retail business. And with volumes which are consistent with, I would say, a speed of repricing, which is interesting. Clearly, we can say now that the inflection point in terms of net interest margin for the retail business is behind us. For the insurance and asset management, I've mentioned it, record level of annual premium for the insurance, EUR 52 billion, and for the asset management, a record level of net inflow, EUR 88 billion. For the Crédit Agricole Personal Finance and Mobility, to be honest, for them, this is not a very good year in terms of net result for several reasons, including at least two important one-off. But what is interesting is that in terms of commercial activity, the production remains at high level with margin which are, I would say, in line with our expectation. So the future should be brighter for CAPFM business line. For CIB, it's, I would say, continuous and gradual growth, so record Q4 and record year in 2025, with very good position in the league tables. What is important as well for the CIB business is that this growth come from the whole range of our businesses, be it financing activities or market activities. In terms of waterfall for the revenues and the NBI, Q4 versus Q4, first of all, evolution of 1.6%, despite all the one-off at group level. And once again, if you put aside the one-off, every operational business line contributed positively to this evolution. The pack being laid for this quarter, and it's very, very, satisfactory for us, because we've said that many, many, many times, the net interest margin will grow, will, recover. So here, here we are with an evolution of the net interest margin for the Regional Banks of 18.7% versus last quarter 24, and for LCS, LCL, sorry, +11%. And our Group CFO, Clotilde L’Angevin, as mentioned, in terms of guidance, that, for this net interest margin, in 2026, we should have a positive evolution versus 2025 in the high single-digit level. In terms of expenses, an evolution of 0.9%, so clearly positive jaw effect versus versus the the NBI. Once again, some one-off, but overall, positive jaw effect between NBI and expenses. So expenses under control, if I have to summarize. In terms of cost of risk, if we look left-hand side and the upper part of the slide, so a cost of risk total just above EUR 1 billion, which consists essentially in bucket 3 provisioning. And in terms of bucket 1 and 2, let's say the 139.9 million of bucket 1 and 2, these 99 million essentially consist in one-off. So first one-off is complement in terms of provisioning for the UK car loan file and legal risk that we have in the UK, is due to, I would say, new discussion and exchange between the industry and the FCA, and we have, after this discussion, readjusted our estimation of our potential loss in this regard. The other point is linked to the bankruptcy of Banca Progetto in Italy. And for this one, a small technical point, contribution to the deposit guarantee scheme normally are accounted as expenses. But so far, for this case, we have already been asked to pay EUR 5 million, which have been accounted in expenses. But we know already that this is not the end of the story, and that it will cost us more than EUR 5 million. So, waiting for the final amount and for the final payment. We have accounted temporarily in the cost of risk line, EUR 30 million, which is our estimation of what it could cost us overall. So in the future, we should have a reversal of this EUR 30 million and EUR 30 million contribution in terms of expenses, EUR 30 million or a slightly different number, depending on what the Italian authorities will ask us in order to refill this deposit guarantee scheme in Italy. So clearly, the main part of the bucket 1 and 2 provisioning comes from these two one-off, which means that the rest is clearly bucket 3 provision, which means that, yes, the cost of risk is materializing gradually. Nevertheless, even if it increases a little bit, we were, during the previous quarter, more or less, south of EUR 900 million. We are now, if you exclude the one-off, slightly north of EUR 900 million, it's a slight evolution, so we are not worried about it. We still consider, once again, that the through-the-cycle level should remain reasonable. Business line by business line, first, let's start with, I would say, a good news, which is that despite the one-off, for the UK car loan, at CAPFM level, the cost of risk overall average over the four rolling quarters remains stable. For Crédit Agricole Italia, the increase is clearly due to, this EUR 30 million that we have accounted for Banca Progetto. For CAL&F, it's more or less, slight, slight variation, but, more or less stable. And yes, for LCL and the Regional Bank, there is this continuous slight trend of increase in terms of cost of risk, but nothing very, very material. For financing activities, or meaning CIB activities, still a very, very low, cost of risk, 6 basis points, meaning around EUR 100 million. This is three years in a row that we have EUR 100 million of cost of risk at the CIB level, roughly speaking, around the figures. Clearly, here, one year, it will have to increase a little bit because six basis point is, in our view, clearly below the average level through the cycle. I'm not saying it will next quarter. I have no indication about it, but let's say, common sense lead me to say that, one day it should be, it should be a little bit higher. To conclude on this part, in terms of net results impacted by the one-off, the net results for the quarter are slightly below last year, but essentially due to the first consolidation of Banco BPM stake as equity accounted, while on an annual basis, as I were mentioning, it's a very strong financial results. In terms of capital and liquidity, so I won't comment on the first slide, which have been disclosed during the MTP presentation. No change, of course, since November, last November. So in terms of capital position, at group level, the CET1 ratio stands at 17.4%. It has been impacted by some model revision concerning the SMEs for Crédit Agricole Italy, LCL, and Regional Banks. The main part coming from Crédit Agricole Italia, we had already more or less indicated you that this will come. Except that, and knowing that we will have this impact, we have also increased a little bit our SRT, so significant risk transfer operations in order to mitigate for this quarter, a little bit this methodological impact. And at group level, what I wanted to add is that the first consolidation of Banco BPM is almost a non-event because we were more or less mark to market, either for half of the position through fair value, so against revenues and NBI, and for the other half, more or less against OCI. So in terms of prudential point of view, we were mark to market in terms of our the value of our stake in Banco BPM. We have accounted Banco BPM as equity accounted at book value, and the book value was below the market value, so we had to take a loss in this regard. So a loss means less numerator of the CET1 ratio, but as the value is lower, in terms of weight, in terms of RWA weight for this participation at group level, we have to take into account less RWA. RWA is not exactly CET1 or capital, but we also benefit from the fact that equity accounted stake is not subject to, from a prudential point of view, to prudential valuation. So we also take back the amount of prudential valuation that we had in front of this position. So overall, all in all, at group level, it's more or less an impact of quasi zero minus two basis points. While at Crédit Agricole S.A. level, as we were above the franchise, the loss in in NBI and OCI is compensated by a lower deduction of our own funds, and we benefit from the disappearance of the prudent valuation, which overall lead to a positive impact in terms of solvency for Crédit Agricole S.A. perimeter. Well, besides that, I would say, as you can see, evolution of the organic growth of the RWA at the business line level is very well under control, and a strict management of RWA, RWA is effectively in place. In terms of buffer above distribution restriction threshold, as usual, at group level, very, very high level. What we have provided here in gray and within the dotted frame is the first of January pro forma. Pro forma of what? Pro forma from the fact that Crédit Agricole Group, and that's why the figures are only on the left-hand part of the slide, not the right-hand part, because Crédit Agricole Group becomes a 1.5% G-SIB, January 1st, this year. Of course, the buffer will decrease by 50 basis points first of January, which at group level is not at all a problem because we have so ample excess of ratios. Crédit Agricole S.A. level, no impact because Crédit Agricole S.A. is not a G-SIB. And as you can notice, the AT1 bucket is very well optimized because the buffer at the CET1 level and Tier 1 level is almost exactly the same. I won't comment this one because this is our capital strategy, capital story. No change versus several what we say for several years now. Here, exactly the same, same message, no problems in terms of MREL, no change in our strategy, nor our level of the ratios. Perhaps here, one word concerning the customer deposit, perhaps right-hand side. First of all, because the customer deposit have increased a little bit more significantly during the quarter versus the previous quarter, so +2%, December versus September. And also, the fact that the proportion of the sight deposit is also slightly bigger, 52% versus 51%, meaning the proportion of sight deposit increase again versus several quarters of stabilization after the COVID period, or after the increase in the interest, after the COVID period and the increase of the interest rate, where this part have, has decreased was decreasing due to arbitrage to towards more remunerated products. In terms of liquidity position, so overall very, very stable, and once again, what is very important is the gray and green part above the HQLA reserve, so above the LCR ratio, above what is taken into account, the LCR ratio, the LCR being comfortable and in line with competitors. Nothing to say here about our liquidity balance sheet, very comparable to a previous quarter. Same thing about the breakdown of our long-term debt outstanding, very stable versus the previous quarter. So perhaps some words here before leaving you the floor for the Q&A. Concerning the funding plan of 2025, what I would like to highlight here is that, apart from the covered bond issuances that are in euro, because the asset that we use to collateralize these covered bond are home loans, and anyway, they are issued in order to refinance the home loans that we originate in France. So apart from that, which are issuances in euro, for the other part, we have issued 1/3 in euro, 1/3 in dollar, and 1/3 in other currencies. So very diversified with, I would say, a lot of local funding program, the Samurai program, historically, the first one, the Kangaroo program, the Panda program. Even last year, we have issued under the Maple law, or Canadian local Canadian law, Maple under the local Canadian law. So very diversified, and we have, I would say, adjusted our issuances to the investor appetite, for example, a little more skewed toward senior preferred in yen and more skewed towards Tier 2 or subordinated debt in dollar. So we are very diversified, and we have a very great capacity to adjust to investor appetite in order to distribute our funding program. For this year, a funding program of EUR 18 billion versus the EUR 23 billion that we have issued last year, so slightly smaller. In terms of what we need for, I would say, solvency purposes, so Tier 2 and senior non-preferred, more or less the same amount than last year. It's more or less a rollover of our position and our maturing debt, plus the eventual, but it's marginal, increase in order to follow the evolution of the RWA, but this is marginal. Thus, the adjustment and lower needs in terms of covered and preferred senior, only around EUR 6 billion. We will continue to be diversified. And, as of today, we have already issued EUR 11 billion, so 60% of the plan. Don't be too worried. We will slow down the pace of our issuances, and we do not intend to complete our funding plan before end of June or end of July. So we will slow down a little bit and spread our funding needs across the rest of the year. But as usual, we wanted to start very dynamically. One reason of that also is the fact that there is a seasonality in our issuances or in European issuances. We have a lot of maturing debt during the Q1, so we naturally also issue more during the Q1. Due to the fact that our funding program is a little bit lower than last year, we are slightly, I would say, from a mathematical point of view, in advance versus last year. But it's common in our case that anyway, we are around 50% in end of April or beginning of May in terms of funding program. So I would say, we act as usual in terms of funding plan for this year. I will stop there and leave you the floor for the Q&A. Thank you, Olivier. So I suggest, Florence, Olivier, you may want to read the question we receive and answer directly. And our first question: Any thoughts on recent ING Tier 2 call at reset date? Until what date do you cover your callable bond, please? Well, I can potentially tell you at which date we hedge our callable bonds, be it Tier 2 or AT1. But I don't think it's very useful for you because anyway we do not consider ourselves constrained by the maturity of the hedge. And perhaps more specifically, because we had this question many times during our one-on-one last week in London, and we'll talk about the AT1 and the call period, the six-month per call period. We will act, I would say, economically in terms of call or non-call. Anyway, we cannot say if we will call or non-call, be it at the first call date or reset date. As you can notice, implicitly, we position the maturity, the potential maturity of our AT1 at the reset date. But once again, it does not mean that we could call at reset date or first call date. We will act economically, meaning if we have issued, let's say, exactly six months in advance in order to replace an AT1 issuance, and we want to avoid the double carry, we can call effectively six months in advance. If we have to replace an issuance and we issue three months in advance, we can call three months in advance. Well, it will depend on market conditions, on our needs, and so on and so forth. So I would say we remain flexible, and we will act according to our interest in this regard and according to our, I would say, track record. Asset quality: Do you think the cost of risk could deteriorate a lot? A lot, no. I think we've said that very clearly. Continue to deteriorate a little, it's possible. I do not have crystal ball. Perhaps yes, perhaps not. So a lot, no. But clearly, so far there is a trend, and the macroeconomic situation is less great than two years ago. So it is what it is. But once again, we are not specifically worried about it. Next one is for me? Yes, for you. Thank you. How do you expect NII to develop in France? This quarter, the NII, as Olivier said, increased, both at regional bank level and LCL level. Inflection point is behind us, so it's a good news. Of course, we were at a low point. That means that, for next year, the increase will not be. Maybe it will, but, we don't think it will, be so huge that, 11% or more. So we think it will be more on a high single-digit, increase, and, but we are, we are confident because, so the book is repricing and, the activity is there. Our next question is a very interesting one. Thank you for that. What do you think about stablecoins and digital euro, threat or opportunity? Well, let's start with a digital euro. There are two potential digital euro, the wholesale one and the retail one. For the wholesale one, well, threat or opportunity, I think things are balanced. It's a potential threat when you are Crédit Agricole, because we have a very strong rating, and even for settlement, day plus two, it's interesting for some counterparts to trade with Crédit Agricole versus some other counterparts. So, the disappearance with potential instant settlement will cancel some competitive advantage that we have at Crédit Agricole. Nevertheless, I don't think this competitive advantage is so big, because the settlement risk is a risk that has not materialized many times, and is with a very low probability. Nevertheless, it will cancel a kind of competitive advantage that we have. On the other side, it can provide, I would say, instant settlement with central bank. It can lower the need for reconciliation. It can lead to potential 24-hour, seven days a week, settlement with the central bank, because when you have instant settlement, of course, the tendency will be to extend this settlement, instant settlement, to the whole day. This can provide opportunities for us to provide new services to our clients and to be more efficient for the benefit of our clients. Thus, when you are more efficient with our clients, you have usually more business. So for the wholesale digital euro, I think it's something which will occur, and will have, I would say, balanced benefit and threat. For the retail, I'm sorry, but here I will say it's clearly a threat. It's today a scene from my perception is that it's very philosophical at the moment in terms of position by some authorities. I've still very, very big concern about the impact on our balance sheet and possible flow from the deposit on our balance sheet to some deposit on the balance sheet of the central bank. So I see that as a threat clearly, and I'm not so sure that all this threat, either in terms of flows from our balance sheet and/or in terms of cost for the whole system, not only the financial system, but also all the economic actors that will have to adapt their payment scheme to this retail digital euro, is worth what it intend to tackle in terms of problem. Of course, sovereignty has not to be questioned, and it's a fair objective to develop and to impose sovereignty and payment in Europe. Is it the only mean to achieve that? Well, the private sector has an alternative answer to that, and I've not seen today any fair pro and cons between this institutional answer by ECB and the private sector answer. So I see that as a threat, to be honest. In terms of stablecoin, I think once again, it's balanced because for some of our businesses, meaning the asset management business, the custodian business, it can be an advantage and or an opportunity to develop their business using that kind of tool. For the banking sector or the banking unit, banking business line, once again, it can be a threat, because once again, the, it can lead to some disintermediation, from of payments and or certain scheme from our balance sheet. So, once again, at Crédit Agricole Group, it is balanced, but I think this, this can be an opportunity for some businesses, but I think also that it can be a threat for the banking unit, because it can lead to some disintermediation, in terms of settlement and payments. We'll see. And that's why, perhaps to conclude on that, that's why, in order to, from the banking side, to answer that kind of a potential threat, which also comes from the fact that the financial, in fact, the economic actors are asking for instant settlement, we need to find, we'll say, on-balance-sheet answer to that kind of needs or new needs or expressed need, which can come from tokenized deposits, for example, the kind of things on which, for example, JPMorgan is working and investing hard. We are also looking at it and investing in this kind of technology. So we will see. It's still very early to say exactly what will happen. It's still very well working progress in this regard. But we look at it very closely, because clearly, these are things that could profoundly change some nature of our businesses. Next one is for you. Yes, sir. What is exactly the revision of remarketing value for used vehicles for Leasys? Does it call into question your mobility strategy? Olivier said there were some one-off this quarter, and one of them is at Leasys level. You know, Leasys is a joint venture with Stellantis, and for leasing. And with Stellantis, decreased is the new car price, because the product range of Stellantis is a little bit more in line with what customers want. So as Stellantis decreased its price, we decided to decrease also the used price, the used car prices. It's not only residual value, it's more larger than that because it's remarketing value, that is the value we have to remarket the car into our network. And now we have decreased it a little bit more than we should have done it, only based on Stellantis price decrease. And we are now in line with what we think is a good price, and it will be good for our MTP, medium-term plan, targets, because we have I would say cleaned those price. And this one-off shows also that what we identified as a key element in mobility, that is services and insurance, that are good things for us to develop in order to smooth the price of cars. And we still are in the mobility area, because we still think we need some more electric vehicles and more services around. We think this will, next year, go at the same level at previous year, and then we think the profitability of this will go on. Thank you. So next question, so I don't see why you ask a question, because obviously you already have a lot of answers. So sorry for this, this joke. Could you elaborate further on the 2026 issuance guidance? At this stage, we have assumed EUR 5 billion covered, EUR 1 billion senior preferred, EUR 10 billion non-preferred senior, and EUR 2 billion Tier 2, and no AT1. So I will, I would like to have a hiring meeting with you, because obviously you are very good at elaborating our funding plan. Now, so would you see it as broadly accurate reflection of your plan, and so on and so forth? So it's, I would say, it's not far from the, what we, what we should do. Once again, we want to keep the flexibility between covered and senior preferred. I think that you overweight a little bit the covered versus preferred senior. Also, because Moody's has expressed the fact that we are, I would say, immune from any evolution in the CMDI evolution. But, well, we have to roll over our preferred senior stack. For the rest, well, once again, it's not too far, but we want to versus what you say, we do not provide such an accurate guidance. Once again, when we say we target around EUR 12 billion of senior non-preferred and Tier 2, we want to keep some flexibility between senior non-preferred and Tier 2, depending on market conditions, depending on relative spread, depending on some potential arbitrage in terms of currency, given the cross-currency level. So, you're not far from what we should do. But once again, we want to keep some flexibility. In terms of AT1, clearly, if we go to the next slide, sorry, pardon, not this next one. You can, your assumption is, I would say rational, given the next potential call date of our issuances. So we are, we only have a very small amount in June this year. And as you can, as you have seen, we have today, slightly a little bit more than the strict optimum in terms of AT1 buffer, so we can clearly absorb these EUR 100 million maturing callable in June without any problem. Once again, I'm not saying we will call, but, today, it's very rational to do so. In fact, it seems to be very rational to do so. And, the next one, is, I would say is, sorry, December. next call date, December 27. So December 27, it's not for today. So yes, if you only look at it, and the fact that we are already at the optimum in terms of buffer, we have no need to issue. That being said, once again, we want to remain flexible. AT1 reset spread, as you know, we managed to reset at the tightest ever since the introduction of this instrument. So could be interesting at one point to envisage issuing, even if we have to bear some double carry. But the double carry is still very expensive, so, well, rationally, we don't need, but we do not exclude to act opportunistically. Hello, in Italy, what is your next step with Banco BPM? Well, do I really need to answer this question, to be honest? I read it, but, I think that you've heard the answer many times, and I won't say something different. Meaning, we have this kind of stake in order to protect our interest in Italy, meaning to be in a position to be an actor that you should talk to, you need to talk to, if anything is considered around Banco BPM. And besides that, the CEO of Banco BPM and the CEO of Crédit Agricole S.A. have expressed that they could envisage further cooperation with interest. That's what it is today, and I won't say more. What is your view on the ECB simplification and AT1 in particular? Do you believe the AT1 ECB proposal could be effective? So, I'm not so sure it is. I would say, a request from ECB. ECB has conducted a broad work in order to review and to potentially make some proposal in terms of simplification. So it's one, not only one, clearly, but it's one of the potential proposal of the ECB, that now has to be discussed in the legal European process. So, the commission has launched, if I'm correct. Consultation the consultation to the industry, end of last week, officially. So, we have until the sixth or 10th, I don't remember exactly, of April, to answer, and we will answer. And clearly, what I can tell you is our answer will be that we consider the AT1 as a very, important and, useful element in our, strategy. Why? Simply because, first of all, the regulation, when you have a CET1 ratio, a Tier 1 ratio, a global ratio, including the Tier 2, because the regulation is made, in a way, where it's, optimum to issue AT1, and not replacing it with CET1, if you want to keep a certain, profitability, there's a good competitiveness, with, other international banks for European banks. So for us, it is absolutely essential. That being said, it's also an instrument which is very well received and perceived by the investors, professional investors, which is perhaps one of the most liquid across the issuance made by financial institutions. So a lot of advantage, and we will effectively answer in this regard. That being said, I don't know what will be the output of this consultation of the industry, and I do not consider it is a prescriptive recommendation from ECB. It's one proposal across many others. Thank you, Olivier. Thank you, Florence. I think there is no more question. Olivier, maybe I'll leave you the final word for the conclusion. Thank you. Once again, thank you for attending this global investor call. For, I would say, agenda constraints, it has been put today, so 12 days after the equity call. I've also understood that it was a good output for you, because when we disclose our results, there were a crowded number of calls. It is what it is. Effectively, when looking at all your question, I think it was also good to have this kind of call, perhaps a little bit after the other one. It allows you to have perhaps more in-depth questions in some areas. So thank you for that. Thank you for this interaction, and see you next time. Thank you. Thank you.

