Good morning, everyone. Welcome to all our guests present today in Montrouge, as well as those joining us virtually. It is a pleasure to have you with us today for Crédit Agricole Jérôme Grivet, Investor Day, hosted by Olivier Gavalda. Before we begin, let me briefly outline today's agenda. We will start with a one-and-a-half-hour presentation, and this will be followed by a one-hour Q&A session. Participants in the auditorium will be invited to ask their questions directly, and those attending online may submit their questions via the chat. Without further delay, please join me in welcoming Olivier Gavalda, Chief Executive Officer of Crédit Agricole.
Thank you, Cécile. Good morning and welcome, everyone. I'm very happy to be with you today, along with Jérôme, with Clotilde, and the rest of the team. I stand in front of you today to share our ambitious vision for the future, not just for 2028, but for the years ahead. We are at a turning point, and the choices we make now will pave the way to tomorrow's growth. What are our main ambitions for the years to come? First of all, we want to be a leading bank in Europe. We are already one of the biggest players on the continent. We want to make the most of it. We want to leverage our presence in several countries. We want to act as a consolidator of the European banking markets.
I guess you are all aware that we are highly attentive to what happens in the Italian markets. If we were to be approached by Banco BPM for a combination, we would view this very favorably. In no case would we accept to sell Crédit Agricole Italy for cash. We are a long-standing player in Italy, and we are committed to continue supporting our 6 million Italian customers. Beyond the Italian market, we want to be not just a bank in Europe, but a bank for Europe. Secondly, we want to lead in new technologies, not just using it, but mastering it to enhance security, improve efficiency, personalize services, and create entirely new possibilities for our customers. We will innovate while staying true to ourselves by adding a human edge to the digital excellence. The third and the last, we aim at staying the leader in transitions.
We have always guided society through big changes. Environmental, social, demographic shifts bring challenges. They also bring opportunities. We are determined to lead the way. We will not leave anyone behind. Our universal banking model works for everyone, from small households to huge companies. We will democratize solutions for all. As you can see, we are a conquering bank, one that boldly expands its horizon and seizes new opportunities. This is not just about growth for growth's sake, but about creating value for our clients, our shareholders, and our communities. These long-term ambitions drive us to establish three major targets on my side for 2028. The first, expanding our client base to reach 60 million customers, allowing our business line to equip them with more solutions. The second, generate around 60% of our revenues out of France with a stronger footprint in Europe and beyond.
The third, achieving operational excellence with a cost-income ratio below 55%, demonstrating both our efficiency and ability to deliver high profitability. These highly ambitious targets reflect our commitment to build an agile, performing, and client-centric Crédit Agricole to ensure sustainable growth. We have every quality needed to succeed. To start, we have solid roots and a meaningful raison d'être that puts clients and society first. This is not just talk. It is our DNA. Our mutual and cooperative history, as well as our very stable shareholder base, allow us to conciliate short-term profitability and investment for the long term. In today's volatile world, having such a strategic long-term vision is a genuine competitive advantage. It also positions us as a natural investor in innovation and as a consolidator of our industry in Europe. Secondly, we benefit from a decentralized model.
It fosters efficiency thanks to precise management of both costs and performance at the most granular level. It also allows us to adapt quickly to new contexts. Contrary to many competitors, we make decisions at the grassroots level, exactly where our clients and their needs are. This proximity enhances our understanding of local markets and fosters innovation. That is also why our entities made more than EUR 19 billion of acquisitions during the last 10 years. Identifying business opportunities and making synergies at all levels of our organization is a fundamental strength. Decentralization also creates a sense of ownership and responsibility among our employees, stimulating their engagement and creativity. This is another major strength we have: highly committed employees. We are in the first position among French banks in terms of employee engagement.
People are the backbone of everything we do, and we are proud to attract talents from all over the world. Last but not least, the Crédit Agricole Group's universal banking model is highly powerful. Thanks to this model, we are solid and diversified, with already 54 million clients and eight business entities among the leaders in the European markets. Our group is highly resilient and relies on solid financial fundamentals, as demonstrated by our leading position on CT1 in Europe. This enables us to absorb shocks and keep going. This model steadily delivers results. The growth of our revenues, surpassing European banks over the last 10 years, demonstrates our high capacity to generate growth over the years to come. For all these reasons, we are in position to consolidate, to lead, and to shape the future of banking.
As you may have understood, I hope, we will realize our ambitious goals for 2028 and set the foundations for the years to come by capitalizing on these strengths. We will also achieve it by implementing a clear and focused strategic plan built on two fundamental pillars. First pillar: acceleration. We will expand our playing field both geographically and into new business domains. We will tap into new markets. We will diversify our service offerings while leading the ways of transitions. Second pillar: transformation. We will move faster and better perform. How? By optimizing our IT and processes, by embracing digital innovation, and by becoming more agile across our whole organization. This will make us more efficient, more adaptable, better able to meet changing customer needs and market demands. Together, these complementary pillars will propel us forward. They will help us to reach our ambitious commitments.
That said, it's time now for me to give the floor to the team. They will provide you with more details on the implementation of the first pillar, acceleration. We will start with our retail banking activity in France, where the objective is to gain market share. Please welcome Gérald Grégoire, Deputy General Manager of Crédit Agricole S.A. in charge of Customer, Development and Innovation Division, and Serge McDonald, CEO of LCL. Thank you.
Good morning, everyone. First, I would like to remind you that Crédit Agricole has been the largest French retail bank for years, and obviously, we have the intention of expanding. To illustrate our leadership, we have in France 32 million French customers, and our group issues one out of three mortgages in France. As impressive as this number is, we know that we have a rich maturity in our market. We know that we can expand, and we can grow because our value proposition continues to increase and renew. For example, as you know, in terms of renewable energy and accompanying our clients as they age. As we increase our contact points, particularly with digital, this gives us more opportunities to better serve our clients and attract new customers.
As an example, we have almost 11 million clients who use the Crédit Agricole app daily, and the LCL app is used by 3.3 million clients daily. During our strategic plan, we expect to add 8 million new clients. In order to grow later, we have decided to better articulate the positioning of our three banks: Crédit Agricole, LCL, and BforBank. First, the regional banks, which have a close link with the territories where we are present, present for one out of three French persons, present for one out of three small businesses and corporations, and obviously, for eight out of ten farmers. We are a French universal bank, responding to all the needs and serving everyone. We have a specific ambition: making our universal bank for all to the universal bank for each.
We wish also to continue cultivating the distinctive dimension of our value proposition, the broadest and deepest in the market. We will continue to facilitate and develop digital touchpoints with our clients while maintaining access to human advice for important operations for our clients. In a few words, our customer promise is by your side all the time for what really matters, for example, for support for all housing projects and retirement planning. Now I will hand it off to Serge, who is going to speak about LCL positioning.
Thank you, Gérard. Good morning, everyone. It is a real pleasure to be here today to share a new chapter of LCL's story that fits with the brand's complementarity Gérard has just presented here. LCL's new story is built around a clear ambition to be the bank for all those who take initiative and who move forward. At LCL, we believe banking today is no longer defined by age, by income, or by background. It is defined by attitude. It is defined by the will to act, to build, to create, to move ahead. Our mission is simple: to be the partner of everyone who undertakes something in life, in work, in business. To deliver on that mission, we are reinventing the way we serve our clients with a new three-tier relationship model designed around their expectations and their level of autonomy.
First, we are introducing a 100% digital self-care offer for independent, tech-savvy clients who want a smooth, simple, and fully online experience. They value autonomy, speed, and control, and we will give them exactly that. Second, we are strengthening our premium offer directly in line with Crédit Lyonnais DNA, with a dedicated generalist advisor who knows the client personally, follows them over time, and provides truly tailored advice. It is a human, high-touch experience for clients who expect more from their bank. Third, we are creating a hybrid model, bringing together the best of both worlds: a local team available in branch for daily banking needs and specialized experts on our remote platforms for more complex issues like lending or investment. This is banking that is flexible, efficient, and seamlessly connected.
With this triple offer, every client can choose, and I insist, can choose the relationship that fits their life: digital when they want autonomy, human when they need support. This is how we make LCL more agile, more digital, and more relational than ever before. It is how we become the bank for all those who move forward, from students taking their first steps to entrepreneurs shaping the future. At LCL, we are building a bank that moves at the pace of those who act, because when our clients move forward, so do we.
BforBank, our digital bank. As you know, we recently decided to re-denominate BforBank. Our acquisition customer is now in line with our provision, with 200,000 new customers this year. To further strengthen its complementarity with our regional banks and LCL, BforBank is accelerating the development of its innovative savings and investment offerings, leveraging more than 15 years of expertise. After having presented the complementary positioning of our brands, now it is time to speak about the way in which we will work to significantly attract our four strategic segments. First, the young clients. Second, affluent customers. Third, agriculture segment, professional, small, and medium businesses, and fourth, mid-cap companies. First of all, in the youth market, which is essential for renewing our customer base, we will launch a new and disruptive approach that meets the trends and habits of our youngest clients.
Our value proposition will be 100% mobile, mobile community-based, and driven by proactive AI. We want to be the leading bank for young people. At the same time, LCL recently launched a dedicated app for minors to offer them a different experience while offering protection to their parents.
Let's jump to the second column on the slide. The affluence market, ranging from mass affluent people to high net worth, is growing fast in value and in diversity. The recent development of independent advisors' networks shows the need for new initiative offers. To support affluent customers' projects, Crédit Agricole Group will join forces to develop a globally coordinated expertise, providing access to the best solutions for our customer needs. We will make exclusive investment solutions available, including fully digital advisory management and private assets. Our ambition on this segment is to reach plus 1 million gross customer capture.
Regarding the professional and SME market, we also aim to attract an additional 1 million clients. We are confident that this goal will be achieved if we address our clients' entire value chain, going beyond financial services. For example, through our different business lines, like Collecto for management services, Core Emergency Payment Solution, or our new offer, the Human Resources Bank, that coordinates the value proposition of our different business lines: Crédit Agricole Assurance, Worklife, and Amundi, in terms of employee offerings.
The last strategic market where Crédit Agricole Group aims to strengthen its position is the mid-cap segments. In France, mid-cap companies, so-called ETI, account for one-third of corporate revenues and value-added. The group has a strong foothold with over 30% penetration and nearly 22% market share in credit outstandings. The position needs to be strengthened in becoming the trusted banking partner of this mid-cap. We have a clear ambition. We want to have one mid-cap out of three choosing Crédit Agricole Group as their trusted bank in France, leveraging the following drivers. First, joining forces for a coordinated client approach between LCL, CACIB, and Crédit Agricole regional banks. I mean, creation of client teams, alignment of commercial strategies, and establishment of a dedicated coordination and engagement unit within Crédit Agricole S.A.
