NewzIntel.com

Category: Australia

  • MIL-OSI Australia: Celebrating 18 years of helping Aboriginal mums and bubs

    Source: New South Wales Government 2

    Headline: Celebrating 18 years of helping Aboriginal mums and bubs

    Published: 6 November 2024

    Released by: Minister for Aboriginal Affairs and Treaty, Minister for Health

    The community, Aboriginal Elders, health care professionals and families who have used the Malabar Midwifery Group Practice are celebrating 18 years of the service providing culturally respectful pregnancy, birth, and postnatal care to Aboriginal families.

    Affectionately known as ‘Malabar Midwives’, the service has supported the births of over 1,500 babies since it was established in 2006.

    The service provides pregnancy, birth and postnatal care to Aboriginal women, and women with an Aboriginal partner, who choose to give birth at the Royal Hospital for Women.

    Malabar Midwives has a unique way of working that promotes flexible and culturally respectful midwifery care, and is available to Aboriginal women and families from anywhere in NSW who seek out the service.

    The midwives work alongside an Aboriginal Health Education Officer in a continuity of midwifery model of care, which supports women getting to know the midwives during their pregnancy journey.

    Four midwives work on a rotating 24-hour roster so women have a known midwife to provide care around the clock. Two midwives in the team are proud Aboriginal women.

    Local community members, Elders, health care professionals and families who have used the Malabar Midwifery Group Practice will be attending celebrations to mark this milestone at the La Perouse Medical Centre at 11:00am on Wednesday, 6 November 2024.

    Quotes attributable to Minister for Health, Ryan Park:

    “The Royal Hospital for Women’s Malabar Midwifery Group Practice is an exceptional model of care that other services seeking to establish pregnancy, birthing and postnatal care for Aboriginal women and families can learn from.

    “The service is an outstanding example of the success that can be achieved when health professionals work collaboratively with communities to find the best solutions for their health care needs.”

    Quotes attributable to Minister for Aboriginal Affairs and Treaty, David Harris:

    “Malabar Midwives is an example of how working alongside community can help close the gap to improved health outcomes for Aboriginal people.

    “This successful model of maternal and infant health care for Aboriginal families sets the standard for Aboriginal midwifery initiatives.”

    Quotes attributable to the Member for Maroubra, Michael Daley:

    “Women from all over NSW travel to Sydney to attend Malabar Midwives, which is a testament to the solid reputation the team has developed across Aboriginal communities.

    “I congratulate the Malabar Midwives team on their great success over many years and look forward to them continuing their outstanding service for many years to come.”

    Quotes attributable to Aboriginal Health Worker, Malabar Midwifery Group Practice, Trudy Allende:

    “We know the women and families in this community and are able to support their voice within the health system. It’s an incredibly dedicated team and it’s a tribute to the service to have been around for 18 years.

    “I believe that the team at Malabar Midwives gives our local Aboriginal community the service and care it deserves to support best outcomes for mothers and babies.”

    MIL OSI News –

  • MIL-OSI Australia: Summerland Way back in business

    Source: New South Wales Government 2

    Headline: Summerland Way back in business

    Published: 6 November 2024

    Released by: Minister for Planning and Public Spaces, Minister for Regional Transport and Roads

    Motorists using Summerland Way will have a safer drive after the completion of two projects between Casino and Woodenbong, funded by the Albanese and Minns Governments through Disaster Recovery Funding Arrangements.

    The first project at Stoney Gulley, 9km south of Kyogle, has taken just over three months for workers from Transport for NSW to complete.

    The team excavated unsuitable material and placed rock backfill to repair the slope above a 100m section of road, to stabilise the cuttings and provide a low-maintenance solution.

    The Burnetts Slip project, 52km north along Summerland Way at Dairy Flat, started in May and required similar repairs along a 126m section of road.

    Over the past three months the project team has excavated and installed rock backfill, while also carrying out extensive drainage repairs.