Speaker 3: Good afternoon, everyone. Welcome to Crédit Agricole S.A. Fixed Income Investor Call, commenting the Q4 result and the full year 2025. I am Romain Beillard, in charge of the FI DCM in Paris, and I have the pleasure to have two Crédit Agricole S.A. representatives with us today. Florence Quintin de Kercadio, she's part of the Debt Investor Relation for Crédit Agricole S.A., and Olivier Bélorgey, Deputy CEO and CFO for Crédit Agricole CIB, and Group Head of Treasury and Funding for Crédit Agricole Group. So I think you are all familiar with this exercise now. So thanks again for joining the call today. We will open the floor for Q&A at the end of the session, and I leave the floor to Olivier to comment the results. Good afternoon, everyone. good afternoon everyone Welcome to Crédit Agricole S.A. welcome to crédit agricole s.a Fixed Income Investor Call, commenting the Q4 result and the full year 2025. fixed income investor call commenting the q4 result and the full year 2025 I am Romain Beillard, in charge of the FI DCM in Paris, and I have the pleasure to have two Crédit Agricole S.A. representatives with us today. i am romain beillard in charge of the fi dcm in paris and i have the pleasure to have two crédit agricole s.a representatives with us today Florence Quintin de Kercadio, she's part of the Debt Investor Relation for Crédit Agricole S.A., and Olivier Bélorgey, Deputy CEO and CFO for Crédit Agricole CIB, and Group Head of Treasury and Funding for Crédit Agricole Group. florence quintin de kercadio she's part of the debt investor relation for crédit agricole s.a and olivier bélorgey deputy ceo and cfo for crédit agricole cib and group head of treasury and funding for crédit agricole group So I think you are all familiar with this exercise now. so i think you are all familiar with this exercise now So thanks again for joining the call today. so thanks again for joining the call today We will open the floor for Q&A at the end of the session, and I leave the floor to Olivier to comment the results. we will open the floor for q&a at the end of the session and i leave the floor to olivier to comment the results