Deploying our cash management expertise and strengthening our equity financing solutions nationwide through the creation of Industries Corporate Advisory. Thank you for your attention.
Thank you, Gérald. Thank you, Serge. To present the new growth opportunities that we aim to create in Europe, please welcome Hugues Brasseur , CEO of Crédit Agricole Italy, and Stéphane Briatmi, Deputy General Manager of Crédit Agricole SA in charge of International Banking and Service Division. Thank you.
Good morning, everyone. Let's begin with Italy. We still have a huge space for organic growth on our second domestic market. In the meantime, we can accelerate and improve the amount of synergies through all the product factories in Italy. Our two key targets are focused on two main key figures. The first one is the growth of the portfolio of clients, reaching a portfolio of 6.5 million, which means to be close to one Italian out of nine. Today, we are already more than one Italian out of ten. The second one is to contribute at least 20% of the global income of Crédit Agricole. To meet these targets, we want to strengthen customer capture, focusing on individuals through Crédit Agricole Italia, Agos, and BforBank, on individuals with high potential through Crédit Agricole Italia, Amundi, and Crédit Agricole Assurance. Finally, also on professional and cooperate with CACIB.
We are going to develop a specific digital platform for professionals, sign the steel space to become market leader on this specific topic in Italy. To achieve this, we're going to capitalize on our digital platform already inserted in France, Blanc. Moreover, we are recently starting an ambitious plan of cross-selling on our portfolio of clients across all business lines to increase synergies. To achieve this, we're going to leverage on a few key drivers. The first one is clearly the better use of data that we are going to share across entities. The second one is based on a better efficiency of the distribution channels and the project offering. Today, Crédit Agricole brand is considered as one of the most recognized in the market. We are leader in the different surveys, ranking number one for client satisfaction and among the best for digital app.
As a group, we want to reach a strong, attractive, and long-term positioning. In the meantime, we remain attentive to external growth opportunities.
Thank you, Hugues. Good morning, everyone. I'm very happy to be here today to discuss about Crédit Agricole's growth in Europe. To begin, let me remind you that Crédit Agricole has a strong presence in Europe still and yet, generating 40% of its revenue, European revenue, outside France. We manage 15 million clients in Europe. This European footprint has two origins. The first is our leading product factories, like CACIB, Amundi, CACEIS, CAPFM, Crédit Agricole Personnel Finance and Mobility, CAL&F, but also all the producers of the group. We operate, for example, for Crédit Agricole Personnel Finance and Mobility in 20 countries with a banking license in every country and a large base of clients. We are also present as a universal bank in three major countries in Europe, Italy, but also Ukraine and Poland.
Our strategy for Europe is to leverage this strong European presence and to seize all the opportunities of the market, the European market, and the growth of the European market. We want to build this approach on our existing presence and to enhance with a new initiative. First, we want to continue to push all our business in Europe, and we want to create two new things. The first is to launch a platform, a digital platform for savings and deposits. This platform will cover eight countries, and we will want to start in Germany in Q2 2026. Our ambition with this platform is to reach EUR 40 billion of savings and deposits. In the same idea, we want to extend, to expand our digital offer, Blanc, for professionals.
It's a platform for professionals, working very well in Italy from one year now, and to make this platform as an offer for all European countries. After, we will want to expand this platform, professional platform, to the agricultural sector for making the best services for farmers. Second initiative, we want to create Crédit Agricole Deutschland by aggregating all our existing presence and to enhance with a new project. For reminder, Crédit Agricole in Germany, it's 1 million customers now, and notably through Crédit Plus , our loan company in Germany. We manage EUR 11 billion of loans, consumer finance and automotive loans, but also EUR 15 billion of savings and deposits.
It's a huge starting point, and we want to enhance this position with the new platform I presented to you, a platform for savings and deposits, a platform for professionals, a platform for all agricultural farmers, and also day-to-day operation, banking day-to-day operation with our technological platform, BforBank. We want also to unify the customer base because it will be very important if we want to make cross-sell and upsell. We plan a launch in Q3 2026, and we want to reach 2 million clients in Germany. Following this launch in Germany, we will pursue expansion with additional countries where Crédit Agricole has an established presence. Our ambition for Crédit Agricole in Europe is very strong, but it is because it is built on solid foundations. First, digital expertise, digital and data.
As you know, Crédit Agricole, Personnel Finance and Mobility, and BforBank know very well all the technology for digital and data management. We have also all the support. We will have all the support of the group as our product factory in savings, insurance, and in reality, in all core businesses. At last, but it's very important, we have a presence in Europe, a very strong presence, as I showed to you. We have customers, we have clients, we have a team very committed, and we know very well the market and the deep foundation of each market, notably in major countries like Germany. As a conclusion, let me say to you that all the Crédit Agricole teams will be fully committed to accelerating our European expansion. Thank you. Now I leave the floor back to Hugues.
Thank you, Stéphane. I'm going to talk once again of growth and mid-corp because we want also to develop new theories of growth on European mid-caps by exporting you now. Our goal is to capture at least 200 additional strategic mid-cap clients out of France. We want to support the re-industrialization high-stakes regions and sectors. Two pillars. The first one consists in leveraging the group's areas of excellence in four Europe's strategic sovereignty priorities. It means agrifood, defense, tech, and energy. We already know that at least EUR 1,500 billion are going to be invested in the coming years. The second one is to focus on regions with strong trade flows and to support the future reconstruction of Ukraine. In fact, two specific triangles: France, Italy, Germany, and the second one, Germany, Poland, Ukraine. This represents 33,000 mid-caps and 60% of your own GDP.
How are we going to be successful? We are going to implement a pan-European approach by creating a European coordination structure, by defining strategic ambitions on the mid-cap market in each country where the group's investment bank is present, by extending our setup to key countries without a universal bank presence, starting with Germany, and finally, by developing synergy across all business lines operating locally. Thank you for your attention.
Thank you, Hugues. Thank you, Stéphane. The next presentation will deal with how we want to strengthen our presence in Asia, as well as expand our product range and footprints. To develop these points, please welcome Jean-François Ballahi, CEO of Crédit Agricole CIB. Thank you.
Ladies and gentlemen, good morning, everyone. Let me begin this section highlighting that Crédit Agricole Group has been present in the APAC region for almost 150 years. Our ambition is to accelerate regional launchery. Asia is one of the fastest-growing wealth management markets, and we want to address these growing savings pools. First, with Amundi, leveraging on our new partnerships with asset owners and wealth managers, but also expanding the existing joint ventures in India, in China, and also in South Korea. Second, with Indosuez, which benefits from a strong brand recognition in the region by strengthening its capabilities and expanding its investment solution for ultra-high net worth individuals, but also investment professionals. This, especially in Southeast Asia. For CACIB, we also want to leverage our footprint in the region with all of our clients, be it large corporates, financial institutions, or sponsors.
We intend to grow on the back of our global leading franchise in real estate sectors such as infrastructure, project financing, telecom, power, and etc. In all those sectors, we intend to support our clients in the energy transition. Our capital market capabilities are also at the forefront of our growth ambitions, with our ability to raise liquidity for the group and also provide market solutions to all our clients. We are also extending our offering to new geographies. For example, CACIB's ambitions in the region are of two folds. First, continuing the development of the Follow the Sun model with the Malaysian platform. Second, opening a commercial branch in Singapore to broaden our services to clients. To summarize, the ambitions of the group in the APAC region for 2028 are very clear. Amundi targets EUR 150 billion in net inflows.
CACIB aims at a dynamic expansion with a carrier growth in excess of 5.5%. Indosuez targets EUR 20 billion of assets under management. The second strategic priority I will present is the expansion of our playing field. We definitely want to continue expanding our product range and footprint. The private credit segment is growing fast. It increased by 50% in the last five years, mainly in the U.S., reaching $3 trillion globally early 2025. It is expected to reach circa $5 trillion by 2029. We are naturally sizing the potential of opportunities in this market. There is a strong client demand for private assets. Here is how we want to benefit from this situation. First, Crédit Agricole Assurance is accelerating its investment in private assets to enhance the yields offered to their policyholders.
Second, Amundi and Indosuez Wealth Management are positioning themselves as leading players in developing investment solutions for private and institutional clients, contributing to the democratization of private assets. In that respect, Amundi just announced this morning a strategic partnership with ICG, a European leader in private assets. The partnership includes a 10-year distribution agreement, giving Amundi's clients privileged access to ICG's expertise and a wide range of strategies. Amundi and ICG will develop joint offerings designed to provide wealth clients with access to private assets. Finally, CACIB, thanks to its leading franchise in real estate, is originating real estate matching investor appetite and also providing enhanced support to debt funds. We are also accelerating our development in payments, collection, and cash management solutions. That means, first, integrating technological shifts in our commercial offers to meet market demands. Second, developing non-financial payment services. I will give two examples.
One, with COL, which is a strategic alliance between Crédit Agricole and Worldline. Two, with Collecto on electronic invoicing. Third, continuing upgrading our platform on cash management to deliver best-in-class products and services in France and in Europe, leveraging on blockchain technology when relevant. To summarize, our ambitions for 2028 in these areas are: first, doubling card payment volumes versus market growth; second, increasing by 20% transfers and direct debit volumes. Thank you for your attention.
Thank you, Jean-François. Thank you very much. We now come to the final lever of the first pillar, acceleration, which is about transitions, all types of transitions. To present it, please welcome Eric Campos, Chief Sustainability and Impact Officer, and Nicolas Denis, CEO of Crédit Agricole Insurance. Please welcome.
Ladies and gentlemen, in 2019, Crédit Agricole made a major strategic choice to become a key market maker for supporting the world transitions. Today, I will present how ACT 2028 amplifies this ambition by shifting from a sustainable economy to a regenerative economy with ambitious quantified targets. Our 2022-2025 plan structured our action around three fundamental pillars: transition towards a low-carbon economy, social cohesion and inclusion, and agricultural and agrifood transitions. This strategy has demonstrated that the financial institution can be a true driver of societal transformation, and these results speak for themselves and position us ideally to accelerate further. First, we strongly reaffirm our commitment to keep on continuing our commercial activities in line with the 2050 net zero trajectories issued and publicly disclosed in 2023 and 2024. In 2025, we're taking a decisive step forward.
