Category: Asia

MIL-OSI Economics: Unlocking Transport Connectivity in the Caucasus and Central Asia

Source: Asia Development Bank

The geopolitical tensions and economic disruptions unleashed by the Russian invasion of Ukraine in February 2022 created new opportunities and challenges for transport corridors through the Caucasus and Central Asia. The transit complications through routes via the Russian Federation fostered renewed attention to the Middle Corridor and redirected trade flows through many countries of the Central Asia Regional Economic Cooperation (CAREC) region. However, infrastructural hurdles, supply chain difficulties, gaps in regional integration and connectivity, complex geographies, and high transport costs continue to limit CAREC countries’ ability to fully unlock the potential of a sustained increase in trade and development.

Unlocking Transport Connectivity in the Caucasus and Central Asia addresses these constraints and explores ways to enhance the efficiency of transport through the Middle Corridor, offering significant economic benefits for the CAREC region. These benefits include boosting cross-border trade, gross domestic product, investment, and employment while reducing transportation costs. However, there are major barriers to infrastructural investment, including the availability and costs of long-term financing, high initial costs, investment shortfalls, high risks, and uncertain benefits.

The book discusses key developments in transport and trade through the Middle Corridor, focusing on CAREC transport corridor growth, its trade and economic impacts, and the digital, regulatory, infrastructural, and logistical dynamics.

MIL OSI Economics –

January 26, 2025
MIL-OSI Asia-Pac: LCQ18: Promoting the development of low-altitude economy

Source: Hong Kong Government special administrative region

Following is a question by the Hon Elizabeth Quat and a written reply by the Secretary for Transport and Logistics, Mr Lam Sai-hung, in the Legislative Council today (November 6):Question: Low-altitude economy is one of the country’s strategic emerging industries, and the 2024 Policy Address has proposed to establish the Working Group on Developing Low-altitude Economy to formulate strategies and interdepartmental action plans for the development of low-altitude economy. In this connection, will the Government inform this Council:(1) whether the Government will set up research and development (R&D)-cum-test flight bases for low-altitude economic technologies in Hong Kong, so as to actively promote R&D and application certification of drones and electric vertical take-off and landing (eVTOL) aircrafts, including conducting studies on how to design vertical take-off and landing points, how to ensure aviation safety of drones and eVTOL aircrafts in airways of narrow urban area or structurally complex landscape, the related automated flight technologies, remote control flight design, etc.;(2) as there are views pointing out that radio mobile communication network is indispensable for promoting low-altitude economic activities, whether the Government will, in respect of the planning of dedicated spectrum resources for low-altitude communications, advance discussions with telecommunications operators on the licensing arrangements for fifth generation (5G)/sixth generation (6G) mobile services radio base stations, and make planning for the allocation of dedicated spectrum resources for low-altitude communications towards building a low-altitude intelligent network;(3) whether the Government will assist telecommunications operators in advancing the testing and construction of the relevant ancillary network facilities, and formulate supporting policies (e.g. tax concessions) to encourage the early construction of a low-altitude intelligent network by telecommunications operators, including (i)‍ expediting the integration of various technologies such as 5G and 5G-Advanced (i.e. 5G-A with new enhanced capabilities such as integrated sensing and communication), BeiDou Navigation Satellite ‍System, satellite interconnection network, automatic dependant‍ surveillance-broadcast system, radar, etc., (ii) improving the‍ construction of an ancillary facilities network in respect of‍ low-‍altitude communications, navigation, surveillance, identification, meteorology, counter-drone, etc., and (iii) achieving interconnection with the relevant platforms in Guangdong Province and collating sensory data of various regions, so as to progressively build a comprehensive central low-altitude intelligent network serving the entire Guangdong-Hong Kong-Macao Greater Bay Area (GBA);(4) as there are views that the development of low-altitude economy hinges on talents in different fields (including interdisciplinary talents in aviation, law, finance and engineering), whether the Government will estimate the number of talents required in different fields, conduct studies on the formulation of unified professional standards (including the certification standards of software and hardware, as well as the arrangements for mutual recognition of licences of the relevant professionals in GBA), and provide the relevant training;(5) as there are views pointing out that low altitude-international civil aviation intermodal transport is a cost-‍effective and convenient mode of travelling, and Mainland residents can fly to urban areas in Hong Kong or directly to the airport from in-town take-off and landing points in other Mainland GBA cities by helicopters or eVTOL aircrafts before making use of the frequents flights departing from Hong Kong to travel to places all over the world, while travellers from all over the world can use Hong Kong as a hub to travel to and from other Mainland GBA cities by helicopters or eVTOL aircrafts, and Hong Kong residents can also travel to and from urban areas in the Mainland via take-off and landing points in the urban areas of Hong Kong, whether the Government will conduct studies to improve the policy on low altitude traffic rights in GBA and enhance the utilization grouping of air traffic rights, including establishing low-altitude transport agreements with the relevant Mainland authorities, negotiating the extension of the existing civil aviation traffic rights to low-altitude airspace, and drawing up co-location or joint boundary control arrangement for low-altitude intercity transport, with a view to establishing such intermodal transport; and(6) as it is learnt that the Shenzhen Municipal Plan for Constructing High-quality Taking-off/Landing Facilities for Low-altitude Flying ‍(2024-2025) published by the Shenzhen Development and Reform ‍Commission has proposed the construction of more than 1 ‍000 ‍low-‍altitude aircraft take-off and landing platforms and 123‍ new‍ take-off and landing points for logistic transportation by the end of 2025, and that the Implementation Plan for Low-altitude Economic Development in Guangzhou Province issued by the People’s‍ Government of Guangzhou Province has also proposed the construction of more than five new hub-type vertical take-off and landing ports and more than 100 new regular take-off and landing points by 2027, and it has been reported that at present, there are 30, 8 and 11 national general aviation airports in Shenzhen, Guangzhou and Shanghai respectively, whether the Government will draw reference from the experience of the aforesaid cities in planning the construction of general aviation airports as well as take-off and landing points for low-altitude aircrafts and logistic transportation in Hong Kong; if so, of the details; if not, the reasons for that?Reply:President, Low-altitude economy (LAE), with its great potentials, can be applied widely in different areas and help promote the development of various industries, thereby injecting new impetus into Hong Kong’s economy. In the 2024 Policy Address, the Chief Executive announced the work direction for promoting the development of LAE, including the establishment of the Working Group on Developing LAE (the Working Group) led by the Deputy Financial Secretary to formulate development strategies and action plans. The Government will commence work on various fronts to press ahead with the promotion of LAE as one of the growth engines of new quality productive forces. In consultation with the Commerce and Economic Development Bureau, the Development Bureau, the Innovation, Technology and Industry Bureau, the Civil Aviation Department (CAD) and the Office of the Communications Authority (OFCA), the reply to Hon Elizabeth Quat’s question is as follows:(1) and (6) Promoting the development of LAE requires coordination of different policies, among which the development of infrastructure is of paramount importance. In the long run, the vibrant development of low-altitude activities requires a highly efficient, intelligent and digitalised low‑altitude infrastructure system to manage the networks of low‑altitude activities in real time and address the complex management and safety issues arising from low-altitude flying activities. Therefore, the Working Group will embark on technical studies and planning for low-altitude infrastructure. The scope of studies include the design of take-off/ landing points and related hardware facilities (including charging facilities, spatial requirements), air route network, communications network, signal reception of the global navigation satellite system, requirements of the low-altitude surveillance system, etc. We note that some Mainland cities are planning to develop take-off/ landing point networks for low-altitude aircraft, with a view to facilitating different low-altitude flying activities. The Working Group will continue to closely monitor and make reference to the latest development in Mainland cities in respect of infrastructural development for LAE, and deploy relevant planning in Hong Kong according to local conditions. We are of the view that large-scale land creation projects such as the Northern Metropolis are well-positioned to provide sufficient land and design flexibility to cope with the land and spatial requirements of the infrastructural needs arising from LAE. In terms of specific town planning, facilities related to LAE such as vertiports and charging facilities can generally be accommodated under the permitted uses of the relevant zoning or their ancillary uses. In addition, even for developed areas, having regard to the economic development potentials and demand for LAE in the area, the Government will make feasible and pragmatic arrangements accordingly. The overall development of low-altitude infrastructure is a huge systematic project. The Working Group will co-ordinate the work of different bureaux and departments to ensure that the relevant work complements one another. As regards the promotion of technological research and development (R&D) in LAE, the Government has all along been supporting R&D in different technology areas through the Innovation and Technology Fund (ITF), including supporting local universities, R&D centres and enterprises to conduct R&D in electronics, data transfer and processing, which are related to LAE, through funding schemes under ITF. To promote the development of the innovation and technology (I&T) industry, the Government encourages enterprises (including those involved in industries related to LAE) to set up R&D centres and new smart production lines in Hong Kong, including enabling production activities by capitalising on resources of Hong Kong’s existing manufacturing industry, to promote the development of the real economy. (2) and (3) Among the various infrastructure facilities, mobile radio communications network is inevitably an indispensable part for promoting low-altitude flying activities. To promote the effective use of spectrum and prevent interference among different services, the Communications Authority (CA) takes into account multiple factors in planning spectrum, including recommendations of the International Telecommunication Union, development trends in the Mainland and worldwide, relevant users’ demand for various radio equipment, technological development etc., for designating the uses of relevant spectrum bands, such as public mobile services, fixed services, broadcasting services and fixed satellite services. At present, unmanned aircrafts for aerial photography or performances can generally use the shared 2.4 GHz and 5 GHz bands assigned for wireless local area networks, or the fourth generation (4G) or fifth generation (5G) mobile networks for remote control, data transmission, and positioning purposes. The Government will conduct two spectrum auctions in November 2024 and another one in 2025. The spectrum concerned can effectively support the operation of unmanned aircrafts. The OFCA will continue to closely monitor telecommunications market developments in the Mainland and worldwide, including the feasibility of planning dedicated spectrum bands for the exclusive use of unmanned aircrafts, so as to ensure that the spectrum planning in Hong Kong will align with the Mainland and other advanced economies, thereby promoting the development of LAE activities in Hong Kong. On the development of mobile network, the Government has been implementing different initiatives to encourage mobile network operators (MNOs) to expand their communications infrastructure, including enabling MNOs to access the reserved space in specified buildings with building plans approved on or after April 1, 2025 to install and maintain mobile communications facilities through the amendment to the Telecommunications Ordinance (Cap. 106) (TO), proactively facilitating MNOs in installing radio base stations (RBSs) at government premises through pilot scheme, reserving space and loading capacity on multi-functional smart lampposts in various districts for installation of RBSs by MNOs, improving mobile coverage in remote and rural areas through subsidy scheme and actively coordinating 5G network capacity expansion at major public event venues, etc. In addition, under the amended Inland Revenue Ordinance (Cap. 112) which came into effect in January this year, MNOs can enjoy tax deductions for spectrum utilisation fees payable on radio spectrum acquired in future, providing greater incentives for MNOs to participate in spectrum auctions and invest in mobile network infrastructure to further improve network quality. On conducting tests, CA will issue permits pursuant to section 7E of the TO for short-term assignment of spectrum in different frequency bands to MNOs and other interested parties free of charge, so that they can use their radio equipment for various radio transmission tests and applications, including unmanned aircrafts. In the meantime, the Government will take forward the regulatory sandbox pilot projects progressively starting from early next year to explore more application scenarios for low-altitude flying activities. The pilot projects will be conducted under different scenarios to test various technical and ancillary facilities requirements, including the mobile radio communications network, signal reception of the global navigation satellite system and requirements of the low-altitude surveillance system, etc. The experience and data gathered from the implementation of pilot projects will help the Government formulate appropriate infrastructure system and related network supporting facilities in the long run. The Government will also continue to closely monitor and make reference to the latest developments in the Mainland, worldwide and other developed regions, drawing reference from the experience of other places to ensure that the infrastructure and ancillary facilities to be built will be compatible with those in the Mainland and worldwide. (4) The development of LAE requires talents in various fields, including those engaging in industries such as I&T. In respect of I&T talents, the Government has been adopting a multi-pronged approach to enlarging the local I&T talent pool. For example, regarding the nurturing of I&T talents, the Government launched the STEM Internship Scheme and sponsored the Innovation and Technology Scholarship, which encourage university students to experience I&T-related work and take part in in I&T-related exchange activities respectively. The Government also launches different schemes to assist the youth in pursuing a career in I&T after graduation. For example, through the Research Talent Hub, the Government funds qualified institutions and enterprises to recruit university graduates of STEM subjects (Science, Technology, Engineering and Mathematics) to conduct R&D work. The Hong Kong Science and Technology Parks Corporation and Cyberport also provide the youth with internship and start-up opportunities through various schemes. In order to facilitate talent admission to Hong Kong, the Technology Talent Admission Scheme handles applications that involve the admission of non-local talent to undertake R&D work in Hong Kong expeditiously, covering 14 technology areas. While taking forward the development of LAE, the Government will review the talents required by the relevant industries and make timely planning accordingly. (5) The Government and the Civil Aviation Administration of China (CAAC) expanded the Memorandum of Understanding under the Air Services Arrangement between the Mainland and the Hong Kong Special Administrative Region in 2019, under which designated helicopter operators of both sides may operate flights between take-off/ landing points in Hong Kong and within the whole Guangdong Province that fulfill relevant customs, immigration and quarantine (CIQ) arrangements. This greatly enhances the choice of potential take-off/ landing points and the flexibility of services, providing a solid basis for expanding cross-boundary helicopter services between Hong Kong and other cities in the Guangdong–Hong Kong–Macao Greater Bay Area. Hong Kong and Guangdong will continue to explore measures to promote cross-boundary commercial helicopter services within the framework of the above-mentioned air services arrangement. The Transport and Logistics Bureau will also maintain close communication with CAAC on the relevant air services arrangement. At present, there are two cross-boundary heliports in Hong Kong with permanent CIQ facilities, namely the cross-boundary heliports at the rooftop of the Sheung Wan Hong Kong-Macau Ferry Terminal and the Hong Kong International Airport (HKIA). Since 2019, serveral Mainland helicopter operators conducted trial flights between Hong Kong and Shenzhen/ Guangzhou. Relevant services are technically and operationally feasible. The Government will continue to facilitate the trial flight activities carried out by the helicopter operators, with a view to implementing cross-boundary helicopter services between Hong Kong and Guangdong as soon as possible. In addition, HKIA launched the Business Jet & Commercial Flight Wing-to-Wing Transfer Service in March this year, which allows passengers arriving at HKIA using cross-boundary helicopters and business jets to directly proceed to transfer to commercial flights under the escort of staff within the airside area, and vice versa. As the service can save about one-third of the transit time for travellers, it will help promote their use of cross-boundary helicopter services and transit through HKIA. The Government will continue to closely monitor the development and market demand of cross-boundary helicopter services and the services of other Advanced Air Mobility, and review the development of relevant facilities in a timely manner.

MIL OSI Asia Pacific News –

January 26, 2025

MIL-OSI Economics: RBI to conduct Overnight Variable Rate Reverse Repo (VRRR) auction under LAF on November 06, 2024

Source: Reserve Bank of India

On a review of the current and evolving liquidity conditions, it has been decided to conduct a Variable Rate Reverse Repo (VRRR) auction on November 06, 2024, Wednesday, as under:

Sl. No.	Notified Amount (₹ crore)	Tenor (day)	Window Timing	Date of Reversal
1	75,000	1	11:15 AM to 11:45 AM	November 07, 2024 (Thursday)

2. The operational guidelines for the auction as given in the Reserve Bank’s Press Release 2019-2020/1947 dated February 13, 2020 will remain the same.

(Puneet Pancholy)
Chief General Manager

Press Release: 2024-2025/1435

MIL OSI Economics –

January 26, 2025

MIL-OSI Asia-Pac: LCQ2: Clansmen Culture Promotion Scheme

Source: Hong Kong Government special administrative region

LCQ2: Clansmen Culture Promotion Scheme
LCQ2: Clansmen Culture Promotion Scheme
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Following is a question by the Hon Jimmy Ng and a reply by the Secretary for Home and Youth Affairs, Miss Alice Mak, in the Legislative Council today (November 6): Question: The Government has earlier on launched a three-year “Clansmen Culture Promotion Scheme” (the Scheme), under which a total funding of $30‍ million has been earmarked for application by clansmen associations to organise activities promoting hometown culture. It has been reported that the Scheme has received overwhelming responses, and that the Home Affairs Department received 213 applications from 110 clansmen associations this year, of which 39 were approved with funding of about $10 million. In this connection, will the Government inform this Council: (1) of the respective themes of the funded hometown cultural activities; whether it has estimated the number of participants in such activities; if so, of the details; (2) whether it will expand the scope of the subsidy under the Scheme to assist clansmen associations in organizing more activities of different types, so as to promote the vast and profound Chinese culture and enhance public understanding of the latest developments in various provinces and municipalities of the motherland; and (3) whether it will extend the implementation period of the Scheme or even regularise it; whether it will introduce more schemes to help promote clansmen culture; if so, of the details; if not, the reasons for that? Reply:President, Clansmen associations have a long history in Hong Kong, most of which were established by their ancestors who came to Hong Kong in the early days for development and then settled in, with a view to uniting and serving their fellow clansmen as well as promoting solidarity and mutual support amongst them. The associations play a bridging role between their fellow clansmen and hometowns. They have brought the culture of their hometowns to Hong Kong, enabling different hometown cultures and customs to converge here and make Hong Kong unique. Being steadfast patriots supporting the country and Hong Kong, clansmen associations have effectively forged cohesion among clansmen who love the country, Hong Kong and their hometowns through their vast social networks and unique geographical backgrounds. They provide resolute support for the Hong Kong Special Administrative Region (HKSAR) Government in implementing “one country, two systems”, promoting the development of Hong Kong, and fostering social harmony and stability. They are reliable and staunch partners of the HKSAR Government and a constructive force driving Hong Kong’s development. Clansmen associations have been supporting the work of the HKSAR Government in many areas. For example, during the COVID-19 pandemic, clansmen associations volunteered to donate supplies and mobilise fellow clansmen to collaborate with the Government in fighting the epidemic. On the improvement of the electoral system of Hong Kong, clansmen associations’ active support and participation helped ensure that the principle of “patriots administering Hong Kong” was fully implemented. Clansmen associations also strongly supported the improving of district governance, the election of District Councils and the formation of Care Teams. In terms of activities, clansmen associations have been organising various clansmen cultural promotion, caring and exchange programmes to promote exchanges and co-operation between Hong Kong and the Mainland in different aspects, with a view to enhancing mutual communication and deepening the friendship between the people as well as fostering the inheritance of fine traditional Chinese culture. To deepen the public’s understanding of and sense of belonging to their hometowns, thereby fostering the spirit of loving the motherland, Hong Kong and their hometowns; as well as to recognise and strengthen the longstanding efforts of patriotic clansmen associations, the Chief Executive announced in his 2023 Policy Address the launch of the “Clansmen Culture Promotion Scheme” (the Scheme) for a period of three years. In the three consecutive financial years starting from 2024-25, an annual provision of $10 million (i.e. totalling $30 million) is earmarked for application by clansmen associations to subsidise their organisation of activities to promote and preserve hometown culture, unite clansmen in Hong Kong and facilitate exchanges between Hong Kong and the Mainland. The Home Affairs Department (HAD) began accepting funding applications for the 2024-25 financial year under the Scheme in April this year. Within a one-month application period, a total of 213 applications from 110 clansmen associations were received. By the end of May, the HAD completed the vetting process and approved 39 applications, taking into consideration factors such as the reputation and experience of the applying organisations, as well as the content of their activities and plans. The total amount of subsidy granted is about $10 million. In response to the questions raised by the Hon Jimmy Ng, the replies are as follows: (1) A wide variety of projects were approved in the first year of the Scheme, which included activities for promoting hometown culture and heritage (e.g. hometown markets, cultural festivals), uniting fellow clansmen in Hong Kong (e.g. home visits, organising volunteer work) and promoting exchanges between Hong Kong and the Mainland (e.g. parent-child heritage tours, youth exchange programmes). From early June to end-October 2024, a total of 20 approved projects were completed, with over 220 000 people participated. For specific events, for example, the “Clansmen Associations Hometown Market Carnival” jointly organised by 28 clansmen associations at Victoria Park for five days in early June attracted approximately 200 000 visitors. The “Min-Kong Youth Maritime Silk Road Cultural Exchange Tour” and the “Hong Kong-Macao Youth Zhejiang Tour” organised by the Hong Kong Federation of Fujian Associations and the United Zhejiang Residents Associations respectively in July were participated by a total of about 1 000 young people to promote youth exchange between Hong Kong and the Mainland. The Federation of HK Guangxi Community Organisations and the Hong Kong Federation of Hainan Community Organisations held the “Cultural Celebration for National Day” and the “Hainan and Kowloon City Brilliant Night” carnivals in September respectively, engaging over 10 000 participants in promoting hometown culture. In September and October, the Federation of Hong Kong Beijing Organisations organised the “Thank You for Being There – Hand in Hand to Warm Hearts” event, where volunteer teams formed by its fellow clansmen visited grassroots families of about 1 000 people. From September to December, the Federation of Hong Kong Guangdong Community Organisations is conducting the “Guangdong Intangible Cultural Heritage in Schools” programme to host cultural workshops in various primary and secondary schools. It is expected that nearly 1 000 students and parents will be engaged. (2) The scope of projects subsidised under the Scheme is wide. Any locally registered clansmen associations with good reputation and track record; which have all along been committed to promoting hometown culture and fostering exchanges between Hong Kong and hometowns in order to promote the spirit of loving the motherland, Hong Kong and hometowns; and with experience in organising relevant activities, are eligible to apply for subsidy under the Scheme. The subsidy can be used for funding various types of relevant activities such as those for promoting and preserving hometown culture, uniting clansmen in Hong Kong and facilitating exchanges between Hong Kong and the Mainland. There is no restriction on the form of the activities, as long as they are non-profit-making in nature and in line with the objectives of the Scheme. Apart from the Scheme, the HAD and the 18 District Offices have been collaborating with clansmen associations and various district organisations from time to time to foster community building, while promoting Chinese culture and enhancing public understanding of the country. For example, the HAD co-organised with 28 provincial clansmen associations the “Bazaar Carnival in celebration of the 75th Anniversary of the Founding of the People’s Republic of China” (the Bazaar) from October 25 to 29 at Sha Tin Park. It provided a total of 75 market stalls offering a wide variety of local snacks, specialties and traditional crafts, showcasing the unique culinary and cultural traditions of different provinces and cities. The Bazaar also staged diverse cultural performances such as traditional ethnic dances, acrobatics, folk songs, as well as free screenings of patriotic-themed movies and cultural introductions of various provinces, enabling the public to experience the diverse and colourful Chinese culture from all corners of the country. The five-day Bazaar attracted about 180 000 visitors, with the value of total sales estimated to be more than $4.6 million, highlighting the Government’s close collaboration with clansmen associations to further promote patriotic sentiments and love for Hong Kong in the community. Besides, clansmen associations also apply for funding support through the on-going Community Involvement Programme implemented by the HAD to organise different projects such as festivals with local characteristics, hometown cultural carnivals and traditional cultural performances to promote district harmony. Some clansmen associations also actively participate in the “Funding Scheme for Youth Exchange in the Mainland” implemented by the Home and Youth Affairs Bureau to apply for funding to organise youth exchange tours to the Mainland, supporting young people to broaden their horizons, deepen their understanding of the country and seize the national development opportunities. (3) In the first quarter of 2025, funding application under the Scheme for the financial year 2025-26 will be launched, with the focus on uniting clansmen in Hong Kong. The HAD will provide funding support for clansmen associations to organise various activities aiming at promoting patriotic education and fostering the spirit of loving the country, Hong Kong and the hometowns. The HAD will timely review the effectiveness and arrangements of the Scheme before the completion of the three-year programme, and will continue to maintain close contact and collaboration with clansmen associations. They have our support in organising all sorts of activities related to hometown culture promotion and patriotic education, and in collaborating with the HKSAR Government to promote the mainstream values of loving the motherland and Hong Kong that are in line with the core principles of “one country, two systems”. Thank you, President.

Ends/Wednesday, November 6, 2024Issued at HKT 13:28

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MIL OSI Asia Pacific News –

January 26, 2025
MIL-OSI Global: US election results: Trump takes first swing state of North Carolina

Source: The Conversation – UK – By Jonathan Este, Senior International Affairs Editor, Associate Editor

This is a rolling guide to articles and audio published by The Conversation in the immediate run-up to and aftermath of the election, with some explainers about the process. This page is updated from the top, so older references are moved down the page.

Good morning world. The United States has made its choice. And, as of 5am Donald Trump and the Republican Party will be the happier contenders, having so far won the most electoral college votes and the first swing state of North Carolina, as well as regaining control of the Senate.

It’s been a turbulent four months since outgoing president Joe Biden announced he was terminating his bid for a second term and the battlelines between the two candidates, Donald Trump and Kamala Harris were drawn. Soon we will know who will lead the US for the next four years.

From here, with the help of some of the sharpest analysts of US politics, we’ll keep you updated and informed as the situation develops.

To get an idea of the scale of the task of counting votes, take a look at the below map of the US colour-coded by poll closing times. How long the count could take is anyone’s guess at this stage. Each state has its own rules.

Ahead of the polls closing Richard Hargy, an expert in US politics from Queen’s University Belfast, wrote a guide to the process, when the votes are counted and when we might start to see results.

Read more:
US election: what time do the polls close and when will the results be known? An expert explains

Delays are baked into the process, such as Pennsylvania, which doesn’t allow votes cast before election day or ballots posted in to be counted until polls close, which was at 8pm (1am GMT).

So we’ll just have to be patient. In the mean time, you can also read Hargy’s explainer on the “electoral college” system, which can mean that the candidate with the most votes may not win the presidency.

Read more:
US election: how does the electoral college voting system work?

Early voting and what it might mean

Scott Lucas, professor of international politics at University College Dublin, believes that in a cliffhanger election, a clue to the outcome may be in the size of turnout. More than 80 million Americans voted early – around half of the total turnout in 2020 and around one-third of the eligible electorate.

The 80 million figure takes on added significance with the recognition that it is not that distant from the 104 million who participated early in the “pandemic” election four years ago. And that 2020 ballot, with 158.4 million votes and almost 67% participation, was the largest turnout since 1900.

Who does that favour? Probably Kamala Harris and Tim Walz. Trumpists will turn out for their man come hell or high water. The large question mark has been whether potential Harris voters would sit on their hands, whether from lack of enthusiasm or dissatisfaction on issues such as Israel’s open-ended war on Gaza.

Any prediction in this election is a risk. But it might be worth setting a marker: if turnout matches or exceeds the record set in 2020, Kamala Harris could be on the way to the White House.

Tense moment for the US

During the campaign there have been two assassination attempts on former president Trump as well as arson attacks on ballot boxes and ballots damaged. In Arizona the Democratic party was forced to close one of its offices after it had been shot at three times.

Dafydd Townley, a fellow in international security at Portsmouth University, believes that there could be a reluctance to accept the result and that this could result in further disturbances. He has written about how much violence there has been during this campaign.

Read more:
US election: officials are issued with panic buttons as attacks on ballot boxes continue

Dafyyd Townley comments on post-election violence.

How race has played into the campaign

Rhianna Garrett, PhD researcher and global coordinator of the critical mixed race studies executive board at Loughborough University, says that Trump’s campaign has been “littered with attempts to weaponise” the multiracial heritage of his Democrat opponent Kamala Harris.

Much of this has been a dog-whistle attempt to stir up his own base, partly with fairly blatant appeals to latent feelings of racism, but also as a tool to position Harris as deceiving and untrustworthy by apparently blurring and shifting her own background.

In August, not long after Harris took over the Democrat ticket from Biden, Trump appeared at the National Association of Black Journalists conference when he wrongfully claimed that Harris was changing her identity, stating: “I didn’t know she was Black until a number of years ago when she happened to turn Black, and now she wants to be known as Black, So I don’t know. Is she Indian or is she Black?”.

For her part, Harris’s campaign has also used her multiracial heritage to further their political agendas. On the White House website, she is described as “the first woman, the first Black American, and the first South Asian American” to hold a vice-presidential position, which has effectively attempted to position her as a winner. Harris herself has also foregrounded “race” on her campaign website. In attempt to attack Trump’s campaign, she strategically aims to promote Black and Latino men specifically, as well as women’s rights. These are key voter groups she has aimed to mobilise through identity politics.

Trump and winning male voters

Donald Trump widened his appeal to male voters in this election, with polling indicating that he was picking up more support from Black and Latino men, as well as more young men more widely.

One reason for this may be that in 2024 young men are more conservative than any other group in the US. Another reason why gender has become a divisive issue is the overturning of Roe v Wade, the legal case that gave American women abortion rights.

Read more on the gender divide in this article from Natasha Lindstaedt, a professor of government at Essex University.

Read more:
US election: why more men and fewer white women say they will vote for Trump

A free speech campaign?

Julie Posetti, professor of journalism at City St George’s, University of London, and global director of research at the International Center for Journalists, recently conducted a survey of more than 1,000 Americans on their attitudes to the press.

Breaking down the results, they were able to build a picture of what people in the US think of targeting journalists for criticism and even abuse. You can read all about the study here.

Read more:
New survey finds an alarming tolerance for attacks on the press in the US – particularly among white, Republican men

– ref. US election results: Trump takes first swing state of North Carolina – https://theconversation.com/us-election-results-trump-takes-first-swing-state-of-north-carolina-241711

MIL OSI – Global Reports –

January 26, 2025
MIL-OSI Global: Extreme weather has already cost vulnerable island nations US$141 billion – and 38% is attributable to climate change

Source: The Conversation – UK – By Emily Wilkinson, Principal Research Fellow, ODI

Multiverse / shutterstock

Two years ago, when the curtain fell on the COP27 summit in Sharm El Sheikh, Egypt, developing nations on the frontline of climate change had something meaningful to celebrate.

The creation of a new fund for responding to loss and damage was agreed after a hard-fought diplomatic effort, spearheaded by a group of small island developing states (sometimes known as the Sids). The fund would provide much needed support for climate-vulnerable nations faced with a spiralling human and financial toll from sea-level rise, extreme temperatures, droughts, wildfires, and intensifying floods and storms.

Yet two years on, the world’s wealthiest nations – also the largest carbon emitters – are still dragging their feet. They’ve not followed up their pledges with anywhere near the finance required.

Some nations, particularly the 39 Sids, which include places like Barbados, Grenada, Fiji and Vanuatu, are uniquely vulnerable to climate change and are already paying the price.

Sky-high ocean temperatures created the conditions for Hurricane Beryl to develop in July this year, as the earliest-forming Category 5 hurricane on record in the Caribbean. As oceans warm up, climate science tells us that this rapid intensification is becoming more common.

Fijians run for shelter as a cyclone approaches.
ChameleonsEye / shutterstock

The island nation of Fiji, best known as a tropical paradise, has experienced a frightening series of storms over recent years, linked to climate change. Cyclone Winston in 2016, one of the most intense on record, caused widespread flooding and lead to the loss of 44 lives.

This episode reduced Fiji’s GDP growth by 1.4 percentage points. According to the Asian Development Bank, ongoing losses from climate change could reach 4% of Fiji’s annual GDP by 2100, as higher temperatures and more extreme weather hold back growth.

This isn’t an isolated problem. Tropical cyclones and hurricanes have long battered small islands, but what is new is how often the most extreme storms and floods are happening, as well as our improved ability to measure their economic effects.

Direct and indirect impacts

Our latest research looked at extreme weather events affecting 35 small island developing nations. We first collected information about the direct consequences of these extreme weather events: the damaged homes, the injured people, and the bridges that must be rebuilt.

We then looked at how these events have affected GDP growth and public finances. These changes are not felt immediately, but rather as the economy stalls, tourism dries up, and expensive recovery plans inhibit spending in other areas.

In all, from 2000 to 2020, these direct and indirect impacts may have cost small island states a total of US$141 billion. That works out to around US$2,000 per person on average, although this figure underplays just how bad things can get in some places. Hurricane Maria in 2017 caused damage to the Caribbean island of Dominica worth more than double its entire GDP. That amounted to around US$20,000 per person, overnight. Almost a decade later, the country is still struggling with one of the largest debt burdens on earth at over 150% of GDP.

Dominica’s lush forests were badly damaged by Hurricane Maria.
Derek D Galon / shutterstock

Of these huge aggregate losses across all the small island development states, around 38% are attributable to climate change. That’s according to calculations we made based on “extreme event attribution” studies, which estimate the degree to which greenhouse gas emissions influenced extreme weather events.