Speaker 2: Thank you, Romain. Good afternoon, everyone. As Cécile Mouton, the Head of Investor Relations, is not available unfortunately today, sorry for that, I will have the pleasure and responsibility to run the entire presentation, and Florence will help me and support me during the Q&A session. Let's start slide five with the key messages and key elements of these Q4 and 2025 results. First of all, to say that our financial annual results are very strong, supported by, as usual, I would say, a very dynamic commercial activity, and despite the additional corporate tax charge, which at Crédit Agricole Group level, represent almost EUR 300 million, EUR 280 million exactly. Thank you, Romain. thank you romain Good afternoon, everyone. good afternoon everyone As Cécile Mouton, the Head of Investor Relations, is not available unfortunately today, sorry for that, I will have the pleasure and responsibility to run the entire presentation, and Florence will help me and support me during the Q&A session. as cécile mouton the head of investor relations is not available unfortunately today sorry for that i will have the pleasure and responsibility to run the entire presentation and florence will help me and support me during the q&a session Let's start slide five with the key messages and key elements of these Q4 and 2025 results. let's start slide five with the key messages and key elements of these q4 and 2025 results First of all, to say that our financial annual results are very strong, supported by, as usual, I would say, a very dynamic commercial activity, and despite the additional corporate tax charge, which at Crédit Agricole Group level, represent almost EUR 300 million, EUR 280 million exactly. first of all to say that our financial annual results are very strong supported by as usual i would say a very dynamic commercial activity and despite the additional corporate tax charge which at crédit agricole group level represent almost eur 300 million eur 280 million exactly The very good news behind these results, strong results and this dynamic activity, we will come back on that, consist in the evolution of the net interest margin of the French retail. We will come back on that. On top of that, we have, I would say, our strong pillars, which remain exactly the same, meaning a very strong solvency ratio, very strong liquidity, and a very good and impressive return on tangible equity for Crédit Agricole S.A., as well as a good asset quality. So if we go further and in some details, in terms of revenues, the revenues at group level stands at almost EUR 40 billion, +3.9% versus last year in terms of annual results, while at Crédit Agricole S.A. level, they stand at roughly EUR 28 billion, +3.3%. The very good news behind these results, strong results and this dynamic activity, we will come back on that, consist in the evolution of the net interest margin of the French retail. the very good news behind these results strong results and this dynamic activity we will come back on that consist in the evolution of the net interest margin of the french retail We will come back on that. we will come back on that On top of that, we have, I would say, our strong pillars, which remain exactly the same, meaning a very strong solvency ratio, very strong liquidity, and a very good and impressive return on tangible equity for Crédit Agricole S.A., as well as a good asset quality. on top of that we have i would say our strong pillars which remain exactly the same meaning a very strong solvency ratio very strong liquidity and a very good and impressive return on tangible equity for crédit agricole s.a as well as a good asset quality So if we go further and in some details, in terms of revenues, the revenues at group level stands at almost EUR 40 billion, +3.9% versus last year in terms of annual results, while at Crédit Agricole S.A. level, they stand at roughly EUR 28 billion, +3.3%. so if we go further and in some details in terms of revenues the revenues at group level stands at almost eur 40 billion +3.9% versus last year in terms of annual results while at crédit agricole s.a level they stand at roughly eur 28 billion +3.3% The good news is that, as you can notice, the evolution at group level is higher, 3.9, that at Crédit Agricole S.A. level, this is clearly due to the evolution and positive evolution of the net interest margin at the French retail business level. For the quarter, for Crédit Agricole Group, almost EUR 10 billion, +1.6%, and for Crédit Agricole S.A., -1.8%, almost EUR 7 billion. The Q4 at Crédit Agricole S.A. has been impacted by some one-off elements, which are diluted at group level, thus, this negative evolution of the revenues. I won't come back in detail on these one-off. The good news is that, as you can notice, the evolution at group level is higher, 3.9, that at Crédit Agricole S.A. level, this is clearly due to the evolution and positive evolution of the net interest margin at the French retail business level. the good news is that as you can notice the evolution at group level is higher 3.9 that at crédit agricole s.a level this is clearly due to the evolution and positive evolution of the net interest margin at the french retail business level For the quarter, for Crédit Agricole Group, almost EUR 10 billion, +1.6%, and for Crédit Agricole S.A., -1.8%, almost EUR 7 billion. for the quarter for crédit agricole group almost eur 10 billion +1.6% and for crédit agricole s.a -1.8% almost eur 7 billion The Q4 at Crédit Agricole S.A. has been impacted by some one-off elements, which are diluted at group level, thus, this negative evolution of the revenues. the q4 at crédit agricole s.a has been impacted by some one-off elements which are diluted at group level thus this negative evolution of the revenues I won't come back in detail on these one-off. i won't come back in detail on these one-off I think that you've already seen them and read them during the equity call or when already looking at our press release and so on and so forth, but of course, I will be ready for questions in this regard. The other element, perhaps, that I will comment on this slide, I won't comment of all, of course, all these figures. Cost of risk, 28 basis point at group level. Once again, we will come back on that. Slightly higher than the 25 basis point that we have disclosed as our main hypothesis for the medium and for the medium-term plan. It's in line with the macroeconomic environment, but we still consider that the 25 basis point is what should be the through the cycle level for the group. I think that you've already seen them and read them during the equity call or when already looking at our press release and so on and so forth, but of course, I will be ready for questions in this regard. i think that you've already seen them and read them during the equity call or when already looking at our press release and so on and so forth but of course i will be ready for questions in this regard The other element, perhaps, that I will comment on this slide, I won't comment of all, of course, all these figures. the other element perhaps that i will comment on this slide i won't comment of all of course all these figures Cost of risk, 28 basis point at group level. cost of risk 28 basis point at group level Once again, we will come back on that. once again we will come back on that Slightly higher than the 25 basis point that we have disclosed as our main hypothesis for the medium and for the medium-term plan. slightly higher than the 25 basis point that we have disclosed as our main hypothesis for the medium and for the medium-term plan It's in line with the macroeconomic environment, but we still consider that the 25 basis point is what should be the through the cycle level for the group. it's in line with the macroeconomic environment but we still consider that the 25 basis point is what should be the through the cycle level for the group In terms of commercial activity, I was talking about it; it's very dynamic. In terms of customer capture, more than 2 million gross customer capture, so 2.1 million for France, Italy, and Poland. This is coherent with our MTP target of +8 million across four years for the solely French market, but clearly, this is coherent. In terms of retail banking loan production, both on corporate and SME and home loans, we will detail that; it is also very dynamic, +15%. It's even quite surprising in the current uncertainty that we have that kind of growth, but it is what we effectively have delivered in 2025. In terms of commercial activity, I was talking about it; it's very dynamic. in terms of commercial activity i was talking about it it's very dynamic In terms of customer capture, more than 2 million gross customer capture, so 2.1 million for France, Italy, and Poland. in terms of customer capture more than 2 million gross customer capture so 2.1 million for france italy and poland This is coherent with our MTP target of +8 million across four years for the solely French market, but clearly, this is coherent. this is coherent with our mtp target of +8 million across four years for the solely french market but clearly this is coherent In terms of retail banking loan production, both on corporate and SME and home loans, we will detail that; it is also very dynamic, +15%. in terms of retail banking loan production both on corporate and sme and home loans we will detail that it is also very dynamic +15% It's even quite surprising in the current uncertainty that we have that kind of growth, but it is what we effectively have delivered in 2025. it's even quite surprising in the current uncertainty that we have that kind of growth but it is what we effectively have delivered in 2025 In terms of insurance and asset management activity, we reach record level in terms of commercial activity with, for insurance, a record level of premium above EUR 50 billion for the first time, EUR 52 billion, +20%. And for Amundi, net inflows at EUR 88 billion, it's almost one point. It's a little bit more than one point time, more than the previous year. And for the CIB business, it's record over quarter, both at the quarter level and annual results. In terms of insurance and asset management activity, we reach record level in terms of commercial activity with, for insurance, a record level of premium above EUR 50 billion for the first time, EUR 52 billion, +20%. in terms of insurance and asset management activity we reach record level in terms of commercial activity with for insurance a record level of premium above eur 50 billion for the first time eur 52 billion +20% And for Amundi, net inflows at EUR 88 billion, it's almost one point. and for amundi net inflows at eur 88 billion it's almost one point It's a little bit more than one point time, more than the previous year. it's a little bit more than one point time more than the previous year And for the CIB business, it's record over quarter, both at the quarter level and annual results. and for the cib business it's record over quarter both at the quarter level and annual results As we have already many times commented, we've made a certain number of bolt-on acquisitions all these years, and during the MTP presentation, we had from yourself a certain number of questions around the return on investment about all these acquisitions. So we have provided here for these annual results what we have calculated as the return on investment for our past acquisitions. Of course, these figures have been audited by our auditors. So for the acquisitions that have more than three years, after three years, we were at 11% in terms of return on investment, and after more than three years, up to now, it's 13%. As we have already many times commented, we've made a certain number of bolt-on acquisitions all these years, and during the MTP presentation, we had from yourself a certain number of questions around the return on investment about all these acquisitions. as we have already many times commented we've made a certain number of bolt-on acquisitions all these years and during the mtp presentation we had from yourself a certain number of questions around the return on investment about all these acquisitions So we have provided here for these annual results what we have calculated as the return on investment for our past acquisitions. so we have provided here for these annual results what we have calculated as the return on investment for our past acquisitions Of course, these figures have been audited by our auditors. of course these figures have been audited by our auditors So for the acquisitions that have more than three years, after three years, we were at 11% in terms of return on investment, and after more than three years, up to now, it's 13%. so for the acquisitions that have more than three years after three years we were at 11% in terms of return on investment and after more than three years up to now it's 13% For the more recent acquisition, on the bottom of this slide, not yet after, so they do not have yet three years of life, we are already around 10% in terms of return on investment, so we are very confident that we will at least achieve the target and even go above it. And thus, in terms of where we stand versus the execution of the medium-term plan, 2025 being the first year of this medium-term plan anyway. So in terms of revenues, almost in line with an evolution 2025 versus 2024 on a pro forma basis, meaning pro forma of the first consolidation of Banco BPM and the application of CRR III. For the more recent acquisition, on the bottom of this slide, not yet after, so they do not have yet three years of life, we are already around 10% in terms of return on investment, so we are very confident that we will at least achieve the target and even go above it. for the more recent acquisition on the bottom of this slide not yet after so they do not have yet three years of life we are already around 10% in terms of return on investment so we are very confident that we will at least achieve the target and even go above it And thus, in terms of where we stand versus the execution of the medium-term plan, 2025 being the first year of this medium-term plan anyway. and thus in terms of where we stand versus the execution of the medium-term plan 2025 being the first year of this medium-term plan anyway So in terms of revenues, almost in line with an evolution 2025 versus 2024 on a pro forma basis, meaning pro forma of the first consolidation of Banco BPM and the application of CRR III. so in terms of revenues almost in line with an evolution 2025 versus 2024 on a pro forma basis meaning pro forma of the first consolidation of banco bpm and the application of crr iii So for the revenues, almost 3.5% of, of evolution, a little bit less, to be honest, but this is the first year of the plan, and with all the investment we've made, and we will continue to implement, we are very confident that we will deliver what we have promised. In terms of net income Group share, already perfectly in line with the CAGR of this KPI, 5%. In terms of cost-income ratio, due to the pro forma, a high level, a high point in terms of cost income, but we clearly are totally confident that we will reach less than 55% in 2028. So for the revenues, almost 3.5% of, of evolution, a little bit less, to be honest, but this is the first year of the plan, and with all the investment we've made, and we will continue to implement, we are very confident that we will deliver what we have promised. so for the revenues almost 3.5% of of evolution a little bit less to be honest but this is the first year of the plan and with all the investment we've made and we will continue to implement we are very confident that we will deliver what we have promised In terms of net income Group share, already perfectly in line with the CAGR of this KPI, 5%. in terms of net income group share already perfectly in line with the cagr of this kpi 5% In terms of cost-income ratio, due to the pro forma, a high level, a high point in terms of cost income, but we clearly are totally confident that we will reach less than 55% in 2028. in terms of cost-income ratio due to the pro forma a high level a high point in terms of cost income but we clearly are totally confident that we will reach less than 55% in 2028 For the return on equity, on this pro forma basis, what we can show here is that we are already at 13.9%, meaning very close to the 14% we have delivered, which is, I would say, pretty normal. It's a little bit ambitious to just say that, but pretty normal, because we have very clearly stated and communicated that for this medium-term plan, we target 14% as a minimum, given the fact that we deliver during this plan, I would say, excess of capital that we intend to reinvest to provide more than what we have delivered in terms of our solely organic growth. So we are perfectly on track with the execution of this medium-term plan. For the return on equity, on this pro forma basis, what we can show here is that we are already at 13.9%, meaning very close to the 14% we have delivered, which is, I would say, pretty normal. for the return on equity on this pro forma basis what we can show here is that we are already at 13.9% meaning very close to the 14% we have delivered which is i would say pretty normal It's a little bit ambitious to just say that, but pretty normal, because we have very clearly stated and communicated that for this medium-term plan, we target 14% as a minimum, given the fact that we deliver during this plan, I would say, excess of capital that we intend to reinvest to provide more than what we have delivered in terms of our solely organic growth. it's a little bit ambitious to just say that but pretty normal because we have very clearly stated and communicated that for this medium-term plan we target 14% as a minimum given the fact that we deliver during this plan i would say excess of capital that we intend to reinvest to provide more than what we have delivered in terms of our solely organic growth So we are perfectly on track with the execution of this medium-term plan. so we are perfectly on track with the execution of this medium-term plan I will now go pretty quickly through the next slide, because you know that by heart, and just perhaps stop here to mention that this slide is. We have actualized this slide for the revenue figures, not yet for the split, be it by business line or geographic axis. We will do that for the next presentation after Q1. And in terms of revenues, as you can see, this is once again a continuous story of growth in terms of NBI at group level. Once again, despite a lot of uncertainties and a lot of geopolitical environment, which is not so obvious, but we continue to grow and to deliver this kind of growth. Yes, sorry. Yes. I will now go pretty quickly through the next slide, because you know that by heart, and just perhaps stop here to mention that this slide is. i will now go pretty quickly through the next slide because you know that by heart and just perhaps stop here to mention that this slide is We have actualized this slide for the revenue figures, not yet for the split, be it by business line or geographic axis. we have actualized this slide for the revenue figures not yet for the split be it by business line or geographic axis We will do that for the next presentation after Q1. we will do that for the next presentation after q1 And in terms of revenues, as you can see, this is once again a continuous story of growth in terms of NBI at group level. and in terms of revenues as you can see this is once again a continuous story of growth in terms of nbi at group level Once again, despite a lot of uncertainties and a lot of geopolitical environment, which is not so obvious, but we continue to grow and to deliver this kind of growth. once again despite a lot of uncertainties and a lot of geopolitical environment which is not so obvious but we continue to grow and to deliver this kind of growth Yes, sorry. yes sorry Yes. yes In terms of cost of risk, as I was mentioning, we are today slightly above these the assumption that we show here, and we remind here left-hand side of this slide, which are, I remind, 25 basis point at group level and 40 basis point at Crédit Agricole S.A. level. Well, we cannot be always below the average. If there is an average, it's because there are some some moments you are above, some moments you are below. We've spent many years below, so for the moment, we are slightly above. But we remain with this hypothesis for the average period of the plan. In terms of cost of risk, as I was mentioning, we are today slightly above these the assumption that we show here, and we remind here left-hand side of this slide, which are, I remind, 25 basis point at group level and 40 basis point at Crédit Agricole S.A. level. in terms of cost of risk as i was mentioning we are today slightly above these the assumption that we show here and we remind here left-hand side of this slide which are i remind 25 basis point at group level and 40 basis point at crédit agricole s.a level Well, we cannot be always below the average. well we cannot be always below the average If there is an average, it's because there are some some moments you are above, some moments you are below. if there is an average it's because there are some some moments you are above some moments you are below We've spent many years below, so for the moment, we are slightly above. we've spent many years below so for the moment we are slightly above But we remain with this hypothesis for the average period of the plan. but we remain with this hypothesis for the average period of the plan Nevertheless, we also demonstrate and show here that we have loan loss reserves, which are very, very high compared to competition, and at group level clearly best in class in terms of loan loss reserve. So we have three years of loan loss reserves versus our NPL ratio. Perhaps here, just to remind you that we have stable outlook across the three main rating agencies, despite the fact that France sovereign has a negative outlook with Moody's, which means that for the foreseeable future we are comfortable with this kind of rating for Crédit Agricole Group. Nevertheless, we also demonstrate and show here that we have loan loss reserves, which are very, very high compared to competition, and at group level clearly best in class in terms of loan loss reserve. nevertheless we also demonstrate and show here that we have loan loss reserves which are very very high compared to competition and at group level clearly best in class in terms of loan loss reserve So we have three years of loan loss reserves versus our NPL ratio. so we have three years of loan loss reserves versus our npl ratio Perhaps here, just to remind you that we have stable outlook across the three main rating agencies, despite the fact that France sovereign has a negative outlook with Moody's, which means that for the foreseeable future we are comfortable with this kind of rating for Crédit Agricole Group. perhaps here just to remind you that we have stable outlook across the three main rating agencies despite the fact that france sovereign has a negative outlook with moody's which means that for the foreseeable future we are comfortable with this kind of rating for crédit agricole group ESG, I won't take more time here, just to re-insist on the fact that, despite some pushback here and there, across the Atlantic, we remain totally committed to, to our ESG, plan, because we think that, it's, very important and essential for the planet to manage this energy transition. And, we remain focused, and anyway, it is still a very, important topic of discussions with, the majority of our clients. Well, to, to give, more, more details about our, commercial activity, so, once again, +2.1 million net gross customer acquisition for our retail network, in line with, what we, intend to deliver for, for the medium-term plan. ESG, I won't take more time here, just to re-insist on the fact that, despite some pushback here and there, across the Atlantic, we remain totally committed to, to our ESG, plan, because we think that, it's, very important and essential for the planet to manage this energy transition. esg i won't take more time here just to re-insist on the fact that despite some pushback here and there across the atlantic we remain totally committed to to our esg plan because we think that it's very important and essential for the planet to manage this energy transition And, we remain focused, and anyway, it is still a very, important topic of discussions with, the majority of our clients. and we remain focused and anyway it is still a very important topic of discussions with the majority of our clients Well, to, to give, more, more details about our, commercial activity, so, once again, + 2.1 million net gross customer acquisition for our retail network, in line with, what we, intend to deliver for, for the medium-term plan. well to to give more more details about our commercial activity so once again + 2.1 million net gross customer acquisition for our retail network in line with what we intend to deliver for for the medium-term plan But also very important, at the retail banking level, the loan production is and has been, in 2025, very dynamic. Once again, both at corporate level and for the home loan production. And for the home loan production, what is interesting is to see that we continue to originate home loans around 3% in terms of yield, while the back book is at 1.9%. So we clearly continue to reprice the loan book of all loans, which is the bulk of our assets for the retail business. And with volumes which are consistent with, I would say, a speed of repricing, which is interesting. But also very important, at the retail banking level, the loan production is and has been, in 2025, very dynamic. but also very important at the retail banking level the loan production is and has been in 2025 very dynamic Once again, both at corporate level and for the home loan production. once again both at corporate level and for the home loan production And for the home loan production, what is interesting is to see that we continue to originate home loans around 3% in terms of yield, while the back book is at 1.9%. and for the home loan production what is interesting is to see that we continue to originate home loans around 3% in terms of yield while the back book is at 1.9% So we clearly continue to reprice the loan book of all loans, which is the bulk of our assets for the retail business. so we clearly continue to reprice the loan book of all loans which is the bulk of our assets for the retail business And with volumes which are consistent with, I would say, a speed of repricing, which is interesting. and with volumes which are consistent with i would say a speed of repricing which is interesting Clearly, we can say now that the inflection point in terms of net interest margin for the retail business is behind us. For the insurance and asset management, I've mentioned it, record level of annual premium for the insurance, EUR 52 billion, and for the asset management, a record level of net inflow, EUR 88 billion. For the Crédit Agricole Personal Finance and Mobility, to be honest, for them, this is not a very good year in terms of net result for several reasons, including at least two important one-off. But what is interesting is that in terms of commercial activity, the production remains at high level with margin which are, I would say, in line with our expectation. Clearly, we can say now that the inflection point in terms of net interest margin for the retail business is behind us. clearly we can say now that the inflection point in terms of net interest margin for the retail business is behind us For the insurance and asset management, I've mentioned it, record level of annual premium for the insurance, EUR 52 billion, and for the asset management, a record level of net inflow, EUR 88 billion. for the insurance and asset management i've mentioned it record level of annual premium for the insurance eur 52 billion and for the asset management a record level of net inflow eur 88 billion For the Crédit Agricole Personal Finance and Mobility, to be honest, for them, this is not a very good year in terms of net result for several reasons, including at least two important one-off. for the crédit agricole personal finance and mobility to be honest for them this is not a very good year in terms of net result for several reasons including at least two important one-off But what is interesting is that in terms of commercial activity, the production remains at high level with margin which are, I would say, in line with our expectation. but what is interesting is that in terms of commercial activity the production remains at high level with margin which are i would say in line with our expectation So the future should be brighter for CAPFM business line. For CIB, it's, I would say, continuous and gradual growth, so record Q4 and record year in 2025, with very good position in the league tables. What is important as well for the CIB business is that this growth come from the whole range of our businesses, be it financing activities or market activities. In terms of waterfall for the revenues and the NBI, Q4 versus Q4, first of all, evolution of 1.6%, despite all the one-off at group level. And once again, if you put aside the one-off, every operational business line contributed positively to this evolution. So the future should be brighter for CAPFM business line. so the future should be brighter for capfm business line For CIB, it's, I would say, continuous and gradual growth, so record Q4 and record year in 2025, with very good position in the league tables. for cib it's i would say continuous and gradual growth so record q4 and record year in 2025 with very good position in the league tables What is important as well for the CIB business is that this growth come from the whole range of our businesses, be it financing activities or market activities. what is important as well for the cib business is that this growth come from the whole range of our businesses be it financing activities or market activities In terms of waterfall for the revenues and the NBI, Q4 versus Q4, first of all, evolution of 1.6%, despite all the one-off at group level. in terms of waterfall for the revenues and the nbi q4 versus q4 first of all evolution of 1.6% despite all the one-off at group level And once again, if you put aside the one-off, every operational business line contributed positively to this evolution. and once again if you put aside the one-off every operational business line contributed positively to this evolution The pack being laid for this quarter, and it's very, very, satisfactory for us, because we've said that many, many, many times, the net interest margin will grow, will, recover. So here, here we are with an evolution of the net interest margin for the Regional Banks of 18.7% versus last quarter 24, and for LCS, LCL, sorry, +11%. And our Group CFO, Clotilde L’Angevin, as mentioned, in terms of guidance, that, for this net interest margin, in 2026, we should have a positive evolution versus 2025 in the high single-digit level. In terms of expenses, an evolution of 0.9%, so clearly positive jaw effect versus versus the the NBI. Once again, some one-off, but overall, positive jaw effect between NBI and expenses. The pack being laid for this quarter, and it's very, very, satisfactory for us, because we've said that many, many, many times, the net interest margin will grow, will, recover. the pack being laid for this quarter and it's very very satisfactory for us because we've said that many many many times the net interest margin will grow will recover So here, here we are with an evolution of the net interest margin for the Regional Banks of 18.7% versus last quarter 24, and for LCS, LCL, sorry, +11%. so here here we are with an evolution of the net interest margin for the regional banks of 18.7% versus last quarter 24 and for lcs lcl sorry +11% And our Group CFO, Clotilde L’Angevin, as mentioned, in terms of guidance, that, for this net interest margin, in 2026, we should have a positive evolution versus 2025 in the high single-digit level. and our group cfo clotilde l’angevin as mentioned in terms of guidance that for this net interest margin in 2026 we should have a positive evolution versus 2025 in the high single-digit level In terms of expenses, an evolution of 0.9%, so clearly positive jaw effect versus versus the the NBI. in terms of expenses an evolution of 0.9% so clearly positive jaw effect versus versus the the nbi Once