We are willing to move towards an economy that regenerates rather than simply reducing negative impact. Our quantified commitments reflect this ambition around three strategic pillars: leadership in the ecological transition economy with a green-to-brown ratio of 90-10 for every EUR financing fossil fuels. We'll finance nine in the ecological transition by 2028. EUR 240 billion in outstanding commitments dedicated to financing transition by end 2028. Two strong initiatives for green businesses: launch of the Climate and Nature Forces, which is a network of internal expertise to develop innovative methods and computation for climate and biodiversity; launch of Crédit Agricole Natural Capital Initiatives, which is a pioneering program to design nature-based solutions and ecosystem restoration. Second, intensification of the inclusive economy: 600,000 homes retrofitted for energy efficiency by 2028, ensuring a just transition in all territories and developing financial products accessible to all.
Third, support for territorial growth sectors, supporting local innovation, strengthening local re-industrialization, and supporting the agri transition with an objective of EUR 1 billion in revenues from sustainable finance. These figures illustrate our commitment to the real economy, an economy that creates sustainable employment. For example, each retrofitted home generates direct activity in closed geographies, an economy that delivers tangible transformation, EUR 240 billion financing the transition on the ground, an economy that generates shared value. EUR 1 billion in revenues proves that transition goes hand in hand with performance. We believe we are not just a traditional financial player. We are a low-carbon energy strategist with a green-to-brown ratio of 90-10 in 2028, a trusted partner for local and economic ecosystems, and a catalyst that places people at the heart of every decision. Our conviction is clear. Finance can and must be a tool for economic, social, and environmental development.
With ACT 2028 plan, Crédit Agricole confirms its pioneering role in Europe. Our quantified targets demonstrate that regenerative finance is not only necessary, but also creates sustainable value for all our stakeholders. Thank you for your attention.
Thank you, Eric. Good morning, everybody. As Eric Campos explained to you, we aim to prepare the world for the next generation. Indeed, the world is changing. We are entering the demographic winter. Demographic aging is one of the greatest challenges of all times, reshaping economies, societies, and the way we live. As a leader in savings and retirement across Europe and France, Crédit Agricole carries a major responsibility to protect, empower, and support both its clients and society in navigating this deep transformation. Let me share with you a few figures to illustrate this issue. First, globally, the number of people over 60 will double by 2050 compared to 2020, and those over 80 will triple. Second, in France, one-third of the population will be over 60 by 2030. Demographic aging accelerates wealth transfers, strengthens public systems, and creates new demands for quality of life.
In face of this demographic challenge, Crédit Agricole is committed to being a source of support and security for its clients, guided by three key pillars: securing asset transmission first, second, reinventing retirement, and third, fostering healthy aging. First pillar, wealth transfer. In France, over EUR 3 trillion is expected to change hands in the next decade. To ensure these transfers happen securely, we are focusing on the following levels: strengthening family relationships within our bank networks, digitalizing all the client journey, developing tailored transmission solutions, and, of course, engaging all our private banking advisors. Our aim is clearly to become the trusted partner for this intergenerational wealth transfer. Now, let's speak about our second pillar, retirement savings. As you know, the demographic transition is putting strong pressure on pension systems, especially in France.
Thus, a recent study conducted by Crédit Agricole Assurance in partnership with IFOP highlights growing public concern, with 73% of respondents in France expressing deep concern and skepticism about the current system. In this context, our approach combines different principles by geography. Across Europe first, we will deliver investment solutions for all public and private pension schemes. This is key for Amundi's strategy, and that's why Amundi has created a specific dedicated business line. In Italy, we'll accelerate growth with new offers tailored for individuals and corporates with Crédit Agricole Italy, Crédit Agricole Vita, and Amundi. In France, we will strengthen our leadership in individual retirement savings with the PER, Plan d'Épargne Retraite. It will come with a seamless phygital approach, offering clients to engage either digital journeys through mobile first or be supported by their banking advisor. We will also accelerate our collective retirement offers.
We developed a specific approach called La Banque des DRH, the Human Resources Bank, jointly with Crédit Agricole Assurance and Amundi with specialized banking advisors in our banks. We want to become a leader both in individual and group retirement planning in Europe. This ambition comes with two clear goals: become the undisputed leader in group and individual retirement outstandings in France, and specific for Amundi, achieve more than EUR 75 billion in net inflows across Europe. We are living longer, and the issue is also to be aging well, which is our third pillar.
We are committed to supporting seniors and caregivers at every stage of life by designing health insurance solutions tailored to seniors and retirees, ensuring a smooth transition to individual coverage at retirement, and expanding the Crédit Agricole Santé Territoire built on two strong axes: access to healthcare and healthy aging in all our territories in France, and creating innovative living solutions such as senior co-living with Said Family and dedicated caregiver support through Petit-Fils. As you understand, our success relies on the perfect balance of proximity, expertise, and innovation powered by the strengths of our group and a strong synergy between the banks of the group, Crédit Agricole Assurance, and Amundi. It's a question of trust, of caring, and of protecting. Thank you for your attention.
Thank you, Eric. Thank you, Nicolas. It's time now to move on to our second pillar of the project, of the plan, transformation.
For this, please welcome Grégory Raffalin, Deputy General Manager of Crédit Agricole SA in charge of transformation, human resources, and transition division, and Olivier Biton, Director of Technological Transformation of Crédit Agricole SA. Please. Welcome.
Good morning, everyone. We are now going to talk about transformation, transformation of our industrial, technological, and HR approaches in order to reach the ambitions and the targets for 2028, but also to prepare for the future. I would like to emphasize three critical challenges that we define about transformation strategy. First, speed, speed and speed. In today's fast-evolving financial landscape, speed is not just an advantage, it's a necessity. We are committed to significantly accelerating our time to market, ensuring that our innovations and solutions reach our clients faster than ever before. Second, efficiency. Efficiency is at the heart of our transformation. We are implementing robust value-driven management practices, focusing on optimizing our processes and resources. By leveraging data, technology, and streamlined governance, we aim to maximize value creation and operational performance. Speed, efficiency, and finally, strategic autonomy anchored in Europe. Our strong European roots are a unique asset.
They empower us to pursue strategic autonomy, ensuring that our decisions and innovations are aligned with the interests of our clients and communities across Europe. This autonomy is essential for safeguarding our independence, fostering resilience, and supporting the long-term ambitions of the group in a rapidly changing geopolitical and regulatory context.
Good morning. To support speed and efficiency, we will launch group-wide industrial capabilities powered by advanced technology. As you might know, Crédit Agricole stands as a major technology player. We dedicate more than EUR 5 billion per year to technology. Our strength lies in our ability to empower each business line with significant autonomy, including, of course, IT resources. Yet, as data and AI become strategic imperatives, we've decided to equip the group with new cross-IT capabilities that will serve all our businesses. We are launching two key initiatives.
The first one will be a group-wide data marketplace. This platform will accelerate data sharing between all entities, breaking down silos and enabling every part of the group to leverage the full value of our collective data assets. The second one will be an AI Factory. This initiative will provide AI assets and tools to all entities, allowing them to focus mainly on adopting AI in business processes. However, our ambition goes way beyond transforming processes with AI. We are committed to bringing every member of our staff along in this journey. We will provide training for all our colleagues and equip them with AI assistants tailored to their roles, ensuring everyone benefits from these new capabilities. This will reduce administrative tasks by 20%, allowing our teams to focus on delivering greater value to our customers.
Beyond serving the needs of our entities, these new technical capabilities that Olivier has just presented are also the bedrock for new high-impact group initiatives. We have decided to create a dedicated business line focused on digital trust that covers solutions that guarantee stakeholders' reliability, propose secure digital identity solutions, and digitalize business processes in a trustworthy manner, like electronic signatures, for example. This new business line will serve the group's entities in an industrialized way and, where relevant, extend its services to the broader market. Digital trust is a critical issue in Europe, and Crédit Agricole, as a trusted third party, has a unique role to play in setting the standards for security, privacy, and reliability in digital interactions. The second initiative concerns a group KYC platform. In response to rapidly evolving regulatory requirements and the growing importance of digital identity, we are developing a group-wide KYC platform.
This platform will guarantee that we can deliver on our promise of digital trust to clients while also driving operational efficiency in compliance processes. These new cross-functional capabilities are just enablers for our entities. They are strategic assets that position Crédit Agricole at the forefront of digital trust and regulatory excellence, supporting both our clients and our operational ambitions. Now, on this slide, you can see that the subtitle states that we want to be more agile, more efficient, and responsive. That is quite a program. In fact, cost efficiency is a key driver of speed. By ensuring that every EUR we invest delivers maximum value, we empower our project teams to make better decisions, simplify both our products and our technological ecosystem. We will also continue to consolidate our infrastructures to make sure that our technological backbone remains robust, scalable, and cost-efficient.
To truly accelerate our time to market, we must also focus on the earlier stages of the project cycle when new solutions are being designed. We have already implemented a large-scale agile transformation within our IT teams. What we will do now is extend these agile practices to the business teams that are the most impacted by these transformations. Our ambition here is clear. We want to cut our time to market in half. To act faster, to improve performance and accelerate our time to market, we also need to instill a lasting culture of simplification. In today's environment, all banking groups face intense regulatory pressure and a growing complexity in their operating landscape. Without a continuous effort to simplify, the necessary mastery of risk can result in added complexity that weighs heavily on our teams and ultimately reduces our performance.
That's why the group general management here is fully committed to simplification. Embodied in our plus one, minus one principle, every new process or requirement must be balanced by a corresponding simplification elsewhere. To give you some examples, that means you create a new committee, you cancel another committee. You want a new report, you delete another one. You create a new offer, you cancel an old one that no longer fits customer needs, and so on. It's simple but very demanding. This discipline ensures that we do not allow complexity to accumulate and that our teams remain agile and focused on value creation. We are also questioning the way our support functions operate with a dual aim of improving performance across the entities and, above all, enabling the 20,000 staff in these roles to be even more effective in supporting those who are directly serving our clients.
By making simplification a core management principle, we are safeguarding the benefits of our transformation efforts and empowering all our teams to deliver their best for the group and its clients. We have talked so far about the industrial and efficient approach of transformation. I will now say a few words of our organization to support innovation. As you know, at Crédit Agricole, innovation is embedded in every business line in a decentralized approach. However, certain topics require a different or more coordinated approach. That is why we will continue to capitalize on two main types of structures. First, we will further develop our startup studio, La Fabrique, which has already given rise to breakthrough startups and disruptive offerings that reinforce the group's development. We will amplify the development of services offered to third parties outside the group, particularly in technology.