    Work was carried out under single lane, alternating traffic flow arrangements which have now been removed.

    Transport for NSW thanks the community and all road users for their patience while this essential flood recovery work was completed.

    Quotes attributed to Federal Minister for Emergency Management Jenny McAllister:

    “Summerland Way is an important route for the Northern Rivers, connecting communities from Kyogle to Casino.

    “We’re helping build the road back as efficiently as possible, and to a more resilient standard.

    “Work is now complete which is excellent news for everyone traveling in the region.”

    Quotes attributed to Minister for Planning and Public Spaces Paul Scully:

    “Summerland Way is an important secondary transport route that links a number of major towns on the Northern Rivers.

    “This disaster recovery effort will take pressure off the major highways and is the transport lifeline for commuters and primary producers.

    “This work will make a big difference to daily lives of people on the Northern Rivers.”

    Quotes attributed to NSW Regional Transport and Roads Minister Jenny Aitchison:

    “Repairing the Summerland Way is great news for the 700 vehicles who use this route every day, of which about 20 per cent are heavy vehicles.

    “This is an important route for locals, visitors and freight operators connecting southern Queensland with northern NSW and I’m sure all who travel along this section of road will be happy to see it’s back in business.”

    Quotes attributed to NSW Parliamentary Secretary for Disaster Recovery and State Member for Lismore Janelle Saffin:

    “The Summerland Way, an alternate route to the Pacific Highway, is a key rural road for daily commuters, freight carriers and tourists, and these two projects will help make driving conditions safer for all.

    “I congratulate Transport for NSW work gangs on making such great strides to stabilise flood-damaged slopes above both sections of road, reopening the Summerland Way to traffic in both directions.

    “I have a long history with the Summerland Way, securing $50 million from then NSW Minister for Transport Carl Scully to do a substantial upgrade.” 

    MIL OSI News –

  • MIL-OSI Australia: Tariffs axed for Aussie farmers exporting to the UAE

    Source: Minister for Trade

    The signing of the Australia – United Arab Emirates Comprehensive Economic Partnership Agreement (CEPA) paves the way for the elimination of tariffs on Australia’s key agricultural exports to the United Arab Emirates (UAE) and solidifies both countries’ intent to drive investment in the sector.

    This trade agreement builds on the Albanese Labor Government’s trade wins for Australian farmers, creating new opportunities for exporters to diversify and expand their markets.

    The deal eliminates tariffs on over 99 per cent of Australia’s exports to the UAE, including on key products like meat, dairy, grains and oilseeds, chickpeas, lentils, nuts, horticulture and honey.

    Australian farmers and producers will benefit from an estimated $50 million annually in tariff savings alone.

    Canola seeds are Australia’s largest agriculture export to the UAE, topping $741 million in 2023; and our red meat exports to the UAE were worth over $480 million in 2023.  Australian exporters of these products will receive duty-free access from day one of the deal coming into force.

    The deal establishes modern, flexible and trade-facilitating outcomes with the UAE on rules of origin and commitments for customs procedures. These conditions, combined with the removal of tariffs, create commercially significant benefits for Australian exporters.

    Significantly, the deal contains Australia’s first standalone chapter on sustainable agriculture and food systems. 

    This recognises agriculture’s essential role in ensuring food security and driving climate resilience, emissions reductions and other environmental outcomes, while also ensuring that sustainability measures are not applied with a ‘one-size-fits-all’ approach or create barriers to trade.  

    The trade and investment package includes an MOU for cooperation in Food and Agriculture investment.   

    Details of the outcomes, including independent modelling and key benefits to agricultural businesses and Australia more broadly are published on the DFAT website: Australia-UAE Comprehensive Economic Partnership Agreement (CEPA)

    Quotes attributable to Minister for Trade and Tourism, Senator the Hon Don Farrell:

    “The Albanese Government is delivering on its commitment to open up new opportunities for our exporters, farmers, producers and businesses to diversify their markets.