again, some one-off, but overall, positive jaw effect between NBI and expenses. once again some one-off but overall positive jaw effect between nbi and expenses So expenses under control, if I have to summarize. In terms of cost of risk, if we look left-hand side and the upper part of the slide, so a cost of risk total just above EUR 1 billion, which consists essentially in bucket 3 provisioning. And in terms of bucket 1 and 2, let's say the 139.9 million of bucket 1 and 2, these 99 million essentially consist in one-off. So expenses under control, if I have to summarize. so expenses under control if i have to summarize In terms of cost of risk, if we look left-hand side and the upper part of the slide, so a cost of risk total just above EUR 1 billion, which consists essentially in bucket 3 provisioning. in terms of cost of risk if we look left-hand side and the upper part of the slide so a cost of risk total just above eur 1 billion which consists essentially in bucket 3 provisioning And in terms of bucket 1 and 2, let's say the 139.9 million of bucket 1 and 2, these 99 million essentially consist in one-off. and in terms of bucket 1 and 2 let's say the 139.9 million of bucket 1 and 2 these 99 million essentially consist in one-off So first one-off is complement in terms of provisioning for the UK car loan file and legal risk that we have in the UK, is due to, I would say, new discussion and exchange between the industry and the FCA, and we have, after this discussion, readjusted our estimation of our potential loss in this regard. The other point is linked to the bankruptcy of Banca Progetto in Italy. And for this one, a small technical point, contribution to the deposit guarantee scheme normally are accounted as expenses. But so far, for this case, we have already been asked to pay EUR 5 million, which have been accounted in expenses. So first one-off is complement in terms of provisioning for the UK car loan file and legal risk that we have in the UK, is due to, I would say, new discussion and exchange between the industry and the FCA, and we have, after this discussion, readjusted our estimation of our potential loss in this regard. so first one-off is complement in terms of provisioning for the uk car loan file and legal risk that we have in the uk is due to i would say new discussion and exchange between the industry and the fca and we have after this discussion readjusted our estimation of our potential loss in this regard The other point is linked to the bankruptcy of Banca Progetto in Italy. the other point is linked to the bankruptcy of banca progetto in italy And for this one, a small technical point, contribution to the deposit guarantee scheme normally are accounted as expenses. and for this one a small technical point contribution to the deposit guarantee scheme normally are accounted as expenses But so far, for this case, we have already been asked to pay EUR 5 million, which have been accounted in expenses. but so far for this case we have already been asked to pay eur 5 million which have been accounted in expenses But we know already that this is not the end of the story, and that it will cost us more than EUR 5 million. So, waiting for the final amount and for the final payment. We have accounted temporarily in the cost of risk line, EUR 30 million, which is our estimation of what it could cost us overall. So in the future, we should have a reversal of this EUR 30 million and EUR 30 million contribution in terms of expenses, EUR 30 million or a slightly different number, depending on what the Italian authorities will ask us in order to refill this deposit guarantee scheme in Italy. But we know already that this is not the end of the story, and that it will cost us more than EUR 5 million. but we know already that this is not the end of the story and that it will cost us more than eur 5 million So, waiting for the final amount and for the final payment. so waiting for the final amount and for the final payment We have accounted temporarily in the cost of risk line, EUR 30 million, which is our estimation of what it could cost us overall. we have accounted temporarily in the cost of risk line eur 30 million which is our estimation of what it could cost us overall So in the future, we should have a reversal of this EUR 30 million and EUR 30 million contribution in terms of expenses, EUR 30 million or a slightly different number, depending on what the Italian authorities will ask us in order to refill this deposit guarantee scheme in Italy. so in the future we should have a reversal of this eur 30 million and eur 30 million contribution in terms of expenses, eur 30 million or a slightly different number depending on what the italian authorities will ask us in order to refill this deposit guarantee scheme in italy So clearly, the main part of the bucket 1 and 2 provisioning comes from these two one-off, which means that the rest is clearly bucket 3 provision, which means that, yes, the cost of risk is materializing gradually. Nevertheless, even if it increases a little bit, we were, during the previous quarter, more or less, south of EUR 900 million. We are now, if you exclude the one-off, slightly north of EUR 900 million, it's a slight evolution, so we are not worried about it. We still consider, once again, that the through-the-cycle level should remain reasonable. So clearly, the main part of the bucket 1 and 2 provisioning comes from these two one-off, which means that the rest is clearly bucket 3 provision, which means that, yes, the cost of risk is materializing gradually. so clearly the main part of the bucket 1 and 2 provisioning comes from these two one-off which means that the rest is clearly bucket 3 provision which means that yes the cost of risk is materializing gradually Nevertheless, even if it increases a little bit, we were, during the previous quarter, more or less, south of EUR 900 million. nevertheless even if it increases a little bit we were during the previous quarter more or less south of eur 900 million We are now, if you exclude the one-off, slightly north of EUR 900 million, it's a slight evolution, so we are not worried about it. we are now if you exclude the one-off slightly north of eur 900 million it's a slight evolution so we are not worried about it We still consider, once again, that the through-the-cycle level should remain reasonable. we still consider once again that the through-the-cycle level should remain reasonable Business line by business line, first, let's start with, I would say, a good news, which is that despite the one-off, for the UK car loan, at CAPFM level, the cost of risk overall average over the four rolling quarters remains stable. For Crédit Agricole Italia, the increase is clearly due to, this EUR 30 million that we have accounted for Banca Progetto. For CAL&F, it's more or less, slight, slight variation, but, more or less stable. And yes, for LCL and the Regional Bank, there is this continuous slight trend of increase in terms of cost of risk, but nothing very, very material. For financing activities, or meaning CIB activities, still a very, very low, cost of risk, 6 basis points, meaning around EUR 100 million. Business line by business line, first, let's start with, I would say, a good news, which is that despite the one-off, for the UK car loan, at CAPFM level, the cost of risk overall average over the four rolling quarters remains stable. business line by business line first let's start with i would say a good news which is that despite the one-off for the uk car loan at capfm level the cost of risk overall average over the four rolling quarters remains stable For Crédit Agricole Italia, the increase is clearly due to, this EUR 30 million that we have accounted for Banca Progetto. for crédit agricole italia the increase is clearly due to this eur 30 million that we have accounted for banca progetto For CAL&F, it's more or less, slight, slight variation, but, more or less stable. for cal&f it's more or less slight slight variation but more or less stable And yes, for LCL and the Regional Bank, there is this continuous slight trend of increase in terms of cost of risk, but nothing very, very material. and yes for lcl and the regional bank there is this continuous slight trend of increase in terms of cost of risk but nothing very very material For financing activities, or meaning CIB activities, still a very, very low, cost of risk, 6 basis points, meaning around EUR 100 million. for financing activities or meaning cib activities still a very very low cost of risk 6 basis points meaning around eur 100 million This is three years in a row that we have EUR 100 million of cost of risk at the CIB level, roughly speaking, around the figures. Clearly, here, one year, it will have to increase a little bit because six basis point is, in our view, clearly below the average level through the cycle. I'm not saying it will next quarter. I have no indication about it, but let's say, common sense lead me to say that, one day it should be, it should be a little bit higher. This is three years in a row that we have EUR 100 million of cost of risk at the CIB level, roughly speaking, around the figures. this is three years in a row that we have eur 100 million of cost of risk at the cib level roughly speaking around the figures Clearly, here, one year, it will have to increase a little bit because six basis point is, in our view, clearly below the average level through the cycle. clearly here one year it will have to increase a little bit because six basis point is in our view clearly below the average level through the cycle I'm not saying it will next quarter. i'm not saying it will next quarter I have no indication about it, but let's say, common sense lead me to say that, one day it should be, it should be a little bit higher. i have no indication about it but let's say common sense lead me to say that one day it should be it should be a little bit higher To conclude on this part, in terms of net results impacted by the one-off, the net results for the quarter are slightly below last year, but essentially due to the first consolidation of Banco BPM stake as equity accounted, while on an annual basis, as I were mentioning, it's a very strong financial results. In terms of capital and liquidity, so I won't comment on the first slide, which have been disclosed during the MTP presentation. No change, of course, since November, last November. So in terms of capital position, at group level, the CET1 ratio stands at 17.4%. It has been impacted by some model revision concerning the SMEs for Crédit Agricole Italy, LCL, and Regional Banks. To conclude on this part, in terms of net results impacted by the one-off, the net results for the quarter are slightly below last year, but essentially due to the first consolidation of Banco BPM stake as equity accounted, while on an annual basis, as I were mentioning, it's a very strong financial results. to conclude on this part in terms of net results impacted by the one-off the net results for the quarter are slightly below last year but essentially due to the first consolidation of banco bpm stake as equity accounted while on an annual basis as i were mentioning it's a very strong financial results In terms of capital and liquidity, so I won't comment on the first slide, which have been disclosed during the MTP presentation. in terms of capital and liquidity so i won't comment on the first slide which have been disclosed during the mtp presentation No change, of course, since November, last November. no change of course since november last november So in terms of capital position, at group level, the CET1 ratio stands at 17.4%. so in terms of capital position at group level the cet1 ratio stands at 17.4% It has been impacted by some model revision concerning the SMEs for Crédit Agricole Italy, LCL, and Regional Banks. it has been impacted by some model revision concerning the smes for crédit agricole italy lcl and regional banks The main part coming from Crédit Agricole Italia, we had already more or less indicated you that this will come. Except that, and knowing that we will have this impact, we have also increased a little bit our SRT, so significant risk transfer operations in order to mitigate for this quarter, a little bit this methodological impact. And at group level, what I wanted to add is that the first consolidation of Banco BPM is almost a non-event because we were more or less mark to market, either for half of the position through fair value, so against revenues and NBI, and for the other half, more or less against OCI. The main part coming from Crédit Agricole Italia, we had already more or less indicated you that this will come. the main part coming from crédit agricole italia we had already more or less indicated you that this will come Except that, and knowing that we will have this impact, we have also increased a little bit our SRT, so significant risk transfer operations in order to mitigate for this quarter, a little bit this methodological impact. except that and knowing that we will have this impact we have also increased a little bit our srt so significant risk transfer operations in order to mitigate for this quarter a little bit this methodological impact And at group level, what I wanted to add is that the first consolidation of Banco BPM is almost a non-event because we were more or less mark to market, either for half of the position through fair value, so against revenues and NBI, and for the other half, more or less against OCI. and at group level what i wanted to add is that the first consolidation of banco bpm is almost a non-event because we were more or less mark to market either for half of the position through fair value so against revenues and nbi and for the other half more or less against oci So in terms of prudential point of view, we were mark to market in terms of our the value of our stake in Banco BPM. We have accounted Banco BPM as equity accounted at book value, and the book value was below the market value, so we had to take a loss in this regard. So a loss means less numerator of the CET1 ratio, but as the value is lower, in terms of weight, in terms of RWA weight for this participation at group level, we have to take into account less RWA. RWA is not exactly CET1 or capital, but we also benefit from the fact that equity accounted stake is not subject to, from a prudential point of view, to prudential valuation. So in terms of prudential point of view, we were mark to market in terms of our the value of our stake in Banco BPM. so in terms of prudential point of view we were mark to market in terms of our the value of our stake in banco bpm We have accounted Banco BPM as equity accounted at book value, and the book value was below the market value, so we had to take a loss in this regard. we have accounted banco bpm as equity accounted at book value and the book value was below the market value so we had to take a loss in this regard So a loss means less numerator of the CET1 ratio, but as the value is lower, in terms of weight, in terms of RWA weight for this participation at group level, we have to take into account less RWA. so a loss means less numerator of the cet1 ratio but as the value is lower in terms of weight in terms of rwa weight for this participation at group level we have to take into account less rwa RWA is not exactly CET1 or capital, but we also benefit from the fact that equity accounted stake is not subject to, from a prudential point of view, to prudential valuation. rwa is not exactly cet1 or capital but we also benefit from the fact that equity accounted stake is not subject to from a prudential point of view to prudential valuation So we also take back the amount of prudential valuation that we had in front of this position. So overall, all in all, at group level, it's more or less an impact of quasi zero minus two basis points. While at Crédit Agricole S.A. level, as we were above the franchise, the loss in in NBI and OCI is compensated by a lower deduction of our own funds, and we benefit from the disappearance of the prudent valuation, which overall lead to a positive impact in terms of solvency for Crédit Agricole S.A. perimeter. So we also take back the amount of prudential valuation that we had in front of this position. so we also take back the amount of prudential valuation that we had in front of this position So overall, all in all, at group level, it's more or less an impact of quasi zero minus two basis points. so overall all in all at group level it's more or less an impact of quasi zero minus two basis points While at Crédit Agricole S.A. level, as we were above the franchise, the loss in in NBI and OCI is compensated by a lower deduction of our own funds, and we benefit from the disappearance of the prudent valuation, which overall lead to a positive impact in terms of solvency for Crédit Agricole S.A. perimeter. while at crédit agricole s.a level as we were above the franchise the loss in in nbi and oci is compensated by a lower deduction of our own funds and we benefit from the disappearance of the prudent valuation which overall lead to a positive impact in terms of solvency for crédit agricole s.a perimeter Well, besides that, I would say, as you can see, evolution of the organic growth of the RWA at the business line level is very well under control, and a strict management of RWA, RWA is effectively in place. In terms of buffer above distribution restriction threshold, as usual, at group level, very, very high level. What we have provided here in gray and within the dotted frame is the first of January pro forma. Pro forma of what? Pro forma from the fact that Crédit Agricole Group, and that's why the figures are only on the left-hand part of the slide, not the right-hand part, because Crédit Agricole Group becomes a 1.5% G-SIB, January 1st, this year. Well, besides that, I would say, as you can see, evolution of the organic growth of the RWA at the business line level is very well under control, and a strict management of RWA, RWA is effectively in place. well besides that i would say as you can see evolution of the organic growth of the rwa at the business line level is very well under control and a strict management of rwa rwa is effectively in place In terms of buffer above distribution restriction threshold, as usual, at group level, very, very high level. in terms of buffer above distribution restriction threshold as usual at group level very very high level What we have provided here in gray and within the dotted frame is the first of January pro forma. what we have provided here in gray and within the dotted frame is the first of january pro forma Pro forma of what? pro forma of what Pro forma from the fact that Crédit Agricole Group, and that's why the figures are only on the left-hand part of the slide, not the right-hand part, because Crédit Agricole Group becomes a 1.5% G-SIB, January 1st, this year. pro forma from the fact that crédit agricole group and that's why the figures are only on the left-hand part of the slide not the right-hand part because crédit agricole group becomes a 1.5% g-sib january 1st this year Of course, the buffer will decrease by 50 basis points first of January, which at group level is not at all a problem because we have so ample excess of ratios. Crédit Agricole S.A. level, no impact because Crédit Agricole S.A. is not a G-SIB. And as you can notice, the AT1 bucket is very well optimized because the buffer at the CET1 level and Tier 1 level is almost exactly the same. I won't comment this one because this is our capital strategy, capital story. No change versus several what we say for several years now. Here, exactly the same, same message, no problems in terms of MREL, no change in our strategy, nor our level of the ratios. Of course, the buffer will decrease by 50 basis points first of January, which at group level is not at all a problem because we have so ample excess of ratios. of course the buffer will decrease by 50 basis points first of january which at group level is not at all a problem because we have so ample excess of ratios Crédit Agricole S.A. level, no impact because Crédit Agricole S.A. is not a G-SIB. crédit agricole s.a level no impact because crédit agricole s.a is not a g-sib And as you can notice, the AT1 bucket is very well optimized because the buffer at the CET1 level and Tier 1 level is almost exactly the same. and as you can notice the at1 bucket is very well optimized because the buffer at the cet1 level and tier 1 level is almost exactly the same I won't comment this one because this is our capital strategy, capital story. i won't comment this one because this is our capital strategy capital story No change versus several what we say for several years now. no change versus several what we say for several years now Here, exactly the same, same message, no problems in terms of MREL, no change in our strategy, nor our level of the ratios. here exactly the same same message no problems in terms of mrel no change in our strategy nor our level of the ratios Perhaps here, one word concerning the customer deposit, perhaps right-hand side. First of all, because the customer deposit have increased a little bit more significantly during the quarter versus the previous quarter, so +2%, December versus September. And also, the fact that the proportion of the sight deposit is also slightly bigger, 52% versus 51%, meaning the proportion of sight deposit increase again versus several quarters of stabilization after the COVID period, or after the increase in the interest, after the COVID period and the increase of the interest rate, where this part have, has decreased was decreasing due to arbitrage to towards more remunerated products. Perhaps here, one word concerning the customer deposit, perhaps right-hand side. perhaps here one word concerning the customer deposit perhaps right-hand side First of all, because the customer deposit have increased a little bit more significantly during the quarter versus the previous quarter, so +2%, December versus September. first of all because the customer deposit have increased a little bit more significantly during the quarter versus the previous quarter so +2% december versus september And also, the fact that the proportion of the sight deposit is also slightly bigger, 52% versus 51%, meaning the proportion of sight deposit increase again versus several quarters of stabilization after the COVID period, or after the increase in the interest, after the COVID period and the increase of the interest rate, where this part have, has decreased was decreasing due to arbitrage to towards more remunerated products. and also the fact that the proportion of the sight deposit is also slightly bigger 52% versus 51% meaning the proportion of sight deposit increase again versus several quarters of stabilization after the covid period or after the increase in the interest after the covid period and the increase of the interest rate where this part have has decreased was decreasing due to arbitrage to towards more remunerated products In terms of liquidity position, so overall very, very stable, and once again, what is very important is the gray and green part above the HQLA reserve, so above the LCR ratio, above what is taken into account, the LCR ratio, the LCR being comfortable and in line with competitors. Nothing to say here about our liquidity balance sheet, very comparable to a previous quarter. Same thing about the breakdown of our long-term debt outstanding, very stable versus the previous quarter. So perhaps some words here before leaving you the floor for the Q&A. In terms of liquidity position, so overall very, very stable, and once again, what is very important is the gray and green part above the HQLA reserve, so above the LCR ratio, above what is taken into account, the LCR ratio, the LCR being comfortable and in line with competitors. in terms of liquidity position so overall very very stable and once again what is very important is the gray and green part above the hqla reserve so above the lcr ratio above what is taken into account the lcr ratio the lcr being comfortable and in line with competitors Nothing to say here about our liquidity balance sheet, very comparable to a previous quarter. nothing to say here about our liquidity balance sheet very comparable to a previous quarter Same thing about the breakdown of our long-term debt outstanding, very stable versus the previous quarter. same thing about the breakdown of our long-term debt outstanding very stable versus the previous quarter So perhaps some words here before leaving you the floor for the Q&A. so perhaps some words here before leaving you the floor for the q&a Concerning the funding plan of 2025, what I would like to highlight here is that, apart from the covered bond issuances that are in euro, because the asset that we use to collateralize these covered bond are home loans, and anyway, they are issued in order to refinance the home loans that we originate in France. So apart from that, which are issuances in euro, for the other part, we have issued 1/3 in euro, 1/3 in dollar, and 1/3 in other currencies. So very diversified with, I would say, a lot of local funding program, the Samurai program, historically, the first one, the Kangaroo program, the Panda program. Concerning the funding plan of 2025, what I would like to highlight here is that, apart from the covered bond issuances that are in euro, because the asset that we use to collateralize these covered bond are home loans, and anyway, they are issued in order to refinance the home loans that we originate in France. concerning the funding plan of 2025 what i would like to highlight here is that apart from the covered bond issuances that are in euro because the asset that we use to collateralize these covered bond are home loans and anyway they are issued in order to refinance the home loans that we originate in france So apart from that, which are issuances in euro, for the other part, we have issued 1/3 in euro, 1/3 in dollar, and 1/3 in other currencies. so apart from that which are issuances in euro for the other part we have issued 1/3 in euro 1/3 in dollar and 1/3 in other currencies So very diversified with, I would say, a lot of local funding program, the Samurai program, historically, the first one, the Kangaroo program, the Panda program. so very diversified with i would say a lot of local funding program the samurai program historically the first one the kangaroo program the panda program Even last year, we have issued under the Maple law, or Canadian local Canadian law, Maple under the local Canadian law. So very diversified, and we have, I would say, adjusted our issuances to the investor appetite, for example, a little more skewed toward senior preferred in yen and more skewed towards Tier 2 or subordinated debt in dollar. So we are very diversified, and we have a very great capacity to adjust to investor appetite in order to distribute our funding program. For this year, a funding program of EUR 18 billion versus the EUR 23 billion that we have issued last year, so slightly smaller. Even last year, we have issued under the Maple law, or Canadian local Canadian law, Maple under the local Canadian law. even last year we have issued under the maple law or canadian local canadian law maple under the local canadian law So very diversified, and we have, I would say, adjusted our issuances to the investor appetite, for example, a little more skewed toward senior preferred in yen and more skewed towards Tier 2 or subordinated debt in dollar. so very diversified and we have i would say adjusted our issuances to the investor appetite for example a little more skewed toward senior preferred in yen and more skewed towards tier 2 or subordinated debt in dollar So we are very diversified, and we have a very great capacity to adjust to investor appetite in order to distribute our funding program. so we are very diversified and we have a very great capacity to adjust to investor appetite in order to distribute our funding program For this year, a funding program of EUR 18 billion versus the EUR 23 billion that we have issued last year, so slightly smaller. for this year a funding program of eur 18 billion versus the eur 23 billion that we have issued last year so slightly smaller In terms of what we need for, I would say, solvency purposes, so Tier 2 and senior non-preferred, more or less the same amount than last year. It's more or less a rollover of our position and our maturing debt, plus the eventual, but it's marginal, increase in order to follow the evolution of the RWA, but this is marginal. Thus, the adjustment and lower needs in terms of covered and preferred senior, only around EUR 6 billion. We will continue to be diversified. And, as of today, we have already issued EUR 11 billion, so 60% of the plan. Don't be too worried. In terms of what we need for, I would say, solvency purposes, so Tier 2 and senior non-preferred, more or less the same amount than last year. in terms of what we need for i would say solvency purposes so tier 2 and senior non-preferred more or less the same amount than last year It's more or less a rollover of our position and our maturing debt, plus the eventual, but it's marginal, increase in order to follow the evolution of the RWA, but this is marginal. it's more or less a rollover of our position and our maturing debt plus the eventual but it's marginal increase in order to follow the evolution of the rwa but this is marginal Thus, the adjustment and lower needs in terms of covered and preferred senior, only around EUR 6 billion. thus the adjustment and lower needs in terms of covered and preferred senior only around eur 6 billion We will continue to be diversified. we will continue to be diversified And, as of today, we have already issued EUR 11 billion, so 60% of the plan. and as of today we have already issued eur 11 billion so 60% of the plan Don't be too worried. don't be too worried We will slow down the pace of our issuances, and we do not intend to complete our funding plan before end of June or end of July. So we will slow down a little bit and spread our funding needs across the rest of the year. But as usual, we wanted to start very dynamically. One reason of that also is the fact that there is a seasonality in our issuances or in European issuances. We have a lot of maturing debt during the Q1, so we naturally also issue more during the Q1. We will slow down the pace of our issuances, and we do not intend to complete our funding plan before end of June or end of July. we will slow down the pace of our issuances and we do not intend to complete our funding plan before end of june or end of july So we will slow down a little bit and spread our funding needs across the rest of the year. so we will slow down a little bit and spread our funding needs across the rest of the year But as usual, we wanted to start very dynamically. but as usual we wanted to start very dynamically One reason of that also is the fact that there is a seasonality in our issuances or in European issuances. one reason of that also is the fact that there is a seasonality in our issuances or in european issuances We have a lot of maturing debt during the Q1 , so we naturally also issue more during the Q1 . we have a lot of maturing debt during the q1 so we naturally also issue more during the q1 Due to the fact that our funding program is a little bit lower than last year, we are slightly, I would say, from a mathematical point of view, in advance versus last year. But it's common in our case that anyway, we are around 50% in end of April or beginning of May in terms of funding program. So I would say, we act as usual in terms of funding plan for this year. I will stop there and leave you the floor for the Q&A. Due to the fact that our funding program is a little bit lower than last year, we are slightly, I would say, from a mathematical point of view, in advance versus last year. due to the fact that our funding program is a little bit lower than last year we are slightly i would say from a mathematical point of view in advance versus last year But it's common in our case that anyway, we are around 50% in end of April or beginning of May in terms of funding program. but it's common in our case that anyway we are around 50% in end of april or beginning of may in terms of funding program So I would say, we act as usual in terms of funding plan for this year. so i would say we act as usual in terms of funding plan for this year I will stop there and leave you the floor for the Q&A. i will stop there and leave you the floor for the q&a