Amundi Technology is the most emblematic example of this strategy, providing innovative solutions to institutional clients and strengthening our position as a technology provider in the financial sector. When it comes to tokenized finance, we have decided to strengthen the strategic coordination of this topic, which involves many subsidiaries of Crédit Agricole. We have capitalized on the MICA approval obtained by CACEIS, as well as the expertise of CACIB and Amundi, to accelerate our development in this field. This coordinated approach will enable us to offer a comprehensive range of tokenized financial solutions, meeting the evolving needs of our clients while respecting our duty to advise. Okay, so let me turn now to another critical dimension of our transformation: how we will strengthen risk management while driving greater efficiency.
On the left of the slide, we mean that by harnessing advanced data analytics and artificial intelligence, we are enhancing our risk controls, and at the same time, we want to reduce the operational burden on our teams. This enables us to achieve a higher level of risk mastery with greater efficiency. When it comes to IT risk in the middle of the slide, our commitment to investment remains unwavering. Resilience must be continuously reinforced in an environment where the risks are constantly evolving and accelerating. For example, cyber threats are increasingly leveraging new technologies like GenAI to attack, and of course, we are equally determined to use these innovations to defend. Another key priority mentioned here is ensuring that our standards and controls are constantly applied to our key suppliers. This is major to guarantee our end-to-end security.
On the right of the slide, as Grégory highlighted in his introduction, reinforcing our policy in strategic autonomy will further strengthen our resilience in this uncertain environment. At the same time, we want to emphasize that it presents a tremendous opportunity for Crédit Agricole to contribute to the development of the European technology ecosystem, both through our technological choices as a customer and through our investment capacities. To conclude this part related to our second pillar, transformation, it is essential to reaffirm that people are at the core of our model and our transformations. At a time when everything is accelerating and some predict the illumination of society, we are making the opposite choice. Our global talent pool is exceptional, and we are convinced that our future success depends on our ability to support and empower our people. Trust will be at the heart of this ambition.
We will carry on our empowerment approach leading to simplification initiatives and sustainable development. Also, we have decided to focus on developing our staff skills while mapping target skills and corresponding training strategies, for example, to lead our digital transformation and also to support our international business growth ambition. As you know, Crédit Agricole's culture is our strength. Our collective and team spirit, our strong universal values, and the way we all focus on servicing our clients while embarking on societal priorities is at the heart of our project. We shall nurture our collective spirit and enhance sharing on a global basis. We have identified the opportunity to share a flagship location, a specific place where our staff will meet, share, collaborate with trust and enthusiasm, demonstrating our cohesion across different expertise and geographies.
By putting people first, we are ensuring that our acceleration and transformation are both sustainable and meaningful, creating value for our clients, our employees, and the group as a whole. Thank you all for your attention.
Thank you. Thank you, Grégory. Thank you, Olivier. Now it is time to assess the figures and to translate these ambitions and these actions. And welcome Clotilde L'Angevin, the CFO, the Deputy General Manager in charge of finance and steering. Come on. Up to you.
Hello everybody. I'm very happy to be here with you. To reach the strong development ambitions that have been outlined here, we are going to build upon the strengths of the group. Besides our diversified and our universal development model, we can also rely on a strong capital and liquidity position for the group Crédit Agricole.
With our CT1 ratio at the level of the group at 17.6%, we are the most capitalized of European JCIBs, and we have a margin of 770 basis points above the SREP requirement. We are going to commit to stay above 17% throughout the plan, and this is made possible by the group's ability to retain 75% of its earning. We are also confident on our ability to maintain our CT1 ratio above 17% beyond 2028, thanks to our capacity to generate capital, including the CRR3 regulatory impact. I'm thinking about the output floor. TLAC ratio will be around 27%, excluding eligible senior debt. This strong group capital position is going to allow CASA to operate with a lower level of capital, as always, particularly thanks to the solidarity mechanism between the Crédit Agricole network members and also to our demonstrated capital circulation capacity.
The liquidity position of the group is also very solid. We have stable, granular, and diversified customer deposits. We have high liquidity reserves, and we have LCR and NSFR ratios that are very comfortably above the requirements. We're going to continue to manage them well in excess of these requirements within a range of 110-130% for LCR, which is an optimized manner. Why? Because we can rely on about EUR 130 billion additional non-HQLA reserves that can feed quickly into our LCR ratio and a range of 110%-120% for NSFR. We have built this strong position thanks to our demonstrated capacity to generate strong revenue growth.
The CAGR for Crédit Agricole SA revenue over the past six years was 5.7%, and it was driven mainly 70% by organic growth, thanks to customer acquisition and equipment, but also by external growth operations, which amounted over six years to a total of about EUR 10 billion, and where we developed, we delivered an ROI above 10% within three years. These operations contributed to operational efficiency and to revenue growth. Now, this revenue growth has fed into the growth of net income over the past six years, with a CAGR of 7.3% to reach the starting point of our plan, which is EUR 6.9 billion in 2024 pro forma. The profitability targets we display here continue to strongly increase. We have an ambitious net income group share target of at least EUR 8.5 billion at the end of our plan.
This represents a cumulative growth of close to 25% compared to the 2024 baseline position. As it has been the case for many years, this growth in net income will come from a virtuous combination of dynamic revenue growth, strict monitoring of expenses, and prudent risk management. Now, revenues are going to grow by more than 3.5% per year over the plan in an uncertain environment and under the hypothesis of moderate economic growth in Europe. As always, when we define our medium-term targets, I'm talking here about organic growth. Costs. We have a cost-to-income ratio ceiling for 2028 of 55%, and we will reach this by monitoring the JAWS, which should be positive over the plan in each division.
Of course, we remain cautious on cost of risk, and we maintain the previous assumption at 40 basis points for CASA, which is in fact prudent in the light of the loan loss reserves that we have accumulated in recent years, which represent an absorption capacity of 1.6 years of cost of risk for CASA. Of course, since the equity-accounted entities now include Victory Capital, part of CAPFM mobility activities, and starting in the fourth quarter of this year, our 20% share in Banco BPM, we guide for a 1.5x increase in their contribution by 2028. All of the business lines are going to contribute to the growth of revenues, which will reach more than EUR 30 billion by the end of the plan. I am going to provide you with the key growth drivers in each business line.
In asset gathering, all of the businesses in this division will contribute to roll out a comprehensive range of savings and retirement solutions for our customers and will support the coming intergenerational transmission of wealth in Europe that Nicolas was talking about. Amundi is going to accelerate in ETFs in Asia through JVs and direct distribution, in individual retirement, and with third-party distributors. Amundi will also benefit from the continued development of technology revenues. Of course, as Jean-François was saying, Amundi will develop in private assets with the ICG partnership that was just announced. Crédit Agricole Assurance plans to strengthen multi-equipment in France and to grow outside of France in P&C and personal insurance and through European partnerships, in particular on mobility and with Banco BPM. The savings and retirement outstandings, of course, will grow strongly.
Industries will strengthen its offering, in particular in corporate advisory following the integration of Degroof Petercam, and will accelerate in Northern Europe and in Asia. It is also going to continue to develop with ultra-high net worth individuals. Moving to the large customers division, CACIB will reinforce its leading positions in real asset financing and projects in energy transition and also in strategic autonomy, and will further develop cash management and equity derivative solutions. It is going to reinforce its relationship with existing customers and strengthen its presence in Europe outside of France, and finally accelerate in the United States and in Asia. CACEIS will support customers in their transitions to ETFs, to real assets, and to digital assets, and will accelerate with pension funds in Europe. CACEIS will also strengthen its position in Asia, leveraging on the integration of ISB with the Follow the Sun setup.
In specialized financial services, CAPFM will continue to restore its margins in personal finance and will develop new offerings linked to home renovation, health, and services. In mobility, it will further develop Crédit Agricole Outer Bank with diversified partnerships, will accelerate the development of leases and ramp up on GAC leasing, but will also develop services and insurance. Crédit Agricole Leasing and Factoring will accelerate on factoring in Europe and will expand on energy and circular economy solutions. Finally, in retail banking, LCL and Crédit Agricole Italia will have slightly different growth stories. LCL is going to benefit from the increase in its net interest income, while Crédit Agricole Italia revenues should increase more moderately over the period, with an expected drop in NII in 2026, followed by a recovery in 2027 and 2028.
Crédit Agricole Italia is going to capture new customers, 650,000, and will accelerate in the high added value specialized segments that Hugues was talking about, such as corporate and private banking segments, all the while adapting its network to develop fees and to equip customers. LCL, as Serge was saying, will transform its relationship model to capture customers, 1.5 million, including 360,000 entrepreneurs, and will develop solutions for customer segments requiring strong expertise. Revenues, as you can see, are going to remain balanced among the business lines and customers. However, as a consequence of our intention to develop internationally, the share of Europe, excluding France in our revenues, will increase from 42% to 45%. The share of Asia will increase by one percentage point. All in all, our revenues generated outside of France will be close to 60% in 2028. I talked about revenues.
Moving to operational efficiency, our cost management policy remains unchanged. It's based upon the strength of our decentralized model. Each business line aims to remain best in class in its market with a strict monitoring of its cost-to-income ratio. Some examples of business initiatives, an optimization plan in Amundi, productivity gains in the CIB, thanks to the acceleration of AI, thanks to the rationalization of IT, or the optimization of the organization. Operational gains for CACEIS, for example, thanks to the differentiating Follow the Sun model and to the enhanced use of AI and data. Both LCL and Crédit Agricole Italia will roll out an ambitious transformation plan that will lead to IT and operational efficiency.
If we combine these levers, the synergies from the ongoing integrations of Degroof and ISB, and the joint initiatives Grégory was talking about, the QAC platform, we should have reduced our cost base by 5% at the end of the plan, which leaves room for additional investments to support our development. Our target in 2028 is for the cost-to-income ratio to be below 55%. We're going to support our growth ambitions by investing, sorry, but also by allocating capital to our growing businesses. The allocation of RWA over the plan is going to remain balanced between the businesses, with an increase in particular in the most accretive businesses of Asset Gathering and Large Customers. This is going to fuel the business line's profitable growth.