    “The UAE is an important export market for Australian products – it’s our largest market in the Middle East, with two-way trade valued at $9.9 billion in 2023. The UAE also acts a distribution hub for the Gulf region.

    “This is a great deal for Australian farmers and producers – over 99 percent of Australian products will enter the UAE tariff free.

    “This deal means more than just numbers. Every product we export to the world translates to thousands of Australian jobs.”

    Quotes attributable to Minister for Agriculture, Fisheries and Forestry, Julie Collins MP: 

    “The Australia-UAE FTA is an excellent outcome for the Australian agriculture, fisheries and forestry sector, saving industry $50 million a year.

    “It further enhances market access and diversification opportunities for our producers to an extremely lucrative market, not only in the UAE but across the whole of the Middle East as the UAE is an important trading hub for the region.

    “I am proud to say that it is the first FTA to contain a standalone chapter on sustainable agriculture and food systems, recognising agriculture’s essential role in ensuring food security, driving climate resilience, emissions reductions and other environmental outcomes. It also ensures that sustainability measures are not applied with a “one-size fits all approach” and do not create barriers to trade for our world class agricultural exports.

    “In 2023-24, Australia exported over 70 per cent of its agricultural, fisheries and forestry production to 169 markets globally – the most diversified trade has ever been.  This is thanks to our Government.”

    MIL OSI News –

  • MIL-Evening Report: Elon Musk’s flood of US election tweets may look chaotic. My data reveals an alarming strategy

    Source: The Conversation (Au and NZ) – By Timothy Graham, Associate Professor in Digital Media, Queensland University of Technology

    As voting booths in the United States close and the results of the presidential election trickle in, tech billionaire Elon Musk has been posting a flurry of tweets on his social media platform, X (formerly Twitter). So too has Republican presidential nominee Donald Trump.

    At first glance these tweets might appear chaotic and random. But if you take a closer look, you start to see an alarming strategy behind them – one that’s worth paying very close attention to in order to understand the inner workings of the campaign to return Trump to the White House.

    The strategy has two immediate aims. First, to overwhelm the information space and thereby manage attention. Second, to fuel the conspiracy theory that there is a coordinated campaign among Democrats, the media and big tech to steal this election.

    But it’s important to understand that the strategy on X is part of a master strategy of Trump’s campaign: a backup plan in case of a Trump loss, designed to encourage the public to participate in a grand re-wiring of reality via the meta-narrative of widespread voter fraud.

    Overwhelm the information space

    Musk has long been a prominent user of X, even before he became the owner, chief technology officer and executive chairman of the platform.

    But as I reported last week, since he endorsed Trump in July, engagement with his account has seen a sudden and anomalously large increase, raising suspicions as to whether he has tweaked the platform’s algorithms so his content reaches more people.

    This trend has continued in recent days.

    As well as posting on X, earlier today Musk also held a “freeform” live discussion on the platform about the election. It lasted for nearly one and a half hours. Around 1.3 million people tuned in. This is one of many live discussions he has hosted about the election over the past months, including notably with Trump.

    In an information war, everything is about attention management. Platforms are designed to maximise engagement and user attention above and beyond anything else. This core logic of social media is highly exploitable: who controls attention controls the narrative. In Australia, the “Vote No” campaign during last year’s referendum on Indigenous representation in government was a masterclass in attention management.

    By bombarding audiences, journalists, and other key stakeholders with a constant supply of allegations, rumours, conspiracy theories and unverifiable claims, Musk and the Trump campaign eat up all the oxygen of attention. When everyone is focussed on you and what you’re saying, they are distracted from what the other side is saying.

    And Musk and Trump want people to focus on the idea that the election is going to be stolen.

    Fuel the election fraud narrative

    From the beginning of the year, the narrative that the US presidential election is at risk of being defrauded has been steadily gaining steam. But in the past week leading up to election day, it has gone gangbusters.