What is clear is that small island economies are among the worst affected by severe weather. These island states have three to five times more climate-related loss and damage than other states, as a percentage of government revenues. That’s true even for wealthier small island states, like the Bahamas and Barbados, where loss and damage is four times greater than other high-income countries. For all small island nations, the economic impacts will increase, with “attributable” losses from extreme weather reaching US$75 billion by 2050 if global temperatures hit 2°C above pre-industrial levels.

Our research helps us to see how far short the richer nations driving climate change are falling in their efforts to both curb emissions and to compensate the nations harmed by their failure to prevent climate change.

Developed countries need to pay up

One of the key discussions at the forthcoming COP29 climate summit in Baku, Azerbaijan, will be the “new collective quantified goal”. This is the technical name to describe how much money wealthy countries will need to contribute to help vulnerable nations to mitigate and adapt to climate change.

That overall goal must also include a target to finance small islands and other vulnerable countries, with billions more needed per year in the new loss and damage fund. Given the extent of actual and likely losses, nothing less than ambition on the scale of a “modern Marshall Plan” for these states will do.

In addition to this extra financing, the fund will need to work effectively to support the most climate vulnerable nations and populations when severe weather occurs. This can be done in a few ways.

The fund could create a budget support mechanism that can help small island states and other vulnerable countries deal with loss of income and the negative effects on growth. It could make sure loss and damage funds can be released quickly, and ensure support is channelled to those who need it the most. It could also make more concessional finance available for recovery, especially for the most adversely affected sectors like agriculture and tourism.

The world has a troubling history of missing self-imposed targets on climate finance and emissions reduction. But the stakes are ever higher now, and any target for loss and damage finance will need to be sufficient to deal with the challenges posed already by climate change, and in the years to come.

Emily Wilkinson receives funding from the UK Foreign Commonwealth and Development Office

Ilan Noy, Matt Bishop, and Vikrant Panwar do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.

– ref. Extreme weather has already cost vulnerable island nations US$141 billion – and 38% is attributable to climate change – https://theconversation.com/extreme-weather-has-already-cost-vulnerable-island-nations-us-141-billion-and-38-is-attributable-to-climate-change-242640

MIL OSI – Global Reports –

January 26, 2025
MIL-OSI Asia-Pac: Policy statement on mediation issued

Source: Hong Kong Information Services

The Department of Justice today issued a Policy Statement on the Incorporation of Mediation Clauses in Government Contracts to set out the Government’s policy stance and approach on promoting the use of mediation to resolve conflicts in an amicable way.

Another central objective for the declaration is to implement the policy initiative under the 2023 Policy Address on deepening mediation culture, consolidating the strategic positioning of Hong Kong as a centre for international legal and dispute resolution services in the Asia-Pacific region under the national policies.

The Mediation Clause Policy requires all government departments to incorporate mediation clauses in future government contracts, so as to further promote the use of mediation to resolve disputes first before resorting to arbitration or litigation.

The department pointed out that the Government has been committed to promoting the development of mediation in Hong Kong, encouraging a wider use of mediation by all sectors as a flexible and constructive approach in resolving disputes outside the courts to produce mutually acceptable settlements while keeping the risks, costs and time in control.

Mediation can help build a harmonious and stable society and foster a culture that embraces mutual support, respect, harmony and inclusiveness, it added.

Secretary for Justice Paul Lam said that by taking the lead to incorporate mediation clauses in government contracts, the Government hopes to encourage private companies to include similar mediation clauses in their contracts, further promoting a “mediate first” culture.

In conjunction with the establishment of the International Organization for Mediation’s headquarters in Hong Kong, the department will continue to implement policy measures of deepening the mediation culture to build Hong Kong as the capital for international mediation, he added.

MIL OSI Asia Pacific News –

January 26, 2025
MIL-Evening Report: The extreme floods which devastated Spain are hitting more often. Is Australia ready for the next one?

Source: The Conversation (Au and NZ) – By Conrad Wasko, ARC DECRA Fellow in Hydrology, University of Sydney

Spain is still reeling from recent floods in the Valencia region. In some areas, a year’s worth of rain fell in a single day. Sudden torrents raced through towns and cities. Over 200 people are dead. Rapid analysis suggests daily rainfall extremes in this region and season have become twice as common over the last 75 years and become 12% more intense.

The World Meteorological Organisation has pointed out that climate change is steadily increasing the risk of extreme floods like these. Warmer air can hold more water vapour, about 7% more per degree Celsius of warming. More moisture generally leads to more intense rainfall, and therefore more extreme floods.

The physics of how temperature influences the atmosphere’s capacity to hold moisture has been known for close to 200 years. But we’ve learned something worrying more recently. When water vapour condenses to form rain droplets, it releases heat which can fuel stronger convection and boost updrafts of air currents in storms. This means the intensity of extreme rainfall could increase not just 7% per degree of warming, but over twice that rate.

Last week, CSIRO and the Australian Bureau of Meteorology released their biennial report on the State of the Climate, which found “heavy short-term rainfall events are becoming more intense”. Australia, the report states, has already warmed 1.5°C since national records began in 1910. In recent years, extreme rains have triggered devastating floods in New South Wales and Queensland.

The question now is – are we prepared for these more damaging floods? This year, Australia updated the climate change section of Australia’s flood design guidance. But while this will help ensure that future infrastructure is better able to weather extreme floods, our current bridges, roads and stormwater drains have not been built to weather these increases in extreme rainfall. Similarly, our flood planning levels – used to determine where houses, offices, hospitals and so forth can be built – have generally not factored in the reality of the threat.

More floods and more extreme

Many of us would have learned about the water cycle in school. Water evaporates from seas and lakes before falling as rain and filling lakes and rivers, which eventually makes it back to the sea.

Unfortunately, climate change is making this cycle more intense, as detailed in a recent Intergovernmental Panel on Climate Change report. Rain is more likely to fall in intense short-duration bursts which are more likely to trigger floods.

This year alone, we have seen disastrous and deadly floods from extreme storms across the Americas, Asia and Europe. Scientific analysis has showed these floods were more severe due to human-caused climate change.

Australia is not immune. The devastating northern New South Wales floods of 2022 took 24 lives and ravaged towns such as Lismore. These floods are the most expensive natural disaster to date in Australia, costing A$5.65 billion in damages.

How do you prepare for worse floods?

When urban planners set flood planning levels, or engineers begin designing a new bridge or rail line, they have to take floods into account. To do so, they will inevitably reach for the local bible, Australia’s flood design guidance.

Before 2024, this document allowed for a 5% increase in rainfall intensity per degree of global warming, and generally applied it only to infrastructure intended for a very long lifespan. This clashed with most scientific studies on the topic both globally and in Australia, which showed much greater increases, and that these increases are already being witnessed.

To provide better flood guidance, we and our colleagues undertook a comprehensive review of over 300 scientific papers covering climate change in Australia and extreme rainfall.

The review proved we had been underestimating the threat of extreme rains and subsequent floods. Rain events over a 24-hour period leading to flooding are likely to increase at 8% per degree of warming, not 5%. Hourly rainfall extremes are likely increasing even faster, at 15% per degree.

Worse, these are just the central estimates. The wide range of plausible values suggests some rain events could eclipse these. For daily or longer extreme rains, the range is 2–15%. For hourly or shorter periods, that figure is 7–28% for hourly or shorter duration.

Over the month of February in 2022, the Lismore region had about 600–800 mm of rain – much more than a normal February, which might see closer to 150 mm on average. These floods took place with just 1.1°C of warming since the pre-industrial period. On our current path, it’s possible the world could warm another 1.5°C or more by the end of this century. If this happens, these rainfall totals could be substantially higher and more likely to cause even worse flood impacts.

These new figures have now been included in the August update of Australia’s flood design guidance. This is good news. It means future decisions on infrastructure and planning can now be well informed by the latest science on how climate change influences flood risk.

Over time, this will ensure essential infrastructure can be built to endure worse floods. It will affect the design and construction of everything from local stormwater drains to levees, bridges, culverts and dam spillways.

Preparing for extreme floods is complex. Pictured: water spilling out from a manhole during Spain’s floods.
Fernando Astasio Avila/Shutterstock

Local councils can use it to set the height of floor levels for property development. State and federal decision-makers can use it in planning for responses to flood emergencies.

Does it mean we can avoid disastrous floods like those in Spain and Lismore? Yes and no. We now have the knowledge and tools to adapt to the increased risk levels already arriving. Yet implementing this will be challenging. In many cases, it will require retrofitting or redesigning existing infrastructure to withstand more intense flooding.

Climate change is no longer something we can file under “problem for the future”. It’s here already. The flood risks we face today are already substantially worse than 25 years ago, and will continue to worsen. We must accelerate how we plan for extreme, rapid rainfall creating catastrophic floods like those in Spain.

Conrad Wasko receives funding from The University of Sydney and the Australian Research Council. Conrad has previously received funding from the Department of Climate Change, Energy, the Environment and Water.

Andrew Dowdy receives funding from University of Melbourne, including through the Centre of Excellence for Climate Extremes and the Melbourne Energy Institute.

Seth Westra is a Professor of Hydrology and Climate Risk at the University of Adelaide, Director of Research for the One Basin Cooperative Research Centre, and Chair of the Systems Cooperative. Seth receives funding from state and federal governments support decision making under hydrological or climatic uncertainty.

– ref. The extreme floods which devastated Spain are hitting more often. Is Australia ready for the next one? – https://theconversation.com/the-extreme-floods-which-devastated-spain-are-hitting-more-often-is-australia-ready-for-the-next-one-242686

MIL OSI Analysis – EveningReport.nz –

January 26, 2025

MIL-OSI: Credit Agricole Sa: Third quarter and first nine months 2024 results – VERY STRONG QUARTER, 2024 INCOME TARGET CONFIRMED

Source: GlobeNewswire (MIL-OSI)

VERY STRONG QUARTER, 2024 INCOME TARGET CONFIRMED
CASA AND CAG STATED AND UNDERLYING DATA Q3-2024

	CRÉDIT AGRICOLE S.A.			CRÉDIT AGRICOLE GROUP
		Stated	Underlying		Stated	Underlying
Revenues		€6,487m +2.3% Q3/Q3	€6,484m +7.0% Q3/Q3		€9,213m -0.4% Q3/Q3	€9,210m +4.1% Q3/Q3
Expenses		-€3,689m +9.2% Q3/Q3	-€3,654m +8.2% Q3/Q3		-€5,590m +6.2% Q3/Q3	-€5,556m +5.5% Q3/Q3
Gross Operating Income		€2,799m -5.7% Q3/Q3	€2,830m +5.5% Q3/Q3		€3,623m -9.1% Q3/Q3	€3,654m +2.0% Q3/Q3
Cost of risk		-€433m +0.9% Q3/Q3	-€433m +0.9% Q3/Q3		-€801m +15.6% Q3/Q3	-€801m +15.6% Q3/Q3
Net income group share		€1,666m -4.7% Q3/Q3	€1,686m +10.9% Q3/Q3		€2,080m -12.8% Q3/Q3	€2,100m +1.5% Q3/Q3
C/I ratio		56.9% +3.6 pp Q3/Q3	56.4% +0.6 pp Q3/Q3		60.7% +3.7 pp Q3/Q3	60.3% +0.8 pp Q3/Q3
RESULTS UP FOR THE FIRST NINE MONTHS OF THE YEAR; TARGET CONFIRMED OF >€6BN IN NET INCOME GROUP SHARE FOR 2024 STRONG QUARTERLY RESULT +8.2% growth in net income Group share excluding base effect related to reversals of Home Purchase Savings Plan provisions in Q3-23 High level of revenues, sharply up in underlying vision Low cost/income ratio; support for business line development with a +4.1% increase in recurring expenses STRONG ACTIVITY IN ALL BUSINESS LINES Solid performance in retail banking and consumer finance, supported by a good level of customer capture, higher on-balance sheet deposits in France and stable on-balance sheet deposits in Italy, gradual recovery in home loan activity and increased corporate loan production in France, continued momentum in international loan activity, and consumer finance activity stable at a high level Excellent business momentum in CIB, asset management and insurance, reflected in high gross inflows in life insurance, continued brisk business in property and casualty and personal insurance, solid level of inflows and a record level of assets under management, CIB business still robust and record nine-month revenues CONTINUED STRATEGIC PROJECTS Partnership with GAC in China on leasing and in Europe on automotive financing Signing of an agreement to acquire Merca Leasing Acquisition of Nexity Property Management VERY SOLID CAPITAL AND LIQUIDITY POSITIONS Crédit Agricole S.A. phased-in CET1 11.7% CA Group phased-in CET1 17.4%

Dominique Lefebvre,
Chairman of SAS Rue La Boétie and Chairman of the Crédit Agricole S.A. Board of Directors

“The Group reports solid results this quarter. These results reinforce its desire to be useful to all its customers and to play a leading role in actively supporting the economy.”

Philippe Brassac,
Chief Executive Officer of Crédit Agricole S.A.

“Quarter after quarter, the Group publishes high-level results confirming the outlook for a 2024 result that is one year ahead of Crédit Agricole S.A.’s Ambitions for 2025.”

This press release comments on the results of Crédit Agricole S.A. and those of Crédit Agricole Group, which comprises the Crédit Agricole S.A. entities and the Crédit Agricole Regional Banks, which own 62.4% of Crédit Agricole S.A. Please see the appendices to this press release for details of specific items, which are restated in the various indicators to calculate underlying income.

Crédit Agricole Group

Group activity

The Group’s commercial activity during the quarter continued at a steady pace across all business lines, with a good level of customer capture. During the third quarter of 2024, the Group recorded +482,000 new customers in retail banking, and the customer base grew by +104,000 customers. More specifically, over the quarter, the Group recorded +383,000 new customers for Retail Banking in France and +99,000 new International Retail Banking customers (Italy and Poland), and the customer base also grew (+64,000 and +40,000 customers, respectively).

At 30 September 2024, retail banking on-balance sheet deposits totalled €830 billion, up +2.8% year-on-year in France and Italy (+3.1% for Regional Banks and LCL and -0.4% in Italy). Outstanding loans totalled €876 billion, up +0.4% year-on-year in France and Italy (+0.2% for Regional Banks and LCL and +3.0% in Italy). Home loan production picked up gradually in France during this quarter, recording an increase of +20% for the Regional Banks and +73% for LCL compared to the second quarter of 2024, and -11% and +17% respectively compared to the third quarter of 2023. In Italy, home loan production was down -12% for CA Italy due to a base effect related to successful marketing campaigns in the third quarter of 2023. However, they were still up on second quarter 2024. The property and casualty insurance equipment rate¹ rose to 43.8% for the Regional Banks (+0.7 percentage points compared to the third quarter of 2023), 27.9% for LCL (+0.3 percentage point) and 20.0% for CA Italy (+1.7 percentage point).

In asset management, inflows remained healthy (+€14.4 billion excluding an insurance mandate withdrawal totalling -€11.6 billion), particularly with regard to medium/long-term assets excluding JVs (+€9 billion). Commercial momentum within JVs was also solid. In savings/retirement, Crédit Agricole Assurances posted a high level of gross inflows (€7.2 billion, up +56% year-on-year), the unit-linked rate remained high in production (32.8%), and net inflows were positive (+€1.6 billion) and growing. In property and casualty insurance, the portfolio grew by +5.1% year-on-year to 16.6 million policies. Assets under management were once again at their highest level ever, rising compared to the end of September 2023 in asset management (€2,192 billion, or +11.1%), life insurance (€343.2 billion, or +5.8%) and wealth management, which benefited from the integration of Degroof Petercam (IWM and Private Banking of LCL €274 billion, or +46.9%).

SFS business line registered an activity stable at a high level, with an increase in consumer finance outstandings at CAPFM (+5.2% compared to the end of September 2023), driven by automotive activities, which account for 53%² of total outstandings, and growth in production and leasing outstandings at CAL&F (€20.1 billion, or +8.8% compared to the end of September 2023).

Momentum is strong in Large Customers, with record revenues in corporate and investment banking (best nine-month cumulative total), with capital markets and investment banking being driven by capital market activities, and financing activities benefiting from growth in commercial banking. CACEIS also posted a high level of assets under custody (€5,061 billion, +12.1% compared to the end of September 2023) and assets under administration (€3,386 billion, +4.2% compared to the end of September 2023). It benefited during the quarter from strong commercial momentum and positive market effects.

Each of the Group’s business lines posted strong activity (see Infra).

Continued support of transition

Crédit Agricole Assurances has set out its new climate commitments, announcing its target to reduce carbon intensity of its portfolio³ by -50% by 2029 (compared to 2019).

Crédit Agricole Group has also decided to participate in CDC’s energy and ecological transition financing support scheme. The Group will thus be able to raise up to €5.3 billion in liquidity by November 2025, exclusively for financing new projects contributing to the energy and ecological transition.

The Group is continuing the mass roll-out of financing and investment to promote the transition. As such, the Crédit Agricole Group doubled its exposure to low-carbon energy financing⁴ between the end of 2020 and September 2024, with €21.9 billion at 30 September 2024. In addition, Crédit Agricole Assurances’s financing of renewable energy production capacity increased by +17% compared to the end of 2022, representing 13.8 gigawatts at 30 June 2024.

Lastly, Crédit Agricole CIB’s green loan portfolio⁵ grew by +67% between the end of 2022 and September 2024, and represented €20.7 billion at 30 September 2024.

Group results

In the third quarter of 2024, the Crédit Agricole Group’s stated net income Group share came to €2,080 million, down -12.8% compared to the third quarter of 2023. This was due to significant specific items in the third quarter of 2023.

Specific items in the third quarter of 2024 had a negative net impact of -€20 million on the net income Group share of the Crédit Agricole Group. These items comprise the following recurring accounting items: recurring accounting volatility items, namely the DVA (Debt Valuation Adjustment), the issuer spread portion of the FVA, and secured lending for +€3 million in net income Group share from capital markets and investment banking, and the hedging of the loan book in Large Customers for -€1 million in net income Group share. In addition to these recurring items, there were other items specific to this quarter: ISB integration costs of -€14 million in net income Group share of Large Customers, the Degroof Petercam integration costs of -€6 million in net income Group share of Asset Gathering, and the acquisition costs of Degroof Petercam totalling -€2 million in net income Group share of private banking.

Specific items in the third quarter of 2023 had a cumulative positive impact of +€317 million in net income Group share and comprised DVA and hedging items for +€1 million under Large Customers, reversals of the Home Purchase Savings Plan provisions for +€297 million (+€38 million for LCL, +€171 million for the Corporate Centre and +€88 million for the Regional Banks), and the impact of the SFS division’s Mobility⁶ business for -€26 million under the equity method and +€45 million under gains and losses on other assets.

Excluding these specific items, Crédit Agricole Group’s underlying net income Group share⁷ amounted to €2,100 million, up +1.5% compared to third quarter 2023.

Crédit Agricole Group – Stated and underlying results, Q3-24 and Q3-23

€m	Q3-24 stated	Specific items	Q3-24 underlying	Q3-23 stated	Specific items	Q3-23 underlying	∆ Q3/Q3 stated	∆ Q3/Q3 underlying

Revenues	9,213	3	9,210	9,249	402	8,847	(0.4%)	+4.1%
Operating expenses excl.SRF	(5,590)	(34)	(5,556)	(5,265)	0	(5,265)	+6.2%	+5.5%
SRF	–	–	–	–	–	–	n.m.	n.m.
Gross operating income	3,623	(31)	3,654	3,984	402	3,582	(9.1%)	+2.0%
Cost of risk	(801)	0	(801)	(693)	0	(693)	+15.6%	+15.6%
Equity-accounted entities	61	–	61	37	(26)	63	+65.7%	(3.5%)
Net income on other assets	(5)	(3)	(2)	69	61	9	n.m.	n.m.
Change in value of goodwill	–	–	–	–	–	–	n.m.	n.m.
Income before tax	2,877	(34)	2,912	3,397	436	2,961	(15.3%)	(1.6%)
Tax	(587)	8	(595)	(810)	(120)	(691)	(27.6%)	(13.8%)
Net income from discont’d or held-for-sale ope.	–	–	–	2	–	2	(100.0%)	(100.0%)
Net income	2,291	(26)	2,317	2,588	317	2,272	(11.5%)	+2.0%
Non controlling interests	(211)	6	(217)	(204)	–	(204)	+3.4%	+6.5%
Net income Group Share	2,080	(20)	2,100	2,384	317	2,068	(12.8%)	+1.5%
Cost/Income ratio excl.SRF (%)	60.7%		60.3%	56.9%		59.5%	+3.7 pp	+0.8 pp

In the third quarter of 2024, underlying revenues amounted to €9,210 million, up +4.1% compared to the third quarter of 2023, driven by favourable results from most of the business lines. Underlying revenues were up in French Retail Banking (+1.8%), while the Asset Gathering division benefited from good business momentum and the integration of Degroof Petercam, and the Large Customers division enjoyed a high level of revenues across all of its business lines, in addition to the integration of ISB. Meanwhile, revenues were down slightly for International Retail Banking and Specialised Financial Services, which were penalised by the drop in interest rates. Underlying operating expenses increased by +5.5% in the third quarter of 2024 to €5,556 million. This was due to scope effects, base effects on taxes and support for business line development. Overall, the Group saw its underlying cost/income ratio reach 60.3% in the third quarter of 2024, a moderate rise of +0.8 percentage point. As a result, the underlying gross operating income stood at €3,654 million, up +2.0% compared to the third quarter of 2023.

The underlying cost of credit risk stood at -€801 million, a year-on-year increase of +15.6%. This figure comprises an addition of -€93 million for prudential provisions on performing loans (stages 1 and 2), an addition of -€709 million for the cost of proven risk (stage 3), the consequence of an increase in defaults in the corporate market, and additional provisioning for a number of corporate-specific files. There was also a reversal of +€1 million on other risks. The provisioning levels were determined by taking into account several weighted economic scenarios and by applying some flat-rate adjustments on sensitive portfolios. The weighted economic scenarios for the third quarter were unchanged from the second quarter, with a favourable scenario (French GDP at +1.2% in 2024, +1.5% in 2025) and an unfavourable scenario (French GDP at -0.2% in 2024 and +0.5% in 2025). The cost of risk/outstandings⁸reached 26 basis points over a four rolling quarter period and 27 basis points on an annualised quarterly basis⁹.

Underlying pre-tax income stood at €2,912 million, a year-on-year decrease of -1.6%. This includes the contribution from equity-accounted entities of €61 million (down -3.5%) and net income on other assets, which came to -€2 million this quarter. The underlying tax charge fell by -13.8% over the period, the tax rate this quarter falling by -3.0 percentage points to 20.9%. Underlying net income before non-controlling interests was up +2.0% to €2,317 million. Non-controlling interests rose +6.5%. Lastly, underlying net income Group share was €2,100 million, +1.5% higher than in the third quarter of 2023.

Crédit Agricole Group – Stated and underlying results 9M-24 and 9M-23

€m	9M-24 stated	Specific items	9M-24 underlying	9M-23 stated	Specific items	9M-23 underlying	∆ 9M/9M stated	∆ 9M/9M underlying

Revenues	28,244	117	28,127	27,722	758	26,965	+1.9%	+4.3%
Operating expenses excl.SRF	(16,866)	(84)	(16,782)	(15,782)	(18)	(15,764)	+6.9%	+6.5%
SRF	–	–	–	(620)	–	(620)	(100.0%)	(100.0%)
Gross operating income	11,378	33	11,345	11,321	739	10,581	+0.5%	+7.2%
Cost of risk	(2,324)	(20)	(2,304)	(2,179)	(84)	(2,095)	+6.6%	+10.0%
Equity-accounted entities	203	(0)	203	190	(39)	229	+6.7%	(11.2%)
Net income on other assets	(19)	(23)	4	107	89	18	n.m.	(78.5%)
Change in value of goodwill	–	–	–	–	–	–	n.m.	n.m.
Income before tax	9,238	(10)	9,248	9,438	705	8,733	(2.1%)	+5.9%
Tax	(2,104)	(4)	(2,100)	(2,293)	(180)	(2,113)	(8.2%)	(0.6%)
Net income from discont’d or held-for-sale ope.	–	–	–	7	–	7	(100.0%)	(100.0%)
Net income	7,134	(14)	7,148	7,153	525	6,628	(0.3%)	+7.9%
Non controlling interests	(643)	17	(659)	(619)	(0)	(619)	+3.8%	+6.5%
Net income Group Share	6,491	3	6,489	6,534	525	6,009	(0.6%)	+8.0%
Cost/Income ratio excl.SRF (%)	59.7%		59.7%	56.9%		58.5%	+2.8 pp	+1.2 pp

In the first nine months of 2024, stated net income Group share amounted to €6,491 million, compared with €6,534 million in the first nine months of 2023, a difference of just -0.6%.

Specific items for the first nine months of 2024 include the specific items of the Regional Banks for the first nine months of 2024 (+€47 million in reversals of Home Purchase Savings Plan provisions) and Crédit Agricole S.A. specific items, which are detailed in the Crédit Agricole S.A. section.

Excluding specific items, underlying net income Group share reached €6,489 million, up +8.0% compared to the first nine months of 2023.

Underlying revenues totalled €28,127 million, up +4.3% compared to the first nine months of 2023. This increase is attributable to growth in all business lines, reaching a total, excluding the Corporate Centre division, of +4.6% compared to the first nine months of 2023.

Underlying operating expenses amounted to -€16,782 million, up +6.5% excluding SRF compared to the first nine months of 2023, mainly due to higher compensation in an inflationary environment, support for business development, IT expenditure and scope effects as detailed for each division. The underlying cost/income ratio for the first nine months of 2024 was 59.7%, up +1.2 percentage points compared to the first nine months of 2023 excluding SRF. The SRF stood at -€620 million in 2023.

Underlying gross operating income totalled €11,345 million, up +7.2% compared to the first nine months of 2023.

The underlying cost of risk for the first nine months of 2024 rose to -€2,304 million (of which -€178 million in cost of risk on performing loans (stages 1 and 2), -€2,148 million in cost of proven risk, and +€22 million in other risks corresponding mainly to reversals of legal provisions), i.e. an increase of +10.0% compared to the first nine months of 2023.

As at 30 September 2024, risk indicators confirm the high quality of Crédit Agricole Group’s assets and risk coverage level. The diversified loan book is mainly geared towards home loans (45% of gross outstandings) and corporates (33% of gross outstandings). Loan loss reserves amounted to €21.3 billion at the end of September 2024 (€11.7 billion for Regional Banks), 41% of which represented provisioning of performing loans (47% for Regional Banks). The prudent management of these loan loss reserves meant that the Crédit Agricole Group’s overall coverage ratio for doubtful loans at the end of September 2024 was 82.8%.

Underlying net income on other assets stood at €4 million in the first nine months of 2024, versus €18 million in the first nine months of 2023. Underlying pre-tax income before discontinued operations and non-controlling interests rose by +5.9% to €9,248 million. The tax charge was -€2,100 million, a change of just -0.6%, with an underlying effective tax rate of 23.2%, down -1.6 percentage points compared to the first nine months of 2023. Underlying net income before non-controlling interests was therefore up by +7.9%. Non-controlling interests amounted to -€659 million in the first nine months of 2023, up +6.5%.

Underlying net income Group share for first nine months of 2024 thus stood at €6,489 million, up +8.0% compared to the first nine months of 2023.

Regional banks

Gross customer capture stands at +275,000 new customers and the customer base grew by +27,000 new customers over the same period. The percentage of customers using demand deposits as their main account and those who use digital tools continued to increase.

Loan production was down -7% compared to the third quarter of 2023, reflecting the -11% drop in home loans and the decline in specialised markets. Home loan production has been gradually recovering since the beginning of the year (+20% compared to the second quarter 2024). The average lending production rate for home loans stood at 3.47%¹⁰ over July and August 2024, -16 basis points lower than in the second quarter of 2024. By contrast, the global loan stock rate showed a gradual improvement (+27 basis points compared to the third quarter of 2023). Outstanding loans totalled €646 billion at the end of September 2024, stable year-on-year across all markets but up slightly by +0.5% over the quarter.

Customer assets were up +3.6% year-on-year to reach €903 billion at the end of September 2024. This growth was driven both by on-balance sheet deposits, which reached €601 billion (+2.5% compared to end September year-on-year), and off-balance sheet deposits, which reached €302 billion (+5.9% year-on-year) benefiting from favourable market effects and strong inflows in unit-linked bonds (€8 billion cumulative year-on-year). The mix of on-balance sheet deposits for the quarter remained almost unchanged, with demand deposits and term deposits fluctuating by -0.6% and +1% respectively from end-June 2024.

The equipment rate for property and casualty insurance¹¹ was 43.8% at the end of September 2024 and continues to rise (up +0.7 percentage point compared to the end of September 2023). In terms of payment instruments, the number of cards rose by +1.7% year-on-year, as did the percentage of premium cards in the stock, which increased by 1.9 percentage points year-on-year to account for 16.0% of total cards.

In the third quarter of 2024, the Regional Banks’ consolidated revenues including the SAS Rue La Boétie dividend¹² stood at €3,220 million, down -2.1% compared to the third quarter of 2023, notably impacted by a base effect of +€118 million¹³ related to the reversal of the Home Purchase Savings Plan provision in the third quarter of 2023. Excluding this item, revenues were up +1.5% year-on-year, the decline in the net interest margin (-11.6% excluding the Home Purchase Savings Plan¹³ base effect) being offset by the rise in portfolio revenues (+41.8%) and fee and commission income (+4.9%), itself driven by buoyant business in life insurance and account management. Operating expenses were up +3.5%, due to an increase in staff costs, property expenses and IT costs. Gross operating income was down -15.3% year-on-year (-3.8% excluding the Home Purchase Savings Plan¹³ base effect). The cost of risk was up by +43.7% compared to the third quarter of 2023 to stand at -€369 million. mainly due to the increase in proven risk in the corporate sector. Cost of risk/outstandings remained under control, at 22 basis points.

The Regional Banks’ consolidated net income, including the SAS Rue La Boétie dividend,¹² amounted to €351 million, down -38.0% compared to the third quarter of 2023 (-26.5% excluding the base effect¹³).

The Regional Banks’ contribution to net income Group share was €371 million in the third quarter of 2024, down -36.9% compared to the third quarter of 2023.

In the first nine months of 2024, revenues including the SAS Rue La Boétie dividend were up +2.2% compared to the same period in 2023. Operating expenses rose by +1.7%, resulting in a rise in gross operating income of +3% for the first nine months of 2024. Finally, with a cost of risk up +29%, the Regional Banks’ net income Group share, including the SAS Rue La Boétie dividend, amounted to €3,051 million, up +0.5% compared to the first nine months of 2023 (+1.9% excluding the Home Purchase Savings Plan base effect).

The Regional Banks’ contribution to the results of Crédit Agricole Group in the first nine months of 2024 amounted to €1,021 million in stated net income Group share (-28.1% compared to the same period in 2023), with revenues of €9,834 million (-2%), expenses of -€7,453 (+3.3%) and a cost of risk of -€1,056 million (+27%).

Crédit Agricole S.A.

Results

Crédit Agricole S.A.’s Board of Directors, chaired by Dominique Lefebvre, met on 5 November 2024 to examine the financial statements for third quarter 2024.

Crédit Agricole S.A. – Stated and underlying results, Q3-24 and Q3-23

€m	Q3-24 stated	Specific items	Q3-24 underlying	Q3-23 stated	Specific items	Q3-23 underlying	∆ Q3/Q3 stated	∆ Q3/Q3 underlying

Revenues	6,487	3	6,484	6,343	284	6,060	+2.3%	+7.0%
Operating expenses excl.SRF	(3,689)	(34)	(3,654)	(3,376)	0	(3,376)	+9.2%	+8.2%
SRF	–	–	–	–	–	–	n.m.	n.m.
Gross operating income	2,799	(31)	2,830	2,967	284	2,684	(5.7%)	+5.5%
Cost of risk	(433)	0	(433)	(429)	0	(429)	+0.9%	+0.9%
Equity-accounted entities	42	–	42	23	(26)	50	+81.3%	(15.3%)
Net income on other assets	(4)	(3)	(1)	69	61	8	n.m.	n.m.
Change in value of goodwill	–	–	–	–	–	–	n.m.	n.m.
Income before tax	2,404	(34)	2,438	2,630	318	2,312	(8.6%)	+5.4%
Tax	(476)	8	(484)	(633)	(89)	(544)	(24.8%)	(11.0%)
Net income from discont’d or held-for-sale ope.	–	–	–	2	–	2	n.m.	n.m.
Net income	1,928	(26)	1,954	1,999	229	1,770	(3.5%)	+10.4%
Non controlling interests	(262)	6	(268)	(251)	(2)	(250)	+4.2%	+7.5%
Net income Group Share	1,666	(20)	1,686	1,748	227	1,520	(4.7%)	+10.9%
Earnings per share (€)	0.50	(0.01)	0.51	0.53	0.07	0.46	(5.5%)	+11.4%
Cost/Income ratio excl. SRF (%)	56.9%		56.4%	53.2%		55.7%	+3.6 pp	+0.6 pp

In the third quarter of 2024, Crédit Agricole S.A.’s stated net income Group share came to €1,666 million, down -4.7% compared to the third quarter of 2023, having benefited from non-recurring items related to reversals of the Home Purchase Savings Plan provisions (see below). This was an excellent result for the third quarter of 2024, based on high revenues and a cost/income ratio kept at a low level.