Based upon a normalized level of equity at 11% of RWA, all of our businesses will have double-digit RONEs in 2028. We are going to focus on profitability. This focus also goes for M&A operations because all of the figures that I have presented previously are based upon organic growth. Of course, we can also seize external growth opportunities, as Olivier was referring to in the beginning, if they comply with strict financial criteria, i.e., a return on investment of at least 10% within three years, accretive operations in terms of ROT, and, of course, demonstrated integration capacity and synergy potential and compliance with our risk and compliance criteria. All of this will create value for our stakeholders and our shareholders, which Jérôme, who I do not need to introduce, will now describe.
Thank you, Clotilde, and good morning, all.
It's a pleasure for me to be for the fourth time in a row here to present a medium-term plan, and I will give you breaking news. It's probably going to be the last time. I'm going to walk you a little bit through this last slide, which is presenting the building blocks of the value creation and presenting all the reasons why we claim that we have a lot of functionality embedded in this medium-term plan, considering the results that we are going to accumulate. Let me start with the starting point, which is indeed the level of CT1 that we have end of 2024, 11.7%. It's been increased beginning of this year. It's for once a positive contribution from the regulation by 50 basis points.
Lastly, based on what all the team has presented and based on the figures that Clotilde has described a little bit more in detail, we are going to create an additional 720 basis points of capital over the course of the medium-term plan. That is the starting point. Second point, distribution, of course, and shareholder value that we intend to create. We are going to stick to our policy, which is in place in the last at least 10 years, which is to distribute in cash 50% of our earnings. I remind you that even when banks were precluded from paying dividends, we have managed to remain shareholder-friendly and to pay the dividends. Indeed, this 50% over a long period of time is quite attractive, actually.
This will represent around 390 basis points of capital distributed, which is roughly one-third of the market cap of Crédit Agricole SA as of today. It includes, of course, the AT1 coupons that we'll have to pay also during this period of time. The innovation that we are going to introduce regarding the dividend is the fact that starting in 2026, we are going to pay an interim dividend. It's becoming seemingly a market practice, and so we are going to apply this market practice. Third point, regulatory impacts are slowing down. I told you that CRR was creating 50 basis points of capital at the beginning of 2025. It was after a lot of capital consumption in the previous years, and it's before another 40 basis points estimation that we've made of capital consumption for the coming years, including 10 basis points for the famous FRTB that is regularly postponed.
We never know. Of course, we want to fuel our growth, and we will fuel the organic growth of our business lines. This is going to represent more or less 250 basis points of capital over the coming years. Part of these 250 basis points, excuse me, are linked to M&A transactions that have already been concluded and are integrated in our trajectory in 2025, the biggest one being the acquisition of the remaining 30% of the capital of CACEIS that we bought from Santander back six months ago. You have also bits and pieces that you know which are included in the 250 basis points for a total of 70 basis points.
The remaining part of those 250 basis points after the 70 basis points is representing more or less the EUR 70 billion RWA that were presented previously, with an associated profitability that is going to be permanently and for all business lines double-digit return on normalized equity. We will, of course, continue to focus on optimizing our RWAs using all the possibilities that the market is offering, including, of course, the SRTs. It is a tool that we are already using, but probably much less than some of our competitors. We have embedded in this plan the assumption that we are going to increase our efforts of using SRTs, especially for CACIB and for CAPFM.
We are also going to monitor the evolution of our trajectory, and we are ready to do more than what is embedded in the plan if needed, if we have a decent price of release, of course, which is going to be a key metric that we are going to follow, and if we have a good use of the capital that we can free by increasing the level of SRTs. This is definitely an area on which we have flexibility and the capacity to do more than what is in the plan nowadays. Last, not last, fifth point. Of course, and this has been said by Clotilde, I reiterate it, we confirm that our target in terms of CT1 ratio for CASA is and will remain 11%, and it is perfectly coherent with the fact that we are part of a bigger group, which is a systemic institution.
It's not the case for Crédit Agricole SA standalone. This bigger group has a very high solvency above 17%. It is our commitment to keep it above this level. This is giving up a significant level of strategic flexibility. If you add up all the numbers, you will end up with the fact that we have probably around 150 basis points of capital available. This would represent around EUR 6 billion-EUR 7 billion that we may use over the course of the plan for value-creating external growth operations. We have talked a little bit before about the track record that we have regarding these operations, and of course, the commitments that we take also today is that we are going to stick to the same criteria in order to continue to create value. I want to insist on a very important point.
These possible operations that we have not identified as of now, of course, are not included in our trajectory, not in the revenue growth, not in the level of profitability. This is leading to a situation where we have this flexibility, and if we use it, we are going to generate additional revenues and additional profitability. Of course, I hear the question that you have in mind, what if we do not use it? The answer is quite clear, actually. If we do not use it, we have no vocation to accumulate capital at CASA. The entities of the group in which capital is piling up are the regional banks, and this is part of our global equity story. At CASA, we do not intend to accumulate capital.
I have no doubt that we will find relevant opportunity of growth in the course of the next three years, but if not, we have no ambition to accumulate capital at CASA. Lastly, I will conclude with this figure that I reiterate. We have a very prudent target in terms of return on tangible equity, 14%. Again, this target does not include the potential benefits of M&A transactions, does not include this benefit in terms of possible additional results, and also does not include the fact that if we do these transactions, we are going to operate with a level of capital that would be closer to 11%. Here are the main elements I wanted to present to you today, and we would be ready with the team for your questions after the conclusion of Olivia, I guess.
Thank you, Clotilde. Thank you, Jérôme. It was very clear.
The presentation is now coming to its end. To conclude, I would like to remind you of three main 2028 objectives I initially set. One, expanding our client base to reach 60 million customers. The second, generating around 60% of our revenues out of France. The third, achieving operational excellence with a cost-income ratio below 55%. To reach these targets and deliver a robust financial performance with a net income above EUR 8.5 billion and a return on tangible equity, prudent, as said Jérôme, above 14%, we have built an ambitious strategic plan. Let's be clear, none of this will be accomplished by Crédit Agricole SA alone. We will succeed as a group in cohesion with the regional banks, especially for our transformation. Please see us as one team. Our strength is collective. Crédit Agricole SA entities act as business partners for the regional banks.
We help them to offer the best products to clients while Crédit Agricole SA benefits from their strong distribution network and their highly stable capital and financial fundamentals. Cohesion and collective action will enable us to reach the targets of our new plan. We have now reached the end of our presentation. Let's begin the Q&A session, and we'll start with questions from the auditorium. Oh. Delphine. Any hands? Delphine.
Hi, good morning. Thank you for taking my questions. Delphine Lee from J.P. Morgan. Could I maybe start with your ambitions in Europe, more generally speaking, and your M&A interests? In the past, if you look at all the partnerships, the acquisition you've done is to strengthen your product factories. You've been opportunistic in Italy as well.
Just wondering now, with the increased focus on Europe, is your M&A interest going to be a lot more on opportunities in Germany or Banco BPM? If you could elaborate a little bit on that. My second question is on your revenue growth of more than 3.5%. A large part, I mean, actually the highest growth seems to be in large customers, but also SFS. Just wondering, is that fueled mostly because of more capital allocation, the volume growth, margin expansion? If you just can maybe elaborate slightly more on that, because that's where the difference is, I would say, versus market expectations.
Thank you. Thank you. Maybe for your first question, the strategic plan is focused on organic growth. If we have opportunities to do an external growth, obviously we have the capacity, as mentioned, Jérôme, to have M&A operations and so on.
It's not a question, but we want to focus our plan on organic growth. It's clear for us. If we have opportunities in Italy, obviously, in Germany, obviously, in Poland also, we want to increase our footprint in Europe. It's clear because we want to become a leader in Europe. This strategic plan is focused on organic growth. For the second question, can I give the floor to Clotilde or Jérôme?
Thank you. Thank you, Delphine, maybe in the first few elements. Indeed, we have strong growth in the large customers division, which is in particular due to CACIB, who has strong growth dynamics planned in this medium-term plan above 4%, whereas CACEIS is more on a plateau regarding net interest income. Now, if we look at SFS, Specialized Financial Services, we have a little bit of everything that you were talking about. We have volume growth.
We have a recovery in margins because we have our revenue on the outstandings that is increasing. We also have a strong increase, EUR 1 billion of revenues in insurance and services, which is also fees and commissions income is going to increase also. Of course, we also have the development in Crédit Agricole Leasing and Factoring, in particular for renewable energy and on factoring. All of these are going to drive into the growth. The allocation of RWA to the business remains very close to that that we had previously. However, the equity-accounted entities are going to increase in this business.
Yes, yes, let's go. Go ahead.
Yeah, thank you. I'm coming from RBC. On capital, please. And your RE target, just to confirm, so basically the 14% RTE at the lower end would correspond with you not having invested the EUR 5-6 billion.
You're more running with a 12% quarter one as that runs down, the RE pushes up.
Exactly. I do not know if the mic is, yeah, it works. Exactly, we've simply computed the figures at the end of the plan in a situation where no M&A transaction would have been conducted. We take the capital as it is, the net profit as it is, and we end up with this 14%. It means, as I said, if we have additional results and if we have less capital because we've done positive value-creative operations, we would improve the return.
Okay, thank you. On the RWA growth, it seems the 17 billion seems quite high relative to your revenue growth. Is it already post-SRTs or is that pre-SRTs? Maybe on the 40 basis points of regulation, is M&A methodology changes?
What are you seeing or is there a safety buffer? Thank you.
The EUR 70 billion does include SRTs, as Jérôme was saying. An increase in SRTs, we are, as you know, very low compared to the average of other European players in terms of the share of our loans that are securitized. It is 3.5%. We are going to increase SRTs, in particular for CIB and for CAPFM. We also have leeway and optionality to go further, adjusting, as Jérôme was saying, adjusting to the decisions we can take, in particular in terms of M&A. Now, the EUR 70 billion growth that you are talking about, you are saying that it seems important compared to the revenue growth. As I was saying, when we have our target of net income, this target is driven by revenue growth, operational efficiency, etc., but also the 1.5x in net in equity-accounted entities.
In fact, the indicator revenue divided by RWAs is not a very relevant indicator in the medium term plan where we have an increase in equity-accounted entities.
Okay.
Thank you for taking my questions. Charlotte from Deutsche Bank. I have two questions. Firstly, on your retail strategy, sorry, digital strategy at BforBank. Do you think there is merit in pursuing this aggressively given the already competing pace or the penetration at peers? What makes you confident of being successful in the youth segment? The second question is on the strategic partnership that Amundi and ICG have announced. Can you elaborate on the partnership and why did you see the need to take a minority stake? Is there ambition to go beyond 9.9% stake? Thank you.