    For example, starting on October 27, Trump started posting on X using the #TooBigtoRig hashtag. This refers to the idea that Trump will win the election by such a large margin that the result will be incontestable. Up to this point, the #TooBigToRig campaign was driven by Trump supporters. Now, Trump has officially joined – giving it the ultimate legitimacy.

    There has also been a dramatic spike over the last week in posts using similarly themed hashtags such as #ElectionFraud, #ElectionInterference, #VoterFraud and #StopTheSteal.

    Musk himself hasn’t been using these hashtags very much (although replies to him from other users are riddled with them). But he has been posting material that aligns with them. For example, earlier today he retweeted a post which claimed the electronic voting system in the US was insecure. Musk added: “Absolutely”.

    He has also falsely accused Google of encouraging Americans to vote for Democratic nominee Kamala Harris.

    And as some early results have started trickling in, Musk has posted about Trump’s odds of winning being nearly 70%.

    “The prophecy has been fulfilled,” Musk wrote.

    Participatory disinformation

    In many ways this has all the hallmarks of participatory disinformation. This concept, developed by computer scientist Kate Starbird and colleagues, explains how both ordinary people as well as politicians and influential actors become active participants in spreading false narratives.

    Unlike the top-down model of propaganda, participatory disinformation describes how grassroots activists and regular people – often with strong convictions and genuine intentions – contribute to spreading and evolving narratives that are not grounded in facts. It is a collaborative feedback loop involving both elite framing of issues and collective sensemaking and “evidence” gathering.

    Before war breaks out, there are clear signs of what’s about to unfold, even if a country publicly denies they are preparing for battle. Blood supplies, troops and weaponry are transported to the border in preparation for an invasion.

    The same thing is at play here, except the weapon is us.

    The flood of tweets by Musk and Trump, in particular, is setting the stage for a full-blown participatory disinformation campaign to undermine the election results.

    Timothy Graham receives funding from the Australian Research Council (ARC) for his Discovery Early Career Researcher Award, ‘Combatting Coordinated Inauthentic Behaviour on Social Media’. He also receives ARC funding for the Discovery Project, ‘Understanding and combatting “Dark Political Communication”‘ (2024–2027).

    – ref. Elon Musk’s flood of US election tweets may look chaotic. My data reveals an alarming strategy – https://theconversation.com/elon-musks-flood-of-us-election-tweets-may-look-chaotic-my-data-reveals-an-alarming-strategy-243021

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI Australia: Opinion piece: Farming Power games squeeze the little guys

    Source: Australian Treasurer

    Many Australian markets are dominated by a few big firms. Worse, over recent decades, market concentration has increased.

    A lack of competition doesn’t just harm consumers; it can also hurt businesses that have to deal with monopolies.

    Small‑scale farmers are the meat in a market concentration sandwich. Upstream, there is often no choice about dealing with large‑scale providers on inputs. Downstream, there is often no choice about negotiating with larger processors and retailers.

    In a new analysis, I study the competition squeeze on Australia’s farmers. For many commodities, there are a diverse range of farmers, making farming itself quite competitive. But that isn’t true of the markets where farmers buy their inputs and sell their outputs.

    A common way of measuring concentration is to look at the market share of the top 4 firms. When it comes to the inputs farmer buy, these markets can be heavily concentrated. In fertiliser manufacturing, the biggest 4 firms have 62 per cent of the market. In hardware and building supplies, the top 4 have 49 per cent of the market. For garden supplies, the leading 4 have 33 per cent.

    Downstream, farmers deal with concentrated markets for freight, processing and retailing. In rail freight, the largest 4 firms have a market share of 64 per cent. In shipping, the top 2 have 85 per cent.

    In fruit and vegetable processing, the big 4 have 34 per cent of the market. For meat processing, the top 4 have 44 per cent of the market. The 2 major supermarkets have two‑thirds of the market.

    For many farmers, their options are even more limited than these figures suggest, as transport costs and risk of spoilage further limit the commercially viable options available to them.