Speaker 3: Thank you, Olivier. So I suggest, Florence, Olivier, you may want to read the question we receive and answer directly. Thank you, Olivier. thank you olivier So I suggest, Florence, Olivier, you may want to read the question we receive and answer directly. so i suggest florence olivier you may want to read the question we receive and answer directly

Speaker 2: And our first question: Any thoughts on recent ING Tier 2 call at reset date? Until what date do you cover your callable bond, please? Well, I can potentially tell you at which date we hedge our callable bonds, be it Tier 2 or AT1. But I don't think it's very useful for you because anyway we do not consider ourselves constrained by the maturity of the hedge. And perhaps more specifically, because we had this question many times during our one-on-one last week in London, and we'll talk about the AT1 and the call period, the six-month per call period. We will act, I would say, economically in terms of call or non-call. And our first question: Any thoughts on recent ING Tier 2 call at reset date? and our first question any thoughts on recent ing tier 2 call at reset date Until what date do you cover your callable bond, please? until what date do you cover your callable bond please Well, I can potentially tell you at which date we hedge our callable bonds, be it Tier 2 or AT1. well i can potentially tell you at which date we hedge our callable bonds be it tier 2 or at1 But I don't think it's very useful for you because anyway we do not consider ourselves constrained by the maturity of the hedge. but i don't think it's very useful for you because anyway we do not consider ourselves constrained by the maturity of the hedge And perhaps more specifically, because we had this question many times during our one-on-one last week in London, and we'll talk about the AT1 and the call period, the six-month per call period. and perhaps more specifically because we had this question many times during our one-on-one last week in london and we'll talk about the at1 and the call period the six-month per call period We will act, I would say, economically in terms of call or non-call. we will act i would say economically in terms of call or non-call Anyway, we cannot say if we will call or non-call, be it at the first call date or reset date. As you can notice, implicitly, we position the maturity, the potential maturity of our AT1 at the reset date. But once again, it does not mean that we could call at reset date or first call date. We will act economically, meaning if we have issued, let's say, exactly six months in advance in order to replace an AT1 issuance, and we want to avoid the double carry, we can call effectively six months in advance. If we have to replace an issuance and we issue three months in advance, we can call three months in advance. Anyway, we cannot say if we will call or non-call, be it at the first call date or reset date. anyway we cannot say if we will call or non-call be it at the first call date or reset date As you can notice, implicitly, we position the maturity, the potential maturity of our AT1 at the reset date. as you can notice implicitly we position the maturity the potential maturity of our at1 at the reset date But once again, it does not mean that we could call at reset date or first call date. but once again it does not mean that we could call at reset date or first call date We will act economically, meaning if we have issued, let's say, exactly six months in advance in order to replace an AT1 issuance, and we want to avoid the double carry, we can call effectively six months in advance. we will act economically meaning if we have issued let's say exactly six months in advance in order to replace an at1 issuance and we want to avoid the double carry we can call effectively six months in advance If we have to replace an issuance and we issue three months in advance, we can call three months in advance. if we have to replace an issuance and we issue three months in advance we can call three months in advance Well, it will depend on market conditions, on our needs, and so on and so forth. So I would say we remain flexible, and we will act according to our interest in this regard and according to our, I would say, track record. Asset quality: Do you think the cost of risk could deteriorate a lot? A lot, no. I think we've said that very clearly. Continue to deteriorate a little, it's possible. I do not have crystal ball. Perhaps yes, perhaps not. So a lot, no. But clearly, so far there is a trend, and the macroeconomic situation is less great than two years ago. So it is what it is. But once again, we are not specifically worried about it. Well, it will depend on market conditions, on our needs, and so on and so forth. well it will depend on market conditions on our needs and so on and so forth So I would say we remain flexible, and we will act according to our interest in this regard and according to our, I would say, track record. so i would say we remain flexible and we will act according to our interest in this regard and according to our i would say track record Asset quality: Do you think the cost of risk could deteriorate a lot? asset quality do you think the cost of risk could deteriorate a lot A lot, no. a lot no I think we've said that very clearly. i think we've said that very clearly Continue to deteriorate a little, it's possible. continue to deteriorate a little it's possible I do not have crystal ball. i do not have crystal ball Perhaps yes, perhaps not. perhaps yes perhaps not So a lot, no. so a lot no But clearly, so far there is a trend, and the macroeconomic situation is less great than two years ago. but clearly so far there is a trend and the macroeconomic situation is less great than two years ago So it is what it is. so it is what it is But once again, we are not specifically worried about it. but once again we are not specifically worried about it