Specific items for this quarter had a cumulative impact of -€20 million on net income Group share, and included the following recurring accounting items: recurring accounting volatility items in revenues, such as the DVA (Debt Valuation Adjustment), the issuer spread portion of the FVA and secured lending for +€3 million in net income Group share in the Large Customers segment, and the hedging of the loan book in the Large Customers segment for -€1 million in net income Group share. In addition to these recurring items, there were a number of items specific to this quarter: Degroof Petercam integration costs of -€6 million in the net income Group share in Asset Gathering; ISB integration costs for -€14 million in the net income Group share in Large Customers, and the acquisition costs of Degroof Petercam for -€2 million in the net income Group share in Asset Gathering.

Specific items for the third quarter of 2023 had a cumulative impact of +€227 million on net income Group share, and comprised recurring accounting items amounting to +€208 million (primarily reversals of Home Purchase Savings Plan provisions for +€37 million at LCL and +€171 million at the Corporate Centre). Non-recurring items were related to the ongoing reorganisation of the SFS division’s Mobility business amounting to +€19 million.

Excluding a positive base effect related to the reversals of Home Purchase Savings Plan provisions, net income Group share was up +8.2% for the period.

Excluding specific items, underlying net income Group share¹⁴ stood at €1,686 million in the third quarter of 2024, up +10.9% compared to the third quarter of 2023.

In the third quarter of 2024, underlying revenues were at a high level, standing at €6,484 million. They were up sharply by +7.0% compared to the third quarter of 2023. This growth was driven by the Asset Gathering business line, which recorded growth of +12.9% as a result of strong business momentum and the integration of Degroof Petercam¹⁵; the Large Customers business line (+8.7%), which saw good results from all business lines with continued revenue growth in the third quarter in Corporate and Investment Banking, in addition to an improvement in the net interest margin and fee and commission income within CACEIS; Specialised Financial Services (-1.5%), which benefited from favourable scope and volume effects as well as a more stable margin in the Personal Finance and Mobility business line; French Retail Banking (+3.7%), which was boosted by an improved net interest margin and higher fee and commission income; and lastly, International Retail Banking (-1.8%), which was essentially impacted by the decline in the net interest margin in Italy. The Corporate Centre division recorded an increase in revenues of +€43 million.

Underlying operating expenses totalled -€3,654 million in the third quarter of 2024, an increase of +8.2% compared to the third quarter of 2023, reflecting the support given to business line development. The -€278 million year-on-year increase in expenses was mainly due to a -€112 million scope effect,¹⁶ integration costs of -€29 million¹⁷, and a positive tax-related base effect of -€30 million. Recurring expenses were up by -€141 million, or +4.1% (-€38 million in staff costs, -€76 million in IT investments and -€27 million in other expenses).

The underlying cost/income ratio in the third quarter of 2024 thus stood at 56.4%, an increase of +0.6 percentage points compared to the third quarter of 2023.

Underlying gross operating income in the third quarter of 2024 stood at €2,830 million, an increase of +5.5% compared to the third quarter of 2023. It was up +4.2% when restated solely for reversals of the Home Purchase Savings Plan provisions.

As at 30 September 2024, risk indicators confirm the high quality of Crédit Agricole S.A.’s assets and risk coverage level. The diversified loan book is mainly geared towards home loans (26% of gross outstandings) and corporates (43% of Crédit Agricole S.A. gross outstandings). The Non Performing Loans ratio showed little change from the previous quarter and remained low at 2.5%. The coverage ratio¹⁸ was high at 71.4%, up +0.1 percentage points over the quarter. Loan loss reserves amounted to €9.6 billion for Crédit Agricole S.A., a -€0.1 billion decline from end-June 2024. Of those loan loss reserves, 34% were for performing loans (percentage in line with previous quarters).

The underlying cost of risk showed a net addition of -€433 million, up +0.9% from the third quarter of 2023, which included a -€38 million addition for performing loans (stages 1 and 2) (versus a reversal of +€59 million in the third quarter of 2023) and -€388 million in provisioning for proven risks (stage 3) (versus -€487 million in the third quarter of 2023). There was also a small addition of -€7 million for other items (legal provisions). By business line, 52% of the net addition for the quarter came from Specialised Financial Services (unchanged from end-September 2023), 19% from LCL (16% at end-September 2023), 14% from International Retail Banking (28% at end-September 2023), 4% from Large Customers (3% at end-September 2023) and 8% from the Corporate Centre (zero at end-September 2023). The increase in the cost of risk for the Corporate Centre was mainly due to the increase in the risk on financing secured by Foncaris. The provisioning levels were determined by taking into account several weighted economic scenarios and by applying some flat-rate adjustments on sensitive portfolios. The weighted economic scenarios for the third quarter were unchanged from the second quarter, with a favourable scenario (French GDP at +1.2% in 2024, +1.5% in 2025) and an unfavourable scenario (French GDP at -0.2% in 2024 and +0.5% in 2025). In the third quarter of 2024, the cost of risk/outstandings was 32 basis points over a rolling four-quarter period¹⁹ and 32 basis points on an annualised quarterly basis²⁰ (an improvement of 1 basis point compared to the third quarter of 2023 for both bases).

The underlying contribution from equity-accounted entities amounted to €42 million in the third quarter of 2024, down -15.3% compared to the third quarter of 2023, driven in particular by the strong growth of equity-accounted entities in asset management and a decline in the Personal Finance and Mobility business line.

Underlying income²¹before tax, discontinued operations and non-controlling interests was up +5.4% to €2,438 million. The underlying effective tax rate stood at 20.2%, i.e. down -3.8 percentage points compared to the third quarter of 2023. The underlying tax charge was -€484 million, down -11% mainly due to the impact of reduced-tax disposals of equity interests and the revaluation of securities at fair value in the Insurance business line, partially offset by the increase in the tax rate in Ukraine. Underlying net income before non-controlling interests was up +10.4% to €1,954 million. Non-controlling interests amounted to -€268 million in the third quarter of 2024, an increase of +7.5%.

Underlying earnings per share in third quarter of 2024 reached €0.51, increasing by +11.4% compared to the third quarter of 2023.

Crédit Agricole S.A. – Stated and underlying results, 9M-24 and 9M-23

€m	9M-24 stated	Specific items	9M-24 underlying	9M-23 stated	Specific items	9M-23 underlying	∆ 9M/9M stated	∆ 9M/9M underlying

Revenues	20,089	53	20,036	19,140	598	18,542	+5.0%	+8.1%
Operating expenses excl.SRF	(10,978)	(84)	(10,894)	(9,922)	(18)	(9,904)	+10.6%	+10.0%
SRF	–	–	–	(509)	–	(509)	(100.0%)	(100.0%)
Gross operating income	9,111	(30)	9,141	8,709	580	8,129	+4.6%	+12.5%
Cost of risk	(1,256)	(20)	(1,236)	(1,338)	(84)	(1,253)	(6.1%)	(1.3%)
Equity-accounted entities	132	(0)	132	136	(39)	175	(3.4%)	(24.7%)
Net income on other assets	5	(23)	28	102	89	13	(95.3%)	x 2.1
Change in value of goodwill	–	–	–	–	–	–	n.m.	n.m.
Income before tax	7,991	(73)	8,064	7,609	545	7,064	+5.0%	+14.2%
Tax	(1,790)	12	(1,803)	(1,832)	(149)	(1,682)	(2.3%)	+7.1%
Net income from discont’d or held-for-sale ope.	–	–	–	7	–	7	n.m.	n.m.
Net income	6,201	(61)	6,262	5,785	396	5,389	+7.2%	+16.2%
Non controlling interests	(803)	16	(820)	(771)	(2)	(769)	+4.2%	+6.6%
Net income Group Share	5,397	(45)	5,442	5,014	394	4,620	+7.6%	+17.8%
Earnings per share (€)	1.59	(0.01)	1.60	1.53	0.13	1.40	+3.8%	+14.5%
Cost/Income ratio excl.SRF (%)	54.6%		54.4%	51.8%		53.4%	+2.8 pp	+1.0 pp

In the first nine months of 2024, stated net income Group share amounted to €5,397 million, compared with €5,014 million in the first nine months of 2023, an increase of +7.6%.

Specific items in the first nine months of 2024 had a negative impact of -€45 million on stated net income Group share, and comprise +€39 million in recurring accounting items and -€84 million in non-recurring items. The recurring items mainly correspond to the reversals of and additions to the Home Purchase Savings Plans provisions for +€1 million net, as well as the accounting volatility items of the Large Customers division (the DVA for +€33 million and loan book hedging for +€5 million). Non-recurring items relate to the costs of integrating and acquiring Degroof Petercam (-€27 million) within the Asset Gathering division, the costs of integrating (-€37 million) and acquiring (-€17 million) ISB within the Large Customers division and an additional provision for risk in Ukraine (-€20 million) within the International Retail Banking division.

Excluding specific items, underlying Net income Group share reached €5,442 million, up +17.8% compared to the first nine months of 2023.

Underlying revenues were up +8.1% compared to the first nine months of 2023, driven by all business lines. Underlying operating expenses were +10% higher than in 2023, essentially reflecting the development of the Group’s business lines and the integration of scope effects, partially offset by the end of the SRF²² building-up period. The underlying cost/income ratio excluding SRF for the period was 54.4%, an increase of 1 percentage point compared to the same period in 2023. Underlying gross operating income totalled €9,141 million, up +12.5% compared to the first nine months of 2023. The underlying cost of risk decreased by -1.3% over the period to -€1,236 million, versus -€1,253 million in 2023. Lastly, underlying contributions from equity-accounted entities amounted to €132 million, down -24.7% over the period.

Underlying earnings per share were €1.60 per share in the first nine months of 2024, up +14.5% compared to the first nine months of 2023.

Underlying RoTE ²³, which is calculated on the basis of an annualised underlying Net Income Group Share ²⁴ and IFRIC charges linearised over the year, net of annualised Additional Tier 1 coupons (return on equity Group share excluding intangibles) and net of foreign exchange impact on reimbursed AT1, and restated for certain volatile items recognised in equity (including unrealised gains and/or losses), reached 14.5% over the first nine months of 2024, up by +1 percentage point compared to the first nine months of 2023.

Analysis of the activity and the results of Crédit Agricole S.A.’s divisions and business lines

Activity of the Asset Gathering division

In the third quarter of 2024, assets under management in the Asset Gathering division (AG) totalled €2,809 billion, up +€46 billion over the quarter (or +1.7%), mainly due to a positive market effect and a good level of net inflows in the three business lines of Asset Management, Insurance and Wealth Management. Over the year, assets under management rose by +13.1%.

Insurance activity (Crédit Agricole Assurances) was very strong with total premium income of €9.7 billion – a record level for a third quarter – up +38.9% compared to the third quarter of 2023, and up in all three segments: savings/retirement, property and casualty, and death & disability/creditor/group insurance. In total, overall premium income stood at €32.8 billion, up +18.2% compared to the first nine months of 2023.

In Savings/Retirement, third-quarter premium income stood at €7.2 billion, up +56.4% compared to the third quarter of 2023. Business was driven by euro payment bonus campaigns in France, launched during the first quarter, which boosted gross euro inflows, as well as by a confirmed upturn in international business. The unit-linked rate accounted for 32.8% of gross inflows, down -7.5 percentage points compared to the third quarter of 2023. This decline is linked to the recovery in gross euro inflows and less favourable market conditions for unit-linked products, in particular the reduced attractiveness of unit-linked bond products. Net inflows totalled +€1.6 billion this quarter, on par with last quarter. This level is made up of positive net inflows from unit-linked contracts (+€0.9 billion) and also from euro funds (+€0.8 billion). In total, Savings/Retirement premium income reached €23.9 billion at the end of September, up +23.1% compared to the end of September 2023.

Assets under management (savings, retirement and funeral insurance), which stood at €343.2 billion, continued to rise and reached their highest level ever. They were up +€19.0 billion over one year, or +5.8%, and +€12.9 billion since the beginning of the year, or +3.9%. The growth of assets under management was supported by a positive market effect and positive net inflows. Unit-linked contracts reached 29.9% of assets under management, up +2.3 percentage points over one year and +1.0 percentage point compared to the end of December 2023.

In property and casualty insurance, premium income stood at €1.2 billion in the third quarter of 2024, up +9.2%²⁵ compared to the third quarter of 2023. This growth was driven by volume and price effects. Indeed, at the end of September 2024, the portfolio stood at nearly 16.6 million²⁶ contracts, up +5.1% year-on-year. At the same time, the average premium was up, benefiting from rate revisions in addition to changes in the product mix. Lastly, the combined ratio at the end of September 2024 stood at 95.5%²⁷, a deterioration of +0.3 percentage point year-on-year due to the unfavourable impact of discounting. In total, at the end of September 2024, premium income stood at €4.9 billion, an increase of +7.8% compared to the first nine months of 2023.

In death & disability/creditor/group insurance, premium income for the third quarter of 2024 stood at €1.3 billion, up +2.2% compared to the third quarter of 2023. Creditor insurance premium income rose by +1.6% compared to the third quarter of 2023, thanks to an upturn in consumer finance and good performance in real estate. Death and disability was up +3.5% compared to the third quarter of 2023, mainly driven by group insurance, which posted an increase of +9.5%. In group insurance, an agreement was signed with Industries Electriques et Gazières in October 2024, with effect from the second half of 2025. In total, at the end of September, premium income from personal protection stood at €4.0 billion, an increase of +5.7% compared to the first nine months of 2023.

In Asset Management (Amundi), Amundi’s assets under management saw a +11.1% increase year-on-year at 30 September 2024 and a +1.6% increase over the quarter to €2,192 billion, an all-time high. The +€35.4 billion increase in assets under management over the quarter was due to a positive market and foreign exchange impact of +€32.5 billion and positive net inflows of +€2.9 billion.

This quarter’s net inflows include the exit from a mandate worth €11.6 billion with a European insurer, which was not generating much revenue. Adjusted for this outflow, net inflows for the quarter stood at +€14.4 billion, including +€9.1 billion in medium- and long-term assets²⁸, driven by active management and ETFs. Structured products and real and alternative assets also recorded positive inflows, while treasury products²⁸ were stable. Lastly, the JVs continued their solid commercial momentum, with net inflows of +€5.3 billion, reflecting a positive contribution from India and South Korea.

By customer segment, Retail inflows (+€6.3 billion in the third quarter of 2024) were driven by the excellent momentum of third-party distributors (+€6.8 billion), across all regions and with good diversification of inflows by asset class. Excluding the loss of the insurance mandate mentioned above, the Institutional segment recorded very positive inflows in MLT assets across all segments, in particular Institutional and Sovereign, and on mandates from insurers in the Crédit Agricole Groupe and the Société Générale group, thanks to the continued recovery in the euro-denominated life insurance policies market in France during the quarter. Treasury products, on the other hand, experienced sharp seasonal outflows in this segment.

In Wealth Management, total assets under management (CA Indosuez Wealth Management and LCL Private Banking) amounted to €274 billion at the end of September 2024, and were up +2.7% compared to June 2024 and +46.9% compared to September 2023.

Indosuez Wealth Management had assets under management of €209.2 billion²⁹ at the end of September, up +2.1%, or +€4.2 billion, compared to the end of June 2024 due to a positive market effect of +€2.5 billion and good level of activity with positive net inflows of +€1.8 billion, driven in particular by Switzerland and Asia. The quarter also saw Degroof Petercam funds begin to be marketed to Indosuez clients. Compared with the end of September 2023, assets under management were up by +€84.3 billion (or +67.5%), taking into account a scope effect of €69 billion (integration of Degroof Petercam in June 2024), a positive market effect and a good level of net inflows.

In LCL’s Private Banking division, assets under management at the end of September totalled €64.8 billion, up by +€1.0 billion or +1.5% compared to the end of June 2024, thanks to a positive market effect and positive net inflows. Compared with the end of September 2023, assets under management were up by +€3.2 billion (or +5.3%), mainly due to a positive market effect, and also to positive net inflows.

Results of the Asset Gathering division

In the third quarter of 2024, AG generated €1,870 million in revenues, up +12.9% compared to the third quarter of 2023. Expenses rose by +20.9% to -€868 million. Thus, the cost/income ratio stood at 46.4%, up +3.0 percentage points compared to the third quarter of 2023. Gross operating income stood at €1,002 million, up +6.9% compared to the third quarter of 2023. Taxes stood at -€157 million, compared with -€221 million at the end of September 2023 (down -29.1%). The net income Group share of AG stood at €728 million, up +17.1% compared to the third quarter of 2023.

At the end of September 2024, AG generated revenues of €5,603 million, up +9.1% compared to the end of September 2023. The increase is explained by a very high level of revenues in all three business lines: Insurance, Asset Management and Wealth Management. Costs excluding SRF increased +13.4%. As a result, the cost/income ratio excluding SRF stood at 43.5%, up +1.6 percentage points compared to the end of September 2023. Gross operating income stood at €3,168 million, an increase of +6.3% compared to the end of September 2023. Taxes stood at -€659 million, compared with -€699 million at the end of September 2023 (down -5.7%). The net income Group share of AG stood at €2,180 million, up +9.3% compared to the first nine months of 2023. Net income Group share increased between the first nine months of 2023 and the first nine months of 2024 in Asset Management (+10.2%) and the Insurance business lines (+11.3%), but was down in Wealth Management (-18.9%).

At the end of September 2024, the Asset Gathering division contributed by 37% to the underlying net income Group share of the Crédit Agricole S.A. core businesses (excluding Corporate Centre division) and 27% to underlying revenues excluding the Corporate Centre division.

As at 30 September 2024, equity allocated to the division amounted to €12.6 billion, including €10.4 billion for Insurance, €1.3 billion for Asset Management, and €0.8 billion for Wealth Management. The division’s risk-weighted assets amounted to €58.7 billion, including €35.7 billion for Insurance, €14.1 billion for Asset Management and €8.9 billion for Wealth Management.

The underlying RoNE (return on normalised equity) stood at 27.1% for the first nine months of 2024.

Insurance results

In the third quarter of 2024, insurance revenues amounted to €635 million, down -1.2% compared to the third quarter of 2023. This includes €418 million from savings/retirement³⁰, €117 million from personal protection³¹ and €40 million from property and casualty insurance³². Against a backdrop of increased business activity, the decline in revenues is explained in particular by the change in Property & Casualty claims, which were low in the third quarter of 2023 and higher in the third quarter of 2024, particularly for crop insurance, as well as by an unfavourable effect linked to the replacement of AT1 debt (for which the expense was recorded as minority interests) by Tier 2 debt (the cost of which is deducted from revenues).

The contractual service margin (CSM) stood at €24.9 billion, up +4.5% since 31 December 2023. In the first nine months of 2024, the impact of the stock revaluation was positive, and the impact of new business exceeded the CSM allocation.

Non-attributable expenses for the quarter stood at €85 million, up +5.1% over the third quarter of 2023. Gross operating income stood at €550 million, down -2.1% compared to the third quarter of 2023. Taxes stood at -€51 million, compared with -€131 million for the third quarter of 2023. This decline is due to a re-estimation of the tax rate including the impact of reduced-tax disposals of equity interests and the revaluation of securities at fair value, which took place during the quarter. Net income Group share stood at €478 million, up +16.2% compared to the third quarter of 2023.

Revenues from insurance in the first nine months of 2024 came to €2,130 million, up +5.4% compared to the total at the end of September 2023. Non-attributable expenses came to €264 million, i.e. an increase of +11.4%. The cost/income ratio stood at 12.4%, below the target ceiling of 15% set by the Medium-Term Plan. Gross operating income stood at €1,866 million, up +4.6% compared to the first nine months of 2023. The tax charge stood at -€354 million, below the September 2023 level of -€411 million. Net income Group share amounted to €1,466 million, up +11.3% compared to the first nine months of 2023.

Insurance contributed by 25% to the underlying net income Group share of the Crédit Agricole S.A. core businesses (excluding the Corporate Centre division) at the end of September 2024 and by 10% to their underlying revenues.

Asset Management results

In the third quarter of 2024, revenues amounted to €838 million, showing double-digit growth (+10.3% compared to the third quarter of 2023). The +9.2% increase in management fee and commission income compared to the third quarter of 2023 reflects the good level of activity and the increase in average assets under management excluding JVs (which increased by +8.6% over the same period, and by +1.2% between the second and third quarter). Performance fees increased by +€10 million compared with the third quarter of 2023, but there were fewer crystallisation dates in the third quarter than in the second or fourth quarters. Amundi Technology’s revenues increased by +41.8% compared to the third quarter of 2023. Financial revenues were down by -10.6% compared to third quarter of 2023. Operating expenses stood at -€466 million, up +7.5% mainly due to the consolidation of Alpha Associates, accelerated investment and the impact of revenue growth on variable compensation. The jaws effect was positive over the quarter. The cost/income ratio thus stood at 55.6%, an improvement year-on-year (-1.5 percentage point). Gross operating income increased by +14.1% compared to the third quarter of 2023. The contribution from equity-accounted entities, comprising the contribution from Amundi’s Asian joint ventures, stood at €33 million, up +36.4% from the third quarter of 2023, driven mainly by the strong growth of the contribution from SBI MF in India. The income tax charge stood at -€92 million, up +14.9%. Net income before non-controlling interests was €312 million, up +16.4% compared to the total at the end of September 2023. Net income Group share stood at €208 million, up +16.8% compared to the third quarter of 2023.

In the first nine months of 2024, revenues rose by +7.2% in asset management, reflecting sustained growth in management fee and commission income and a sharp increase in Amundi Technology revenues (€54m, +28.2%) and net financial income. Performance fees were down slightly (-2.0%). Operating expenses excluding SRF increased by +6.3%. The cost/income ratio excluding SRF was 55.3%, stable compared to the total at the end of September 2023. As a result, gross operating income was up +8.8% compared to the first nine months of 2023. The net income of equity-accounted entities increased by +28.4%. All in all, net income Group share for the half-year stood at €623 million, an increase of +10.2%.

Asset management contributed 10% to the underlying net income Group share of Crédit Agricole S.A.’s core businesses (excluding the Corporate Centre division) at end September 2024 and by 12% to their underlying revenues.

At 30 September 2024, equity allocated to the Asset Management business line amounted to €1.3 billion, while risk-weighted assets totalled €14.1 billion.

Wealth Management results³³

Revenues of Wealth Management stood at €397 million in the third quarter of 2024, up +56.6% compared to the third quarter of 2023. Revenues benefited from the impact of the integration of Degroof Petercam in June 2024; excluding this effect, they were supported by the good momentum of management fee and commission income, which offset the erosion of interest revenues. Expenses totalled -€317 million, up +55.5% compared to the third quarter of 2023, due to the impact of the integration of Degroof Petercam in June 2024³⁴ and integration costs of -€8 million in the third quarter. Restated for these impacts, growth in expenses is stable (+0.2% compared to the third quarter of 2023). The cost/income ratio in the third quarter of 2024 stood at 79.9%, down -0.6 percentage points compared to the third quarter of 2023. Gross operating income stood at €80 million, up +61.4% compared to the third quarter of 2023. Cost of risk was -€11 million in the third quarter of 2024, including the recognition of litigations and provisions for various cases. Net income on other assets stood at -€3 million in the third quarter of 2024, corresponding to the Degroof Petercam acquisition costs, restated as specific items. Net income Group share amounted to €42 million, up +30.6% compared to the third quarter of 2023.

In the first nine months of 2024, Wealth Management’s revenues rose by +24.7% compared to the end of September 2023, notably benefiting from the integration of Degroof Petercam in June 2024 to reach €967 million. Expenses excluding SRF rose by +29.3% due to the impact of the integration of Degroof Petercam in June 2024 and the €14 million in integration costs. Restated for these impacts, growth in expenses is under control, increasing by +3.6% compared to the first nine months of 2023, due in particular to an unfavourable base effect in 2023. Gross operating income thus rose by +10.0% to €181 million. The cost of risk was -€12 million at the end of September 2024 (it was +€1 million at the end of September 2023). Net income on other assets stood at -€23 million at the end of September 2024, corresponding to the Degroof Petercam acquisition costs, restated as specific items. Net income Group share stood at €91 million for the first nine months of 2024, down -18.9% compared to the first nine months of 2023, but up +4.5% after restatement for integration and acquisition costs.

Wealth Management contributed 2% of Crédit Agricole S.A.’s business lines underlying net income Group share. (excluding the Corporate Centre division) at end September 2024 and by 5% to their underlying revenues.

At 30 September 2024, equity allocated to Wealth Management was €0.8 billion and risk-weighted assets totalled €8.9 billion.

Activity of the Large Customers division

Corporate and Investment Banking (CIB) once again posted a very good performance in the third quarter of 2024 (best third quarter and best year-to-date in terms of both revenues and results). Asset servicing also recorded strong business momentum during the period.

CIB third-quarter underlying revenues rose sharply to €1,528 million, an increase of +8.0% compared to the third quarter of 2023, driven by growth in its two business lines. Revenues from Financing activities were up +7.2% compared to the third quarter of 2023, at €809 million. This was mainly due to the excellent performance of Commercial Banking (+9.5% compared to the third quarter of 2023), driven by the development of Corporate activities, especially in the Telecom sector, and a good level of revenues from asset financing and project financing. Capital Markets and Investment Banking also reported revenue growth of +9.0% compared to the third quarter of 2023, at €719 million, driven by the continued high level of performance of Capital Markets (+6.2% compared to the third quarter of 2023 for FICC) and the good level of activity in Investment Banking, (+22.8% compared to the third quarter of 2023), confirming the trend observed at the end of the first half of 2024.

Financing activities thus confirmed its leading position in syndicated loans (#2 in France³⁵ and #2 in EMEA³⁵). Crédit Agricole CIB reaffirmed its strong position in bond issues (#3 All bonds in EUR Worldwide³⁵) and was ranked #2 in Green, Social & Sustainable bonds in EUR³⁶. Average regulatory VaR stood at €10.1 million in the third quarter of 2024, unchanged from the second quarter of 2024 when it was €10.1 million. It remained at a level that reflected prudent risk management.

In addition, the third quarter of 2024 saw the continued migration of ISB (formerly RBC Investor Services in Europe) customer portfolios to CACEIS platforms, following the effective merger of the legal entities with those of CACEIS on 31 May 2024. Customer migration is expected to continue until the end of 2024. As a reminder, ISB integration costs will be recorded during the year for an amount of around €80 million to €100 million, including €25.9 million in the third quarter of 2024, i.e. €70 million recorded in the first nine months of 2024.

In the third quarter of 2024, solid customer business and market effects supported growth in assets over the year. Assets under custody increased by +1.9% at the end of September 2024 compared to the end of June 2024 and increased by +12.1% compared to the end of September 2023, to reach €5,061 billion. Assets under administration were down -1.2% over the quarter (planned exit of some ISB customers) and up +4.2% year-on-year, reaching €3,386 billion at the end of September 2024.

Results of the Large Customers division

In the third quarter of 2024, stated revenues of the Large Customers division once again reached a record level of €2,054 million, up +8.8% compared to the third quarter of 2023, buoyed by excellent performance in the Corporate and Investment Banking and Asset Servicing business lines. The division’s specific items this quarter had an impact of +€2.8 million on Corporate and Investment Banking and comprised the DVA, the issuer spread portion of the FVA and secured lending amounting to +€3.6 million, and loan book hedging totalling -€0.8 million. Operating expenses were up compared to the third quarter of 2023 (+8.8%), due, on the one hand, to IT investments and the development of the business lines’ activity and, on the other hand, to the recognition of ISB integration costs of -€25.9 million, restated as specific items. As a result, the division’s gross operating income was up +8.8% from the third quarter of 2023 to €814 million. The division recorded an overall net addition for cost of risk of -€19 million in the third quarter of 2024, compared with an addition of -€13 million in the third quarter of 2023. Stated pre-tax income totalled €800 million, an increase over the period (+8.2%). The tax charge was
-€234 million. Lastly, stated Net income Group share reached €520 million in the third quarter of 2024, compared with stated income of €488 million in the third quarter of 2023. Underlying net income Group share came to €532 million in the third quarter of 2024, versus €488 million in the third quarter of 2023.

Over the first nine months of 2024, stated revenues of the Large Customers division amounted to a record high of €6,543 million, i.e. +12.0% compared to the first nine months of 2023. Operating expenses excluding SRF rose +13.4% compared to the same period to -€3,298 million, largely related to employee expenses and IT investments, and including ISB integration costs of -€70 million. Gross operating income for the first nine months of 2024 totalled €2,802 million, representing an increase of +25.4% compared to the first nine months of 2023. Over the period, the cost of risk recorded a net addition of -€25 million, compared to an addition of -€81 million in the same period. The business line’s contribution to stated Net income Group share was €1,936 million, a strong increase of +30.3% compared to the first nine months of 2023. Underlying net income Group share came to €1,935 million in the first nine months of 2024, versus €1,520 million in the first nine months of 2023.

The division contributed 33% to the underlying net income Group share of Crédit Agricole S.A.’s core businesses (excluding the Corporate Centre division) at end September 2024 and 31% to underlying revenues excluding the Corporate Centre.

At 30 September 2024, the equity allocated to the division was €13.3 billion and its risk-weighted assets were €140.5 billion.

Underlying RoNE (return on normalised equity) stood at 19.0% at the end of September 2024.

Corporate and Investment Banking results

In the third quarter of 2024, Corporate and Investment Banking stated revenues reached a record at €1,531 million, up +8.2% from the third quarter of 2023. The Corporate and Investment Banking division’s specific items this quarter had an impact of +€2.8 million and comprised the DVA, the issuer spread portion of the FVA, and secured lending amounting to +€3.6 million, and loan book hedging totalling -€0.8 million. Operating expenses rose by +7.2% to -€864 million, mainly due to IT investments and the development of business line activities. Gross operating income rose sharply by +9.5% compared to the third quarter of 2023, taking it to a high level of +€667 million. The cost/income ratio was 56.4%, a slight change of -0.5 percentage point over the period. The cost of risk recorded a limited net provision of -€14 million, stable compared to the third quarter of 2023. Lastly, pre-tax income in the third quarter of 2024 stood at €653 million, versus €596 million in the third quarter of 2023. The tax charge stood at -€195 million. Lastly, stated net income Group share rose sharply by +10.3% to €446 million in the third quarter of 2024.

Over the first nine months of 2024, stated revenues rose by +7.6% compared to the excellent level recorded in the first nine months of 2023, to a record level of €4,995 million. The specific items over the period had an impact of +€52.2 million and comprised the DVA (the issuer spread portion of the FVA and secured lending) amounting to +€45.8 million, and loan book hedging totalling +€6.3 million. Operating expenses excluding SRF rose +5.1%, mainly due to variable compensation and investments in IT and employees to support the development of the business lines. Thus, gross operating income of €2,370 million was up sharply (+26.5% compared to the first nine months of 2023). The cost of risk recorded a net provision of -€7 million in the first nine months of 2024, compared to a net provision of -€80 million in the first nine months of 2023. The income tax charge stood at -€609 million, up +27.1%. Lastly, stated net income Group share stood at €1,715 million for the first nine months of 2024, an increase of +33.6% over the period, the highest historical level. Underlying Net income Group share stood at €1,677 million over the first nine months of 2024, versus €1,318 million over the same period in 2023.

Risk-weighted assets at the end of September 2024 were down -€2.7 billion compared to the end of June 2024 at €128.6 billion, still well under control with business growth.