    A few examples show how market concentration hurts farmers. When it comes to seeds, the US Department of Agriculture found last year that the sector ‘has become highly integrated with agricultural chemicals and more concentrated, with fewer and larger firms dominating supply’. In the 3 decades from 1990 to 2020, the average seed price quadrupled.

    Or take wine.

    There are many wine growers, but few wine makers. A wine grape market study completed by the Australian Competition and Consumer Commission (ACCC) found that the largest 1 per cent of winemakers accounted for over 80 per cent of wine production. In winemakers’ dealings with grape growers, the ACCC raised questions about slow payment times and a lack of transparency.

    Beef markets have problems too. In a market study, the ACCC found evidence that conflicts of interest regularly arise in saleyard transactions when buyers bid for livestock on behalf of multiple clients, and when agents represent both a cattle seller and a cattle buyer in the same transaction.

    The ACCC pointed out that cattle auctions have characteristics that make it easier for cartels to develop, including repeated interactions with the same auctioneers, who are often linked by social networks that make it easier to ‘punish’ auctioneers who break away from agreed anti‑competitive bidding practices. Other problematic behaviours included the exclusion of rival agents, and a lack of transparency around saleyard weighing protocols.

    As for supermarkets, a report from the House of Representatives Economics Committee, chaired by Daniel Mulino MP, summed up the problem crisply: ‘Many agricultural suppliers are at risk of that power imbalance being used to negotiate outcomes that affect profitability and, therefore, the capacity and willingness to invest.’

    Our Labor government is committed to ensuring farmers get a better deal.

    First, a few months after winning office, we passed legislation banning unfair contract terms. These tougher laws were important last year, when the ACCC investigated complaints about fertiliser companies using contracts in a way that could disadvantage farmers.

    Contract terms allegedly gave larger suppliers the right to unilaterally vary the quantity delivered or to terminate the agreement and restricted buyers from raising issues about defects. Fertiliser suppliers co‑operated and changed the contract terms to address the ACCC’s concerns.

    Second, we’re making the Food and Grocery Code mandatory, with Coles, Woolworths, Aldi and Metcash subject to million‑dollar penalties for serious breaches.

    There will be improvements to the dispute resolution mechanisms. There will be a pathway for anonymous complaints from suppliers and whistle‑blowers, and guards against retribution by supermarkets.

    We released exposure drafts for consultation in September and we aim to introduce legislation into the parliament later this year.

    Third, Treasurer Jim Chalmers directed the ACCC to undertake a 12‑month inquiry into supermarkets. The interim report highlighted concerns from fresh produce suppliers about information asymmetries, power imbalances and specific practices that have enabled supermarkets to transfer disproportionate risk and cost onto suppliers.

    In the next phase of the inquiry, the ACCC will undertake 14 case studies to examine supermarket profit margins and how profits are distributed in the supply chain. It will hand a final report to the government in February 2025.

    Fourth, we recently appointed former competition minister Craig Emerson to lead an independent impact analysis of the wine and grape sector’s regulatory options. Dr Emerson’s report will examine fair trading, competitive relationships, contracting practices and risk allocation.

    Fifth, we have announced the most significant reforms to merger settings in almost 50 years. The proposed reforms will make Australia’s merger approval system faster, stronger, simpler, targeted and more transparent.

    Sixth, the Albanese government is working with state and territories to revitalise National Competition Policy. The original National Competition Policy underpinned a generation of growth from the 1990s. We are aiming to strike agreement with states and territories for the next phase of reforms by the end of the year.

    A lack of competition across Australia’s agricultural supply chains is bad for small‑scale farmers. It can mean higher prices for inputs and lower prices for outputs. Power imbalances in negotiating contracts. A lack of transparency around prices. Farmers can find themselves at the mercy of both monopoly power and its evil twin, monopsony power.

    It isn’t just farmers who are squeezed. A lack of competition has long‑term consequences for Australia’s economic and environmental sustainability and profitability. That’s why our government is focused on practical solutions to improve Australia’s competition settings. To make things fairer for farmers, and fairer for families.