Okay, thank you for your question.
I give the floor to Stéphane for BforBank and for the young people to Gérald and for Amundi. Thank you for your question. BforBank now, what is the situation of BforBank? We have 400,000 clients in BforBank and each month it's 15,000 more. It's starting off a good result. Now we want to accelerate in two or three different ways. First way, we want to make saving on loans more attractive for the clients of BforBank because saving on deposit is what the customers want now. It's very interesting. The profitability of this part of the offer is good. BforBank will be a digital bank with all banking offers, but we want to acquire customers with saving on loans. Second element of acceleration, we want to reduce the cost to serve.
We will make a lot of effort to have the same cost to serve as our competitors. To serve in the international way, we started three months ago to launch BforBank in Germany. We have to see the result of this. We want to take all the digital and technological assets of BforBank to build our bank in Europe, notably at first Crédit Agricole Deutschland. Crédit Agricole Deutschland for the everyday banking, for the management of accounts of the customer, will be on the assets of BforBank. We are always very optimistic on BforBank and we want to get the balance, the break-even in 2028-2029. We will follow this. Thank you.
Okay. Thank you. It is clear we want to really reach the break-even in 2029, 2028 maybe, in dividing by two the cost-income and the cost to serve.
It is very, very important and we are focused on that to improve the profitability of BforBank. Gérald, for the young people, for the youth, innovation.
First, I would like to remind that we are a leader in France on the youth market, on the youth segment. To further strengthen our position, we also know that we have to adapt our organization to the habits and trends of this kind of client. First of all, we are accelerating our digitalization. That is clear, that is the way to succeed in this segment. We also are working with all the business lines to review our offers because we know that we have also to work on the access offer with all the business lines to propose competitive offers to young clients. Finally, we also knew that we have to adapt our kind of communication to this kind of clients.
That's why for now, for one year, you use, I don't know if you know, but Crédit Agricole is certainly the most present bank in the social networks in France. We want to intensify our presence in the social networks. You also use now new ways of communication. For this reason, we are confident to aim our objective to remind the French leader in the youth segment.
Thank you. Nicolas Calcoen, Deputy CEO of Amundi, for your first question.
Thank you. Thank you for your questions. This very important partnership with ICG is designed to help us to have access to very high-quality products and expertise in private assets to complement our own internal offers. I'm thinking in particular of private debt or secondaries, but there are many, many good quality expertise that they have.
So that we can very rapidly benefit from the democratization of private assets that was mentioned by Jean-François earlier. The stake we are taking is here to cement this partnership and to ensure a good alignment of interest. We do not have any intention to go beyond the 9% stake that we announced.
Thank you, Nicolas. Many questions. Yes, hi. Good morning. Yes. Okay, okay.
Sorry, Kemetjat from Bank of America. Just two questions from my side. First, on the universal banking model kind of aspect from the plan, reminds me from many, many years plans ago where universal banking was the new thing. Is this because of all this SIU and Capital Markets Union that you feel this is the time to position across Europe and to capture that and position a bit early? I was surprised there is no mention of SIU in the whole plan.
I know it's 2028 plan and this is probably coming after. I just want to understand your turn here into more Europe. The approach you took in Germany is more retail, kind of very competitive part, I would say, of the German business. What's your edge there? The second question is on Italy. I think you managed very well given the situation. You've done what you can do from your side. It's not all in your hands, but I mean, I guess without going to scenarios, let's say there's another M&A that's happened that doesn't involve you. How do you think you can protect your interest in terms of Agos, the non-life insurance, and the different distributions you have in place?
Thank you. Okay, thank you for your question.
First of all, for Germany and obviously for the universal bank, we are the champion of the model of a universal bank in Europe, and we want to continue and to improve our footprint in Europe. For Germany, it is the heart of the economy in Europe. That is why we want to invest not only in retail banking, but generally we have strong objectives in Germany, for example, for the mid-corporate, for the large corporate also, for CACIB. The mid-corporate, we want to enter in this new and to tap in the new market for us in Germany and obviously in the retail bank because we have already 1 million clients in Germany and we want to make it more profitable in order to offer new products and the capacity of the group and it is our universal banking.
For the saving and capital union, maybe you can add something, Jérôme, and I answer a little bit.
No, of course, this savings and investment union is a topic that we follow a lot. It certainly would be an accelerator for different businesses for us, be it Amundi, be it also CACIB, of course. It does not have a lot to do with the initiative that was presented regarding Germany because clearly what we are talking about in Germany is much more collecting savings from individuals. It is not so much related to the savings and investment union.
Okay, for Italy, as I said before in my speech, we are obviously very attentive in what happens in the future.
We are waiting for a proposal from Banco BPM because I think a merger between Banco BPM and Crédit Agricole Italy makes a lot of sense, makes a lot of synergies, but this project is not on track. We are waiting for a proposal. In any case, our branch or division in Italy is not going to be sold. We want to keep it. That is why we have defined a project of organic growth because anyway, we are waiting for that. Maybe one day it will happen, but today it is not on track. We want to organize to define organic growth.
Thank you. Jeremy Sigge from BNP Paribas. Yeah. Thank you. Just continuing that discussion, you talked about Germany, but I wanted to broaden it a bit to the European digital savings offering and also the European digital professional proposition. Two questions on those.
Could you talk about the rhythm of launches in different markets that you have in mind? Then linked to that, what do you lead with as you launch those services? Are you leading on pricing? Do you think you've got better technology, different packages of services? How do you take market share in those quite competitive markets?
Yes, it's a mix of all the items, of the elements. We have to be obviously very efficient in terms of price, but also with our digital expertise. We have built with BforBank an IT platform, a European IT platform capable of opening, for example, an account in every country in Europe and a very scalable IT platform with the capacity to handle IBAN in different countries. That's why we have to launch that in Germany.
Obviously, with our digital expertise, with our price, the capacity of every business line to offer the best of the products in Germany, we are very confident to succeed. Wait and see. For the pace, we are ready to launch, but I can give the floor to Stéphane, our platform in 2026 for the savings. The IT platform of BforBank will be ready at the end of 2026. Obviously, we are waiting for that. Maybe we can add some comments.
Perhaps two comments on your questions. Thank you for your questions. First, our customer target in Germany will be a more affluent customer because if we see what we have done without great speaking in Germany, we have now 400,000 clients in saving and deposit. It represents EUR 15 billion and it is affluent customers, EUR 330,000 each.
Our customer vision is to give confidence to the customer because we are Crédit Agricole and we want to take these clients and make upsell, cross-sell with other products, financial offer with Amundi or with other product factories, but also other products as mobility services, etc., etc. We have to make a large base of customers, of clients, and unify because we have this customer in a different part in our company in Germany. If we make this, it will be, if we will make this, it will be very rich for us. We will extend with a platform, digital platform. First is saving and deposit, more industrial than the one we have now. We will add BforBank tools because for the everyday banking, it is very good tools. Also we want to launch a digital platform for professional and next for agricultural clients.
We will make this in eight countries, the platform, the different platform, saving, professional, agricultural in eight countries until the end of the plan. We consolidate, we will consolidate in some countries, first Germany, but certainly after in two or three other countries where Crédit Agricole has a strong presence. It is a double approach, launch of platform, digital platform for saving, for deposit, for professional, for agricultural. In some country, we aggregate our model to a universal bank. It is a new way, it is a modern way because as you see, acquisition of a large universal bank in Europe, it is not so easy. Partnership will have limits. We will take care of all opportunities, but we want to make organic growth with our starting point. We have, as I have shown to you before, we have a large presence in Europe.
Okay. Thank you.
Hi. Jacques-Henri Gaulard, Kepler Cheuvreux. I have one question really, which is linked to that. It is the first time in the four plans we have that many developments on the regions and the countries. It is very interesting because you have indeed a very decentralized model. How do we reconcile that? Because a lot of people are going to have to work together, which do not necessarily work together. The LCL, CIB in particular is quite interesting. Maybe a little bit of telling us how you are going to effectively make that operate. Clotilde, how much of that 3.5% combined revenue do you think you can actually attribute to that? Is it like 0.2, 0.3, just to have a little bit of an idea? Thank you.
Yeah, the second pillar of transformation is one of the goals is to work together better than before because we have a strong business line, very efficient, very decentralized, but we have to progress in terms of capacity to work together. I take an example from the mid-cap, for example. We can add the know-how of CACIB in terms of defense, agribusiness, or technology or energy, obviously. We want to take this know-how and to develop that with LCL because LCL has a big strong trip, a big know-how also for the mid-cap markets. Together, we can build something in the European area. We could take many examples of that. That is one of the goals of the team, of the executive committee. It's my job, obviously, to work together and to impulse something new in the way to work collectively. Second question is for.
For the revenue growth. We have a contribution of all of the businesses of this revenue group of 3.5%. More of it will come from outside of France. Within France, we're about around 2% of growth of revenues in France. We do not provide any decomposition of the contribution of the, for example, German or mid-cap initiatives because, in fact, all of these initiatives are going to feed into the growth of the different businesses. For the mid-caps, we have LCL, we have CACIB, but we also have mobility solutions, leasing solutions. For all of the solutions that Stéphane was talking about, it feeds into Crédit Plus, but also to leasing and factoring. It is really a collective effort. That is why the contribution of all of these businesses will be strong to this effort, to this international effort. Thank you.
Hi, Matt Clark at Mediobanca.
Some more questions on BforBank and these initiatives. Firstly, historically, you've tended to use legal entities for your product factories. Am I right to think that the BforBank initiative will be in the BforBank legal entity as it is, and you will operate branches in each of the markets that you're expanding to, if that makes sense? Firstly, as a question, or if not, how from a legal entity perspective are you going to be operating? Secondly, you've talked a lot about savings and investments, I guess, deposit gathering, but not so much about the lending side of it. For BforBank and to some extent for the savings and investment platform, is there an intention to be lending on the other side of the balance sheet here and what products, and to keep pace or not?
What are you going to do with all these deposits you're gathering? You can add some comments. You can start, Jérôme.
The first point, what Stéphane said was that we intended to use the IT platform of BforBank in different countries because this platform is going to be very soon now completely up to date and is going to be able to operate with a multi-IBAN setup. It is not certain that we need to use the legal entity BforBank, but we will need definitely to use the IT platform. We have some legal entities already present in Germany, for example. It is not a necessity for us to add up another legal entity in Germany. The decision is not made yet, but definitely what is important for the project is to have access to the IT platform.