Asset servicing results

In the third quarter of 2024, the revenues of Asset Servicing were up +10.7% compared to the third quarter of 2023, standing at €523 million. This rise was driven in particular by high fee and commission income, itself driven by the increase in assets and by the favourable trend in NIM. Operating expenses rose by +12.8% to
-€376 million, including -€4 million in scope effects linked to the consolidation of the remaining ISB entities and a -€25.8 million in ISB integration costs restated as specific items. Excluding these effects, the increase in expenses was +5.5% compared to the third quarter of 2023. As a result, gross operating income was up by +5.7% to €147 million in the third quarter of 2024. Thus, the cost/income ratio stood at 71.9%, up +1.3 percentage points. Excluding ISB integration costs and the consolidation of the remaining ISB entities, it stood at 66.2%, an improvement of 3.3 percentage points compared to the third quarter of 2023. The quarter also recorded +€6 million in income from equity-accounted entities. Net income thus totalled €109 million, down -10.8% compared to the third quarter of 2023. Adjusted for the €35 million share of non-controlling interests, the business line’s contribution to stated net income Group share totalled €74 million in the third quarter of 2024, down -11.7% compared to the third quarter of 2023. Excluding ISB integration costs, net income Group share was up +4.8% compared to the third quarter of 2023.

Stated revenues for the first nine months of 2024 were up +28.7% compared to the same period in 2023, buoyed by the integration of ISB, strong commercial momentum and a favourable trend in the interest margin over the period. Expenses excluding SRF were up +39.2% and included a scope effect of -€207 million over the first six months of 2024 and -€70 million in ISB integration costs. Gross operating income was up +20.0% compared to the first nine months of 2023. The cost/income ratio stood at 72.1%, an improvement of 5.5 points compared to the third quarter of 2023. Net income thus rose by +10.1%. The overall contribution of the business line to net income Group share in the first nine months of 2024 was €221 million, a +9.3% increase compared to the first nine months of 2023.

Specialised financial services activity

Crédit Agricole Personal Finance & Mobility’s (CAPFM) commercial production totalled €11.6 billion in the third quarter of 2024, stable compared to the third quarter of 2023. The share of automotive financing³⁷ in quarterly new business production stood at 50.6% this quarter. The average customer rate for production was down -24 basis points from the second quarter of 2024. CAPFM’s assets under management stood at €116.8 billion at the end of September 2024, up +5.2% compared to the end of September 2023, driven by all activities (Automotive +6,9%³⁸; LCL and Regional Banks +5.6%; Other entities +3.3%). Lastly, consolidated outstandings totalled €68.9 billion at the end of September 2024, up +4.7% compared to the third quarter of 2023.

CAPFM has announced a number of recent developments: a plan to acquire 50% of GAC Leasing; a pan-European partnership with GAC Motor International to entrust CA Auto Bank with the financing of vehicles made by Chinese manufacturer GAC; a partnership with FATEC to offer a fleet management service to its customers; and an agreement with EDF to ramp up the installation of electric charging stations in France.

Crédit Agricole Leasing & Factoring (CAL&F) commercial production increased by +13.6% compared to the third quarter of 2023. It was driven by all business lines, and was particularly strong in property leasing and renewable energy financing. Property leasing continued to grow in France and abroad. Leasing outstandings rose +8.8% year-on-year, both in France (+6.7%) and internationally (+17.4%), to reach €20.1 billion at the end of September 2024 (of which €15.9 billion in France and €4.2 billion internationally). Commercial factoring production fell by -17% compared to the third quarter of 2023. As a reminder, the third quarter of 2023 was marked by record production in Germany. Factoring outstandings at the end of September 2024 were stable compared to the end of September 2023.

On 31 October 2024, Crédit Agricole Leasing & Factoring announced that it had signed an agreement to acquire Merca Leasing in Germany.

Specialised financial services’ results

The revenues of Specialised Financial Services rose to €869 million in the third quarter of 2024, down slightly by -1.6% compared to the third quarter of 2023. Expenses stood at -€437 million, up +3.1% compared to the third quarter of 2023. The cost/income ratio stood at 48%, up +2.3 percentage points compared to the same period in 2023. Gross operating income thus stood at €433 million, down -5.9% compared to the third quarter of 2023. Cost of risk reached -€223 million, stable compared to the third quarter of 2023. Net income from equity-accounted entities rose significantly (x4.5 compared to the third quarter of 2023) to €23 million. Excluding the base effect³⁹ related to the reorganisation of Mobility activities at CAPFM, the change was -20.7%. Net income on other assets stood at -€2 million, versus €57 million in the third quarter of 2023. Excluding the base effect³⁹ related to the reorganisation of Mobility activities at CAPFM, the change was -52.5%. The division’s Net income Group share amounted to €172 million, down -15.6% compared to the same period in 2023, and down -7% excluding the base effect³⁹.

Over the first nine months of 2024, revenues for the Specialised Financial Services division fell by-4.1%, but rose by +7.8% excluding the base effect⁴⁰ related to the reorganisation of Mobility activities at CAPFM, compared to the first nine months of 2023. This favourable trend was driven by a good performance in CAL&F (+8.5%) and by higher revenues for CAPFM excluding the base effect⁴⁰ (+7,6%), benefiting from the scope effects linked to the strategic pivot around Mobility at CAPFM, which led to the 100% consolidation of Crédit Agricole Auto Bank from the second quarter of 2023 and of ALD and LeasePlan activities in six European countries, as well as the acquisition of a majority stake in the capital of Hiflow in the third quarter of 2023. Underlying costs excluding SRF increased by +8.9% compared to the first nine months of 2023. Expenses excluding SRF, the base effect⁴⁰ and scope effects rose by +3.1%. The cost/income ratio stood at 51.2%, or +6.1 percentage points versus the same period in 2023; excluding the base effect⁴⁰, the change was +1.3 percentage points. The cost of risk was down -4.9% compared to the first nine months of 2023, to -€653 million, and up +8.4% excluding the base effect⁴⁰. This increase incorporated in particular the impact of scope effects. The contribution from equity-accounted entities was down -8.5% versus the same period in 2023, and down -35.9% excluding the base effect⁴⁰, due to the full consolidation of Crédit Agricole Auto Bank in the second quarter of 2023, which was previously accounted for using the equity method. Net income on other assets amounted to -€3 million at the end of September 2024, compared to €81 million at the end of September 2023 (-€7 million excluding the base effect⁴⁰). Net income Group share thus came to €502 million, down -21% compared to the first nine months of 2023, but up +5.4% excluding the base effect⁴⁰ related to the reorganisation of Mobility activities at CAPFM.

The business line contributed 8% to the underlying net income Group share of Crédit Agricole S.A.’s core businesses. (excluding the Corporate Centre division) at the end of September 2024 and 13% to underlying revenues excluding the Corporate Centre.

At 30 September 2024, the equity allocated to the division was €6.8 billion and its risk-weighted assets were €71.8 billion.

The underlying RoNE (return on normalised equity) stood at 9.0% for the first nine months of 2024.

Personal Finance and Mobility results

CAPFM revenues totalled €678 million in the third quarter of 2024, down -4.2% compared to the third quarter of 2023. The price effect remained negative in the third quarter of 2024 compared to the third quarter of 2023, but stabilised compared to the second quarter of 2024, thanks in particular to an improved production margin rate over the last few quarters (stable in the third quarter of 2024 compared to the second quarter of 2024, and up by +86 basis points compared to the third quarter of 2023). Expenses remained under control at -€338 million, up +2.4% compared to the same period in 2023. Gross operating income stood at €340 million, down -10%. The cost/income ratio stood at 49.8%, up +3.2 percentage points compared to the same period in 2023. The cost of risk stood at -€201 million, down -2.4% from the third quarter of 2023. The cost of risk/outstandings thus stood at 112 basis points⁴¹, an improvement of -16 basis points compared to the third quarter of 2023. The Non Performing Loans ratio was 4.5% at the end of June 2024, up +0.2 percentage point compared to the end of June 2024, while the coverage ratio reached 74.2%, down -1.6 percentage points compared to the end of June 2024. The contribution from equity-accounted entities rose sharply (x5.1) compared to the same period in 2023, and fell by -20.7% excluding the base effect related to the reorganisation of Mobility activities³⁹. Net income on other assets amounted to -€2 million in the third quarter of 2024, compared to €57 million in the third quarter of 2023. Excluding the base effect³⁹, net income on other assets of the third quarter of 203 amounted to -€4 million. As a result, net income Group share totalled €118 million in the third quarter of 2024, i.e. -20.9% compared to the same period the previous year. Excluding the base effect³⁹, net income Group share was down -9.3%.

In the first nine months of 2024, CAPFM’s revenues totalled €2,042 million, down -7.1% compared with the first nine months of 2023, but up +7.6% excluding the base effect related to the reorganisation of Mobility activities⁴². Revenues benefited from scope effects related to the strategic pivot around Mobility, leading to the full consolidation of Crédit Agricole Auto Bank from the second quarter of 2023 and the consolidation of the ALD and LeasePlan activities in six European countries, as well as the acquisition of a majority stake in the capital of Hiflow in the third quarter of 2023. Expenses excluding SRF stood at -€1,035 million, an increase of +9.9% on 2023. Expenses excluding SRF, excluding the base effect⁴² and scope effects, were up +2.2%. Gross operating income therefore came in at €1,007 million, which was a drop of -19% but an increase of +4.7% excluding the base effect⁴². The cost/income ratio stood at 50.7%, or +7.9 percentage points versus the same period in 2023. When restated for the base effect, the change was +2.1 percentage points. Cost of risk fell -7.3% compared with the first nine months of 2023 to -€591 million, but rose +6.8% when the base effect⁴² is excluded. This rise notably includes the impact of scope effects. The contribution from equity-accounted entities was down -5.4% versus the same period in 2023, and down -33.1% excluding the base effect⁴² related to the scope effects of Crédit Agricole Auto Bank, which was fully consolidated in the second quarter of 2023 having previously been accounted for using the equity method. Income on other assets fell -55.5%, or -63,4% excluding the base effect⁴². As a result, net income Group share stood at €349 million in the first nine months of 2024, i.e. -31.3% from the same period one year earlier. Excluding the base effect⁴², net income Group share was stable at -0.1% compared with the same period in 2023.

Leasing & Factoring results

CAL&F’s revenues totalled €192 million, up +8.5% compared with the third quarter of 2023. This increase was driven by all business lines and benefited from volume effects (increase in factored revenues and equipment leasing outstandings). Expenses remained under control with an increase of +4.8%, while the cost/income ratio stood at 51.6%, an improvement of -1.8 percentage points from the third quarter of 2023. Gross operating income rose +12.7% to €93 million, with a positive jaws effect of +3.7 percentage points. Cost of risk totalled -€22 million, up +25.1% compared with the same period in 2023, linked to economic conditions in the corporate market. Cost of risk/outstandings stood at 22 basis points⁴¹, down slightly from the third quarter of 2023. As a result, net income Group share was €54 million, down -1.8% compared with the third quarter of 2023.

In the first nine months of 2024, revenues totalled €563 million, an increase of +8.5% compared with the first nine months of 2023. Costs excluding SRF increased by +5.7% to €298 million. Gross operating income rose sharply to €265 million, a +19.8% increase compared with the first nine months of 2023. The underlying cost/income ratio excluding SRF amounted to 53%, an improvement of -1.4 percentage points compared with the first nine months of 2023. Cost of risk was up compared with the same period of 2023 (+26.7%). The business line’s contribution to underlying net income Group share was €153 million, up +20.2% compared with the first nine months of 2023.

Crédit Agricole S.A. Retail Banking activity

Activity in Crédit Agricole S.A.’s Retail Banking business was solid during the quarter, with customer capture continuing at a good pace and an increasing number of customers taking out insurance policies. Home loan production in France is steadily recovering, while continuing to rise for corporate loans. Outside France, loan activity was dynamic.

Retail banking activity in France

In the third quarter of 2024, activity remained buoyant with the confirmed recovery in mortgage lending and the continued stabilisation of the mix of inflows.

Gross customer capture for the quarter stood at 76,000 new customers and net customer capture came in at 9,700 customers. The equipment rate for car, multi-risk home, health, legal, all mobile phones or personal accident insurance rose by +0.3 percentage points to stand at 27.9% at end-September 2024.

Loan production totalled €7.5 billion, representing a year-on-year increase of +11%. The third quarter of 2024 confirmed the recovery in home loan production (+17% compared to the third quarter of 2023 and +73% compared to the second quarter of 2023), boosted by the proactive pricing policy. The average production rate for home loans came to 3.38%, down -46 basis points from the second quarter of 2024 and -32 basis points year on year. The home loan stock rate improved by +5 basis points over the quarter and by +18 basis points year on year. The solid momentum continued in the corporate market (+16% year on year). Production for small businesses declined in a competitive market and challenging economic environment.

Outstanding loans stood at €169 billion at end-September 2024, representing a quarter-on-quarter increase of +0.4% and a year-on-year increase of +0.5% (of which +0.6% for home loans, +0.7% for loans to small businesses, +1.0% for consumer finance and -0.1% for corporate loans). Customer assets totalled €253.3 billion at end-September 2024, up +5.1% year on year, driven by interest-earning deposits and off-balance sheet funds. Customer assets also edged up +0.6% during the quarter. This was accompanied by the continued stabilisation of demand deposit volumes (+0.4% compared with end-June 2024) in a still-uncertain environment, as well as term deposits (-2.9% compared with end-June 2024). Off-balance sheet deposits benefited from a positive year-on-year market effect across all segments and positive net inflows in life insurance.

Retail banking activity in Italy

In the third quarter of 2024, CA Italy posted a gross customer capture of 43,000, while the customer base grew by around 13,000 customers.

Loan outstandings at CA Italy stood at €61.3 billion⁴³ at end-September 2024, up +3.0% compared with end-September 2023. This was despite the downturn in the Italian market⁴⁴, mostly in the retail segment, which posted an increase in outstandings of +3.6%. Loan production, buoyed by the solid momentum in all markets, rose 7.5% compared with the third quarter of 2023. Home loan production remained steady (+7% compared with the second quarter of 2024), despite a -12% year-on-year decline due to a base effect linked to the success of the promotional campaign which ran in the third quarter of 2023. The loan stock rate was down -17 basis points on the second quarter of 2024, in line with the general trend in Italian market rates.

Customer assets at end-September 2024 totalled €117.4 billion, up +3.7% compared with end-September 2023; on-balance sheet deposits were relatively unchanged from the previous year at +0.4%, while the cost of inflows decreased. Lastly, off-balance sheet deposits rose +9.2%, benefiting from a market effect and positive net inflows.

CA Italy’s equipment rate in car, multi-risk home, health, legal, all mobile phones or personal accident insurance increased to 20.0%, up 1.7 percentage points compared with the third quarter of 2023.

International Retail Banking activity excluding Italy

For International Retail Banking excluding Italy, loan outstandings were up +4.2% at current exchange rates at end-September 2024 compared with end-September 2023 (+6.7% at constant exchange rates). Customer assets rose slightly by +0.4% over the same period at current exchange rates (+8.1% at constant exchange rates).

In Poland in particular, loan outstandings increased by +11.8% versus September 2023 (+3.6% at constant exchange rates) and customer assets by +14% (+5.5% at constant exchange rates), against a backdrop of fierce competition for deposits. Loan production in Poland also remained strong, rising +32.4% compared with the third quarter of 2023 at current exchange rates (up +26% at constant exchange rates).

In Egypt, loan outstandings rose -18.3% between end-September 2024 and end-September 2023 (+34.6% at constant exchange rates). Over the same period, inflows fell by -36.6% but were still up +4% at constant exchange rates.

The surplus of deposits over loans in Poland and Egypt amounted to €1.6 billion at 30 September 2024, and totalled €3.2 billion including Ukraine.

French retail banking results

In the third quarter of 2024, LCL’s revenues stood at €979 million, down -1.7% compared with the third quarter of 2023 due to a base effect related to the reversal of the provision for Home Purchase Saving Plans in the third quarter of 2023⁴⁵. Excluding this base effect, revenues grew by +3.7% as a result of both net interest margin and fee and commission income. Net interest margin, excluding the Home Purchase Saving Plan base effect⁴⁵, rose +2.3%⁴⁵ year on year, benefiting from positive exceptional items related to the revaluation of equity investments. In addition, the increase in the cost of funding continued to weigh on the net interest margin, partially offset by the positive impact of gradual loan repricing and the favourable impact of the contribution of macro-hedging (virtually unchanged year on year). Fee and commission income was up +5.1% compared with the third quarter of 2023, driven by all activities.

Expenses rose +3.2% to stand at -€608 million. The increase for the period is mainly related to the increase in property expenses and IT costs. The cost/income ratio stood at 62.1%, a rise of +2.9 percentage points compared with the third quarter of 2023. Gross operating income was down -8.8%, to €371 million (up +4.5% excluding the Home Purchase Saving Plan base effect⁴⁵).

The cost of risk was up +17% compared with the third quarter of 2023 to -€82 million (including +€18 million in cost of risk on performing loans, -€94 million in proven risk, and -€5 million in other risks). This increase was mainly due to corporate specific files and to the consumer finance segment. The cost of risk/outstandings remained under control, at 23 basis points. The coverage ratio stood at 59.8% at end-September 2024 (-1 percentage point compared with end-June 2024). The Non Performing Loans ratio reached 2.1% at end-September 2024, stable compared with end-June 2024 (+0.1 percentage point). As a result, net income Group share decreased by -19.2% compared with the third quarter of 2024 (-6.2% excluding the Home Purchase Saving Plan base effect⁴⁵).

In the first nine months of 2024, LCL revenues totalled €2,912 million, a +0.7% increase compared with the first nine months of 2023. The net interest margin was slightly up (+0.5%), benefiting from gradual loan repricing and the positive impact of macro-hedging, in the context of rising refinancing and funding costs, and positive exceptional items in the second and third quarters of 2024 (positive valuation effects on equity investments). Fee and commission income was up +0.9% compared with the first nine months of 2023 (impacted by the base effect of Image cheque in 2023⁴⁶, particularly in the life insurance and payment instrument segments. Expenses excluding SRF rose +3.4% over the period as a result of the increase in staff and IT costs, partially offset by a one-off impact on taxation and a base effect related to end-of-career allowances. The cost/income ratio excluding SRF stood at 61.8% (+1.6 percentage points compared with the first nine months of 2023). Gross operating income grew slightly by +0.5% year on year. Cost of risk increased by +44.3%, impacted by the rise in proven risk from corporates and recent consumer finance production. All in all, the business line’s contribution to net income Group share stood at €607 million, down -9.8% (-5% excluding Home Purchase Saving Plan base effect)

In the end, the business line contributed 10% to the underlying net income Group share of Crédit Agricole S.A.’s core businesses. (excluding the Corporate Centre division) in the first nine months of 2024 and 14% to underlying revenues excluding the Corporate Centre.

At 30 September 2024, the equity allocated to the business line stood at €5.3 billion and risk-weighted assets amounted to €55.3 billion. LCL’s underlying RoNE (return on normalised equity) stood at 14.4% for the first nine months of 2024.

International Retail Banking results⁴⁷

In the third quarter of 2024, revenues for International Retail Banking totalled €1,006 million, falling slightly by -1.8% (+1.2% at constant exchange rates) compared with the third quarter of 2023. Operating expenses were under control at €519 million, an increase of +3.1% (+4.4% at constant exchange rates) Gross operating income consequently totalled €486 million, down -6.5% (-2.1% at constant exchange rates) for the period. Cost of risk amounted to -€59 million, down -51.1% compared with the third quarter of 2023 (-50.1% at constant exchange rates).

All in all, net income Group share for CA Italy, CA Egypt, CA Poland and CA Ukraine amounted to €194 million in the third quarter of 2024, up +13.9% (-12.9% at constant exchange rates). This included a negative impact of -€40 million following the change in the corporate income tax rate in Ukraine.

For the first nine months of 2024, International Retail Banking revenues rose by +3.9% to €3,090 million (+0.6% at constant exchange rates). Expenses excluding SRF and DGS stood at -€1,522 million, an increase of 2.1% compared with the first nine months of 2023. Gross operating income totalled €1,510 million, up +4.6% (+1.1% at constant exchange rates). Cost of risk fell by -41.0% (-23.0% at constant exchange rates) to -€213 million compared with the first nine months of 2023. In the end, net income Group share for International Retail Banking came to €678 million, versus €600 million in the first nine months of 2023, and included a negative impact of around -€40 million following the change in corporate income tax rate in Ukraine.

In the first nine months of 2024, International Retail Banking contributed 12% to the underlying net income Group share of Crédit Agricole S.A.’s core businesses (excluding the Corporate Centre) and 15% to underlying revenues excluding the Corporate Centre.

As at 30 September 2024, the capital allocated to International Retail Banking was €4.4 billion and risk-weighted assets totalled €46.3 billion.

Results in Italy

In the third quarter of 2024, revenues for Crédit Agricole Italy amounted to €764 million, down -2.5% compared with the third quarter of 2023. Revenues were impacted by a -2.5% decline in net interest margin compared with the third quarter of 2023 but were boosted by fee and commission income from assets under management, which remained relatively unchanged at +0.7%. Operating expenses were stable at 0.9% compared with the third quarter of 2023.

Cost of risk amounted to -€48 million in the third quarter of 2024, down -43.4% from the third quarter of 2023, and corresponded almost entirely to provisions for proven risk. Cost of risk/outstandings⁴⁸ stood at 44 basis points, an improvement of 6 basis points compared with the second quarter of 2024. The Non Performing Loans ratio improved compared with the first quarter of 2024 to stand at 3.0%, while the coverage ratio was 73.6% (+1.2 percentage points compared with the second quarter of 2024). Net income Group share for CA Italy was €164 million, down -1.3% compared with the third quarter of 2023.

In the first nine months of 2024, revenues for Crédit Agricole Italy rose slightly by +0.8% to €2,323 million. Expenses excluding SRF and DGS (deposit guarantee fund in Italy) were under control at €1,161 million, a slight decrease of -0.2% compared with the first nine months of 2023. Gross operating income stood at €1,105 million, a slight increase of +0.3% compared with the first nine months of 2023. Cost of risk amounted to -€170 million, down -27.2% compared with the first nine months of 2023. As a result, CA Italy’s net income Group share totalled €497 million, an increase of +4.4% compared with the first nine months of 2023.

CA Italy’s underlying RoNE (return on normalised equity) was 22.6% at 30 September 2024.

International Retail Banking results – excluding Italy

In the third quarter of 2024, revenues for International Retail Banking excluding Italy totalled €242 million, up +0.4% (+14.8% at constant exchange rates) compared with the third quarter of 2023. Revenues in Poland were up +22.2% compared with the third quarter of 2023 (+16.1% at constant exchange rates), boosted by a higher net interest margin and a strong upwards trend in fee and commission income. Revenues in Egypt were down (-19.9% compared with the third quarter of 2023) due to foreign exchange rate movements (depreciation of the Egyptian pound), but were particularly buoyant at constant exchange rates (+32.7%), benefiting from a sharp increase in the interest margin. Operating expenses for International Retail Banking excluding Italy amounted to €122 million, up +11.0% compared with the third quarter of 2023 (+17.8% at constant exchange rates). Gross operating income amounted to €120 million, a decrease of -8.5% (+11.8% at constant exchange rates) compared with the third quarter of 2023. Cost of risk amounted to -€11 million, down -68.9% (-68.9% at constant exchange rates). Furthermore, at end-September 2024, the coverage ratio for loan outstandings remained high in Poland and Egypt, at 121% and 139% respectively. In Ukraine, the local coverage ratio remains prudent (335%). All in all, the contribution of International Retail Banking excluding Italy to net income Group share was €30 million, down 49.1% compared with the third quarter of 2023.

In the first nine months of 2024, revenues for International Retail Banking excluding Italy totalled €767 million, up +14.3% (+25.0% at constant exchange rates) compared with the first nine months of 2023, driven by the increase in net interest margin. Operating expenses amounted to -€361 million, up +10.2% compared with the first nine months of 2023 (+12.8% at constant exchange rates). The cost/income ratio at end-September 2024 was 47.1% (an improvement of 1.8 points on the cost/income ratio at end-September 2023). Thanks to strong growth in revenues, gross operating income came to €406 million, up 18.3% (+38.4% at constant exchange rates) from the first nine months of 2023. Cost of risk amounted to -€43 million, down -66.4% (-65.8% at constant exchange rates) compared with the first nine months of 2023. All in all, International Retail Banking excluding Italy contributed €182 million to net income Group share.

The underlying RoNE (return on normalised equity) of Other IRB (excluding CA Italy) stood at 33.0% at 30 September 2024.

At 30 September 2024, the entire Retail Banking business line contributed 22% to the underlying net income Group share of Crédit Agricole S.A.’s core businesses (excluding the Corporate Centre division) and 29% to underlying revenues excluding the Corporate Centre.

At 30 September 2024, the division’s equity amounted to €9.7 billion. Its risk-weighted assets totalled €101.6 billion.

Corporate Centre results

The net income Group share of the Corporate Centre was -€161 million in the third quarter of 2024, down -€106 million compared with the third quarter of 2023. The negative contribution of the Corporate Centre division can be analysed by distinguishing between the “structural” contribution (-€161 million) and other items (+€1 million).
The contribution of the “structural” component (-€161 million) decreased by -€138 million compared with the third quarter of 2023 and can be broken down into three types of activity:

The activities and functions of the Corporate Centre of the Crédit Agricole S.A. Parent Company. This contribution amounted to -€140 million in the third quarter of 2024, down -€75 million, notably due to a base effect of -€171 million related to reversals of provisions for Home Purchase Saving Plans recorded in the third quarter of 2023.
The business lines that are not part of the core businesses, such as CACIF (private equity), CA Immobilier, CATE and BforBank (equity-accounted). They contributed -€28 million in the third quarter of 2024, down -€65 million from the third quarter of 2023. This was due to the unfavourable impact of the revaluation of Banco BPM securities for -€35 million (+€5 million in the third quarter of 2024, against +€40 million in the third quarter of 2023), as well as a deterioration in the portfolio which pushed up the cost of potential risk (stages 1 and 2), particularly on financing guaranteed by Foncaris⁴⁹
Group support functions. Their contribution amounted to +€7 million this quarter (+€3 million compared with the third quarter of 2023).

The contribution of “other items” was up +€32 million compared with the third quarter of 2023.
The “internal margins” effect at the time of the consolidation of the insurance activity at the Crédit Agricole level was accounted for through the Corporate Centre. Over the quarter, the impact of internal margins was -€211 million in revenues and +€211 million in expenses.

In the first nine months of 2024, underlying net income Group share of the Corporate Centre division was -€506 million, down -€131 million compared with the first nine months of 2023. The structural component contributed -€513 million and other items of the division recorded a positive contribution of +€7 million in the first nine months.
The “structural” component contribution was down -€2 million compared with the first nine months of 2023. It can be broken down into three types of activities:

The activities and functions of the Corporate Centre of the Crédit Agricole S.A. Parent Company. This contribution amounted to -€767 million in the first nine months of 2024, down -€55 million compared with the first nine months of 2023, including a base effect of -€171 million related to the reversal of the provision for Home Purchase Saving Plans recorded in the third quarter of 2023;
Business lines not attached to the core businesses, such as CACIF (private equity), CA Immobilier and BforBank: their contribution, at +€234 million in the first nine months of 2024, was up on the first nine months of 2023 (+€46 million), primarily due to the end of the SRF building-up period (-€77 million in the first half of 2023), as well as the impact of the valuation and dividend of Banco BPM securities for +€99 million;
The Group’s support functions: their contribution for the first nine months of 2024 was +€20 million, up +€7 million compared with the first nine months of 2023.

The contribution of “other items” was down -€129 million compared with the first nine months of 2023.

At 30 September 2024, risk-weighted assets stood at €29.6 billion.

Financial strength

Crédit Agricole Group

At 30 September 2024, the phased-in Common Equity Tier 1 (CET1) ratio of Crédit Agricole Group was 17.4%, an increase of +0.1 percentage point compared with end-June 2024. Therefore, the Crédit Agricole Group posted a substantial buffer of 7.6 percentage points between the level of its CET1 ratio and the 9.8% SREP requirement. The fully loaded CET1 ratio was 17.3%.

During the third quarter 2024:

The CET1 ratio benefited from an impact of +25 basis points related to retained earnings.
Changes in risk-weighted assets related to business lines organic growth impacted the Group’s CET1 ratio by -27 basis points (see below).
The methodological and other effects have a favourable impact of +4 basis points and include the contribution of the capital increase reserved for employees and a favourable change in unrealised gains and/or losses.

The phased-in Tier 1 ratio stood at 18.3%, while the phased-in total ratio was 21.0% at end-September 2024.

The phased-in leverage ratio stood at 5.5%, remaining stable compared with end-June 2024, well above the regulatory requirement of 3.5%.

Risk-weighted assets for the Crédit Agricole Group amounted to €636 billion, up +€8.2 billion compared with 30 June 2024. The change can be broken down by business line as follows: Retail Banking +€7.3 billion, Asset Gathering +€3.2 billion (including +€3.1 billion in Insurance equity-accounted value), Specialised Financial Services +€0.3 billion, Large Customers -€2.3 billion (benefiting from favourable foreign exchange and regulatory impacts for Crédit Agricole CIB) and Corporate Centre -€0.2 billion.

Maximum Distributable Amount (MDA and L-MDA) trigger thresholds

The transposition of Basel regulations into European law (CRD) introduced a restriction mechanism for distribution that applies to dividends, AT1 instruments and variable compensation. The Maximum Distributable Amount (MDA, the maximum sum a bank is allowed to allocate to distributions) principle aims to place limitations on distributions in the event the latter were to result in non-compliance with combined capital buffer requirements.

The distance to the MDA trigger is the lowest of the respective distances to the SREP requirements in CET1 capital, Tier 1 capital and total capital.

At 30 September 2024, Crédit Agricole Group posted a buffer of 670 basis points above the MDA trigger, i.e. €43 billion in CET1 capital.

Failure to comply with the leverage ratio buffer requirement would result in a restriction of distributions and the calculation of a maximum distributable amount (L-MDA).

At 30 September 2024, Crédit Agricole Group posted a buffer of 196 basis points above the L-MDA trigger, i.e. €42 billion in Tier 1 capital. At the Crédit Agricole Group level, it is the distance to the L-MDA trigger that determines the distance to distribution restriction.

At 30 September 2024, Crédit Agricole S.A. posted a buffer of 280 basis points above the MDA trigger, i.e. €11 billion in CET1 capital. Crédit Agricole S.A. is not subject to the L-MDA requirement.

The issuance of a new AT1 instrument carried out by Crédit Agricole S.A. on 2 October 2024, for a nominal amount of US$1.25 billion, has a positive impact of 18 basis points on the Tier 1 and Total capital ratios of Crédit Agricole Group, as well as a positive impact of 5 basis points on its leverage ratio. This issuance also has a positive impact of 28 basis points on the Tier 1 and Total capital ratios of Crédit Agricole S.A. Taking this issuance into account in the solvency ratios at 30 September 2024, Crédit Agricole Group would post a buffer of 688 basis points above the MDA trigger, i.e. €44 billion in CET1 capital, and 201 basis points above the L-MDA trigger, i.e. €43 billion in Tier 1 capital. Crédit Agricole S.A. would post a buffer of 308 basis points above the MDA trigger, i.e. €12 billion in CET1 capital.

TLAC

Crédit Agricole Group must comply with the following TLAC ratio requirements at all times:

a TLAC ratio above 18% of risk-weighted assets (RWA), plus – in accordance with EU directive CRD 5 – a combined capital buffer requirement (including, for Crédit Agricole Group, a 2.5% capital conservation buffer, a 1% G-SIB buffer, the counter-cyclical buffer set at 0.77% and the 0.01% systemic risk buffer for CA Group at 30 September 2024). Considering the combined capital buffer requirement, Crédit Agricole Group must adhere to a TLAC ratio of above 22.3%;
a TLAC ratio of above 6.75% of the Leverage Ratio Exposure (LRE).

The Crédit Agricole Group’s 2025 target is to maintain a TLAC ratio greater than or equal to 26% of RWA excluding eligible senior preferred debt.

At 30 September 2024, Crédit Agricole Group’s TLAC ratio stood at 27.3% of RWA and 8.2% of leverage ratio exposure, excluding eligible senior preferred debt⁵⁰, which is well above the requirements. The TLAC ratio, expressed as a percentage of risk weighted assets, increased by 20 basis points over the quarter, due to equity and eligible items increasing more rapidly than risk-weighted assets over the period. Expressed as a percentage of leverage ratio exposure (LRE), the TLAC ratio was up 20 basis points compared with June 2024.