    MIL OSI News –

  • MIL-Evening Report: Only 25% of older Queenslanders are aware of the risks heatwaves put on their health – new study

    Source: The Conversation (Au and NZ) – By Mehak Oberai, Senior Research Assistant, Ethos Project, School of Medicine and Dentistry, Griffith University

    Los Muertos Crew/Pexels

    Parts of Australia are currently facing extreme heat, with high temperatures set to continue over the coming days.

    Though it’s unclear exactly what the upcoming summer will bring, climate change means Australian summers are getting hotter. Even this year in August we saw temperatures around 40°C in parts of the country.

    Heatwaves aren’t just uncomfortable – they can be deadly. Health emergencies related to extreme heat place significant strain on our health-care systems, with data showing increased ambulance callouts and hospital presentations during these periods.

    Although heatwaves can affect everyone, older adults are particularly at risk. But our new research has found older Queenslanders don’t necessarily believe heat poses a risk to their health. And this affects how they respond to emergency warnings.

    Older people and the heat

    Ageing brings physiological changes, including reduced ability to regulate body temperature, which can put older people at increased risk of issues such as heat exhaustion and heat stroke.

    Heat exposure can also worsen the symptoms of existing conditions, such as heart disease, lung disease or kidney disease, which are more common in older people.

    The risk is even more pronounced for older people who live in poor quality housing, are economically disadvantaged, or are socially isolated.

    A report from the Australian Institute of Health and Welfare shows that, of 2,150 hospitalisations due to extreme heat between 2019 and 2022, 37% were among people aged 65 and older (who make up around 16% of the population).

    So there’s an urgent need to prioritise the health of older Australians as the country braces for more intense and prolonged heatwaves in the future.

    When the weather is hot, older people are at greater risk of health complications.
    Kleber Cordeiro/Shutterstock

    Early warning systems

    As we’ve learned more about the risks of heatwaves, there’s been an increased focus on developing population-based early warning systems. These systems play a crucial role in encouraging people to adopt heat-protective behaviours such as staying hydrated, avoiding strenuous physical activity when temperatures are high, and wearing loose or light clothing.

    Queensland is one of the world’s most vulnerable regions to heatwaves. Since 2015, heatwave warnings have been part of the state’s heatwave subplan, which sets out strategies for managing and mitigating the impacts of extreme heat events.

    These warnings involve alerts about upcoming high temperatures, and advice on staying cool. They come as notifications through the Bureau of Meterology’s weather app or via media outlets or social media. However, it’s not clear whether these warnings are reaching those most at risk.

    As part of a broader project on extreme heat and older people, we surveyed 547 Queenslanders aged 65 and over to understand their perceptions of heat risks and to determine if heatwave warnings were reaching them.

    We also wanted to know what factors influence how they receive and respond to these warnings, with a view to understanding how we can improve heatwave warnings for this group.

    What we found

    Only 25% of respondents were aware of the potential consequences of heatwaves on their health. The majority of participants (80%) perceived themselves to be at lower risk compared to others of their age group. This aligns with previous heat-health research which has similarly found older adults often don’t perceive heat as a personal risk.

    While most of the sample (87%) reported having one or more chronic health conditions, 30% were unaware having a chronic health condition increased their vulnerability to heatwaves.

    Several cultural and personal factors may explain why older people don’t think heat poses a danger to them. In Australia, heat is typically seen as a normal and even positive part of life. Heat risk messages are often less urgent than warnings for other natural disasters.

    Previous research has also shown older people tend not to think heat poses a risk to their health.
    Miguel AF/Shutterstock

    We also found nearly half of respondents had not heard a heatwave warning. Of those who had, roughly half took actions to keep themselves cool.

    What stood out from our analysis was that participants’ awareness and actions in response to heatwave warnings were significantly influenced by their knowledge and perceptions of heat risks. Factors such as age, gender and education were not so important.