Speaker 1: Next one is for me? Next one is for me? next one is for me

Speaker 2: Yes, for you. Yes, for you. yes for you

Speaker 1: Thank you. How do you expect NII to develop in France? This quarter, the NII, as Olivier said, increased, both at regional bank level and LCL level. Inflection point is behind us, so it's a good news. Of course, we were at a low point. That means that, for next year, the increase will not be. Maybe it will, but, we don't think it will, be so huge that, 11% or more. So we think it will be more on a high single-digit, increase, and, but we are, we are confident because, so the book is repricing and, the activity is there. Thank you. thank you How do you expect NII to develop in France? how do you expect nii to develop in france This quarter, the NII, as Olivier said, increased, both at regional bank level and LCL level. this quarter the nii as olivier said increased both at regional bank level and lcl level Inflection point is behind us, so it's a good news. inflection point is behind us so it's a good news Of course, we were at a low point. of course we were at a low point That means that, for next year, the increase will not be. that means that for next year the increase will not be Maybe it will, but, we don't think it will, be so huge that, 11% or more. maybe it will but we don't think it will be so huge that 11% or more So we think it will be more on a high single- digit, increase, and, but we are, we are confident because, so the book is repricing and, the activity is there. so we think it will be more on a high single- digit increase and but we are we are confident because so the book is repricing and the activity is there