The Group thus has a TLAC ratio excluding eligible senior preferred debt that is 510 basis points higher, i.e. €32 billion, than the current requirement of 22.3% of RWA.

At end-September 2024, €10.4 billion equivalent had been issued in the market (senior non-preferred and Tier 2 debt) as well as €1.25 billion of AT1. The amount of Crédit Agricole Group senior non-preferred securities taken into account in the calculation of the TLAC ratio was €35.2 billion.

MREL

The required minimum levels are set by decisions of resolution authorities and then communicated to each institution, then revised periodically. At 30 September 2024, Crédit Agricole Group has to meet a minimum total MREL requirement of:

22.01% of RWA, plus – in accordance with EU directive CRD 5 – a combined capital buffer requirement (including, for Crédit Agricole Group, a 2.5% capital conservation buffer, a 1% G-SIB buffer, the counter-cyclical buffer set at 0.77% and the 0.01% systemic risk buffer for CA Group at 30 September 2024). Considering the combined capital buffer requirement, the Crédit Agricole Group has to meet to a total MREL ratio of above 26.3%;
6.25% of the LRE.

At 30 September 2024, the Crédit Agricole Group had a total MREL ratio of 32.9% of RWA and 9.8% of leverage exposure, well above the requirement.

An additional subordination requirement (“subordinated MREL”) is also determined by the resolution authorities and expressed as a percentage of RWA and LRE. At 30 September 2024, this subordinated MREL requirement for the Crédit Agricole Group was:

18.25% of RWA, plus a combined capital buffer requirement. Considering the combined capital buffer requirement, the Crédit Agricole Group has to meet to a subordinated MREL ratio of above 22.5%;
6.25% of leverage exposure.

At 30 September 2024, Crédit Agricole Group had a subordinated MREL ratio of 27.3% of RWA and 8.2% of leverage exposure, well above the requirement.

The distance to the maximum distributable amount trigger related to MREL requirements (M-MDA) is the lowest of the respective distances to the MREL, subordinated MREL and TLAC requirements expressed in RWA.

At 30 September 2024, Crédit Agricole Group had a buffer of 480 basis points above the M-MDA trigger, i.e. €31 billion in CET1 capital; the distance to the M-MDA trigger corresponds to the distance between the subordinated MREL ratio and the corresponding requirement.

Crédit Agricole S.A.

At 30 September 2024, Crédit Agricole S.A.’s solvency ratio was higher than the Medium-Term Plan target, with a phased-in Common Equity Tier 1 (CET1) ratio of 11.7%, up +0.1 percentage point from end-June 2024. Crédit Agricole S.A. therefore had a comfortable buffer of 3.1 percentage points between the level of its CET1 ratio and the 8.6% SREP requirement. The fully loaded CET1 ratio was 11.7%.

During the third quarter 2024:

The CET1 ratio benefited this quarter from a positive impact of +19 basis points linked to retained earnings. This impact corresponds to net income Group share net of AT1 coupons (impact of +38 basis points) and of the distribution of 50% of earnings, i.e. a provision for dividends of 25 euro cents per share in third quarter 2024 (-19 basis points).
Changes in risk-weighted assets related to business line organic growth impacted the CET1 ratio by
-14 basis points, of which -5 basis points in the Insurance business line (increase in the equity-accounted value over the quarter).
Methodological and other effects had a positive impact of +10 basis points and included the contribution of the capital increase reserved for employees and a favourable trend in unrealised gains and/or losses.

The phased-in leverage ratio was 3.8% at end-September 2024, stable compared to end-June 2024 and above the 3% requirement.

The phased-in Tier 1 ratio stood at 13.2% and the phased-in total ratio at 17.3% this quarter.

Risk weighted assets for Crédit Agricole S.A. amounted to €402 billion at end of September 2024, up by +€3.1 billion compared to 30 June 2024. The change can be broken down by core business line as follows:

The Retail Banking divisions showed an increase of +€1.7 billion, particularly in France.
Asset Gathering posted an increase of +€3.2 billion, including +€3.1 billion in RWA for Insurance (increase in the equity-accounted value in the third quarter of 2024).
Specialised Financial Services remained stable at +€0.2 billion.
Large Customers recorded a decrease in risk-weighted assets of -€2.4 billion over the quarter, mainly as a result of foreign exchange and regulatory impacts in CIB.
The Corporate Centre divisions posted an increase in risk-weighted assets of +€0.4 billion.

Liquidity and Funding

Liquidity is measured at Crédit Agricole Group level.

In order to provide simple, relevant and auditable information on the Group’s liquidity position, the banking cash balance sheet’s stable resources surplus is calculated quarterly.

The banking cash balance sheet is derived from Crédit Agricole Group’s IFRS financial statements. It is based on the definition of a mapping table between the Group’s IFRS financial statements and the sections of the cash balance sheet and whose definition is commonly accepted in the marketplace. It relates to the banking scope, with insurance activities being managed in accordance with their own specific regulatory constraints.

Further to the breakdown of the IFRS financial statements in the sections of the cash balance sheet, netting calculations are carried out. They relate to certain assets and liabilities that have a symmetrical impact in terms of liquidity risk. Deferred taxes, fair value impacts, collective impairments, short-selling transactions and other assets and liabilities were netted for a total of €68 billion at end-September 2024. Similarly, €157 billion in repos/reverse repos were eliminated insofar as these outstandings reflect the activity of the securities desk carrying out securities borrowing and lending operations that offset each other. Other nettings calculated in order to build the cash balance sheet – for an amount totalling €181 billion at end September 2024 – relate to derivatives, margin calls, adjustment/settlement/liaison accounts and to non-liquid securities held by Corporate and Investment banking (CIB) and are included in the “Customer-related trading assets” section.

Note that deposits centralised with Caisse des Dépôts et Consignations are not netted in order to build the cash balance sheet; the amount of centralised deposits (€105 billion at end-September 2024) is booked to assets under “Customer-related trading assets” and to liabilities under “Customer-related funds”.

In a final stage, other restatements reassign outstandings that accounting standards allocate to one section, when they are economically related to another. As such, Senior issuances placed through the banking networks as well as financing by the European Investment Bank, the Caisse des Dépôts et Consignations and other refinancing transactions of the same type backed by customer loans, which accounting standards would classify as “Medium long-term market funds”, are reclassified as “Customer-related funds”.

Medium to long-term repurchase agreements are also included in “Long-term market funds”.

Finally, the CIB’s counterparties that are banks with which we have a commercial relationship are considered as customers in the construction of the cash balance sheet.

Standing at €1,719 billion at 30 September 2024, the Group’s banking cash balance sheet shows a surplus of stable funding resources over stable application of funds of €188 billion, down -€10 billion compared with end-June 2024.

Total T-LTRO 3 outstandings for Crédit Agricole Group amounted to €0.7 billion at 30 September 2024.

Furthermore, given the excess liquidity, the Group remained in a short-term lending position at 30 September 2024 (central bank deposits exceeding the amount of short-term net debt).

Medium-to-long-term market resources were €263 billion at 30 September 2024, up slightly from end-June 2024.

They included senior secured debt of €76 billion, senior preferred debt of €125 billion, senior non-preferred debt of €37 billion and Tier 2 securities amounting to €25 billion.

The Group’s liquidity reserves, at market value and after haircuts, amounted to €466 billion at 30 September 2024, down -€12 billion compared to 30 June 2024.

They covered short-term net debt more than two times over (excluding the replacements with Central Banks).

The decrease in liquidity reserves was mainly due to:

The decrease in Central Bank deposits for -€15 billion;
The decrease in eligible claims to Central Bank (mainly due to the temporary removal of TRICP credit claims with an internal rating) for -€3 billion;
The increase in the securities portfolio for +€6 billion (+€3 billion of HQLA securities/+€3 billion of non-HQLA securities).

Crédit Agricole Group also continued its efforts to maintain immediately available reserves (after recourse to ECB financing). Central bank eligible non-HQLA assets after haircuts amounted to €152 billion.

Credit institutions are subject to a threshold for the LCR ratio, set at 100% on 1 January 2018.

At 30 September 2024, the end of month LCR ratios were 147% for Crédit Agricole Group (representing a surplus of €97.7 billion) and 152% for Crédit Agricole S.A. (representing a surplus of €92.2 billion). They were higher than the Medium-Term Plan target (around 110%).

In addition, the NSFR of Crédit Agricole Group and Crédit Agricole S.A. exceeded 100%, in accordance with the regulatory requirement applicable since 28 June 2021 and above the Medium-Term Plan target (>100%).

The Group continues to follow a prudent policy as regards medium-to-long-term refinancing, with a very diversified access to markets in terms of investor base and products.

At 30 September 2024, the Group’s main issuers raised the equivalent of €51 billion⁵¹^,⁵²in medium-to-long-term debt on the markets, 47% of which was issued by Crédit Agricole S.A. In particular, the following amounts are noted for the Group:

Crédit Agricole CIB issued €17.9 billion in structured format, including €1.2 billion in Green Bond format;
Crédit Agricole Personal Finance & Mobility issued €2 billion equivalent in EMTN issuances through Crédit Agricole Auto Bank (CAAB) and €0.7 billion equivalent in securitisations;
CA Italy issued two senior secured debt issuances for a total of €1.5 billion, of which €500 million in Green Bond format;
Crédit Agricole next bank (Switzerland) issued two tranches in senior secured format for a total of 200 million Swiss francs, of which 100 million Swiss francs in Green Bond format;
Crédit Agricole Assurances issued a €750 million Tier 2 10-year bullet subordinated bond and made a tender offer on two subordinated perpetual issuances (FR0012444750 & FR0012222297) for €788.5 million in September.

The Group’s medium-to-long-term financing can be broken down into the following categories:

€9.0 billion in secured financing;
€22.0 billion in plain-vanilla unsecured financing;
€17.9 billion in structured financing;
€2.3 billion in long-term institutional deposits and CDs.

In addition, €11.7 billion was raised through off-market issuances, split as follows:

€9.5 billion from banking networks (the Group’s retail banking or external networks);
€0.65 billion from supranational organisations or financial institutions;
€1.6 billion from national refinancing vehicles (including the credit institution CRH).

At 30 September 2024, Crédit Agricole S.A. raised the equivalent of €24.1 billion on the market⁵³^,⁵⁴representing 93% of its 2024 refinancing programme:

The bank raised the equivalent of €24.1 billion, of which €7.3 billion in senior non-preferred debt and €3.1 billion in Tier 2 debt, as well as €7.2 billion in senior preferred debt and €6.5 billion in senior secured debt at end-September. The financing comprised a variety of formats and currencies, including:

€6.3 billion⁵⁵;
6.35 billion US dollars (€5.8 billion equivalent);
1.1 billion pounds sterling (€1.3 billion equivalent);
230 billion Japanese yen (€1.4 billion equivalent);
0.8 billion Swiss francs (€0.8 billion equivalent);
1.75 billion Australian dollars (€1.1 billion equivalent);
7 billion renminbi (€0.9 billion equivalent).

At end-September, Crédit Agricole S.A. had issued 64% of its funding plan in currencies other than the euro⁵⁶^,⁵⁷.

In addition, on 2 January 2024, Crédit Agricole S.A. issued a PerpNC6 AT1 bond for €1.25 billion at an initial rate of 6.5% and, on 24 September 2024, a PerpNC10 AT1 bond for $1.25 billion at an initial rate of 6.7%.

Appendix 1 – Specific items, Crédit Agricole Group et Crédit Agricole S.A.

Crédit Agricole Group – Specific items

	Q3-24		Q3-23		9M-24		9M-23
€m	Gross impact*	Impact on Net income	Gross impact*	Impact on Net income	Gross impact*	Impact on Net income	Gross impact*	Impact on Net income

DVA (LC)	4	3	2	2	46	34	(21)	(15)
Loan portfolio hedges (LC)	(1)	(1)	(2)	(1)	6	5	(26)	(19)
Home Purchase Savings Plans (LCL)	–	–	52	38	1	1	52	38
Home Purchase Savings Plans (CC)	–	–	230	171	(0)	(0)	230	171
Home Purchase Savings Plans (RB)	–	–	118	88	63	47	118	88
Mobility activities reorganisation (SFS)	–	–	1	0	–	–	300	214
Check Image Exchange penalty (CC)	–	–	–	–	–	–	42	42
Check Image Exchange penalty (LCL)	–	–	–	–	–	–	21	21
Check Image Exchange penalty (RB)	–	–	–	–	–	–	42	42
Total impact on revenues	3	2	402	298	117	87	758	581
Degroof Petercam integration costs (AG)	(8)	(6)	–	–	(14)	(10)	–	–
ISB integration costs (LC)	(26)	(14)	–	–	(70)	(37)	–	–
Mobility activities reorganisation (SFS)	–	–	–	–	–	–	(18)	(13)
Total impact on operating expenses	(34)	(20)	–	–	(84)	(47)	(18)	(13)
Mobility activities reorganisation (SFS)	–	–	–	–	–	–	(85)	(61)
Provision for risk Ukraine (IRB)	–	–	–	–	(20)	(20)	–	–
Total impact on cost of credit risk	–	–	–	–	(20)	(20)	(85)	(61)
Mobility activities reorganisation (SFS)	–	–	(26)	(26)	–	–	(39)	(39)
Total impact equity-accounted entities	–	–	(26)	(26)	–	–	(39)	(39)
Degroof Petercam aquisition costs (AG)	(3)	(2)	–	–	(23)	(17)	–	–
Mobility activities reorganisation (SFS)	–	–	61	45	–	–	89	57
Total impact on Net income on other assets	(3)	(2)	61	45	(23)	(17)	89	57

Total impact of specific items	(34)	(20)	436	317	(10)	3	705	525
Asset gathering	(11)	(8)	–	–	(37)	(27)	–	–
French Retail banking	–	–	170	126	65	48	233	189
International Retail banking	–	–	–	–	(20)	(20)	–	–
Specialised financial services	–	–	35	19	–	–	247	159
Large customers	(23)	(12)	1	0	(18)	1	(47)	(35)
Corporate centre	–	–	230	171	(0)	(0)	272	213
* Impact before tax and before minority interests

Crédit Agricole S.A. – Specific Items

	Q3-24		Q3-23		9M-24		9M-23
€m	Gross impact*	Impact on Net income	Gross impact*	Impact on Net income	Gross impact*	Impact on Net income	Gross impact*	Impact on Net income

DVA (LC)	4	3	2	2	46	33	(21)	(15)
Loan portfolio hedges (LC)	(1)	(1)	(2)	(1)	6	5	(26)	(19)
Home Purchase Savings Plans (FRB)	–	–	52	37	3	2	52	37
Home Purchase Savings Plans (CC)	–	–	230	171	(2)	(1)	230	171
Mobility activities reorganisation (SFS)	–	–	1	0.5	–	–	300	214
Check Image Exchange penalty (CC)	–	–	–	–	–	–	42	42
Check Image Exchange penalty (LCL)	–	–	–	–	–	–	21	20
Total impact on revenues	3	2	284	209	53	39	598	450
Degroof Petercam integration costs (AG)	(8)	(6)	–	–	(14)	(10)	–	–
ISB integration costs (LC)	(26)	(14)	–	–	(70)	(37)	–	–
Mobility activities reorganisation (SFS)	–	–	–	–	–	–	(18)	(13)
Total impact on operating expenses	(34)	(19)	–	–	(84)	(47)	(18)	(13)
Provision for risk Ukraine (IRB)	–	–	–	–	(20)	(20)	–	–
Mobility activities reorganisation (SFS)	–	–	–	–	–	–	(85)	(61)
Total impact on cost of credit risk	–	–	–	–	(20)	(20)	(85)	(61)

Mobility activities reorganisation (SFS)	–	–	(26)	(26)	–	–	(39)	(39)
Total impact equity-accounted entities	–	–	(26)	(26)	–	–	(39)	(39)
Degroof Petercam aquisition costs (AG)	(3)	(2)	–	–	(23)	(17)	–	–
Mobility activities reorganisation (SFS)	–	–	61	45	–	–	89	57
Total impact Net income on other assets	(3)	(2)	61	45	(23)	(17)	89	57

Total impact of specific items	(34)	(20)	318	227	(73)	(45)	545	394
Asset gathering	(11)	(8)	–	–	(37)	(26)	–	–
French Retail banking	–	–	52	37	3	2	73	57
International Retail banking	–	–	–	–	(20)	(20)	–	–
Specialised financial services	–	–	35	19	–	–	247	159
Large customers	(23)	(12)	1	0	(18)	1	(47)	(34)
Corporate centre	–	–	230	171	(2)	(1)	272	213
* Impact before tax and before minority interests

Appendix 2 – Crédit Agricole Group: income statement by business line

Crédit Agricole Group – Results by business line, Q3-23 and Q3-24

	Q3-24 (stated)
€m	RB	LCL	IRB	AG	SFS	LC	CC	Total

Revenues	3,266	979	1,029	1,857	869	2,054	(842)	9,213
Operating expenses excl. SRF	(2,409)	(608)	(539)	(868)	(437)	(1,240)	511	(5,590)
SRF	–	–	–	–	–	–	–	–
Gross operating income	857	371	490	989	433	814	(331)	3,623
Cost of risk	(364)	(82)	(60)	(13)	(223)	(19)	(40)	(801)
Equity-accounted entities	0	–	–	33	23	6	–	61
Net income on other assets	0	0	0	(3)	(2)	(0)	(2)	(5)
Income before tax	493	290	430	1,006	231	801	(372)	2,877
Tax	(122)	(66)	(176)	(156)	(42)	(234)	210	(587)
Net income from discont’d or held-for-sale ope.	–	–	–	–	–	–	–	–
Net income	371	224	254	850	189	566	(162)	2,291
Non controlling interests	(1)	(0)	(40)	(128)	(17)	(35)	10	(211)
Net income Group Share	371	223	214	722	172	531	(153)	2,080

	Q3-23 (stated)
€m	RB	LCL	IRB	AG	SFS	LC	CC	Total

Revenues	3,345	996	1,046	1,657	883	1,888	(567)	9,249
Operating expenses excl. SRF	(2,328)	(589)	(522)	(718)	(424)	(1,139)	454	(5,265)
SRF	–	–	–	–	–	–	–	–
Gross operating income	1,018	407	524	939	460	749	(113)	3,984
Cost of risk	(254)	(70)	(126)	(0)	(224)	(13)	(6)	(693)
Equity-accounted entities	1	–	1	24	5	6	0	37
Net income on other assets	0	18	1	(5)	57	(2)	(0)	69
Income before tax	765	355	400	958	298	740	(119)	3,397
Tax	(178)	(79)	(118)	(221)	(77)	(203)	65	(810)
Net income from discont’d or held-for-sale ope.	(0)	–	2	–	(0)	–	–	2
Net income	587	277	284	737	220	537	(53)	2,588
Non controlling interests	(0)	(0)	(42)	(110)	(17)	(39)	4	(204)
Net income Group Share	587	277	242	628	204	497	(49)	2,384

Crédit Agricole Group – Results by business line, 9M-24 et 9M-23

	9M-24 (stated)
€m	RB	LCL	IRB	AG	SFS	LC	CC	Total

Revenues	9,834	2,912	3,161	5,596	2,605	6,544	(2,407)	28,244
Operating expenses excl. SRF	(7,453)	(1,801)	(1,637)	(2,435)	(1,333)	(3,741)	1,535	(16,866)
SRF	–	–	–	–	–	–	–	–
Gross operating income	2,381	1,111	1,523	3,161	1,272	2,803	(872)	11,378
Cost of risk	(1,056)	(295)	(219)	(18)	(653)	(25)	(59)	(2,324)
Equity-accounted entities	7	–	–	94	83	20	–	203
Net income on other assets	3	5	0	(23)	(3)	2	(3)	(19)
Income before tax	1,335	820	1,305	3,214	699	2,800	(935)	9,238
Tax	(313)	(185)	(436)	(658)	(138)	(717)	343	(2,104)
Net income from discontinued or held-for-sale operations	–	–	–	–	–	–	–	–
Net income	1,022	635	869	2,557	560	2,083	(592)	7,134
Non controlling interests	(1)	(0)	(129)	(364)	(59)	(104)	15	(643)
Net income Group Share	1,021	635	739	2,193	502	1,979	(577)	6,491

	9M-23 (stated)
€m	RB	LCL	IRB	AG	SFS	LC	CC	Total

Revenues	10,032	2,891	3,040	5,144	2,717	5,844	(1,946)	27,722
Operating expenses excl. SRF	(7,217)	(1,742)	(1,542)	(2,148)	(1,224)	(3,298)	1,389	(15,782)
SRF	(111)	(44)	(40)	(6)	(29)	(312)	(77)	(620)
Gross operating income	2,704	1,105	1,458	2,989	1,465	2,234	(634)	11,321
Cost of risk	(831)	(205)	(366)	(1)	(686)	(81)	(8)	(2,179)
Equity-accounted entities	9	–	1	73	90	17	–	190
Net income on other assets	6	21	1	(5)	81	3	(1)	107
Income before tax	1,887	921	1,095	3,057	950	2,173	(643)	9,438
Tax	(467)	(217)	(321)	(696)	(254)	(561)	222	(2,293)
Net income from discontinued or held-for-sale operations	(0)	–	7	1	(0)	–	–	7
Net income	1,421	704	781	2,361	696	1,612	(421)	7,153
Non controlling interests	(1)	(0)	(121)	(343)	(61)	(93)	(0)	(619)
Net income Group Share	1,420	704	660	2,018	635	1,519	(421)	6,534

Appendix 3 – Crédit Agricole S.A.: Results by business line

Crédit Agricole S.A. – Results by business line, Q3-24 et Q3-23

	Q3-24 (stated)
€m	AG	LC	SFS	FRB (LCL)	IRB	CC	Total

Revenues	1,870	2,054	869	979	1,006	(290)	6,487
Operating expenses excl. SRF	(868)	(1,240)	(437)	(608)	(519)	(17)	(3,689)
SRF	–	–	–	–	–	–	–
Gross operating income	1,002	814	433	371	486	(307)	2,799
Cost of risk	(13)	(19)	(223)	(82)	(59)	(37)	(433)
Equity-accounted entities	33	6	23	–	–	(19)	42
Net income on other assets	(3)	(0)	(2)	0	0	0	(4)
Income before tax	1,019	800	231	290	427	(363)	2,404
Tax	(157)	(234)	(42)	(66)	(176)	199	(476)
Net income from discontinued or held-for-sale operations	–	–	–	–	–	–	–
Net income	862	566	189	224	252	(164)	1,928
Non controlling interests	(135)	(46)	(17)	(10)	(58)	4	(262)
Net income Group Share	728	520	172	214	194	(161)	1,666

	Q3-23 (stated)
€m	AG	LC	SFS	FRB (LCL)	IRB	CC	Total

Revenues	1,656	1,888	883	996	1,024	(103)	6,343
Operating expenses excl. SRF	(718)	(1,139)	(424)	(589)	(504)	(2)	(3,376)
SRF	–	–	–	–	–	–	–
Gross operating income	937	748	460	407	520	(105)	2,967
Cost of risk	(0)	(13)	(224)	(70)	(121)	(2)	(429)
Equity-accounted entities	24	6	5	–	1	(12)	23
Net income on other assets	(5)	(2)	57	18	1	(0)	69
Income before tax	956	739	298	355	401	(119)	2,630
Tax	(221)	(203)	(77)	(79)	(118)	65	(633)
Net income from discontinued or held-for-sale operations	–	–	(0)	–	2	–	2
Net income	736	536	220	277	285	(55)	1,999
Non controlling interests	(114)	(48)	(17)	(12)	(60)	0	(251)
Net income Group Share	621	488	204	264	225	(55)	1,748

Crédit Agricole S.A. – Results by business line, 9M-24 et 9M-23

	9M-24 (stated)
€m	AG	LC	SFS	FRB (LCL)	IRB	CC	Total

Revenues	5,603	6,543	2,605	2,912	3,090	(665)	20,089
Operating expenses excl. SRF	(2,435)	(3,741)	(1,333)	(1,801)	(1,580)	(88)	(10,978)
SRF	–	–	–	–	–	–	–
Gross operating income	3,168	2,802	1,272	1,111	1,510	(752)	9,111
Cost of risk	(18)	(25)	(653)	(295)	(213)	(53)	(1,256)
Equity-accounted entities	94	20	83	–	–	(65)	132
Net income on other assets	(23)	2	(3)	5	0	24	5
Change in value of goodwill	–	–	–	–	–	–	–
Income before tax	3,221	2,800	699	820	1,297	(846)	7,991
Tax	(659)	(717)	(138)	(185)	(435)	343	(1,790)
Net income from discontinued or held-for-sale operations	–	–	–	–	–	–	–
Net income	2,563	2,083	560	635	862	(503)	6,201
Non controlling interests	(382)	(147)	(59)	(28)	(184)	(3)	(803)
Net income Group Share	2,180	1,936	502	607	678	(506)	5,397

	9M-23 (stated)
€m	AG	LC	SFS	FRB (LCL)	IRB	CC	Total

Revenues	5,133	5,844	2,717	2,891	2,975	(421)	19,140
Operating expenses excl. SRF	(2,148)	(3,298)	(1,224)	(1,742)	(1,491)	(20)	(9,922)
SRF	(6)	(312)	(29)	(44)	(40)	(77)	(509)
Gross operating income	2,979	2,234	1,465	1,105	1,444	(519)	8,709
Cost of risk	(1)	(81)	(686)	(205)	(362)	(2)	(1,338)
Equity-accounted entities	73	17	90	–	2	(45)	136
Net income on other assets	(5)	3	81	21	1	(0)	102
Change in value of goodwill	–	–	–	–	–	–	–
Income before tax	3,047	2,173	950	921	1,085	(566)	7,609
Tax	(699)	(561)	(254)	(217)	(320)	218	(1,832)
Net income from discontinued or held-for-sale operations	1	–	(0)	–	7	–	7
Net income	2,349	1,612	696	704	772	(348)	5,785
Non controlling interests	(353)	(125)	(61)	(31)	(172)	(27)	(771)
Net income Group Share	1,996	1,486	635	673	600	(375)	5,014

Appendix 4 – Data per share

Crédit Agricole S.A. – Earnings p/share, net book value p/share and RoTE

(€m)		Q3-2024	Q3-2023	9M-24	9M-23

Net income Group share – stated		1,666	1,748	5,397	5,014
– Interests on AT1, including issuance costs, before tax		(130)	(136)	(351)	(371)
– Foreign exchange impact on reimbursed AT1		(19)	–	(266)	–
NIGS attributable to ordinary shares – stated	[A]	1,517	1,612	4,780	4,643
Average number shares in issue, excluding treasury shares (m)	[B]	3,031	3,043	3,007	3,031
Net earnings per share – stated	[A]/[B]	0.50 €	0.53 €	1.59 €	1.53 €
Underlying net income Group share (NIGS)		1,686	1,520	5,442	4,620
Underlying NIGS attributable to ordinary shares	[C]	1,537	1,384	4,825	4,249
Net earnings per share – underlying	[C]/[B]	0.51 €	0.46 €	1.60 €	1.40 €


(€m)				30/09/2024	30/09/2023
Shareholder’s equity Group share				71,386	69,416
– AT1 issuances				(6,102)	(7,235)
– Unrealised gains and losses on OCI – Group share				1,042	1,644
Net book value (NBV), not revaluated, attributable to ordin. sh.	[D]			66,326	63,825
– Goodwill & intangibles* – Group share				(17,778)	(17,255)
Tangible NBV (TNBV), not revaluated attrib. to ordinary sh.	[E]			48,548	46,570
Total shares in issue, excluding treasury shares (period end, m)	[F]			3,040	3,052
NBV per share , after deduction of dividend to pay (€)	[D]/[F]			21.8 €	20.9 €
TNBV per share, after deduction of dividend to pay (€)	[G]=[E]/[F]			16.0 €	15.3 €
* including goodwill in the equity-accounted entities

(€m)				9M-24	9M-23
Net income Group share – stated	[K]			5,397	5,014
Impairment of intangible assets	[L]			0	0
IFRIC	[M]			-110	-542
Stated NIGS annualised	[N] = ([K]-[L]-[M])*2+[M]			7,233	6,866
Interests on AT1, including issuance costs, before tax, foreign exchange impact, annualised	[O]			-734	-495
Stated result adjusted	[P] = [N]+[O]			6,499	6,371
Tangible NBV (TNBV), not revaluated attrib. to ord. sh. – avg *** (3)	[J]			45,219	43,200
Stated ROTE adjusted (%)	= [P] / [J]			14.4%	14.7%
Underlying Net income Group share	[Q]			5,442	4,620
Underlying NIGS annualised	[R] = ([Q]-[M])*2+[M]			7,293	6,341
Underlying NIGS adjusted	[S] = [R]+[O]			6,559	5,846
Underlying ROTE adjusted(%)	= [S] / [J]			14.5%	13.5%
*** including assumption of dividend for the current exercise					*0.0%*

(1) Underlying: see appendixes for more details on specific items
(2) Underlying ROTE calculated on the basis of an annualised underlying net income Group share and linearised IFRIC costs over the year
(3) Average of the NTBV not revalued attributable to ordinary shares, calculated between 31/12/2023 and 30/09/2024 (line [E]), restated with an assumption of dividend for current exercises

Alternative Performance Indicators⁵⁸

NBV Net Book Value (not revalued)
The Net Book Value not revalued corresponds to the shareholders’ equity Group share from which the amount of the AT1 issues, the unrealised gains and/or losses on OCI Group share and the pay-out assumption on annual results have been deducted.

NBV per share Net Book Value per share – NTBV Net Tangible Book Value per share
One of the methods for calculating the value of a share. This represents the Net Book Value divided by the number of shares in issue at end of period, excluding treasury shares.

Net Tangible Book Value per share represents the Net Book Value after deduction of intangible assets and goodwill, divided by the number of shares in issue at end of period, excluding treasury shares.

EPS Earnings per Share
This is the net income Group share, from which the AT1 coupon has been deducted, divided by the average number of shares in issue excluding treasury shares. It indicates the portion of profit attributable to each share (not the portion of earnings paid out to each shareholder, which is the dividend). It may decrease, assuming the net income Group share remains unchanged, if the number of shares increases.

Cost/income ratio
The cost/income ratio is calculated by dividing operating expenses by revenues, indicating the proportion of revenues needed to cover operating expenses.

Cost of risk/outstandings
Calculated by dividing the cost of credit risk (over four quarters on a rolling basis) by outstandings (over an average of the past four quarters, beginning of the period). It can also be calculated by dividing the annualised cost of credit risk for the quarter by outstandings at the beginning of the quarter. Similarly, the cost of risk for the period can be annualised and divided by the average outstandings at the beginning of the period.

Since the first quarter of 2019, the outstandings taken into account are the customer outstandings, before allocations to provisions.

The calculation method for the indicator is specified each time the indicator is used.

Doubtful loan
A doubtful loan is a loan in default. The debtor is considered to be in default when at least one of the following two conditions has been met:

a payment generally more than 90 days past due, unless specific circumstances point to the fact that the delay is due to reasons independent of the debtor’s financial situation.
the entity believes that the debtor is unlikely to settle its credit obligations unless it avails itself of certain measures such as enforcement of collateral security right.

Impaired loan
Loan which has been provisioned due to a risk of non-repayment.

MREL
The MREL (Minimum Requirement for Own Funds and Eligible Liabilities) ratio is defined in the European “Bank Recovery and Resolution Directive” (BRRD). This Directive establishes a framework for the resolution of banks throughout the European Union, with the aim to provide resolution authorities with shared instruments and powers to pre-emptively tackle banking crises, preserve financial stability and reduce taxpayers’ exposure to losses. Directive (EU) 2019/879 of 20 May 2019 known as “BRRD2” amended the BRRD and was transposed into French law by Order 2020-1636 of 21 December 2020.

The MREL ratio corresponds to an own funds and eligible liabilities buffer required to absorb losses in the event of resolution. Under BRRD2, the MREL ratio is calculated as the amount of eligible capital and liabilities expressed as a percentage of risk weighted assets (RWA), as well as a leverage ratio exposure (LRE). Are eligible for the numerator of the total MREL ratio the Group’s regulatory capital, as well as eligible liabilities issued by the corporate centre and the Crédit Agricole network affiliated entities, i.e. subordinated notes, senior non-preferred debt instruments and certain senior preferred debt instruments with residual maturities of more than one year.

Impaired (or non-performing) loan coverage ratio
This ratio divides the outstanding provisions by the impaired gross customer loans.

Impaired (or non-performing) loan ratio
This ratio divides the impaired gross customer loans on an individual basis, before provisions, by the total gross customer loans.