When it comes to the business model that we see for BforBank, it's much more going to be targeting savings of the customers. Lending is not something that we want to avoid, but definitely what is important for us is to collect savings, and this is where we think we can make a difference.
I can add one comment on your question. We want to use in Germany the Crédit Plus franchise. They have already 20 branches in all the main cities in Germany. They have 1 million customers in saving and in consumer loans. We want to increase our footprint on the clients to propose them all the products we are capable of offering. That's the model. As you say, legal entities, we don't know at this point if it's with Crédit Plus, with the SFS subsidiary or if we have to create something.
We don't know, but we have a bank license and so on, and we are capable of doing that.
Maybe on the growth of outstanding loans, it's going to be a little bit different according to the different businesses. For example, if I take the example of French retail, we have the outstandings that are going to grow very close to that of the economic activity in France. A little bit more in Crédit Agricole Italian, we're going to have a stronger growth in outstandings, for example, for SFS. It's true that for the savings and investment union, we have the branch of the savings, the leg of the savings, and we also have the leg of the outstandings. That's where CACIB also in the target that we have to increase revenues strongly with a balanced mix between financing activities and market activities.
These financing activities with the strengths of CACIB in real asset financing, infrastructure, shipping, all of this is the loan leg of the savings and investment union. CACIB really wants to be a strong player in developing this, in particular strategic autonomy of Europe.
Thank you.
Hi, Ian Leibig, Gabelli Funds. Thank you for doing this presentation. My question is on private credit and the decision to expand there. I'm sure you've heard in the U.S. a lot of issues with bankruptcies and frauds. Are you not seeing that in Europe? Will the expansion put pressure on the 40 basis point cost of risk target? Thanks.
No, we don't think that we are going to take this type of risks.
Actually, what we are seeing is some individual topics in the U.S., and we are fully aware of what has been announced in the last several weeks regarding some difficulties with some names. Our role is much more going to be at the initiative, at the origination of private credit, much more than directly investing ourselves. When it comes to what we are going to propose to our clients, with, amongst other examples, the agreement with ICG, this is precisely the reason why we wanted to engage with the most important and the most respected player in this space in Europe, because we think that, like in every business, it's important to play with the most important player.
Hello, Flora Bocahut from Barclays, I am here. Yeah.
I'd like to ask you a question on the revenue growth target because in the past, you've been able to grow at 5% or more the last few years. In this plan, you're basically telling us you're going to grow in line with the nominal GDP if I look at the assumptions you made in the plan. That is despite rates that you think will slightly increase and despite a growth in the customer base and in the product range that you offer to these customers. I'm just curious to understand, first of all, why the caution may be in the revenue targets that you set here in light of the environment. The second question is on the Italian earnings because I think you're saying you're going to go to 20% of group earnings in Italy. I think that compares to 15% today.
Why do you think you're going to grow in Italy faster than elsewhere, especially as this is an organic-only target, if I understood correctly?
Yes, because for growth of revenues, it's only an organic growth. If you appreciate, assess the last decade of the growth of revenues of Crédit Agricole SA, we have a part, one third, I think, I have that in mind, due to the external growth. We don't want to integrate in our plan an operation of M&A. We will see that in the future. It depends on the opportunities and if it makes sense, if we can create synergy, etc., etc. That's why 3.5, it's a little bit more than we have already done in the past. We are confident to ensure that.
Maybe just with the 3.5, we also have, if we look into, if we break down a little bit by business line, you have a couple of businesses, for example, Crédit Agricole Italy and CACEIS, where we were at a high point in 2024 in terms of net interest income. Of course, you've heard about Amundi that integrates the uncertainty, of course, linked to the UniCredit partnership in the target that Amundi is taking into account. If you break this up and if you integrate this dimension of organic growth, you'll see that our 3% minimum is very ambitious.
Maybe regarding what you asked on Italy and the fact that the proportion of our net income coming from Italy is going to grow from 15%-20%, part of the increase is linked to the fact that starting in 2026, we are going to recognize the equity contribution of Banco BPM as a component of our Italian results, which is obviously the case.
Okay. Yes, hello. Good morning. Where are you? Okay. Stefan Stalmann from Autonomous. Thanks for taking my questions. I wanted to get back to what you said, Clotilde, on the 2% revenue growth target in France. You're also targeting 3%-4% in LCL. It does seem as if you're not expecting much growth in the other French businesses. Is that just conservative planning, or is it some reason for that?
The second question relates to, I think Jérôme may have mentioned it, regarding the output floor. I appreciate that that's not binding for CASA, but I guess when the group starts to mitigate, that some of the mitigation may have to be absorbed by CASA. Could you maybe talk about how you look at that?
Maybe just on the revenue growth around 2% in France. Indeed, we have a growth which is between 3-4% for LCL. We have other businesses that are also going to contribute to the growth in France. I'm thinking about CACIB in particular and Crédit Agricole Assurance. The contribution of other, for example, Amundi and Industries will be a little bit lower because they're going to expand more internationally.
Of course, you also have to take into account the evolution of the corporate center with the participation of Banco BPM that can increase and become international. That is also one of the reasons why we have revenue in France, which is about 2%.
When it comes to the output floor and the mitigation that we can foresee in order to reduce a little bit the impact of this output floor, you perfectly know that what is going to bite at group level for the output floor full ramp-up in between 2029 and 2032 is going to be the proportion of home loans that sit within our balance sheet, especially within the regional banks. Definitely, what we have to work on is how we can improve the way we structure those loans and the way we organize things in order to reduce the impact of the output floor.
I do not know, as of now, if some elements or not are going to bite at the Crédit Agricole SA level, but first, it is not going to be before 2028 or 2029. Second, the bulk of the issue for us comes with the home loans.
Just maybe a comment on your capital position because we have a lot of questions about that. I confirm that we have not any interest at the CASA level of maintaining a CT1 ratio significantly above 11%. The market, in fact, actually has the best of both worlds. You have a limited ratio at the level of Crédit Agricole SA. For the market, you have a good return on tangible equity for teams, maybe more if we can. You have a free guarantee from the regional bank for the group level with 70.5% of CT1 ratio at the group level.
I repeat, we have not any interest to keep too much capital. In this case, if we do less acquisition we have in the future, I am sure that we are confident on the capacity to provide to the market at the end of the plan an exceptional dividend in case of too much structural capital at the level of Crédit Agricole SA. I want to add that because we have a lot of questions in distance for this question.
Okay, good answer.
It is Chris Hallam here from Goldman Sachs at the bank. I just had a couple of questions. First on CACIB, and it is a bit of a follow-up to the earlier question. You have a revenue target of 6% for Europe ex-France.
I just wondered if you could spend a bit of time talking about CACIB in France in particular, particularly considering the context of the other 40, how that will play out. Then second, at the beginning, Olivier, you were very clear that you do not intend or wish to sell the stake in Banco BPM for cash. I just wondered whether you would consider selling part of that stake or exchanging part of that stake if that were necessary to facilitate a combination, considering where the percentage aggregate ownership may end up if you did not move on the 20% prior to a combination. Thank you.
Maybe on this one, I think you misunderstood what Olivier was saying.
Olivier was saying that we do not intend to sell Crédit Agricole Italy for cash because we've seen in the press some news related to the possibility that we were ready to contribute Crédit Agricole Italy in exchange for elements which are cash or cash-related. We didn't talk about the stake, and we are happy with the fact that we hold this stake. We are here, and we are organizing ourselves to stay in the long run as the first actually shareholder of Banco BPM. This is the reason why we want to equity account this stake. Of course, there's no point in thinking of selling this stake for cash, even though this is a stake that has a price that is far below the price that we see on the market as of today.
On CACIB topic, maybe you can answer, Jean-François.
In France, I mean, naturally, the French market is quite well developed, but we have a very strong position in France. We've been developing our activity in the various businesses for quite a while, and there is still room to grow. If you look at where, we're mentioning our strengths in real assets. There is a lot of investment to take place still in energy transition, but also in the tech sector, in the telecom sector, and we are a big player there, so we can help. There is also the development on the FI side, which is continuing. We have a broad range of possibilities. What we've seen on the previous medium-term plan is that part of our growth also is by generating additional revenues with existing clients, which is very important. We will continue that way.
Thank you. Okay. Oui. Oh, let's go.
[Foreign language] Sorry.
(crosstalk) I know you perfectly. I know you prefer to speak in French. The same for me. My brain is French. Sorry.
So in PNC, in the previous plan, you had an objective of plus 2.5 million contracts. And you did, even if you don't communicate a lot on that, but according to my calculation, you did also 1.7 million contracts. I was a little bit curious to know why do you plan this time 3 million contracts? Because you did not exactly say where do you think you are going to make these contracts and why are you going to make twice better than in the previous plan on this.
Also in insurance, I remember that Philippe Brassac was very keen on developing SMEs insurance business. At that time, you had a target of revenues of EUR 1.5 million, and you do not say a word on that part of the business in this plan. I was curious to know if you gave up this ambition. I remember that at that time, AXA France said to me, "You will see, they will give up within three years." Maybe it is the case. Regarding consumer credit and mobility, I am also a little bit surprised by your target of RON. Not surprised because we all know that it is a difficult time for this type of business.
When I look at some of your competitors regarding these two types of businesses, mobility and consumer finance, they plan to recover a little bit stronger than you, let's say around RONE, around 12-13%, which is a RONE that is covering the cost of equity at the end of the day in this kind of business. I was wondering why are you so conservative from your part. At the end of the day, when do you think that you will cover the cost of equity, which is clearly not 10% in that kind of risky business? My last question would be a subsidiary question regarding CACEIS Regional, which is your main distributor, I would say. We have seen a significant deterioration of our cost-income ratio these last four years.
Of course, margin has its part on that, but certainly other things maybe you can tell us. What would be your objectives regarding this cost-income? I think that currently today, they are around 62%. They were around 53-55%. What is your view on that? Can it have any impact regarding their capacity to sell your products? Thank you.
Okay, thank you for your quick question. I give the floor, and I can add many comments on that. To start with Nicolas Denis.
We start in English, if I may. The first question was about the 3 million contract in 2028. It is in fact 1 million in net contracts more, and it is not only in France. It is in France and abroad. As you probably know, we have now a very successful subsidiary with ABANCA, a JV in Spain.