Speaker 2: Our next question is a very interesting one. Thank you for that. What do you think about stablecoins and digital euro, threat or opportunity? Well, let's start with a digital euro. There are two potential digital euro, the wholesale one and the retail one. For the wholesale one, well, threat or opportunity, I think things are balanced. It's a potential threat when you are Crédit Agricole, because we have a very strong rating, and even for settlement, day plus two, it's interesting for some counterparts to trade with Crédit Agricole versus some other counterparts. So, the disappearance with potential instant settlement will cancel some competitive advantage that we have at Crédit Agricole. Our next question is a very interesting one. our next question is a very interesting one Thank you for that. thank you for that What do you think about stable coins and digital euro, threat or opportunity? what do you think about stable coins and digital euro threat or opportunity Well, let's start with a digital euro. well let's start with a digital euro There are two potential digital euro, the wholesale one and the retail one. there are two potential digital euro the wholesale one and the retail one For the wholesale one, well, threat or opportunity, I think things are balanced. for the wholesale one well threat or opportunity i think things are balanced It's a potential threat when you are Crédit Agricole, because we have a very strong rating, and even for settlement, day plus two, it's interesting for some counterparts to trade with Crédit Agricole versus some other counterparts. it's a potential threat when you are crédit agricole because we have a very strong rating and even for settlement day plus two it's interesting for some counterparts to trade with crédit agricole versus some other counterparts So, the disappearance with potential instant settlement will cancel some competitive advantage that we have at Crédit Agricole. so the disappearance with potential instant settlement will cancel some competitive advantage that we have at crédit agricole Nevertheless, I don't think this competitive advantage is so big, because the settlement risk is a risk that has not materialized many times, and is with a very low probability. Nevertheless, it will cancel a kind of competitive advantage that we have. On the other side, it can provide, I would say, instant settlement with central bank. It can lower the need for reconciliation. It can lead to potential 24-hour, seven days a week, settlement with the central bank, because when you have instant settlement, of course, the tendency will be to extend this settlement, instant settlement, to the whole day. Nevertheless, I don't think this competitive advantage is so big, because the settlement risk is a risk that has not materialized many times, and is with a very low probability. nevertheless i don't think this competitive advantage is so big because the settlement risk is a risk that has not materialized many times and is with a very low probability Nevertheless, it will cancel a kind of competitive advantage that we have. nevertheless it will cancel a kind of competitive advantage that we have On the other side, it can provide, I would say, instant settlement with central bank. on the other side it can provide i would say instant settlement with central bank It can lower the need for reconciliation. it can lower the need for reconciliation It can lead to potential 24-hour, seven days a week, settlement with the central bank, because when you have instant settlement, of course, the tendency will be to extend this settlement, instant settlement, to the whole day. it can lead to potential 24-hour seven days a week settlement with the central bank because when you have instant settlement of course the tendency will be to extend this settlement instant settlement to the whole day This can provide opportunities for us to provide new services to our clients and to be more efficient for the benefit of our clients. Thus, when you are more efficient with our clients, you have usually more business. So for the wholesale digital euro, I think it's something which will occur, and will have, I would say, balanced benefit and threat. For the retail, I'm sorry, but here I will say it's clearly a threat. It's today a scene from my perception is that it's very philosophical at the moment in terms of position by some authorities. This can provide opportunities for us to provide new services to our clients and to be more efficient for the benefit of our clients. this can provide opportunities for us to provide new services to our clients and to be more efficient for the benefit of our clients Thus, when you are more efficient with our clients, you have usually more business. thus when you are more efficient with our clients you have usually more business So for the wholesale digital euro, I think it's something which will occur, and will have, I would say, balanced benefit and threat. so for the wholesale digital euro i think it's something which will occur and will have i would say balanced benefit and threat For the retail, I'm sorry, but here I will say it's clearly a threat. for the retail i'm sorry but here i will say it's clearly a threat It's today a scene from my perception is that it's very philosophical at the moment in terms of position by some authorities. it's today a scene from my perception is that it's very philosophical at the moment in terms of position by some authorities I've still very, very big concern about the impact on our balance sheet and possible flow from the deposit on our balance sheet to some deposit on the balance sheet of the central bank. So I see that as a threat clearly, and I'm not so sure that all this threat, either in terms of flows from our balance sheet and/or in terms of cost for the whole system, not only the financial system, but also all the economic actors that will have to adapt their payment scheme to this retail digital euro, is worth what it intend to tackle in terms of problem. I've still very, very big concern about the impact on our balance sheet and possible flow from the deposit on our balance sheet to some deposit on the balance sheet of the central bank. i've still very very big concern about the impact on our balance sheet and possible flow from the deposit on our balance sheet to some deposit on the balance sheet of the central bank So I see that as a threat clearly, and I'm not so sure that all this threat, either in terms of flows from our balance sheet and/or in terms of cost for the whole system, not only the financial system, but also all the economic actors that will have to adapt their payment scheme to this retail digital euro, is worth what it intend to tackle in terms of problem. so i see that as a threat clearly and i'm not so sure that all this threat either in terms of flows from our balance sheet and/or in terms of cost for the whole system not only the financial system but also all the economic actors that will have to adapt their payment scheme to this retail digital euro is worth what it intend to tackle in terms of problem Of course, sovereignty has not to be questioned, and it's a fair objective to develop and to impose sovereignty and payment in Europe. Is it the only mean to achieve that? Well, the private sector has an alternative answer to that, and I've not seen today any fair pro and cons between this institutional answer by ECB and the private sector answer. So I see that as a threat, to be honest. In terms of stablecoin, I think once again, it's balanced because for some of our businesses, meaning the asset management business, the custodian business, it can be an advantage and or an opportunity to develop their business using that kind of tool. Of course, sovereignty has not to be questioned, and it's a fair objective to develop and to impose sovereignty and payment in Europe. of course sovereignty has not to be questioned and it's a fair objective to develop and to impose sovereignty and payment in europe Is it the only mean to achieve that? is it the only mean to achieve that Well, the private sector has an alternative answer to that, and I've not seen today any fair pro and cons between this institutional answer by ECB and the private sector answer. well the private sector has an alternative answer to that and i've not seen today any fair pro and cons between this institutional answer by ecb and the private sector answer So I see that as a threat, to be honest. so i see that as a threat to be honest In terms of stablecoin, I think once again, it's balanced because for some of our businesses, meaning the asset management business, the custodian business, it can be an advantage and or an opportunity to develop their business using that kind of tool. in terms of stablecoin i think once again it's balanced because for some of our businesses meaning the asset management business the custodian business it can be an advantage and or an opportunity to develop their business using that kind of tool For the banking sector or the banking unit, banking business line, once again, it can be a threat, because once again, the, it can lead to some disintermediation, from of payments and or certain scheme from our balance sheet. So, once again, at Crédit Agricole Group, it is balanced, but I think this, this can be an opportunity for some businesses, but I think also that it can be a threat for the banking unit, because it can lead to some disintermediation, in terms of settlement and payments. We'll see. For the banking sector or the banking unit, banking business line, once again, it can be a threat, because once again, the, it can lead to some disintermediation, from of payments and or certain scheme from our balance sheet. for the banking sector or the banking unit banking business line once again it can be a threat because once again the it can lead to some disintermediation from of payments and or certain scheme from our balance sheet So, once again, at Crédit Agricole Group, it is balanced, but I think this, this can be an opportunity for some businesses, but I think also that it can be a threat for the banking unit, because it can lead to some disintermediation, in terms of settlement and payments. so once again at crédit agricole group it is balanced but i think this this can be an opportunity for some businesses but i think also that it can be a threat for the banking unit because it can lead to some disintermediation in terms of settlement and payments We'll see. we'll see And that's why, perhaps to conclude on that, that's why, in order to, from the banking side, to answer that kind of a potential threat, which also comes from the fact that the financial, in fact, the economic actors are asking for instant settlement, we need to find, we'll say, on-balance-sheet answer to that kind of needs or new needs or expressed need, which can come from tokenized deposits, for example, the kind of things on which, for example, JPMorgan is working and investing hard. We are also looking at it and investing in this kind of technology. So we will see. And that's why, perhaps to conclude on that, that's why, in order to, from the banking side, to answer that kind of a potential threat, which also comes from the fact that the financial, in fact, the economic actors are asking for instant settlement, we need to find, we'll say, on-balance-sheet answer to that kind of needs or new needs or expressed need, which can come from tokenized deposits, for example, the kind of things on which, for example, JP Morgan is working and investing hard. and that's why perhaps to conclude on that that's why in order to from the banking side to answer that kind of a potential threat which also comes from the fact that the financial in fact the economic actors are asking for instant settlement we need to find we'll say on-balance-sheet answer to that kind of needs or new needs or expressed need which can come from tokenized deposits for example the kind of things on which for example jp morgan is working and investing hard We are also looking at it and investing in this kind of technology. we are also looking at it and investing in this kind of technology So we will see. so we will see It's still very early to say exactly what will happen. It's still very well working progress in this regard. But we look at it very closely, because clearly, these are things that could profoundly change some nature of our businesses. Next one is for you. It's still very early to say exactly what will happen. it's still very early to say exactly what will happen It's still very well working progress in this regard. it's still very well working progress in this regard But we look at it very closely, because clearly, these are things that could profoundly change some nature of our businesses. but we look at it very closely because clearly these are things that could profoundly change some nature of our businesses Next one is for you. next one is for you

Speaker 1: Yes, sir. What is exactly the revision of remarketing value for used vehicles for Leasys? Does it call into question your mobility strategy? Olivier said there were some one-off this quarter, and one of them is at Leasys level. You know, Leasys is a joint venture with Stellantis, and for leasing. And with Stellantis, decreased is the new car price, because the product range of Stellantis is a little bit more in line with what customers want. So as Stellantis decreased its price, we decided to decrease also the used price, the used car prices. It's not only residual value, it's more larger than that because it's remarketing value, that is the value we have to remarket the car into our network. Yes, sir. yes sir What is exactly the revision of remarketing value for used vehicles for Leasys? what is exactly the revision of remarketing value for used vehicles for leasys Does it call into question your mobility strategy? does it call into question your mobility strategy Olivier said there were some one-off this quarter, and one of them is at Leasys level. olivier said there were some one-off this quarter and one of them is at leasys level You know, Leasys is a joint venture with Stellantis, and for leasing. you know leasys is a joint venture with stellantis and for leasing And with Stellantis, decreased is the new car price, because the product range of Stellantis is a little bit more in line with what customers want. and with stellantis decreased is the new car price because the product range of stellantis is a little bit more in line with what customers want So as Stellantis decreased its price, we decided to decrease also the used price, the used car prices. so as stellantis decreased its price we decided to decrease also the used price the used car prices It's not only residual value, it's more larger than that because it's remarketing value, that is the value we have to remarket the car into our network. it's not only residual value it's more larger than that because it's remarketing value that is the value we have to remarket the car into our network And now we have decreased it a little bit more than we should have done it, only based on Stellantis price decrease. And we are now in line with what we think is a good price, and it will be good for our MTP, medium-term plan, targets, because we have I would say cleaned those price. And this one-off shows also that what we identified as a key element in mobility, that is services and insurance, that are good things for us to develop in order to smooth the price of cars. And we still are in the mobility area, because we still think we need some more electric vehicles and more services around. And now we have decreased it a little bit more than we should have done it, only based on Stellantis price decrease. and now we have decreased it a little bit more than we should have done it only based on stellantis price decrease And we are now in line with what we think is a good price, and it will be good for our MTP, medium-term plan, targets, because we have I would say cleaned those price. and we are now in line with what we think is a good price and it will be good for our mtp medium-term plan targets because we have i would say cleaned those price And this one-off shows also that what we identified as a key element in mobility, that is services and insurance, that are good things for us to develop in order to smooth the price of cars. and this one-off shows also that what we identified as a key element in mobility that is services and insurance that are good things for us to develop in order to smooth the price of cars And we still are in the mobility area, because we still think we need some more electric vehicles and more services around. and we still are in the mobility area because we still think we need some more electric vehicles and more services around We think this will, next year, go at the same level at previous year, and then we think the profitability of this will go on. We think this will, next year, go at the same level at previous year, and then we think the profitability of this will go on. we think this will next year go at the same level at previous year and then we think the profitability of this will go on