TLAC
The Financial Stability Board (FSB) has defined the calculation of a ratio aimed at estimating the adequacy of the bail-in and recapitalisation capacity of Global Systemically Important Banks (G-SIBs). This Total Loss Absorbing Capacity (TLAC) ratio provides resolution authorities with the means to assess whether G-SIBs have sufficient bail-in and recapitalisation capacity before and during resolution. It applies to Global Systemically Important Banks, and therefore to Crédit Agricole Group. Agricole. The TLAC ratio requirement was transposed into European Union law via CRR2 and has been applicable since 27 June 2019.

The Group’s regulatory capital as well as subordinated notes and eligible senior non-preferred debt with residual maturities of more than one year issued by Crédit Agricole S.A. are eligible for the numerator of the TLAC ratio.

Net income Group share
Net income/(loss) for the financial year (after corporate income tax). Equal to net income Group share, less the share attributable to non-controlling interests in fully consolidated subsidiaries.

Underlying Net income Group share
The underlying net income Group share represents the stated net income Group share from which specific items have been deducted (i.e., non-recurring or exceptional items) to facilitate the understanding of the company’s actual earnings.

Net income Group share attributable to ordinary shares
The net income Group share attributable to ordinary shares represents the net income Group share from which the AT1 coupon has been deducted, including issuance costs before tax.

RoTE Return on Tangible Equity
The RoTE (Return on Tangible Equity) measures the return on tangible capital by dividing the Net income Group share annualised by the Group’s NBV net of intangibles and goodwill. The annualised Net income Group share corresponds to the annualisation of the Net income Group share (Q1x4; H1x2; 9Mx4/3) excluding impairments of intangible assets and restating each period of the IFRIC impacts in order to linearise them over the year.

Disclaimer

The financial information on Crédit Agricole S.A. and Crédit Agricole Group for the third quarter and the first nine months of 2024 comprises this presentation and the attached appendices and press release which are available on the website: https://www.credit-agricole.com/en/finance/financial-publications.

This presentation may include prospective information on the Group, supplied as information on trends. This data does not represent forecasts within the meaning of EU Delegated Act 2019/980 of 14 March 2019 (Chapter 1, article 1, d).

This information was developed from scenarios based on a number of economic assumptions for a given competitive and regulatory environment. Therefore, these assumptions are by nature subject to random factors that could cause actual results to differ from projections. Likewise, the financial statements are based on estimates, particularly in calculating market value and asset impairment.

Readers must take all these risk factors and uncertainties into consideration before making their own judgement.

Applicable standards and comparability

The figures presented for the nine-month period ending 30 September 2024 have been prepared in accordance with IFRS as adopted in the European Union and applicable at that date, and with prudential regulations currently in force. This financial information does not constitute a set of financial statements for an interim period as defined by IAS 34 “Interim Financial Reporting” and has not been audited.

Note: The scopes of consolidation of the Crédit Agricole S.A. and Crédit Agricole Groups have not changed materially since the Crédit Agricole S.A. 2023 Universal Registration Document and its A.01 update (including all regulatory information about the Crédit Agricole Group) were filed with the AMF (the French Financial Markets Authority).

The sum of values contained in the tables and analyses may differ slightly from the total reported due to rounding.

At 30 June 2024, Indosuez Wealth Management had completed the acquisition of Degroof Petercam and now holds 65% of Banque Degroof Petercam alongside with CLdN Cobelfret, its historical shareholder, which would maintain a 20% stake in capital. As of 30 September 2024, Indosuez Wealth Management’s stake in Degroof Petercam has increased to 76%.

At 30 June 2024, Amundi had completed the acquisition of Alpha Associates, an independent asset manager offering multi-management investment solutions in private assets.

Financial Agenda

05 February 2025        Publication of the 2024 fourth quarter and full year results
30 April 2025                Publication of the 2025 first quarter results
14 May 2025                General Meeting
31 July 2025                Publication of the 2025 second quarter and the first half-year results
30 October 2025                Publication of the 2025 third quarter and first nine months results

Contacts

CREDIT AGRICOLE PRESS CONTACTS

CRÉDIT AGRICOLE S.A. INVESTOR RELATIONS CONTACTS

Institutional investors	+ 33 1 43 23 04 31	investor.relations@credit-agricole-sa.fr
Individual shareholders	+ 33 800 000 777 (freephone number – France only)	relation@actionnaires.credit-agricole.com

Cécile Mouton	+ 33 1 57 72 86 79	cecile.mouton@credit-agricole-sa.fr
Equity investor relations:
Jean-Yann Asseraf Fethi Azzoug	+ 33 1 57 72 23 81 + 33 1 57 72 03 75	jean-yann.asseraf@credit-agricole-sa.fr fethi.azzoug@credit-agricole-sa.fr
Oriane Cante	+ 33 1 43 23 03 07	oriane.cante@credit-agricole-sa.fr
Nicolas Ianna	+ 33 1 43 23 55 51	nicolas.ianna@credit-agricole-sa.fr
Leila Mamou	+ 33 1 57 72 07 93	leila.mamou@credit-agricole-sa.fr
Anna Pigoulevski	+ 33 1 43 23 40 59	anna.pigoulevski@credit-agricole-sa.fr


Credit investor and rating agency relations:
Gwenaëlle Lereste	+ 33 1 57 72 57 84	gwenaelle.lereste@credit-agricole-sa.fr
Florence Quintin de Kercadio	+ 33 1 43 23 25 32	florence.quintindekercadio@credit-agricole-sa.fr

See all our press releases at: www.credit-agricole.com

1 Car, home, health, legal, all mobile phones or personal accident insurance.
2 CA Auto Bank, automotive JVs and automotive activities of other entities
3 50% reduction in the carbon footprint (tonnes of CO₂ equivalent/€m invested) of its equity-listed and corporate bond investment portfolios and directly held property. (The previous target was a 25% reduction in the carbon footprint of its equity-listed and corporate bond investment portfolio in 2025 vs 2019.)

4 Low-carbon energy outstandings made up of renewable energy produced by the clients of all Crédit Agricole Group entities, including nuclear energy outstandings for Crédit Agricole CIB.
5 Crédit Agricole CIB green asset portfolio, in line with the eligibility criteria of the Group Green Bond Framework published in November 2023.
6 The reorganisation of the Mobility activities of the CA Consumer Finance Group had a non-recurring impact in Q3 2023 due to the transfer of business assets, indemnities received and paid, the accounting treatment of the 100% consolidation of CA Auto Bank (formerly FCA Bank) and the reorganisation of the automotive financing activities within the CA Consumer Finance Group (particularly the review of application solutions).
7 See Appendixes for more details on specific items.
8 The cost of risk/outstandings (in basis points) on a four-quarter rolling basis is calculated on the cost of risk of the past four quarters divided by the average outstandings at the start of each of the four quarters
9 The cost of risk/outstandings (in basis points) on an annualised basis is calculated on the cost of risk of the quarter multiplied by four and divided by the outstandings at the start of the quarter
10 Average rate of loans to monthly production for July and August 2024.
11 Equipment rate – Home-Car-Health policies, Legal, All Mobile/Portable or personal accident insurance
12 SAS Rue La Boétie dividend paid annually in Q2
13 Home Purchase Savings Plan base effect (reversal of the Home Purchase Savings Plan provision) in Q3-23 totalling +€118m in revenues and +€88m in net income Group share.

14 Underlying, excluding specific items.
15 Scope effect of Degroof Petercam revenues: +€140 million in the third quarter of 2024.
16 Scope effect in expenses in the third quarter of 2024: Degroof Petercam for -€104 million and miscellaneous others.
17 Costs related to the integration of ISB (CACEIS): -€26 million in third quarter 2024 versus -€5 million in third quarter 2023; costs related to the integration of Degroof Petercam: -€8 million in third quarter 2024.

18 Provisioning rate calculated with outstandings in Stage 3 as denominator, and the sum of the provisions recorded in Stages 1, 2 and 3 as numerator.
19 The cost of risk/outstandings (in basis points) on a four-quarter rolling basis is calculated on the cost of risk of the past four quarters divided by the average outstandings at the start of each of the four quarters
20 The cost of risk/outstandings (in basis points) on an annualised basis is calculated on the cost of risk of the quarter multiplied by four and divided by the outstandings at the start of the quarter
21 See Appendixes for more details on specific items.
22 SRF costs amounted to -€509 million over the first nine months of 2023

23 See Appendixes for details on the calculation of the RoTE (return on tangible equity)
24 The annualised underlying net income Group share corresponds to the annualisation of the underlying net income Group share (Q1x4; H1x2; 9Mx4/3) by restating each period for IFRIC impacts to linearise them over the year
25 Property and casualty insurance premium income includes a scope effect linked to the first consolidation of CATU (a property and casualty insurance entity in Poland): Impact of +0.5% on growth in property and casualty insurance premium income (+8.7% change in premium income excluding CATU between the third quarter of 2023 and the third quarter of 2024); Impact of +2.0% on portfolio growth, i.e. an impact of 314,000 contracts (+3.1% growth excluding CATU between September 2023 and September 2024).

26 Scope: property and casualty in France and abroad
27 P&C combined ratio in France (Pacifica) including discounting and excluding undiscounting, net of reinsurance: (claims + operating expenses + fee and commission income) to gross earned premiums; the ratio is calculated for the first nine months of 2024. The net combined ratio excluding the effect of discounting for the first nine months of 2024 is 97.7% (-0.2 percentage point year-on-year).
28 Excl. JVs
29 Excluding assets under custody for institutional clients
30 Amount of allocation of Contractual Service Margin (CSM) and Risk Adjustment (RA) including funeral guarantees
31 Amount of allocation of CSM and RA
32 Net of cost of reinsurance, excluding financial results
33 Indosuez Wealth Management scope
34 Degroof Petercam data for the quarter included in Wealth Management results: Revenues of €140m and expenses of -€104m (excluding integration costs partly borne by Degroof Petercam)

35 Refinitiv LSEG
36 Bloomberg in EUR
37 CA Auto Bank, automotive JVs and auto activities of other entities
38 CA Auto Bank and automotive JVs
39 Base effect related to the reorganisation of Mobility activities in Q3-23: +€1m in revenues, -€26m in equity-accounted entities, +€61m in net income on other assets, -€16m in corporate income tax, i.e. +€19m in net income Group share
40 Base effect related to the reorganisation of Mobility activities in 9M-23: +€300 million in revenues, -€18 million in expenses, -€85 million in cost of risk, -€39 million in equity-accounted entities, +€89 million in net income on other assets, -€89 million in corporate income tax, i.e. +€159 million in net income Group share.
41 Cost of risk for the last four quarters as a proportion of the average outstandings at the beginning of the period for the last four quarters.
42 Base effect related to the reorganisation of Mobility activities in 9M-23: +€300 million in revenues, -€18 million in expenses, -€85 million in cost of risk, -€39 million in equity-accounted entities, +€89 million in net income on other assets, -€89 million in corporate income tax, i.e. +€159 million in net income Group share.
43 Net of POCI outstandings
44 Source: Abi Monthly Outlook, July 2024: -1.9% June/June and -1.2% year to date for all loans
45 Home Purchase Saving Plan base effect (reversal of the provision for Home Purchase Saving Plans) in Q2-23 of +€52 million in revenues and +€37 million in net income Group share.
46 Reversal of provision for Cheque Image Exchange Provision of + €21m in Q2-23
47 At 30 September 2024 this scope includes the entities CA Italy, CA Polska, CA Egypt and CA Ukraine.

48 Over a rolling four quarter period.
49 A credit institution that is a wholly owned subsidiary of Crédit Agricole S.A. Large credit exposures borne by the Regional Banks must be presented to Foncaris, which partially guarantees such exposures.
50 As part of its annual resolvability assessment, Crédit Agricole Group has chosen to waive the possibility offered by Article 72ter(3) of the Capital Requirements Regulation (CRR) to use senior preferred debt for compliance with its TLAC requirements in 2024.
51 Gross amount before buy-backs and amortisations
52 Excl. AT1 issuances
53 Gross amount before buy-backs and amortisations
54 Excl. AT1 issuances
55 Excl. senior secured debt
56 Excl. senior secured debt
57 Excl. AT1 issuances
58 APMs are financial indicators not presented in the financial statements or defined in accounting standards but used in the context of financial communications, such as underlying net income Group share or RoTE. They are used to facilitate the understanding of the company’s actual performance. Each APM indicator is matched in its definition to accounting data.

Attachment

CASA_PR_2024-Q3 results

The MIL Network –

January 26, 2025

MIL-Evening Report: US elections: Cook Islands group warns of climate crisis pushback if Trump wins

By Losirene Lacanivalu of the Cook Islands News

The leading Cook Islands environmental lobby group says that if Donald Trump wins the United States elections — and he seemed to be on target to succeed as results were rolling in tonight — he will push back on climate change negotiations made since he was last in office.

As voters in the US cast their votes on who would be the next president, Trump or US Vice-President Kamala Harris, the question for most Pacific Islands countries is what this will mean for them?

“If Trump wins, it will push back on any progress that has been made in the climate change negotiations since he was last in office,” said Te Ipukarea Society’s Kelvin Passfield.

“It won’t be good for the Pacific Islands in terms of US support for climate change. We have not heard too much on Kamala Harris’s climate policy, but she would have to be better than Trump.”

The current President Joe Biden and his administration made some efforts to connect with Pacific leaders.

Massey University’s Centre for Defence and Security Studies senior lecturer Dr Anna Powles said a potential win for Harris could be the fulfilment of the many “promises” made to the Pacific for climate financing, uplifting economies of the Pacific and bolstering defence security.

Dr Powles said Pacific leaders want Harris to deliver on the Pacific Partnership Strategy, the outcomes of the two Pacific Islands-US summits in 2022 and 2023, and the many diplomatic visits undertaken during President Biden’s presidency.

Diplomatic relationships
The Biden administration recognised Cook Islands and Niue as sovereign and independent states and established diplomatic relationships with them.

The Biden-Harris government had pledged to boost funding to the Green Climate Fund by US$3 billion at COP28 in the United Arab Emirates.

Harris has said in the past that climate change is an existential threat and has also promised to “tackle the climate crisis with bold action, build a clean energy economy, advance environmental justice, and increase resilience to climate disasters”.

Dr Powles said that delivery needed to be the focus.

She said the US Elections would no doubt have an impact on small island nations facing climate change and intensified geopolitics.

Dr Powles said it came as “no surprise” that countries such as New Zealand and Australia had increasingly aligned with the US, as the Biden administration had been leveraging strategic partnerships with Australia, New Zealand, and Japan since 2018.

She said a return to Trump’s leadership could derail ongoing efforts to build security architecture in the Pacific.

Pull back from Pacific
There are also views that Trump would pull back from the Pacific and focus on internal matters, directly impacting his nation.

For Trump, there is no mention of the climate crisis in his platform or Agenda47.

This is in line with the former president’s past actions, such as withdrawing from the Paris Climate Agreement in 2019, citing “unfair economic burdens” placed on American workers and businesses.

Trump has maintained his position that the climate crisis is “one of the great scams of all time”.

Republished with permission from the Cook Islands News and RNZ Pacific.

MIL OSI Analysis – EveningReport.nz –

January 26, 2025
MIL-OSI Global: US election results: Trump leads electoral college votes as Republicans regain Senate

Source: The Conversation – UK – By Jonathan Este, Senior International Affairs Editor, Associate Editor

This is a rolling guide to articles and audio published by The Conversation in the immediate run-up to and aftermath of the election, with some explainers about the process. This page is updated from the top, so older references are moved down the page.

Good morning world. The United States has made its choice. And, as of 5am Donald Trump and the Republican Party will be the happier contenders, having so far won the most electoral college votes and the first swing states of North Carolina and Georgia, as well as regaining control of the Senate.

It’s been a turbulent four months since outgoing president Joe Biden announced he was terminating his bid for a second term and the battlelines between the two candidates, Donald Trump and Kamala Harris were drawn. Soon we will know who will lead the US for the next four years.

From here, with the help of some of the sharpest analysts of US politics, we’ll keep you updated and informed as the situation develops.

To get an idea of the scale of the task of counting votes, take a look at the below map of the US colour-coded by poll closing times. How long the count could take is anyone’s guess at this stage. Each state has its own rules.

Ahead of the polls closing Richard Hargy, an expert in US politics from Queen’s University Belfast, wrote a guide to the process, when the votes are counted and when we might start to see results.

Read more:
US election: what time do the polls close and when will the results be known? An expert explains

Delays are baked into the process, such as Pennsylvania, which doesn’t allow votes cast before election day or ballots posted in to be counted until polls close, which was at 8pm (1am GMT).

So we’ll just have to be patient. In the mean time, you can also read Hargy’s explainer on the “electoral college” system, which can mean that the candidate with the most votes may not win the presidency.

Read more:
US election: how does the electoral college voting system work?

Early voting and what it might mean

Scott Lucas, professor of international politics at University College Dublin, believes that in a cliffhanger election, a clue to the outcome may be in the size of turnout. More than 80 million Americans voted early – around half of the total turnout in 2020 and around one-third of the eligible electorate.

The 80 million figure takes on added significance with the recognition that it is not that distant from the 104 million who participated early in the “pandemic” election four years ago. And that 2020 ballot, with 158.4 million votes and almost 67% participation, was the largest turnout since 1900.

Who does that favour? Probably Kamala Harris and Tim Walz. Trumpists will turn out for their man come hell or high water. The large question mark has been whether potential Harris voters would sit on their hands, whether from lack of enthusiasm or dissatisfaction on issues such as Israel’s open-ended war on Gaza.

Any prediction in this election is a risk. But it might be worth setting a marker: if turnout matches or exceeds the record set in 2020, Kamala Harris could be on the way to the White House.

Tense moment for the US

During the campaign there have been two assassination attempts on former president Trump as well as arson attacks on ballot boxes and ballots damaged. In Arizona the Democratic party was forced to close one of its offices after it had been shot at three times.

Dafydd Townley, a fellow in international security at Portsmouth University, believes that there could be a reluctance to accept the result and that this could result in further disturbances. He has written about how much violence there has been during this campaign.

Read more:
US election: officials are issued with panic buttons as attacks on ballot boxes continue

Dafyyd Townley comments on post-election violence.

How race has played into the campaign

Rhianna Garrett, PhD researcher and global coordinator of the critical mixed race studies executive board at Loughborough University, says that Trump’s campaign has been “littered with attempts to weaponise” the multiracial heritage of his Democrat opponent Kamala Harris.

Much of this has been a dog-whistle attempt to stir up his own base, partly with fairly blatant appeals to latent feelings of racism, but also as a tool to position Harris as deceiving and untrustworthy by apparently blurring and shifting her own background.

In August, not long after Harris took over the Democrat ticket from Biden, Trump appeared at the National Association of Black Journalists conference when he wrongfully claimed that Harris was changing her identity, stating: “I didn’t know she was Black until a number of years ago when she happened to turn Black, and now she wants to be known as Black, So I don’t know. Is she Indian or is she Black?”.

For her part, Harris’s campaign has also used her multiracial heritage to further their political agendas. On the White House website, she is described as “the first woman, the first Black American, and the first South Asian American” to hold a vice-presidential position, which has effectively attempted to position her as a winner. Harris herself has also foregrounded “race” on her campaign website. In attempt to attack Trump’s campaign, she strategically aims to promote Black and Latino men specifically, as well as women’s rights. These are key voter groups she has aimed to mobilise through identity politics.

Trump and winning male voters

Donald Trump widened his appeal to male voters in this election, with polling indicating that he was picking up more support from Black and Latino men, as well as more young men more widely.

One reason for this may be that in 2024 young men are more conservative than any other group in the US. Another reason why gender has become a divisive issue is the overturning of Roe v Wade, the legal case that gave American women abortion rights.

Read more on the gender divide in this article from Natasha Lindstaedt, a professor of government at Essex University.

Read more:
US election: why more men and fewer white women say they will vote for Trump

A free speech campaign?

Julie Posetti, professor of journalism at City St George’s, University of London, and global director of research at the International Center for Journalists, recently conducted a survey of more than 1,000 Americans on their attitudes to the press.

Breaking down the results, they were able to build a picture of what people in the US think of targeting journalists for criticism and even abuse. You can read all about the study here.

Read more:
New survey finds an alarming tolerance for attacks on the press in the US – particularly among white, Republican men

When Trump speaks – his supporters hear him loud and clear

Channel 4 is showing pictures of the Trump party at the Palm Beach Convention Center, where the Maga faithful are celebrating the news that it appears that Trump has retaken Georgia in his second swing-state victory. Their idol is expected to join them soon.

While we wait for him to speak, here’s a fascinating piece on Trump’s rhetorical style by Loren D. Marsh of the Humboldt University of Berlin. His speeches have been ridiculed by his opponents during the campaign. They say he’s unfocused, rambling and at times nonsensical. He calls it the “weave” and says it’s genius. Marsh says that whatever you may think, it seems to work for his supporters.

Far from being a liability or an indication he is incapable of staying on message, Trump’s “weave” may well be his intuitive rhetorical strategy, a way of taking control of the media narrative.

Read more:
Trump’s speeches are chaotic, rambling, and extremely effective. Aristotle can explain why

A bad night for the pollsters

Natasha

– ref. US election results: Trump leads electoral college votes as Republicans regain Senate – https://theconversation.com/us-election-results-trump-leads-electoral-college-votes-as-republicans-regain-senate-241711

MIL OSI – Global Reports –

January 26, 2025
MIL-OSI Asia-Pac: Correctional officers stop person in custody attacking staff members

Source: Hong Kong Government special administrative region

     Correctional officers at Lo Wu Correctional Institution stopped a female person in custody attacking staff members today (November 6).

     At 8.19am today, a 44-year-old female person in custody suddenly became emotional and attacked two correctional officers inside the Day Orderly Officer’s office. Officers at the scene immediately stopped the assailant and applied OC foam to subdue her after repeated warnings were ignored.

     During the incident, an officer sustained injuries to her shoulders and hands, while another officer sustained injuries to her head, arms and knee. After examination and treatment by the Medical Officer at the institution hospital, they were sent to a public hospital for further treatment. The assailant sustained injuries to her head and arms. She did not need to be sent to a public hospital after examination and treatment by the institution Medical Officer.

     The case has been reported to the Police for investigation.

     The assailant was sentenced to imprisonment for the offence of possession of forged identity cards in October 2024.

MIL OSI Asia Pacific News –

January 26, 2025
MIL-OSI Asia-Pac: LCQ1: Disposal of waste furniture

Source: Hong Kong Government special administrative region

     Following is a question by the Hon Luk Chung-hung and a reply by the Secretary for Environment and Ecology, Mr Tse Chin-wan, in the Legislative Council today (November 6):

Question:

     There are views that most waste furniture is reusable, and for Hong Kong, collaborating with the Mainland in waste treatment is not only a superior mode of co-operation leveraging on the strong support of the motherland, but also crucial to the city’s efforts in reducing waste generation, turning waste into resources, and promoting environmental protection and sustainable development. In this connection, will the Government inform this Council:

(1) of the quantity of waste furniture disposal as measured by weight in the past five years, together with a breakdown by household furniture and commercial furniture;

(2) as some members of the public have relayed that at present, they have to deliver waste furniture to public refuse collection points themselves, which is very physically demanding, whether the Government will, by drawing reference from the practice of treating and recycling waste electrical and electronic equipment, introduce a producer responsibility scheme on furniture, and commission contractors to provide services for to-the-door collection of waste furniture and the delivery of used furniture in suitable conditions as a donation to the underprivileged groups, so as to assist members of the public in the disposal of waste furniture and promote the turning of waste into resources; if so, of the details; if not, the reasons for that; and

(3) as it is learnt that Hong Kong will explore with the Mainland the integration of waste resources in the Guangdong-Hong Kong-Macao Greater Bay Area, whether the Government will consider collaborating with the Mainland in creating new green industries for the treatment of household or commercial waste furniture that has a value and is reusable, and establishing a “green lane” for exporting waste furniture to the Mainland with the provision of tax incentives; if so, of the details; if not, the reasons for that?

Reply:

President,

     The Government has all along been attaching great importance to promoting the culture of “use less, waste less”, and vigorously promoting community-wide participation in waste reduction at source and clean recycling, with a view to achieving full utilisation of materials and minimisation of resources wastage. The Government’s support to the recycling industry is primarily based on the principles of market economy and fair competition. Meanwhile, consideration is also given to the feasibility of converting different types of waste into energy or resources, as well as the cost effectiveness of recycling, when determining priority and appropriate measures for various types of recyclables. In view of the diverse types of waste, in order to optimise the use of government resources, the priority of Government’s support measures will be accorded to the treatment of two types of wastes, including (i) wastes containing hazardous substances, which will pose hazards to the environment and human health (such as waste electrical and electronic products), and (ii) wastes of relatively large quantities that will be more cost-effective in alleviating burden on the landfills (such as waste plastics and food waste). For these two types of wastes, we will fill the gaps in the market through appropriate measures based on the relative economic value and environmental benefits of recycling. As regards recyclables with stable market value or items with an active second-hand market, the Government will allow the recycling industry and the private market to handle them in accordance with market principles which will be conducive to enhancing the economic value of recovery and recycling, thereby building a circular economy in the long run.

     On the handling of used furniture, the second-hand market and trading platforms for used furniture are active in Hong Kong, and members of the public are aware of the mode of operation of the relevant market. For example, members of the public could arrange for the proper disposal of used furniture through furniture companies or trading platforms, or arrange for door-to-door collection by themselves in the course of purchasing new furniture.

     The reply to the question raised by the Hon Luk Chung-hung is as follows:

(1) The Environmental Protection Department (EPD) does not keep separate statistics on the amount of furniture disposed of and thus is unable to provide relevant figures.

(2) At present, there are different channels and platforms in the market for second-hand sale, exchange, donation, refurbishment, and facilitating the reuse of furniture, including commercial organisations, social enterprises, non-governmental organisations (NGOs) and social media, to assist members of the public to handle used furniture. The public may choose suitable channels for trading, exchanging or donating their used furniture according to different circumstances and needs, such as the quality and quantity of the furniture, as well as their district of residence.

     If members of the public need to dispose of used furniture, there are companies that provide furniture disposal services, the charges of which depend on the size, type and weight of individual furniture, as well as the relevant removal condition and the districts concerned. On the other hand, the Food and Environmental Hygiene Department (FEHD) and its contractors collect domestic waste, including disposed furniture, from its public refuse collection points, as well as the refuse collection points in public and private housing estates. Some residential buildings employ their own contractors to deliver disposed furniture by their residents, from the refuse collection points of their residential buildings to the public refuse collection points under the FEHD, or directly to the refuse transfer stations or landfills under the EPD for disposal. The arrangement for relevant disposal services has been operating effectively, and is generally in line with the “polluter pays” principle. Therefore, at present, we do not consider it necessary for the Government to provide door-to-door disposal services for used furniture for the public through a designated operator.

     As most of the furniture is made of composite materials, containing a wide range of substances, such as plastics, wood trimmings, wood or other plant fibres, these composite materials are difficult to be separated into single materials for recycling by simple means, leading to very high cost of recycling and relatively higher carbon footprint in the process of recycling. Therefore, recycling is generally not a suitable outlet for used furniture. Encouraging members of the public to reuse the used furniture would better comply with the environmental principles and should be more cost-effective than recovery and recycling through producer responsibility schemes or other measures.

(3) We will continue to promote waste reduction at different levels of the community, maintain communication with the trade and stakeholders and join hands to publicise and promote the culture of “use less, waste less”, so as to cultivate a culture and habit of reusing, exchanging and donating used furniture in the society. Specific measures include collaborating with NGOs to explore ways to step up publicity and education on the donation or exchange of second-hand furniture at the community level, promoting the culture of “use less, waste less” through the Big Waster’s social media platform and the Government’s “Hong Kong Waste Reduction Website”, as well as further disseminating the relevant message at the district level through the community network of the “Green Outreach”.

     As for the co-operation with the Guangdong-Hong Kong-Macao Greater Bay Area, the “Guangdong-Hong Kong-Macao Greater Bay Area Ecological Environmental Protection Plan” promulgated by the Ministry of Ecology and Environment vigorously promotes the development of a “Zero Waste” Bay Area. With this opportunity, Guangdong and Hong Kong have established a close co-operation and exchange mechanism on environmental issues to jointly explore the capacity and modes for developing a circular economy in the region, leveraging the competitive advantages of the two places, complementing each other’s strengths, and mutually developing green industries, green energy and related facilities. We believe that this will bring greater opportunities for the recycling industry in Hong Kong in the future.

     We will continue to monitor the market situation and maintain communication with the trade, with a view to further fostering a culture of “use less, waste less” in the community and encouraging the reuse and donation of used furniture.

     Thank you, President.

MIL OSI Asia Pacific News –

January 26, 2025
MIL-OSI Asia-Pac: Building Safety Carnivals to be held over next two weekends (with photos)

Source: Hong Kong Government special administrative region

     â€‹The Buildings Department (BD) will hold Building Safety Carnivals at Tuen Mun Town Plaza Phase One and Olympian City Two on November 9 and 10 (Saturday and Sunday); and November 16 and 17 (Saturday and Sunday) respectively.

     Building Safety Carnival is one of the major events of Building Safety Weeks 2024. The carnival will feature game booths with an aim to help members of the public acquire proper building safety knowledge in a fun and engaging way. Participants will receive souvenirs upon completion of the games. The BD’s mascots Ah Build and Ah Ding will also attend to meet visitors and pose for photos.

     Details of the Building Safety Carnival are as follows:

Date: November 9 and 10 (Saturday and Sunday)
Time: 11am to 8pm
Venue: Main Atrium, 1/F, Tuen Mun Town Plaza I

Date: November 16 and 17 (Saturday and Sunday)
Time: 11am to 8pm
Venue: Event Hall, G/F, Olympian City 2

     Admission is free and members of the public are welcome.

MIL OSI Asia Pacific News –

January 26, 2025
MIL-OSI Asia-Pac: LCQ14: Propelling Hong Kong into an international gold trading centre

Source: Hong Kong Government special administrative region

     Following is a question by the Hon Robert Lee and a written reply by the Acting Secretary for Financial Services and the Treasury, Mr Joseph Chan, in the Legislative Council today (November 6):

Question:

     The 2024 Policy Address has proposed to propel Hong Kong into an international gold trading centre and create a commodity trading ecosystem, so as to further consolidate and enhance Hong Kong’s status as an international financial centre. In this connection, will the Government inform this Council:

(1) given that the Airport Authority Hong Kong (AAHK) has recently announced the expansion plan of the Hong Kong International Airport Precious Metals Depository, under which its vaulting capacity will be expanded up to 1 000 tonnes in phases, whether the Government knows the timetable of the expansion plan, and how AAHK will make full use of the potential of the facility;

(2) how the Government will make good use of the only exchange in Hong Kong which trades physical gold and silver, i.e. the Chinese Gold and Silver Exchange Society, so that it can actively tie in with the Government’s policies to propel Hong Kong into an international gold trading centre;

(3) regarding the development of Hong Kong into an international gold trading centre, of the Government’s initial thinking on improving the relevant financial infrastructures and support (e.g. mode of regulation, bank account opening process, testing and certification of gold, talent training, etc.), as well as helping the industry enhance its service quality to align with international standards;

(4) given that the Dealers in Precious Metals and Stones Registration Regime (the Regime) was implemented on April 1 last year, of the implementation situation of the Regime (including the number of applications); whether the Government has reviewed the effectiveness of the Regime, as well as its burden and impact on the operation of the industry;

(5) given that some members of the industry have suggested that the Government should strive to join the Regional Comprehensive Economic Partnership (RCEP) as soon as possible, so that the industry can enjoy zero tariff for exporting gold and other precious metals from Hong Kong to RCEP member states, of the current progress of Hong Kong’s application for accession to RCEP, and whether the Government has assessed the impact of RCEP accession on enhancing the global competitiveness of Hong Kong’s precious metals industry; and

(6) whether the Government has studied how to strengthen the co-operation between the Hong Kong Exchanges and Clearing Limited and major commodities and futures exchanges in the Mainland, so as to contribute to enhancing our country’s pricing power in the international commodities market?

Reply:

President,

     In consultation with relevant bureaux including the Transport and Logistics Bureau and the Commerce and Economic Development Bureau, our consolidated reply to the six parts of the question is as follows:

(1) to (3) and (6)The Third Plenary Session of the 20th Central Committee of the Communist Party of China (CPC Central Committee) adopted the Resolution of the CPC Central Committee on Further Deepening Reform Comprehensively to Advance Chinese Modernization. The Resolution calls on Hong Kong to fully harness the institutional strengths of “one country, two systems” while consolidating and enhancing its status as an international financial, shipping and trade centre.