We have also successful subsidiary, sorry, in Portugal, MUDUM. We launched motor insurance in Portugal this year, and it's also quite successful. That's why we aim 26% of growth of the portfolio of PNC contracts in France and in Europe. The second question was about SME and in Italy, of course. In Italy, we have the JV with Banco BPM, and it's roughly EUR 500 million in terms of premiums. The second question was about SME and EUR 1.5 billion during these three years. When we call of integrated SME business for insurance, we are speaking about what we call in France assurance collective, so employee benefits, retirement, health, and protection insurance, and also of PNC and SME, so both of these two business lines. We are very successful in both business lines.
First, in retirement, health, and protection, we are one of the leaders in retirement in France. We want to enter the 10th ranking in France in this business line because we have a very attractive model of bank assurance integrated with regional banks and also with LCL. We have a very good synergy with Amundi. For PNC SME in France, we launched it in 2020 with a very smooth launch, a very prudent launch, we accelerate this year, and we will accelerate in the next three years. Thank you for the return for the SFS division.
Yeah, we do not usually comment on what our competitors do, but it is true that it is not necessarily the same method when we calculate the RONE for our competitors and ourselves if we take into account the geographical mix or the mix in personal finance between revolving or not, or even methodological differences. In particular, for example, some of our competitors take into account minority shareholders, whereas we do not. That creates a difference between the RONEs that we calculate and the RONEs that others calculate. Now, our trajectory is based upon ambitious targets in terms of growth in a context that is still uncertain, in particular regarding mobility. There is also an optimization of the expenses and the resources and the cost-income ratio of CAPFM, which is already very low, continues to decrease in this medium-term plan.
We're quite confident as to the fact that we're going to reach this RONE level of 10%. Of course, as you know, we never reason in terms of sum of the parts at Crédit Agricole because each of the businesses also contributes to the growth of the others in a logic of generating synergies. Crédit Agricole PFM is very important for our whole setup.
We have a last question concerning the cost-income ratio for the regional banks. Maybe I give the floor to Gerald to comment on that.
Yes. It's quite easy because in the context of a medium-term plan of Crédit Agricole SA, I don't have any information to communicate about the cost-income ratio of the CACEIS Regional. However, I can confirm the full commitment of the team here present to support the business of the regional banks. That's clear.
This is a notion presented of a business partner. I also confirm you the full commitment of the regional banks to improve their performance and more specifically their cost-income ratio.
Thank you. In our transformation, the second pillar of our plan, we have associated regional banks in order to optimize processes and expenses for all of the group, even the regional banks. That is a key point for the future and for regional banks.
Hi, it's Joe Dickerson from Jefferies. Just a couple of quick questions. Firstly, on your portfolio of businesses that are in Asia, if you were to put those businesses together, what type of RONE would they be earning? I guess secondly, on the Asia business, it's pretty clear who you compete with. If you look at the league tables, who you compete with in the CIB side.
If you were to look at the wealth side, geographically, it sounds like you're really focused on Southeast Asia. I guess what's the competition? Is this ultra-high net worth, high net worth, more the mass affluent? It seems like it's kind of the former. There's some discussion around the Asian portfolio and wealth. On the cost walk, where you've got the EUR 1.8 billion of investment, I guess how much of that is that primarily associated with France? Among that, would that be investing in digital, or is it more pan-European? Thanks.
Yeah, thanks on the RONE question, which is a tough one. Nevertheless, if we consider that the businesses that are going to develop quite strongly in Asia are Amundi, CACIB, and Indosuez.
If you look at our RONE targets for the Asset Gathering Division and Large Customers Division, you'll see that these businesses are very, very accretive for our setup. It is also logical that this would be the case also in Asia because since we're going into Asia also to capitalize on all of the development of savings, liquidity in that region, all of these elements are drivers of accretive growth. It is really something that's going to contribute positively.
I want to just add that we have a very strong brand in Asia, a very attractive brand in Asia. Maybe the geopolitical landscape at the moment, America and so on, you know the environment. We feel we found that we have a very strong brand and very attractive.
That's why we make business, for example, in India with Amundi, but we want to develop that with the other business line. For us, it's a key area for our growth in the future, not only for the three next years, but for the years to come. Yeah? Yes.
Hi. Good morning. Julian Myrtle, Morgan Stanley. Morning. Thank you for taking my questions. I have two. I'll go back to the BPM comment that you made that you're waiting for a proposal. Why waiting, not making a proposal? What would be your ideal solution there? Secondly, there is a need in Europe for more investment. I'm surprised why in Germany you are leading with the savings product. Is the vision to start with a savings account and then convert the people to more investments?
Or I don't know, unit-linked products, or you just stop at the savings product? Thank you.
On the first topic, we are a happy child at the moment with 20% of the stake. If we haven't any proposal, okay, we are waiting. We are cautious and we are patient. We built today with BPM many, many contracts in insurance, in consumer loan. Maybe we have other ways to build something together. We are prudent and cautious and patient. We are waiting the moment. It is BPM, they have the end. They have the end to build something, and we are waiting for that. Second question for Germany for saving?
For savings, maybe just a question. Indeed, we are targeting savings of individuals, of households in the different European countries.
This is the goal of this platform that has been presented by Stéphane during the presentation. Of course, what we intend to do is to be able to propose to use these savings under the form of different products, be it products proposed by Amundi, be it products proposed by our insurance subsidiaries, or be it other types of products. Of course, this is going to participate to this movement that we think is useful for Europe, which is progressively to channel the savings of the household towards more, I would say, a little bit risky, but more useful investment financing for the development of the European economy. Clotilde? Cécile. Cécile, at distance.
Yes, we have received a few questions via the chat. The first one will be, in fact, a summary of several questions that we have received on the interim dividend.
The question is, can you give an indication of the potential interim dividend split for 2026 in relation to both H1 net profit and the expected full year 2026 dividend? In fact, the question is more explanations on what are the modalities.
Okay, I give the floor to Clotilde.
We are going to pay in the second half of 2026 an interim dividend based upon the income of the first half, i.e., June 2026. We are going to provide you details soon regarding the modalities of this distribution, but it will be consistent with our wider distribution policy, which is a distribution of 50%. We are going to remain prudent within this interim dividend policy, but consistently with our yearly policy.
Okay. Next question is about ESG. I am looking at Eric, maybe. Do you plan to have your trajectory validated by SBTi?
I give the floor to Eric.
Yes, one answer is the fact that we have been working with SBTi for a long time, I guess since 2016, and we have a status of committed in SBTi. This means that we're working with SBTi in order to be acknowledged in the climate strategy of the group.
Thank you.
Okay, we have another one on the evolution of earnings, the EUR 8.5 billion guidance for 2028. How much comes from the contributio n of Banco BPM?
Maybe some explanations. As you know, we've integrated pro forma, the fact that we're going to equity account the contribution of Banco BPM for 20.1% starting normally on the fourth quarter of 2025. This creates a contribution of about EUR 400 million, a little bit more than EUR 400 million, which is about 5% of the net income growth share.
We have to also mention the fact that in the basis of comparison, so the restated 2024 figure, there is already this equity contribution. Do not imagine that out of the 25% increase of the net profit at Casa between 2024 and 2028, five points are going to come simply from the fact that we are going to equity account Banco BPM. It is already there in the pro forma of 2024. It is going to increase a little bit accordingly to the official plans published by Banco BPM up to 2028. That is it.
Okay. Next question is about CCI/ CCE. Why at today's Capital Market Day did you not propose any concrete solution for the CCI shareholders of the 13 regional banks still listed?
It is not my role as the CEO of Crédit Agricole SA to comment and to comment the situation of CCI of the regional banks.
Secondly, as you know, we have legal action ongoing at the moment, and it's obviously impossible for us to comment with these ongoing actions.
One question on French retail and NII, net interest income. Can you elaborate on LCL net interest income growth? What are the main key drivers here?
Okay, can I give the floor to Serge Magdeleine , CEO of LCL?
Okay, let me just step back to the NBI growth because we are quite confident the LCL NBI will grow by 3.5-3.8% during the period, driven by growth of margin, intermediation margin. The drivers are volumes, the volumes are outstanding. We are expected a very dynamic production of loans and the renewing of our credit outstanding credits with better margins due to interest rate curves than the loans that are extinguishing.
Thank you.
The last question will be about Worldline.
Could you elaborate on your plan about Worldline? Is your investment marked to market in your accounts or depreciated? What is your average purchasing price? The question is about Worldline globally.
Worldline, we have a specialist for Worldline. It's Jérôme Grivet.
Actually, we took a stake in the capital of Worldline back in 2023 at a moment where we were just finalizing a contract with Worldline, an industrial partnership, which is very important for the development of our services to merchants. Worldline was at that time announcing that it was going to get rid of part of its German merchant portfolio in order to comply with PAFIN requests. The share price of Worldline declined suddenly.
We found out that it was at the same time a risk for the partnership that we have with Worldline and an opportunity to enter into the capital because with the previous share price, we felt it was a little bit too demanding. Worldline has been engaging into a very profound restructuration. We support this restructuration. We support the efforts of the management to refocus its business on two main divisions, which are financial services, services that actually are sold to banks mostly in Europe, not very much in France, but mostly in other European countries, and then merchant services, which is clearly the division in which we have this very important partnership that was mentioned earlier in the presentation, COL.
This restructuration of Worldline is quite demanding, as I said, because it's going to imply a certain level of investment, IT investment in order to merge a number of platforms. It also implies the divestiture of certain businesses with the reduction of the EBITDA that was coming from these businesses. Worldline communicated back two weeks ago on its new medium-term plan with, in addition to that, the announcement that it was raising additional capital. We've decided to support the capital raise alongside two other important French banks, BPI and BNP. There's nothing more to say. We support the plan, we support the transformation, and we support the capital increase in its two legs. That's all. We are quite confident this is going to work out. We are also very positive on the partnership that we've built with them.
Thank you, Jerome.
Thank you. Thank you, Cécile. Thank you for the team. You have to conclude now.
Yes, I have to conclude. As we are coming to the end of this session now, I want to thank you all for being with us today. We truly appreciate your time and participation throughout this Investor Day. Before we conclude, let me share what's next. In the coming months, we will host a series of four workshops, each dedicated to one of our key business lines: LCL, insurance, CIB, and personal finance and mobility. We will host one workshop per semester starting in H1 2026. They will provide an opportunity to explore each area in greater depth and continue the discussion. We will share all the details with you well in advance. Thank you once again for joining us today.
We look forward to seeing you at these upcoming workshops and have an excellent day. Thank you very much.
Thank you, Cécile and the team for the organization of this event. Thank you very much.