Speaker 2: Thank you. So next question, so I don't see why you ask a question, because obviously you already have a lot of answers. So sorry for this, this joke. Could you elaborate further on the 2026 issuance guidance? At this stage, we have assumed EUR 5 billion covered, EUR 1 billion senior preferred, EUR 10 billion non-preferred senior, and EUR 2 billion Tier 2, and no AT1. So I will, I would like to have a hiring meeting with you, because obviously you are very good at elaborating our funding plan. Now, so would you see it as broadly accurate reflection of your plan, and so on and so forth? So it's, I would say, it's not far from the, what we, what we should do. Thank you. thank you So next question, so I don't see why you ask a question, because obviously you already have a lot of answers. so next question so i don't see why you ask a question because obviously you already have a lot of answers So sorry for this, this joke. so sorry for this this joke Could you elaborate further on the 2026 issuance guidance? could you elaborate further on the 2026 issuance guidance At this stage, we have assumed EUR 5 billion covered, EUR 1 billion senior preferred, EUR 10 billion non-preferred senior, and EUR 2 billion Tier 2, and no AT1. at this stage we have assumed eur 5 billion covered, eur 1 billion senior preferred, eur 10 billion non-preferred senior and eur 2 billion tier 2 and no at1 So I will, I would like to have a hiring meeting with you, because obviously you are very good at elaborating our funding plan. so i will i would like to have a hiring meeting with you because obviously you are very good at elaborating our funding plan Now, so would you see it as broadly accurate reflection of your plan, and so on and so forth? now so would you see it as broadly accurate reflection of your plan and so on and so forth So it's, I would say, it's not far from the, what we, what we should do. so it's i would say it's not far from the what we what we should do Once again, we want to keep the flexibility between covered and senior preferred. I think that you overweight a little bit the covered versus preferred senior. Also, because Moody's has expressed the fact that we are, I would say, immune from any evolution in the CMDI evolution. But, well, we have to roll over our preferred senior stack. For the rest, well, once again, it's not too far, but we want to versus what you say, we do not provide such an accurate guidance. Once again, we want to keep the flexibility between covered and senior preferred. once again we want to keep the flexibility between covered and senior preferred I think that you overweight a little bit the covered versus preferred senior. i think that you overweight a little bit the covered versus preferred senior Also, because Moody's has expressed the fact that we are, I would say, immune from any evolution in the CMDI evolution. also because moody's has expressed the fact that we are i would say immune from any evolution in the cmdi evolution But, well, we have to roll over our preferred senior stack. but well we have to roll over our preferred senior stack For the rest, well, once again, it's not too far, but we want to versus what you say, we do not provide such an accurate guidance. for the rest well once again it's not too far but we want to versus what you say we do not provide such an accurate guidance Once again, when we say we target around EUR 12 billion of senior non-preferred and Tier 2, we want to keep some flexibility between senior non-preferred and Tier 2, depending on market conditions, depending on relative spread, depending on some potential arbitrage in terms of currency, given the cross-currency level. So, you're not far from what we should do. But once again, we want to keep some flexibility. In terms of AT1, clearly, if we go to the next slide, sorry, pardon, not this next one. You can, your assumption is, I would say rational, given the next potential call date of our issuances. Once again, when we say we target around EUR 12 billion of senior non-preferred and Tier 2, we want to keep some flexibility between senior non-preferred and Tier 2, depending on market conditions, depending on relative spread, depending on some potential arbitrage in terms of currency, given the cross-currency level. once again when we say we target around eur 12 billion of senior non-preferred and tier 2 we want to keep some flexibility between senior non-preferred and tier 2 depending on market conditions depending on relative spread depending on some potential arbitrage in terms of currency given the cross-currency level So, you're not far from what we should do. so you're not far from what we should do But once again, we want to keep some flexibility. but once again we want to keep some flexibility In terms of AT1, clearly, if we go to the next slide, sorry, pardon, not this next one. in terms of at1 clearly if we go to the next slide sorry pardon not this next one You can, your assumption is, I would say rational, given the next potential call date of our issuances. you can your assumption is i would say rational given the next potential call date of our issuances So we are, we only have a very small amount in June this year. And as you can, as you have seen, we have today, slightly a little bit more than the strict optimum in terms of AT1 buffer, so we can clearly absorb these EUR 100 million maturing callable in June without any problem. Once again, I'm not saying we will call, but, today, it's very rational to do so. In fact, it seems to be very rational to do so. And, the next one, is, I would say is, sorry, So we are, we only have a very small amount in June this year. so we are we only have a very small amount in june this year And as you can, as you have seen, we have today, slightly a little bit more than the strict optimum in terms of AT1 buffer, so we can clearly absorb these EUR 100 million maturing callable in June without any problem. and as you can as you have seen we have today slightly a little bit more than the strict optimum in terms of at1 buffer so we can clearly absorb these eur 100 million maturing callable in june without any problem Once again, I'm not saying we will call, but, today, it's very rational to do so. once again i'm not saying we will call but today it's very rational to do so In fact, it seems to be very rational to do so. in fact it seems to be very rational to do so And, the next one, is, I would say is, sorry, and the next one is i would say is sorry

Speaker 3: December. December. december

Speaker 2: next call date, December 27. So December 27, it's not for today. So yes, if you only look at it, and the fact that we are already at the optimum in terms of buffer, we have no need to issue. That being said, once again, we want to remain flexible. AT1 reset spread, as you know, we managed to reset at the tightest ever since the introduction of this instrument. So could be interesting at one point to envisage issuing, even if we have to bear some double carry. But the double carry is still very expensive, so, well, rationally, we don't need, but we do not exclude to act opportunistically. next call date, December 27. next call date december 27 So December 27, it's not for today. so december 27 it's not for today So yes, if you only look at it, and the fact that we are already at the optimum in terms of buffer, we have no need to issue. so yes if you only look at it and the fact that we are already at the optimum in terms of buffer we have no need to issue That being said, once again, we want to remain flexible. that being said once again we want to remain flexible AT1 reset spread, as you know, we managed to reset at the tightest ever since the introduction of this instrument. at1 reset spread as you know we managed to reset at the tightest ever since the introduction of this instrument So could be interesting at one point to envisage issuing, even if we have to bear some double carry. so could be interesting at one point to envisage issuing even if we have to bear some double carry But the double carry is still very expensive, so, well, rationally, we don't need, but we do not exclude to act opportunistically. but the double carry is still very expensive so well rationally we don't need but we do not exclude to act opportunistically Hello, in Italy, what is your next step with Banco BPM? Well, do I really need to answer this question, to be honest? I read it, but, I think that you've heard the answer many times, and I won't say something different. Meaning, we have this kind of stake in order to protect our interest in Italy, meaning to be in a position to be an actor that you should talk to, you need to talk to, if anything is considered around Banco BPM. And besides that, the CEO of Banco BPM and the CEO of Crédit Agricole S.A. have expressed that they could envisage further cooperation with interest. That's what it is today, and I won't say more. What is your view on the ECB simplification and AT1 in particular? Hello, in Italy, what is your next step with Banco BPM? hello in italy what is your next step with banco bpm Well, do I really need to answer this question, to be honest? well do i really need to answer this question to be honest I read it, but, I think that you've heard the answer many times, and I won't say something different. i read it but i think that you've heard the answer many times and i won't say something different Meaning, we have this kind of stake in order to protect our interest in Italy, meaning to be in a position to be an actor that you should talk to, you need to talk to, if anything is considered around Banco BPM. meaning we have this kind of stake in order to protect our interest in italy meaning to be in a position to be an actor that you should talk to you need to talk to if anything is considered around banco bpm And besides that, the CEO of Banco BPM and the CEO of Crédit Agricole S.A. have expressed that they could envisage further cooperation with interest. and besides that the ceo of banco bpm and the ceo of crédit agricole s.a have expressed that they could envisage further cooperation with interest That's what it is today, and I won't say more. that's what it is today and i won't say more What is your view on the ECB simplification and AT1 in particular? what is your view on the ecb simplification and at1 in particular Do you believe the AT1 ECB proposal could be effective? So, I'm not so sure it is. I would say, a request from ECB. ECB has conducted a broad work in order to review and to potentially make some proposal in terms of simplification. So it's one, not only one, clearly, but it's one of the potential proposal of the ECB, that now has to be discussed in the legal European process. So, the commission has launched, if I'm correct. Do you believe the AT1 ECB proposal could be effective? do you believe the at1 ecb proposal could be effective So, I'm not so sure it is. so i'm not so sure it is I would say, a request from ECB. i would say a request from ecb ECB has conducted a broad work in order to review and to potentially make some proposal in terms of simplification. ecb has conducted a broad work in order to review and to potentially make some proposal in terms of simplification So it's one, not only one , clearly, but it's one of the potential proposal of the ECB, that now has to be discussed in the legal European process. so it's one not only one clearly but it's one of the potential proposal of the ecb that now has to be discussed in the legal european process So, the commission has launched, if I'm correct. so the commission has launched if i'm correct

Speaker 3: Consultation Consultation consultation

Speaker 2: the consultation to the industry, end of last week, officially. So, we have until the sixth or 10th, I don't remember exactly, of April, to answer, and we will answer. And clearly, what I can tell you is our answer will be that we consider the AT1 as a very, important and, useful element in our, strategy. Why? Simply because, first of all, the regulation, when you have a CET1 ratio, a Tier 1 ratio, a global ratio, including the Tier 2, because the regulation is made, in a way, where it's, optimum to issue AT1, and not replacing it with CET1, if you want to keep a certain, profitability, there's a good competitiveness, with, other international banks for European banks. So for us, it is absolutely essential. the consultation to the industry, end of last week, officially. the consultation to the industry end of last week officially So, we have until the sixth or 10th, I don't remember exactly, of April, to answer, and we will answer. so we have until the sixth or 10th i don't remember exactly of april to answer and we will answer And clearly, what I can tell you is our answer will be that we consider the AT1 as a very, important and, useful element in our, strategy. and clearly what i can tell you is our answer will be that we consider the at1 as a very important and useful element in our strategy Why? why Simply because, first of all, the regulation, when you have a CET1 ratio, a Tier 1 ratio, a global ratio, including the Tier 2, because the regulation is made, in a way, where it's, optimum to issue AT1, and not replacing it with CET1, if you want to keep a certain, profitability, there's a good competitiveness, with, other international banks for European banks. simply because first of all the regulation when you have a cet1 ratio a tier 1 ratio a global ratio including the tier 2 because the regulation is made in a way where it's optimum to issue at1 and not replacing it with cet1 if you want to keep a certain profitability there's a good competitiveness with other international banks for european banks So for us, it is absolutely essential. so for us it is absolutely essential That being said, it's also an instrument which is very well received and perceived by the investors, professional investors, which is perhaps one of the most liquid across the issuance made by financial institutions. So a lot of advantage, and we will effectively answer in this regard. That being said, I don't know what will be the output of this consultation of the industry, and I do not consider it is a prescriptive recommendation from ECB. It's one proposal across many others. That being said, it's also an instrument which is very well received and perceived by the investors, professional investors, which is perhaps one of the most liquid across the issuance made by financial institutions. that being said it's also an instrument which is very well received and perceived by the investors professional investors which is perhaps one of the most liquid across the issuance made by financial institutions So a lot of advantage, and we will effectively answer in this regard. so a lot of advantage and we will effectively answer in this regard That being said, I don't know what will be the output of this consultation of the industry, and I do not consider it is a prescriptive recommendation from ECB. that being said i don't know what will be the output of this consultation of the industry and i do not consider it is a prescriptive recommendation from ecb It's one proposal across many others. it's one proposal across many others

Speaker 3: Thank you, Olivier. Thank you, Florence. I think there is no more question. Olivier, maybe I'll leave you the final word for the conclusion. Thank you, Olivier. thank you olivier Thank you, Florence. thank you florence I think there is no more question. i think there is no more question Olivier, maybe I'll leave you the final word for the conclusion. olivier maybe i'll leave you the final word for the conclusion

Speaker 2: Thank you. Once again, thank you for attending this global investor call. For, I would say, agenda constraints, it has been put today, so 12 days after the equity call. I've also understood that it was a good output for you, because when we disclose our results, there were a crowded number of calls. It is what it is. Effectively, when looking at all your question, I think it was also good to have this kind of call, perhaps a little bit after the other one. Thank you. thank you Once again, thank you for attending this global investor call. once again thank you for attending this global investor call For, I would say, agenda constraints, it has been put today, so 12 days after the equity call. for i would say agenda constraints it has been put today so 12 days after the equity call I've also understood that it was a good output for you, because when we disclose our results, there were a crowded number of calls. i've also understood that it was a good output for you because when we disclose our results there were a crowded number of calls It is what it is. it is what it is Effectively, when looking at all your question, I think it was also good to have this kind of call, perhaps a little bit after the other one. effectively when looking at all your question i think it was also good to have this kind of call perhaps a little bit after the other one It allows you to have perhaps more in-depth questions in some areas. So thank you for that. Thank you for this interaction, and see you next time. It allows you to have perhaps more in-depth questions in some areas. it allows you to have perhaps more in-depth questions in some areas So thank you for that. so thank you for that Thank you for this interaction, and see you next time. thank you for this interaction and see you next time

Speaker 3: Thank you. Thank you. thank you

Speaker 1: Thank you. Thank you. thank you