     In the Policy Address this year, the Chief Executive has emphasised the need to explore new growth areas. Building an international gold trading centre is a new growth point for Hong Kong to consolidate and enhance its status as an international financial centre. Gold serves as a crucial anchor in the precious metals category, possessing multiple attributes as a commodity, a reserve asset, and an investment product. Under increasing global political and economic uncertainties, gold is one of the key hedging tools. With the geopolitical environment becoming more complex and some regional situations remaining unclear, it is expected that global demand for gold will remain substantial. Many investors would like to store physical gold in different geographical locations, which presents opportunities for Hong Kong to develop the gold market.

     Financial trading of gold generally refers to investors on the basis of needs making use of standard or tailored contracts to buy and sell physical gold or related spot or futures financial products (e.g. funds, forwards, swaps and futures). Experiences of overseas trading show that commodity markets, including those specialising in financial trading of gold, have their own characteristics. It takes time to build up trading and the ecosystem. While Hong Kong has the potential for both on and off-exchange transactions, the relevant development requires detailed planning and a gradual and orderly progression.

     As the first step, the Government will focus on the development of world-class gold storage facilities, thereby attracting more investors and users to store gold in Hong Kong. Since 2009, the Airport Authority Hong Kong (AAHK) has been operating the Precious Metals Depository at the Hong Kong International Airport to provide storage and physical settlement services for precious metals. As the depository is nearing its full capacity, AAHK is planning to expand the storage in support of the Government’s initiative to develop world-class gold storage facilities and establish Hong Kong as an international gold trading centre. The expansion will be implemented in phases. During the initial phase, the capacity will be increased from the existing 150 tonnes to 200 tonnes, which will further be increased to up to 1 000 tonnes in subsequent phases with room reserved for further development. The Government is also pleased to see the industry’s other plans to establish or expand gold storage, and will provide appropriate assistance if necessary.

     Based on increased storage, we expect to scale up associated support services in insurance, testing and certification, logistics, etc, while in parallel expanding related transactions including collateral, loan and hedging, hence creating a comprehensive ecosystem. This will drive all-round multi-currency trading, clearing and delivery, as well as the development of the regulatory system, thereby establishing a holistic gold trading centre with an industry chain. We will also as appropriate explore mutual access with the Mainland financial market, covering spot and futures markets.

     In the proactive development of gold trading in Hong Kong, the wisdom, contributions and concerted efforts of different sectors involved are needed. The Financial Services and the Treasury Bureau will set up a working group within this year to formulate plans on enhancing the trading and regulatory mechanisms of the market. Topics to be looked into will include gold supply and demand, product development, application of standards, clearing mechanism, logistics and storage, testing and certification, talent training, promotion in the Mainland and overseas regions, cross-boundary collaboration, etc. We are considering the composition of the working group, which will encompass industry professionals and local exchanges (e.g. the Hong Kong Exchanges and Clearing Limited and Chinese Gold and Silver Exchange). We will also communicate and liaise with the Mainland exchanges concerned.

(4) In response to the fourth round of mutual evaluation report completed by the Financial Action Task Force (FATF) from 2018 to 2019, which proposed that Hong Kong should regulate precious metals and stones dealers, we amended the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615) in 2022 to introduce the regulatory regime for precious metals and stones dealers. The regime implemented from April 1, 2023 is administered by the Hong Kong Customs and Excise Department (C&ED). Anyone who intends to conduct business on precious metals and stones in Hong Kong and conducts transactions (whether making or receiving payments) totaling HK$120,000 or more in Hong Kong in the course of the business must apply to C&ED for registration. As of end-September 2024, C&ED has registered 8 000 dealers. Overall, the regime has been operating smoothly.

     C&ED is proactive in conducting publicity to the industry and the public, by means of distributing promotional videos through different channels, holding public lectures, and conducting territory-wide outreach activities to communicate with dealers. Meanwhile, C&ED has provided relevant guidance to the industry, and set up an online system to receive and process applications, providing convenience for dealers to apply for registration. C&ED has also established the Dealers in Precious Metals and Stones Sector Advisory Group to liaise with different industry stakeholders periodically. Since the implementation of the regime, the industry has responded positively, generally expressing understanding of the need for the regime and actively co-operating in fulfilling Hong Kong’s responsibilities as a member of FATF.

     The regime effectively regulates registered precious metals and stones dealers in implementing anti-money laundering and counter-terrorist financing requirements in compliance with international standards. The Government will continue to monitor market conditions and risks, and analyse transaction information submitted by registered dealers in formulating comprehensive strategies and prioritising regulatory actions to enhance the effectiveness of the regime.

(5) The development of financial trading of gold will also help further consolidate gold trade and related retail businesses. The Government has been actively seeking early accession to the Regional Comprehensive Economic Partnership (RCEP). Right after RCEP came into force on January 1, 2022, the Government promptly submitted Hong Kong’s formal accession request. At the same time, the Government has proactively made use of different occasions to express Hong Kong’s keen interest in joining RCEP to its members and explained Hong Kong’s active role in promoting regional economic integration and development. The Central People’s Government fully supports Hong Kong to join RCEP. During overseas visits, senior officials of the Government have also expressed to the relevant leaders of RCEP members that Hong Kong is ready to join RCEP, and have received positive responses. We welcome the adoption of the Procedures for Accession to the RCEP Agreement by the RCEP Joint Committee in September 2024. We will actively follow up with the RCEP Joint Committee, and strive to build consensus from different sectors and places to support Hong Kong to join RCEP as soon as possible. Upon Hong Kong’s accession, the tariff concession and other trade facilitation measures under the Agreement will help enhance the competitiveness of Hong Kong’s related industries and their products in the RCEP markets.

MIL OSI Asia Pacific News –

January 26, 2025
MIL-OSI Asia-Pac: LCQ16: Short-term parking arrangements for delivery couriers

Source: Hong Kong Government special administrative region

Following is a question by the Hon Kingsley Wong and a written reply by the Secretary for Housing, Ms Winnie Ho, in the Legislative Council today (November 6):

Question:

     It has been reported that the new communities of Queen’s Hill Estate and Shan Lai Court in Fanling, with a population of more than 30 000, have great demand for the services of online delivery platforms. However, some of the relevant trade unionists have reflected that the management offices of these housing estates have not considered the need of delivery couriers for short-term parking of their motorcycles. Not only have the management offices failed to provide temporary parking spaces, they have also stepped up their efforts to impound motorcycles and have even lodged complaints with the Police about motorcycles obstructing roads, resulting in delivery couriers often having to pay impounding charges and fines for penalty tickets. Such trade unionists hope that the relevant estate management offices and the Police can take into account the principles of legality, reasonableness and compassion in their actions. In this connection, will the Government inform this Council:

(1) as there are views about the varying standards of the management offices of different public housing estates in managing the short-term parking of delivery couriers’ motorcycles in the housing estates, which has left delivery couriers at a loss, whether the authorities will consider providing guidelines for all parties to follow; if so, of the details; if not, the reasons for that;

(2) whether it will keep abreast with the need to develop the platform economy by using the housing estates with recent population intakes (e.g. Queen’s Hill Estate) as pilot estates to provide “designated motorcycle parking spaces for delivery” within or near the housing estates to allow delivery couriers to park their motorcycles for short periods; if so, of the details; if not, the reasons for that;

(3) whether it will follow the practice of the Mainland and set up “courier posts” in various districts to provide areas for resting, eating and using toilets, equipped with facilities such as water dispensers and first-aid kits, so as to improve the working conditions and well-‍being of delivery couriers; if so, of the details; if not, the reasons for that; and

(4) whether it has estimated the latest number of local delivery couriers accepting orders through online platforms?

Reply:

President,

     Having consulted the Transport and Logistics Bureau, Commerce and Economic Development Bureau, Labour and Welfare Bureau and the Census and Statistics Department (C&SD), a consolidated reply to the Hon Kingsley Wong’s question is as follows:

(1) & (2) In general, establishing designated motorcycle parking spaces for delivery services in public housing estates or on public roads nearby requires effective management measures to ensure that these parking spaces are used as intended, such as restricting the parking purpose and limiting the parking duration based on the circumstances of each public housing estate to avoid prolonged occupancy. At present, motorcycle parking spaces on public roads are open for public use, including food delivery motorcycles. There are no restrictions on the parking use of the parking spaces. The Transport Department endeavours to increase the supply of motorcycle parking spaces on public roads to meet with the keen demand of motorcyclists through various means. It is initially assessed that the feasibility in establishing designated motorcycle parking spaces for a specific purpose is relatively low.

     Overall speaking, loading/unloading bays are provided around the domestic blocks in most of the housing estates/courts under the Hong Kong Housing Authority (HA) for vehicles, including delivery motorcycles, to load/unload goods or pick-up/drop-off passengers. Taking into account the prevalent need for short-term parking by various types of vehicles to load/unload goods and pick-up/drop-off passengers, the HA has waived the parking fees for vehicles parked in its loading/unloading bays in all housing estates/courts under the HA’s management for up to 30 minutes.

     In addition, for roads other than the loading/unloading bays, the Housing Department (HD) or the authorised staff of the housing estates/courts/car park operators will exercise discretion with regard to the actual situation in handling short-term parking by delivery motorcycles and other vehicles in a reasonable and compassionate manner. Given that the specific circumstances and road design vary in different housing estates/courts, the staff concerned will, in handling the matter, consider the needs of delivery couriers and will strike a balance among various factors such as estate management, the impact on other residents and road users, as well as whether the road section concerned is an emergency vehicular access which has to be kept clear at all times for fire appliances, police vehicles or ambulances to carry out rescue and other operations. In general, the staff will first issue a verbal/written warning to request the driver concerned to drive off the illegally parked vehicle. Only when the warning goes unheeded, the driver will receive fixed penalty tickets or have the vehicle impounded in accordance with the law. Couriers can use the loading/unloading bays adjacent to the domestic blocks for short-term parking of their motorcycles to facilitate their delivery services, and the estate staff will handle short-term parking by delivery motorcycles in a reasonable and compassionate manner according to the actual situation. The above arrangements took into account the needs of all the stakeholders.

Queens Hill Estate is a public rental housing estate under the HA, while the neighbouring Shan Lai Court is a sold housing court under the “Home Ownership Scheme”. Lung Ma Road and Lung Chun Road, the major roads serving Queens Hill Estate and Shan Lai Court, are restricted roads within Queens Hill Estate. No parking is allowed at any time on these two roads which are under the control of the HD. The housing estate and court concerned are provided with emergency vehicular access to various domestic blocks, each of which is provided with loading/unloading bays in the vicinity with free parking offer for the first 30 minutes to allow short-term parking by vehicles (including motorcycles). At present, seven and six loading/unloading bays are provided adjacent to the domestic blocks in Queens Hill Estate and Shan Lai Court respectively. These facilities provide spaces for free temporary parking, enabling couriers to promptly deliver services. In addition, 11 hourly motorcycle parking spaces are provided in Queens Hill Estate for visitors (including couriers).

     It is noted that some motorcycles/vehicles are parked on Lung Ma Road and Lung Chun Road, of which parking is prohibited at all times, or on the adjacent pedestrian footpaths. There are even vehicles parked illegally on emergency vehicle access in the housing estate/court, posing danger to other road users and pedestrians. Therefore, enforcement actions must be taken. The management agency appointed by the HA is authorised to carry out enforcement actions. Warning banners have been put up in prominent areas on roads to remind drivers that illegal parking will result in their vehicle impounded or issuance of fixed penalty tickets. If illegal parking is identified, the staff will warn the driver on-site to drive away the vehicle as soon as possible; and issue a warning notice if the driver is not present. Should the warning be unheeded, the vehicles concerned will be impounded. According to the record, most of the impounded vehicles were prolonged parking vehicles rather than short-term parking by delivery motorcycles. It can thus be seen that the aforementioned enforcement actions have been carried out in a lawful, reasonable and compassionate manner, and the impact on couriers has been minimal. It is observed that the situation has now been improved and in general couriers would temporarily park their motorcycles on the loading/unloading bays adjacent to the domestic blocks for delivery services.

     As for the supply of motorcycle parking spaces, the HD has provided seven additional monthly motorcycle parking spaces in the carpark of Queens Hill Estate since January 2024 having regard to the demand for motorcycle parking spaces and technical feasibility. All these parking spaces have been rented out. The implementation of the above integrated measures has greatly improved the illegal parking situation within Queens Hill Estate and Shan Lai Court, leading to a drop in the number of impounded vehicles.

     In view of the limited public spaces in housing estates and the requirement for the provision of emergency vehicular access, loading/unloading bays, pedestrian links as well as the recreational, leisure and greening facilities in accordance with the planning standards, it is not feasible to provide additional “designated motorcycle parking spaces for delivery”.

(3) and (4) Commissioned by the Labour Department (LD), the C&SD has contracted out in September 2023 a Thematic Household Survey to collect information on, among others, the characteristics and working conditions of digital platform workers engaging in food and goods delivery services. The household survey is the first of its kind and fieldwork has been completed. Data processing and analysis are underway. The C&SD expected that the key findings of the relevant survey will be available in early 2025.

     The Government has always supported the development of different industries. With the rapid development of platform economy, the Government is very concerned about the working conditions and protection for delivery couriers and digital platform workers. The LD has set up a Liaison Group to facilitate the communication among major food and goods delivery platform operators and labour organisations as well as to encourage platform companies to adopt good practices for enhancing the working conditions and protection for platform workers.

     Should there be any measures related to the platform economy, the HD will spare no effort to provide necessary support.

MIL OSI Asia Pacific News –

January 26, 2025

MIL-OSI Economics: Result of the Overnight Variable Rate Reverse Repo (VRRR) auction held on November 06, 2024

Source: Reserve Bank of India

Tenor	1-day
Notified Amount (in ₹ crore)	75,000
Total amount of offers received (in ₹ crore)	28,265
Amount accepted (in ₹ crore)	28,265
Cut off Rate (%)	6.49
Weighted Average Rate (%)	6.49
Partial Acceptance Percentage of offers received at cut off rate	NA

Ajit Prasad
Deputy General Manager
(Communications)

Press Release: 2024-2025/1436

MIL OSI Economics –

January 26, 2025

MIL-OSI China: HK, Shanghai foster ties for win-win development

Source: People’s Republic of China – State Council News

Officials vowed on Tuesday to deepen collaboration between Shanghai and Hong Kong to further unleash the two economic engines’ potential in the nation’s further opening-up, emphasizing the special administrative region’s springboard role for mainland enterprises to go global.

They made the pledge at a high-level conference promoting Hong Kong’s investment opportunities in Shanghai, a significant event during the seventh China International Import Expo.

Addressing the 2024 Hong Kong Investment Promotion Conference-Shanghai Forum, Hong Kong Chief Executive John Lee Ka-chiu stressed that Hong Kong possesses the capacity to serve as an investment and financing hub for the development of Shanghai and related mainland businesses, welcoming more enterprises to leverage Hong Kong for global expansion.

He said Hong Kong is home to over 1,400 mainland companies listed on the city’s stock exchange, with close to 200 originating from Shanghai alone — boasting a total market value exceeding HK$2 trillion ($260 billion).

“Leveraging each other’s strengths, Hong Kong and Shanghai can sail together toward new horizons,” Lee said.

He believes that the two cities can further strengthen cooperation in areas such as global talent attraction, services and employment so as to advance the development of talent hubs in both locations.

At the same event, Hong Kong Financial Secretary Paul Chan Mo-po extended an invitation to mainland enterprises to establish headquarters in Hong Kong, highlighting the city’s status as a premier treasury center with unrestricted capital movement and tax incentives offered by the SAR government.

Zhou Ji, executive deputy director of the Hong Kong and Macao Affairs Office of the State Council, highlighted that both Shanghai and Hong Kong serve as vital gateways in China, connecting international and domestic markets.

Zhou pledged that his office will continue to support Hong Kong’s unique role in Shanghai-Hong Kong cooperation and the country’s external opening, as well as to back ongoing research and implementation of favorable policies to facilitate Hong Kong’s development.

Shanghai Mayor Gong Zheng stated that Shanghai will further encourage its enterprises to invest in Hong Kong, while particularly strengthening cooperation between the two cities in emerging industries such as artificial intelligence and biomedicine. Furthermore, Gong mentioned that Shanghai will support more qualified enterprises to list on the stock exchange in Hong Kong.

He also pledged that the two cities will work together to jointly explore overseas markets. Shanghai will fully leverage Hong Kong’s advantages as a super-connector, assisting businesses in establishing a presence in international markets and participating in international cooperation as well as competition, he said.

This year, more than 300 Hong Kong enterprises are participating in the import expo to promote Hong Kong’s quality goods and services, accounting for one-tenth of the total number of exhibitors.

During the promotion conference, Invest Hong Kong under the Hong Kong government signed agreements with numerous Shanghai enterprises to deepen cooperation.

MIL OSI China News –

January 26, 2025
MIL-OSI Russia: Dmitry Chernyshenko: Patriotic routes will be an important topic of the anniversary forum “Travel!”

Translation. Region: Russian Federation –

Source: Government of the Russian Federation – An important disclaimer is at the bottom of this article.

Dmitry Chernyshenko held a meeting on organizing the fifth forum “Travel!”

November 6, 2024

Dmitry Chernyshenko held a meeting on organizing the fifth forum “Travel!”

November 6, 2024

Dmitry Chernyshenko held a meeting on organizing the fifth forum “Travel!”

November 6, 2024

Dmitry Chernyshenko held a meeting on organizing the fifth forum “Travel!”

November 6, 2024

Previous news Next news

Dmitry Chernyshenko held a meeting on organizing the fifth forum “Travel!”

Deputy Prime Minister Dmitry Chernyshenko held a meeting on organizing the fifth Travel! forum, which will take place on June 10–15 at VDNKh. The Roscongress Foundation will act as the event operator. In 2025, the business program events will be united under the general theme of Discover Russia, which implies both familiarizing Russians with the potential and opportunities of their country, and cooperation in the field of inbound tourism.

Opening the meeting, Dmitry Chernyshenko noted the high level of organization of the IV Russian Tourism Forum “Travel!” and the relevance of such events in modern conditions. “After the forum “Travel!” in June this year, many positive reviews were received, which indicates the relevance and significance of the event. The site was successfully chosen: the territory of VDNKh and the exhibition “Russia” created good conditions for guests and organizers. Today, interest in the forum is growing on the part of both Russian and foreign participants. An important theme of the upcoming fifth forum “Travel!” in the year of the 80th anniversary of Victory in the Great Patriotic War will be patriotic routes that will present the regions of our country,” said Dmitry Chernyshenko.

The Deputy Prime Minister noted that federal and regional authorities, tour operators and companies working in the tourism sector should be widely represented in the exhibition part of the forum. In particular, Dmitry Chernyshenko proposed holding an exhibition of domestic equipment manufacturers for the tourism industry as part of the forum, as well as organizing a platform for the presentation of investment projects by representatives of various industries, including those planned to be implemented with support under the national project “Tourism and Hospitality Industry”. In this way, business representatives will be able to find potential partners.

Adviser to the President of Russia, Executive Secretary of the Organizing Committee for the Preparation and Holding of the Russian Tourism Forum “Travel!” Anton Kobyakov noted that in 2024 the forum confirmed its social significance and high status as an anchor industry event, becoming a global discussion platform for discussing modern trends in the development of the tourism and hospitality industry. He spoke about the new concept of the event. “A new comprehensive approach to creating the concept and space of the forum for its guests will demonstrate the tourism potential of all 89 constituent entities of the Russian Federation and increase the international part of the exposition. Visitors will see the full diversity of travel in Russia and learn information about new resorts, tourism sites and travel formats. Traveling around the country, getting to know the sights and cultural features of a particular region contribute to the study of the culture and history of the country. Therefore, the national goal “Opportunities for Self-Realization and Talent Development” formed the basis of the national project “Tourism and Hospitality Industry”. I am sure that in order for more Russians to have the opportunity to study the cultures of peoples and the history of Russia, it is important to make travel around the country convenient, safe and interesting. This is one of the priority tasks of the entire tourism industry,” added Anton Kobyakov.

Next year, the Travel! forum will discuss medical tourism, which is in demand within the country and is also a tool for attracting foreign guests. A large block of the program will be devoted to inbound tourism. In 2025, it is planned to expand the geography of foreign participants from friendly countries; the Ministry of Foreign Affairs and the Ministry of Economic Development have been instructed to work on this issue.

“The goals of any tourism forum are to promote the tourism product and attract investment. We are preparing in this philosophy to give regions the opportunity to show themselves and present their achievements and products to foreign guests, and for foreign participants to demonstrate the tourism potential of their countries. This is why we now go to international exhibitions. People should come to us for this too. The festival program of the regions will take an important place this year. In addition, we have preliminarily formulated six tracks of the business program architecture. These are “digital”, transport, government regulation, personnel, development of tourist areas and a comprehensive tourist product,” said Deputy Minister of Economic Development Dmitry Vakhrukov.

Deputy Director of the Roscongress Foundation, Director of the Russian Tourism Forum “Travel!” Vladimir Zatynaiko spoke about the year-round ecosystem of projects, which includes network events on tourism in the constituent entities of the Russian Federation. “Congress, exhibition and business events dedicated to tourism are actively developing. Examples of such events include the Sustainable Tourism Development Forum “Travel!” in Petropavlovsk-Kamchatsky, “Discover the Far East” in Khabarovsk and the St. Petersburg International Tourism Forum “Travel Hub. Travel!”, which will be held in the Northern capital from December 4 to 6, where the results of the tourism sector in 2024 will be summarized. In this regard, the Russian Tourism Forum “Travel!” is the key, central event of the year, where the main areas of development of the industry are outlined,” Vladimir Zatynaiko noted.

This year, a program to promote Russia abroad under the Discover Russia brand was launched at the national level for the first time. The priority countries in 2024 were China, India, Bahrain and Saudi Arabia. Next year, it is planned to promote Russia’s tourism potential in Southeast Asia and expand its presence in the Persian Gulf countries.

As part of the event, Minister of Economic Development Maxim Reshetnikov will hold an all-Russian meeting with the regions, as well as a meeting with the industry community in the format of a business dialogue.

The Roscongress Foundation is a socially oriented non-financial development institution and a major organizer of national and international congress, exhibition, business, public, youth, sporting, and cultural events, created in accordance with the decision of the President of Russia.

The Fund was established in 2007 with the aim of promoting the development of economic potential, advancing national interests and strengthening the image of Russia. The Fund comprehensively studies, analyzes, forms and covers issues of the Russian and global economic agenda. Provides administration and facilitates the promotion of business projects and attracting investments, promotes the development of social entrepreneurship and charitable projects.

The Foundation’s events bring together participants from 209 countries and territories, more than 15,000 media representatives work annually at Roscongress venues, and more than 5,000 experts in Russia and abroad are involved in analytical and expert work.

The Foundation interacts with UN structures and other international organizations. It develops multi-format cooperation with 212 foreign economic partners, associations of industrialists and entrepreneurs, financial, trade and business associations in 86 countries of the world, with 293 Russian public organizations, federal and regional executive and legislative bodies of the Russian Federation.

Official telegram channels of the Roscongress Foundation: in Russian –t.te/Roscongress, in English –t.te/RoscongressDirect, in Spanish –t.te/RoscongressEsp, in Arabic –t.te/RosKongressArabik. Official website and information and analytical system of the Roscongress Foundation:roscongress.org.

Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

MIL OSI Russia News –

January 26, 2025
MIL-OSI Asia-Pac: HK’s advantages promoted in Ottawa

Source: Hong Kong Information Services

Continuing a visit to Canada, Secretary for Innovation, Technology & Industry Prof Sun Dong delivered a keynote speech at a Seminar on Life Science & Global Health, held at the Parliament Building in Ottawa.

Prof Sun said that while Canada is a long-recognised powerhouse in the field of life and health science, Hong Kong is emerging as an international innovation and technology (I&T) centre.

He then outlined a number of advantages that Hong Kong enjoys in relation to the development of life and health technologies.

Hong Kong’s flagship research and development initiative, InnoHK, has established collaborations with more than 30 world-renowned universities and research institutes in 12 economies, including Canada. It has set up 29 research laboratories,16 of them focused on healthcare-related technologies. Also in place are a $6 billion subsidy programme supporting local universities to set up life and health technology research institutes, and a $3 billion Frontier Technology Research Support Scheme to accelerate cross-disciplinary research.

He said: “We will set up the InnoLife Healthtech Hub in the Hetao Hong Kong Park (the Loop) to attract top-notch research teams and talent from around the world. We will allocate another $2 billion to support the InnoHK research clusters to establish (a) presence in the Loop, and $200 million to support startups in the Loop engaging in life and health technology in the form of incubation and acceleration programmes.”

New land will be made available in San Tin Technopole to support I&T industry development, creating synergy with the nearby Shenzhen I&T Zone, he added.

He also outlined that Hong Kong is the best platform for connecting Mainland I&T talent and companies with those from around the world, as the city possesses the distinctive advantages of enjoying strong national support and being closely connected to the world under “one country, two systems”.

Prof Sun also met a Canadian senator and a member of the country’s parliament to discuss ways of enhancing collaboration on science, innovation and research between Hong Kong and Canada, as well as fostering people-to-people and cultural exchanges.

Separately, Prof Sun called on Chinese Ambassador to Canada Wang Di to brief him on the progress of developing Hong Kong into an international I&T centre, as well as the city’s efforts to integrate into the nation’s I&T development. The tech chief said that Hong Kong spares no effort in developing new quality productive forces tailored to local conditions, including in its pursuit of new industrialisation, and its increased investment for I&T industries.

MIL OSI Asia Pacific News –

January 26, 2025
MIL-OSI Asia-Pac: LCQ12: Sealing up corridor-facing louvres of public rental housing flats

Source: Hong Kong Government special administrative region

LCQ12: Sealing up corridor-facing louvres of public rental housing flats
LCQ12: Sealing up corridor-facing louvres of public rental housing flats
************************************************************************

Following is a question by the Hon Yang Wing-kit and a written reply by the Secretary for Housing, Ms Winnie Ho, in the Legislative Council today (November 6): Question: It has been reported that in recent months, the Housing Department (HD) has posted notices in some public rental housing (PRH) estates, stating that the HD must undertake fire safety improvement works pursuant to the requirements of the Fire Safety (Buildings) Ordinance (Cap. 572), including sealing up all domestic flat louvres facing common exit corridors with fire-‍resisting boards in phases starting from next year. In this connection, will the Government inform this Council: (1) of the numbers of PRH estates and domestic flats involved in the aforesaid works, as well as the implementation schedules; (2) as some PRH tenants are worried that their flats will become poorly-‍lit due to the lack of lighting penetration from the corridors after the relevant works, whether the HD has studied the alternative options, including allocating resources to seal up the louvres with fire-resisting glasses instead of fire-resisting boards, so as to retain the effect of light penetration; if so, of the details; if not, the reasons for that; (3) whether it will assist PRH tenants who have modified their louvres on their own to remove externally-attached objects and carry out reinstatement works, with a waiver of the relevant expenses; if so, of the details; if not, the reasons for that; and (4) whether it will step up publicity and explanation efforts, so that the affected PRH tenants can gain an understanding of the procedures and implementation progress of the relevant works; if so, of the details; if not, the reasons for that? Reply: President, In consultation with the Buildings Department (BD) and Hong Kong Fire Services Department (FSD), the consolidated reply to the question raised by the Hon Yang Wing-kit is set out below: According to the Fire Safety (Buildings) Ordinance (Cap. 572) (the Ordinance), composite and domestic buildings constructed on or before March 1, 1987, or with the plans of the buildings works first submitted to the Building Authority for approval on or before that day (the target buildings) are required to upgrade the fire safety standards to meet modern fire protection requirements. Currently, under the Housing Authority, there are 477 public rental housing (PRH) blocks in 64 estates regulated by the Ordinance. Since the Ordinance came into effect on July 1, 2007, the Housing Department (HD) has been in close liaison with the BD and FSD to formulate feasible fire safety improvement proposals and implementation details for the target buildings, including conducting assessments of the target buildings; appointing fire engineering consultants to study the works details; as well as liaising with the BD and FSD on the vetting and acceptance processes, etc. The HD has been implementing the improvement works taking into account the difficulty and priority of the projects and basing on the acceptance progress of improvement proposals, scope of works, and co-ordination with other maintenance programmes of the target buildings concerned. In fact, shortly after the Ordinance took effect, some improvement works which are comparatively easy to implement, such as replacement of fire doors and installation of emergency lighting systems, have commenced by phase. Considering the large number of target buildings with varying architectural layout and designs, the HD, BD and FSD have been in close liaison in conducting joint inspections to each target building by phase to determine the required scope of fire safety improvement works for each building. The HD also submitted fire safety improvement proposals based on the requirements and subsequently arranged the necessary improvement works at once upon receipt of the acceptance from the BD and FSD. With regard to the louver enclosure works at the older PRH blocks, the fire engineering consultant pointed out that the domestic flats concerned are with louvers facing the internal corridor, which is not separated from the escape staircases. Therefore, in the event of fire accidents, the louvers of these flats could not resist fire and smoke, leading to proliferation of fire and smoke through the louvers to the internal corridor or other flats. Notwithstanding that some tenants had adopted different materials and methods to enclose the louvers on their own in the past years for privacy, sound insulation or security concerns, these materials or methods might not render effective fire resistance. The HD is aware that tenants may have different views on the louver enclosure works. Therefore, upon confirmation of the necessity of the enclosure works to enhance fire protection in 2018, the HD requested fire engineering consultants to conduct an in-depth investigation to explore the feasibility of using various materials or methods to formulate the most suitable approach. Our reply to various parts of the question is as follows: (1) The enclosure works involved around 240 PRH blocks in 53 estates of around 136 000 domestic flats. The HD first commenced the enclosure works in Fu Shan Estate in late October 2024, and the enclosure works will be progressively arranged in other estates concerned. (2) After a thorough study on the feasibility and safety of the enclosure works, upon on-site inspections and multiple discussions with the BD and FSD, the HD has decided to enclose the louver windows facing internal corridors with fire-resisting boards to enhance fire protection. In selection of enclosure materials, the HD has taken into account a wide range of criteria including the impact on the width of internal corridor as the means of escape, the specifications, supply of materials, cost, fire resistance, installation procedures, future maintenance, impact on tenants, etc. In fact, sufficient natural lighting and ventilation has been provided for all relevant domestic flats through balconies and windows. (3) The HD has deliberated on the specification details and work procedures of the enclosure works. Generally, works could be carried out outside domestic flats. Tenants are not required to attend or bear any cost. If tenants have enclosed the louvers on their own, no reinstatement by tenants is required. The HD will provide necessary assistance to residents for removal of their belongings hung on louvers. (4) In order to familiarise tenants with the arrangement details of the louver enclosure works, before the commencement of works in Fu Shan Estate, the HD posted notices and photos at the lift lobby on the ground floor and at the lobby on all floors in the PRH blocks concerned, displayed the mock-up of the enclosed louver in the estates, issued letters to affected households, and briefly introduced the progress of the works in Estate Newsletter. During the period of late September to early October 2024, the HD met with a number of Wong Tai Sin District Council members respectively to introduce and answer the enquiries about the relevant fire safety improvement works. In early October 2024, the HD also convened a briefing session on fire safety improvement works with the BD and FSD for tenants of Fu Shan Estate to introduce the Ordinance and the relevant works arrangement. Through the aforesaid publicity and explanatory work, the louver enclosure works in Fu Shan Estate has been implemented smoothly and no complaint related to the relevant works was received during the works period. The HD will make reference to the practice of Fu Shan Estate in conducting the publicity and explanatory work to PRH tenants in proceeding relevant improvement works in other PRH estates in future.

Ends/Wednesday, November 6, 2024Issued at HKT 15:05

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MIL OSI Asia Pacific News –

January 26, 2025
MIL-OSI Asia-Pac: LCQ20: Provision of sports and recreation facilities

Source: Hong Kong Government special administrative region

     Following is a question by the Hon Lee Chun-keung and a written reply by the Secretary for Culture, Sports and Tourism, Mr Kevin Yeung, in the Legislative Council today (November 6):

Question:

     It is learnt that while the brilliant results of the national team and the Hong Kong, China delegation in the recently concluded 2024 Paris Olympic Games are heartening and have roused an instant craze for sports in Hong Kong, the shortage of sports venues in Hong Kong has all along been subjected to criticism. In this connection, will the Government inform this Council:

(1) in respect of the Five-Year Plan for Sports and Recreation Facilities (Five-Year Plan) and the 10-year Development Blueprint for Sports and Recreation Facilities (10-year Blueprint) put forth in the 2017 Policy Address and the 2022 Policy Address respectively, of the Government’s concrete plans to expedite the construction progress of the uncompleted projects therein;

(2) apart from the projects covered by the Five-Year Plan and the 10-‍year Blueprint, of the Government’s other plans to increase the provision of district sports facilities; and

(3) whether it will consider converting some vacant markets into multi-‍purpose government buildings for the provision of facilities such as sports complexes; if so, of the details; if not, the reasons for that?

Reply:

President,

     My consolidated reply to the questions raised by the Hon Lee Chun-keung is as follows:

(1) The Culture, Sports and Tourism Bureau and the Leisure and Cultural Services Department (LCSD) strive to secure resources for implementing various projects for sports and recreation facilities as announced in the Five-Year Plan for Sports and Recreation Facilities (Five-Year Plan) and 10-Year Development Blueprint for Sports and Recreation Facilities (10-Year Blueprint). The projects are planned in accordance with public works procedures, including conducting technical feasibility studies (TFS), undertaking design, consulting District Councils and relevant stakeholders, tendering and seeking funding approval.

     Out of the 26 projects under the Five-Year Plan, 21 projects have obtained funding approval. Among which, 13 projects have been opened or partially opened for public use and eight projects have their pre-construction activities/construction works commenced. Four projects are in the early stage of planning and one project has been incorporated in a redevelopment project in the district concerned. The 10-Year Blueprint involves 31 projects. For the 16 projects for implementation under Phase 1, two projects have obtained funding approval with related works in progress, 11 projects have completed the TFS and are pending funding application. The remaining three projects are in the planning stage prior to the TFS. As for the 15 projects recommended for conducting the TFS, one has been completed and is pending funding application. The Government will advance the progress of various projects subject to allocation of financial resources.

(2) The Government endeavours to provide quality and diversified sports and recreation facilities to the public for meeting their needs. Other than the Five-Year Plan and the 10-Year Blueprint, the Government will continue to plan for new sports facilities and improve existing facilities, taking into account various factors including the current provision of sports facilities across Hong Kong and at the district level, policy objectives of sports development, utilisation of existing facilities, demographic changes, views of the District Councils and relevant stakeholders, site availability, technical feasibility and allocation of financial resources. The LCSD also collaborates with other policy bureaux (such as the Harbour Office and the Invigorating Island South Office under the Development Bureau) and government departments (such as the Civil Engineering and Development Department) to jointly plan and implement sports and recreation facilities under other works projects (such as Public Open Space at East Coast Park Precinct at North Point) to cater for public needs.

(3) The Government is planning to convert some floors of the Kwun Chung Municipal Services Building into an Urban Sports Centre with a view to providing venues suitable for activities such as sport climbing, breakdancing, and skateboarding. Upon completion of the TFS of the project, the Architectural Services Department has commenced the design preparatory work since July this year. In addition to the plan for the conversion of some floors of the Kwun Chung Municipal Services Building, the Government will also review other existing facilities of relatively low utilisation (such as vacant markets) and explore the possibility of using those sites to provide appropriate sports facilities for promoting sports.

MIL OSI Asia Pacific News –

January 26, 2025
MIL-OSI China: Experts weigh in on real threats to stability in South China Sea

Source: China State Council Information Office 2

Chinese experts at a special forum in Beijing have pointed out that the root causes of the instability in the South China Sea are the United States picking sides on the South China Sea issue, certain claimants in relevant disputes attempting to enforce their illegal interests, and the illegal award of the arbitration tribunal in 2016.
The experts from various research centers and universities discussed the issues at an event on Tuesday organized by the South China Sea Strategic Situation Probing Initiative (SCSPI).
Responding to claims by some Western countries that China’s construction on some islands and reefs in Nansha Qundao had changed the “status quo” in the area, Wu Shicun, chairman of the Huayang Research Center for Maritime Cooperation and Ocean Governance, explained that related moves by China are measures aimed at countering the Philippines’ arbitration claim and improving China’s unfavorable position on relevant islands and reefs under its jurisdiction.
Such measures are both reasonable and lawful, Wu said.
Hu Bo, director of the Center for Maritime Strategy Studies of Peking University, said that China’s claims to sovereignty and maritime rights in the South China Sea have remained consistent and continuous.
Hu said the main sources of the current instability and turbulence in the South China Sea can be attributed to two factors. Firstly, some claimant countries, such as the Philippines, have attempted to alter the status quo and even undermine the commitment made by all parties in the “Declaration on the Conduct of Parties in the South China Sea” not to occupy new uninhabited islands or reefs. Secondly, the involvement of the United States in the South China Sea disputes and its intensified military deterrence measures.
Hu pointed to the fact that the situation in the South China Sea was generally more stable during the period from the end of the Cold War to 2009, when the United States paid less attention to the area and the Southeast Asian region.
Some other experts, including Lei Xiaolu, a professor at the China Institute of Boundary and Ocean Studies of Wuhan University, and Zheng Zhihua, an associate professor at the Center for Japanese Studies under the Shanghai Jiao Tong University, criticized the illegal “arbitral award” in 2016.
They stressed that it was made by a tribunal that had no jurisdiction, and that the award, in breach of the United Nations Convention on the Law of the Sea (UNCLOS) and of China’s rights as a State Party under the UNCLOS, is null and void and has no binding force.
The experts also warned that the United States is attempting to draw forces outside the region into the South China Sea issue by hyping up fake narratives regarding freedom of navigation and overflight in the region, making the situation more complicated.
However, the experts also said they believe the situation in the South China Sea is far less tense than claimed by some countries and portrayed by some media organizations.
“It is the United States that poses the greatest threat to the freedom of navigation and overflight in the South China Sea,” said Yan Yan, director of the Research Center for Oceans Law and Policy, National Institute for South China Sea Studies.
The United States interprets international maritime law navigation rules in a manner that aligns with its own national interests and imposes them as standards to compel regional countries to accept, a typical manifestation of American maritime hegemony, Yan added.

MIL OSI China News –

January 26, 2025
MIL-OSI China: Climate change poses substantial health risks, report finds

Source: China State Council Information Office 2

Cai Wenjia, a professor at Tsinghua University’s Department of Earth System Science and director of the Lancet Countdown Asia Center, speaks during the launch of the 2024 China Lancet Countdown report at Tsinghua University in Beijing, Nov. 5, 2024. [Photo courtesy of Lancet Countdown Asia Center]
The worsening climate is increasingly endangering public health and threatening economic and social systems that underpin people’s well-being, according to a report released Tuesday.
The 2024 China report of the Lancet Countdown on health and climate change, published by the Lancet Countdown Asia Center in Beijing, marks the fifth such assessment. The study monitors climate change health risks in China through 2023, along with the country’s adaptation and mitigation efforts.
The report found that the health impacts of rising temperatures have been substantial. China faced extreme hot and dry weather conditions in 2023, with record-high temperatures and the second-lowest precipitation since 2012. These conditions led to a 309% surge in heatwave-related deaths, a 24% rise in lost work hours and diminished opportunities for outdoor activities.
“The health risks of climate change are not in the far future. They’re imminent threats in front of us,” said Cai Wenjia, professor at Tsinghua University’s Department of Earth System Science and director of Lancet Countdown Asia Center.
“Although already dangerous, recent health risks might be just a glimpse of even worse ones to come,” Cai said.
The report projects that by the 2060s, annual average heatwave-related mortality, heat-related labor productivity losses and wildfire-related deaths will increase 183%-275% and 28%-37%, respectively, compared with 1986-2005 averages. Additionally, the annual excess risk of dengue fever incidence is expected to rise by 15.3%-15.5% from 2013-2019 levels.
“It is another wake-up call that the climate crisis is the health crisis,” said Martin Taylor, WHO representative to China. He noted that dealing with climate-related health risks may become the new normal.
Given unprecedented climate challenges, the report pointed out that China had taken considerable steps by 2023 to integrate health concerns into climate change discourse, particularly emphasizing the need for renewable energy in promoting a fair transition. “This shift promises not only environmental and economic benefits, but also public health benefits,” the report stated.
The report outlined China’s specific initiatives in addressing climate change. The country established the “1+N policy framework” to realize its goals of peaking carbon emissions before 2030 and reaching carbon neutrality before 2060. Moreover, it has released the National Climate Change Adaptation Strategy 2035 and the National Climate Change Health Adaptation Action Plan (2024-2030) to combat climate-related health risks and enhance public health protection.
Regarding carbon emission reduction, China represented more than half of the global increase in renewable energy capacity in 2023. This increase pushed the country’s total renewable capacity to surpass coal power installations for the first time.
“This effort has significantly accelerated global initiatives made at the Conference of the Parties 28 (COP 28), which is to triple renewable energy capacity by 2030 and reduce fossil fuel dependence,” Cai said.

MIL OSI China News –

January 26, 2025
MIL-OSI China: Eco-city challenge to inspire innovation

Source: People’s Republic of China – State Council News

Twelve teams from China and Singapore recently participated in an eco-city competition to explore innovation and implement green technologies in Tianjin municipality.

The teams were chosen from a pool of 147 for the 2024 “Eco-Innovation, Green Action” International Young Talents Innovation Competition & Eco-City Innovation Star Competition Finals held at the China-Singapore Tianjin Eco-City on Oct 22.

Their aim was to adapt their green technologies to the eco-city, a pioneering green area being developed by China and Singapore.

The winning projects are poised to build upon previous successes in this area, part of Tianjin’s Binhai New Area.

One of China’s premier hubs for green development, the eco-city spans 30 square kilometers with a population of 160,000, and has been thriving on saline-alkali soil since its inception in 2008.

This year, the projects are expected to garner heightened attention from the local government, as a blueprint to transform the eco-city into a national model zone for green development received approval from the State Council in August.

The plan outlines standards and steps to elevate the eco-city to an internationally pioneering level in green development.

China and Singapore are joining forces to enhance green technologies, equipment, services, infrastructure and green financing initiatives.

“The new plan is set to propel the eco-city toward becoming a global exemplar in green and low-carbon development,” said Teo Eng Cheong, CEO of Sino-Singapore Tianjin Eco-City Investment and Development Co.

Since 2008, the builders of the eco-city have been exploring new technologies and approaches for environmental restoration, using scientific innovation to transform the area into a verdant oasis.

Fu Peng, deputy director of the Construction Bureau of China-Singapore Tianjin Eco-City, said that to address the severe saline-alkali land, they employed techniques such as subsurface drainage for salt removal, leaching layers for salt isolation and using imported topsoil for planting.

“We prioritized the use of locally improved mildly saline-alkali soil to minimize ecological disruption in other areas,” Fu said.

“For moderate to mild saline-alkali land, we implemented measures including desalination, salt isolation, salt blocking, fertilization, and planting salt-tolerant vegetation to establish native plant communities. Also, we utilized key technologies for rainwater collection and salt leaching to improve the saline-alkali land,” he added.

To transform bodies of water, local authorities utilized the natural advantages of Tianjin being a coastal city to expand the water bodies within the area, enhancing circulation and improving aquatic ecosystems.

Designated as one of the “most beautiful rivers and lakes” in Tianjin, Jinghu Lake is the largest scenic lake within the eco-city, merging with the nearby Jiyun River before the river flows into the sea.

The lake was once a 2.56-sq-km sewage reservoir that had accumulated wastewater for 40 years.

Zhang Xinyu, an inspector from the local eco-environment bureau, said, “We treat the soil under the water and will never cease in our efforts in eco-rehabilitation.”

Furthermore, to maintain a healthy and stable ecosystem, the eco-city has established a target to grow at least 70 percent of indigenous plant species in the area.

The main tree species in the eco-city include winter gold trees (Sophora japonica), ash and black locust trees, which not only adapt well to the local climate but also reflect the regional style.

Species such as Platanus orientalis, ginkgo trees and begonias have been introduced to the area.

The city has incorporated ornamental plants to create a diverse and vibrant ecological landscape with distinct layers and notable seasonal changes.

In spring, the bright and beautiful weigela flowers bloom; summer sees the energetic sage in full swing; autumn showcases the exuberant display of seepweed; and in winter, the resilient lonicera maackii thrives.

Currently, greenery in the eco-city has exceeded 50 percent of its area, with 137 plant species.

The excellent ecological environment has attracted numerous wild animals to breed and thrive here, according to the administrative committee.

Surveys indicate that there are 332 animal species in the area, with endangered relict gulls — accounting for about 80 percent of its global population — choosing this area as their wintering and breeding grounds, the administrative committee said.

In addition to natural rehabilitation, the area has seen the country’s first zero-carbon building. It has widespread applications in solar energy, geothermal energy and wind power, according to the committee.

MIL OSI China News –

January 26, 2025
MIL-OSI China: Hong Kong Intl Airport to open third runway on Nov 28

Source: People’s Republic of China – State Council News

HONG KONG — The three-runway system at the Hong Kong International Airport will go into service on Nov. 28, boosting the city’s aviation industry, a local official said Tuesday.

The new system will enable the airport to handle 120 million passenger trips and 10 million tons of cargo annually, said Michael Wong, deputy financial secretary of the Hong Kong Special Administrative Region government, at the opening ceremony of the Super Terminal Expo.

The airport handled 45 million passenger trips and 4.5 million tons of cargo during the previous financial year.

Wong expects the new system to generate considerable returns and make Hong Kong a stronger aviation hub.

Construction of the system began in August 2016. It is complete with a 3,800-meter runway, a new concourse, an automated people mover system, and a baggage handling system.

The three-day Super Terminal Expo started on Tuesday will showcase the latest developments in the aviation and transportation industries worldwide. It brings together around 2,000 participants and 100 exhibitors, as well as over 60 buyers including Singapore’s Changi Airport, Tokyo’s Haneda Airport, and the Incheon International Airport in Seoul.

MIL OSI China News –

January 26, 2025
MIL-OSI Asia-Pac: LCQ6: Pursuing positive interaction of airports in Guangdong-Hong Kong-Macao Greater Bay Area

Source: Hong Kong Government special administrative region

     Following is a question by the Hon Gary Zhang and a reply by the Secretary for Transport and Logistics, Mr Lam Sai-hung, in the Legislative Council today (November 6):

Question:

     The Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) puts forward consolidating and enhancing Hong Kong’s status as an international aviation hub, pursuing the development and positive interaction of airports in GBA, and developing a world-class airport cluster in GBA. In this connection, will the Government inform this Council:

(1) whether it will study constructing certain sections of the Hong Kong Island West-Hung Shui Kiu Rail Link in parallel with the construction of the Hong Kong-Shenzhen Western Rail Link, so as to facilitate direct passenger access to the MTR Sunny Bay Station when the Hong Kong-Shenzhen Western Rail Link is commissioned and to connect with Qianhai and Shenzhen Bay as well as the airports of Hong Kong and Shenzhen, thereby creating a Hong Kong-Shenzhen super aviation hub; if so, of the details; if not, the reasons for that;

(2) as the Government has indicated earlier in its reply to a question raised by a Member of this Council that the implementation of the immigration arrangement of the co-location arrangement at Hong Kong International Airport, which involves legal and implementation issues, has to be carefully considered, whether the co-location arrangement will, according to the findings of the Government’s latest study, affect the transfer time of transit passengers and the mode of passenger transport for transit passengers to the Mainland; and

(3) whether it will consider expanding the mode of HKIA Dongguan Logistics Park to other GBA cities, so as to meet the demand of the manufacturing industries in GBA for international air transport; if so, of the details; if not, the reasons for that?

Reply:

President,

     Hong Kong is an international aviation hub. This positioning is recognised in the National 14th Five-Year Plan and the Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area (GBA). To implement this national strategy and to enhance the long-term competitiveness of Hong Kong International Airport (HKIA) and Hong Kong’s aviation industry, the Government of the Hong Kong Special Administrative Region (HKSAR) and the Airport Authority Hong Kong (AAHK) have launched a series of measures, including enhancing the connection between HKIA and the Mainland, to proactively contribute to the development of a world-class airport cluster in the GBA.

     On the other hand, the HKSAR Government promulgated the Hong Kong Major Transport Infrastructure Development Blueprint at the end of last year. The Blueprint consolidates all major transport infrastructure currently under planning, design and construction in a forward-looking manner, and holistically outlines and plans for the development of strategic transport infrastructure, including the recommendation to take forward the Hong Kong-Shenzhen Western Rail Link (Hung Shui Kiu-Qianhai) (HSWRL) and Hong Kong Island West-Hung Shui Kiu Rail Link, with a view to meeting the transport and logistics demand up to 2046 and beyond.

     My reply to the three parts of the question is as follows:

(1) The Governments of HKSAR and Shenzhen are taking forward the HSWRL project through the Task Force for Hong Kong-Shenzhen Co-operation on Cross-Boundary Railway Infrastructure jointly established by the two governments. Currently, the first stage and second stage studies of the HSWRL project undertaken by the Task Force have been completed, which confirmed the strategic value and necessity of the project. The studies also initially assessed the planning, engineering feasibility, benefits, environmental impact, construction and operation arrangements of the railway scheme. The Governments of HKSAR and Shenzhen are now working together to commence the next stage of preparatory work. The current proposed alignment of the HSWRL should be able to meet the demand arising from the planned developments of the Hung Shui Kiu/Ha Tsuen New Development Area and Qianhai Co-operation Zone in Shenzhen, as well as the need for closer social, economic and personnel exchanges of the two places. In the long run, flexibility could be allowed for the Shenzhen and Hong Kong sections of HSWRL to extend northwards and southwards respectively.

     Meanwhile, the HKSAR Government is planning for the transport infrastructure for the Kau Yi Chau Artificial Islands (KYCAI), amongst which the preliminary alignment of Hong Kong Island West-Hung Shui Kiu Rail Link will pass through the KYCAI, Sunny Bay, Tuen Mun East and Hung Shui Kiu for connection with the planned HSWRL. We will study the implementation programme and interchange arrangement at Sunny Bay Station, with a view to maximising the cost benefits of the related railway network.

(2) With regard to the proposal of enhancing the connection between Hong Kong and the Mainland via implementing “co-location arrangement” at HKIA, while there are precedents of the implementation of “co-location arrangement” at the road-based and rail-based boundary control points between the HKSAR and the Mainland, adopting such arrangement at HKIA will involve different legal and implementation issues and thus overall benefits, taking into account its mode of operation as an international aviation hub in connecting different destinations. As such, this has to be carefully considered.

     One of the considerations under study is the transit time for passengers as mentioned by the Member. Currently, transit passengers can proceed to their boarding gates after security check without going through any clearance procedures at HKIA. If “co-location arrangement” is implemented at HKIA, transit passengers travelling to/from the Mainland must complete immigration and customs clearance procedures of the Mainland at HKIA, which may increase the transit time for these passengers depending on the specific arrangements. We will continue our study on the benefits and implications of the proposed implementation of “co-location arrangement” at the airport from various perspectives, including its potential impact on transit time.

     Meanwhile, we will work with the AAHK to continue our efforts in putting forward measures to enhance clearance efficiency and connectivity with the Mainland, which includes developing the intermodal transport connection between HKIA and other cities in the GBA. In this regard, we will continue to pursue co-operation with Zhuhai Airport, including enhancing the Fly-Via-Zhuhai-HK service by promoting the service to more cities in the Mainland with which Hong Kong does not have direct flights. By integrating the international aviation network of HKIA and the domestic aviation network of Zhuhai Airport, we can achieve greater synergy and enhance Hong Kong’s status as an international aviation hub.

(3) Dongguan is the manufacturing centre in the GBA with large quantities of goods to be exported. With no airport in Dongguan, many goods manufactured in Dongguan and its neighboring regions are being transported to HKIA by land for exporting to the overseas every day. To fully capitalise on HKIA’s advantages in air cargo and to meet the demand for international aviation transport from the manufacturing sector in the GBA, the AAHK is taking forward the sea-air intermodal cargo transshipment mode in collaboration with Dongguan. Under this mode, export cargo from the Mainland can go through security screening, palletisation and cargo acceptance in advance in the upstream HKIA Dongguan Logistics Park set up in Dongguan. It will then be transported seamlessly by sea to the cargo pier on the airside of HKIA for direct transshipment to overseas destinations via Hong Kong’s international aviation network. International cargo may also be imported into the Mainland vice versa. This mode will provide a more seamless and convenient international air network for the cargo in the GBA, improve the efficiency of cross-border air cargo transshipment, and further leverage Hong Kong’s function as an air cargo transshipment hub.

     The AAHK expects to complete the first-phase construction of the permanent facility of the HKIA Dongguan Logistics Park Phase 1 by the end of next year in Dongguan and to commence the preliminary study of the development plan for Phase 2 development next year. In light of the fact that Dongguan is the manufacturing centre in the GBA, the AAHK will focus resources to press ahead with the development of the sea-air intermodal cargo transshipment mode and construction of the HKIA Dongguan Logistics Park with Dongguan to maximise the benefits of the sea-air intermodal cargo transshipment mode.

     â€‹Thank you, President.

MIL OSI Asia Pacific News –

January 26, 2025
MIL-OSI Asia-Pac: LCQ7: New Industrialisation and Technology Training Programme

Source: Hong Kong Government special administrative region

LCQ7: New Industrialisation and Technology Training Programme
LCQ7: New Industrialisation and Technology Training Programme
*************************************************************

Following is a question by the Hon Shang Hailong and a written reply by the Acting Secretary for Innovation, Technology and Industry, Ms Lillian Cheong, in the Legislative Council today (November 6): Question: It has been reported that between August 2022 and August 2024, a course provider, after successfully registering a number of courses supported by the New Industrialisation and Technology Training Programme (NITTP), allegedly obtained by fraud training grants using false trainee information, and was eventually granted a total of $1.89 million under NITTP. In this connection, will the Government inform this Council: (1) of the respective numbers of cases of fraud or abuse of training grants reported by members of the public and organisations, and those discovered through investigations initiated by the Innovation and Technology Commission (ITC) and the Vocational Training Council (VTC), the Secretariat of NITTP, in each year since the launch of NITTP in 2018; (2) whether ITC and VTC currently have any task force or department responsible for preventing and investigating cases of fraud and abuse of training grants; if so, of the relevant staffing establishment, and the measures in place to prevent the recurrence of fraud and abuse; and (3) as the Government has earlier indicated that its target is to roll out the business version of “iAM Smart” progressively from the end of 2026 onwards, whether it will, on the premise that personal privacy is protected, verify the information (e.g. tax returns) of NITTP applicants or organisations in the system, so as to assist the relevant departments in vetting and approving NITTP applications as well as eradicating fraud or abuse? Reply: President, To nurture local innovation and technology talents, the Innovation and Technology Commission (ITC) launched the New Industrialisation and Technology Training Programme (NITTP) under the Innovation and Technology Fund in August 2018, which subsidises, on a 2 (Government):1 (enterprise) matching basis, local enterprises for training their staff in advanced technologies, especially those related to “new industrialisation”. Since the launch of the NITTP, the ITC has all along appointed the Vocational Training Council (VTC) as the Secretariat. Currently, the Secretariat has an establishment of 14 staff. My reply to the various parts of the question is as follows: (1) According to the information provided by the VTC, a total of 15 complaints related to the NITTP have been received in the past five years (i.e. from August 2018 to October 2024), covering issues on the quality of course providers/training courses, the administrative arrangements of the NITTP, as well as cases involving unscrupulous practices and false information. The VTC has referred eight cases with initial evidence suggesting of suspected illegal activities (including unscrupulous practices, identity thefts or submission of false information) to law enforcement agencies for follow-up. The VTC has immediately suspended the processing of these cases and stopped all relevant disbursements of training grants. (2) According to the latest Guidance Notes for Training Grant Applications (Training Grant Guide), employees nominated by companies applying for training grants must be under full-time employment of the company with the necessary background/experience relevant to the advanced technology concerned. The nominated trainee should hold a bachelor degree/higher diploma/diploma or above qualification (Qualification Framework level 3 or above) with at least one year of work experience relevant to the advanced technology of the subject nominated course. The NITTP also requires the applicant company to provide, among other things, a copy of the Hong Kong Identity Card of the relevant employees, records of Mandatory Provident Fund contribution of past three months, documentary proof of academic qualifications and proof of full-time work experience to the NITTP Secretariat before the commencement of training course. After completion of training course, the company should submit to the VTC all supporting documents required for disbursement of training grant, including confirmation of training completion and payment, as well as trainees’ survey. The VTC will verify the relevant supporting documents submitted by the company after completion of training course, and will only disburse training grant upon confirming that the documents submitted by the company are complete and the trainees have met the attendance requirement of the relevant courses. Separately, according to the Guidance Notes for Public Course and Tailor-made Course Applications and Training Grant Guide of the NITTP, the VTC may conduct surprise visits on any registered training courses without prior notice to the course providers to ensure that the training courses are conducted in compliance with the requirements of the relevant guidelines. In accordance with established procedures, the VTC will conduct independent surprise class visits on training courses organised by different course providers under the NITTP every month according to the relevant mechanisms. The surprise class inspection aims to assist in verifying that the registered courses are conducted in accordance with the approved course proposals. In this regard, surprise inspection personnel will confirm the identity of the trainer, check the course content and monitor the course duration. The manpower establishment provided by the VTC includes surprise inspection personnel. Since the VTC personnel involved are also responsible for other administrative duties, there is no breakdown on the number of personnel dedicated to carrying out surprise inspections. At the same time, the ITC and the VTC have formulated guidelines for on-site visits to companies applying training grant under the NITTP, covering the circumstances under which on-site visits shall be conducted, the criteria for inspections during on-site visits, the points-to-note for inclusion in the visit reports, as well as follow-up actions required in case of non-compliances found during the visit. The VTC will identify applicant companies of which on-site visits would be conducted on a risk-based approach. The ITC, together with the VTC, will continue to closely monitor the operation and effectiveness of the NITTP, review the application, registration and approval mechanisms of the NITTP in a timely manner and make amendments as and when necessary. (3) The Digital Corporate Identity (CorpID) Platform provides various functions, including corporate identity authentication, digital signing, pre-filling of forms and storage of digital licences and permits. Same as the personal digital identity authentication application “iAM Smart”, the CorpID Platform itself does not store data of other government systems (such as tax returns). When a corporation applies for or uses the CorpID for online services, the Platform will verify the information provided by the corporation (such as the name of the organisation, owners and directors, and the Unique Business Identifier) against the information registered with the relevant departments and check its status. If a department wishes to access the applicant corporation’s data stored in other government systems, it may do so through the Consented Data Exchange Gateway in compliance with existing laws and regulations.

Ends/Wednesday, November 6, 2024Issued at HKT 15:58

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MIL OSI Asia Pacific News –

January 26, 2025
MIL-OSI Asia-Pac: LCQ19: Implementing e-Government services

Source: Hong Kong Government special administrative region

LCQ19: Implementing e-Government services
LCQ19: Implementing e-Government services
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Following is a question by the Hon Dominic Lee and a written reply by the Acting Secretary for Innovation, Technology and Industry, Ms Lillian Cheong, in the Legislative Council today (November 6):Question: In September this year, members of the Panel on Transport of this Council conducted a duty visit to Shanghai and Hangzhou. During the duty visit, I ‍have learnt that the Shanghai Municipal People’s Government accepts the presentation of electronic versions of identity cards on mobile phones by members of the public as legal identity documents. On implementing e-‍Government services, will the Government inform this Council:(1) whether it will, by drawing reference from the experiences of some Mainland cities, consider amending the legislation to accept Hong Kong identity cards presented by members of the public on designated mobile applications (e.g. “iAM Smart”) as legal identity documents, so that members of the public do not need to carry physical Hong Kong identity cards when they go out, thus making their daily lives more convenient; and (2) as the authorities indicated in January this year that they planned to introduce electronic driving licenses between the middle of this year and early next year, of the specific implementation date for the measure, and how the authorities plan to promote it to motorists?Reply: President, Having consulted the Security Bureau and the Transport and Logistics Bureau, a consolidated reply in response to the questions raised by the Hon Dominic Lee is as follows: (1) Hong Kong Identity Card (HKIC) is a document widely accepted for proving the identity of the cardholder in Hong Kong. Section 17C of the Immigration Ordinance (Cap. 115) stipulates that every person who has attained the age of 15 years and is the holder of an identity card or is required to apply to be registered under the Registration of Persons Ordinance (Cap. 177) shall have with him at all times proof of his identity. According to Section 17B(1) of the Immigration Ordinance, proof of identity includes, but is not limited to, his valid HKIC. Besides, citizens may need to produce ones’ proof of identity for identity verification based on individual circumstances (such as assisting public officers to enforce the laws or accessing Government-related services). As for the implementation of electronic HKIC, due to the need to consider many complicated factors, relevant government departments will study the feasibility to explore the way forward.(2) Relevant departments, including the Transport Department (TD) and the Department of Justice, etc. are carrying out the law drafting work for implementing electronic driving licence (DL), and will strive to introduce the bill to the Legislative Council as soon as possible, with a view to launching electronic DL within 2025. DL holders can then choose to carry either a physical DL or log in to a dedicated mobile application through “iAM Smart” or e-licensing portal to be launched by the TD to display the electronic DL on their smartphones. Upon the passage of the legislative amendments, the TD will promote the electronic DL to the public, in particular the DL holders, which include providing tutorial video on the website of the TD and relevant departments, producing promotional banners and leaflets, etc.

Ends/Wednesday, November 6, 2024Issued at HKT 16:00

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MIL OSI Asia Pacific News –

January 26, 2025
MIL-OSI Asia-Pac: CE meets leaders of Shanghai (with photos/video)

Source: Hong Kong Government special administrative region

CE meets leaders of Shanghai (with photos/video)
CE meets leaders of Shanghai (with photos/video)
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The Chief Executive, Mr John Lee, today (November 6) led a Hong Kong Special Administrative Region (HKSAR) Government delegation to continue his visit in Shanghai. He met with leaders of Shanghai and exchanged views with representatives from enterprises and talent who have recently arrived to develop in Hong Kong. In the morning, Mr Lee met with enterprises and talent newly settled in Hong Kong to understand how their development is progressing and learn about their daily lives. Mr Lee welcomed them to the Hong Kong family and encouraged them to make good use of Hong Kong’s business and investment platforms, as well as its unique position and advantages in international finance, innovation and technology, and professional services, to expand their business and careers. Mr Lee stated that the HKSAR Government will continue to work diligently to attract enterprises and talent, assisting them in achieving successful development in Hong Kong while creating new impetus for the city’s growth. At noon, Mr Lee met with the Secretary of the Shanghai Municipal Committee of the Communist Party of China (CPC), Mr Chen Jining, and the Mayor of Shanghai, Mr Gong Zheng. The Executive Deputy Director of the Hong Kong and Macao Work Office of the CPC Central Committee and the Hong Kong and Macao Affairs Office of the State Council, Mr Zhou Ji, also attended the meeting. Mr Lee extended his congratulations on the successful opening of the China International Import Expo (CIIE) and expressed his hopes for fruitful outcomes. He thanked Mr Chen for his ongoing support of Hong Kong, and expressed his appreciation for the importance the CPC Shanghai Municipal Committee and the Shanghai Municipal Government have attached to the HKSAR delegation, as well as their thoughtful arrangements. Mr Lee expressed his heartfelt gratitude to the Central Government and the Shanghai Municipal Government for their strong support of the HKSAR Government in holding the Hong Kong Investment Promotion Conference – Shanghai Forum during this year’s CIIE, highlighting Hong Kong’s latest advantages and business environment to Mainland enterprises. Mr Lee also thanked the CPC Shanghai Municipal Committee and the Shanghai Municipal Government for their emphasis on Shanghai-Hong Kong co-operation over the years. He noted that Shanghai and Hong Kong have maintained deep co-operation and close relations in various areas such as the economy and trade, finance, innovation and technology, education, culture, and youth exchanges. This year marks the 10th anniversary of the Shanghai-Hong Kong Stock Connect, and the Sixth Plenary Session of the Hong Kong/Shanghai Co-operation Conference was held in April, demonstrating that co-operation between the two places has reached new levels. Mr Lee is confident that the two places will continue to achieve complementarity and mutual benefits, fostering synergistic developments in different areas and contributing to the country’s high-quality development. Mr Lee will return to Hong Kong this afternoon.

Ends/Wednesday, November 6, 2024Issued at HKT 16:00

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MIL OSI Asia Pacific News –

January 26, 2025

Category: Asia

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