    Respondents who believed they were at risk were almost twice as likely to hear the warnings, and 3.6 times more likely to take heat protective actions.

    This aligns with other research that highlights the correlation between heat-health risk perception and the efficacy of heatwave warnings.

    One limitation of our research is that we conducted the survey in 2022 during and following a La Nina period, where temperatures are usually lower. So there may have been fewer heatwave warnings throughout the season, potentially reducing participants’ perceptions of heat health risks.

    What needs to change?

    With another hot summer likely ahead, we need to rethink how we communicate about heatwaves. These are more than just hot days. We need to recognise heatwaves as a serious health risk, especially for older people, and effectively communicate that risk to the public.

    This might include using primary health-care professionals such as GPs, nurses and pharmacists to share heat-health information with older patients and their family members, or developing personalised heat action plans for the summer period.

    Text message alerts from the Bureau of Meteorology, along with app notifications, could be a good idea considering some older adults may not have a smartphone or be open to using apps.

    To improve heatwave communication, we also need to explore the barriers and facilitators to heat protective behaviours. This includes considering structural factors (such as housing design), environmental factors (for example, access to shade and cool refuges), individual factors (such as financial constraints or health conditions) and social factors (such as access to family and community support).

    Strengthening communication around heatwaves and health will not only protect individual wellbeing but enhance community resilience as extreme heat continues to affect our lives.

    Mehak Oberai is a Senior Research Assistant working on Ethos project and is also a member of the AAG (Australian Association of Gerontology) Student & Early Career Working Group.

    Ella Jackman is a PhD Candidate at Griffith University and a Research Assistant for the Queensland Heat Health Community of Practice (QHHCoP) and the Ethos Project.

    Shannon Rutherford co-leads the Climate Action Beacon Griffith University funded, Queensland Heat Health Community of Practice and receives funding from Wellcome and NEMA. She is an affiliate member of the HEAL network

    Steven Baker and Zhiwei Xu 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. Only 25% of older Queenslanders are aware of the risks heatwaves put on their health – new study – https://theconversation.com/only-25-of-older-queenslanders-are-aware-of-the-risks-heatwaves-put-on-their-health-new-study-238875

    MIL OSI Analysis – EveningReport.nz –

  • 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
    ***************************************

         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

    NNNN

    MIL OSI Asia Pacific News –

  • MIL-OSI Global: Are these tiny insects the world’s most bone-idle bugs?

    Source: The Conversation – UK – By James Gilbert, Lecturer in Zoology, University of Hull

    Dunatothrips family: two mums, two yellow babies, and, very unusually, a dad (smaller). James Gilbert, CC BY

    At less than 3mm long, you may not think Dunatothrips aneurae seem like much. And – as I have shown in a new study – you’d be absolutely right. That’s because these may be the world’s laziest insects.

    Dunatothrips live in the remote Australian outback where they bother nobody. They almost never leave their near-invisible miniature nests, built on Acacia trees from silk they extrude from their bottom. No known predators bother with Dunatothrips and their biggest threat is drying out in the heat if their nest is damaged. Pacifist vegetarians, they feed harmlessly on the plant surface, with no discernible effect on it.

    No bigger than the hyphen on your page, they belong to the thrips, which you may know as thunderbugs owing to a myth that they come out during thunderstorms. Almost everyone gets their name wrong (one thrips is a thrips, not a thrip). Some species make a nuisance of themselves as tomato pests. But for the Dunatothrips I investigated, that sounds a bit much too much like effort.

    I spent a few summers studying the social lives of these tiny insects, trying to understand their unusual habit of sometimes living alone and sometimes in groups with their sisters. I was puzzled to discover that some group members appear to do nothing. Not helping out, not breeding, nothing. Few animal societies are known where group members help no one, not even themselves.

    If the silk nest was damaged, I found, usually only one or two females inside stepped up to repair it. The remaining group members didn’t do anything. The responders’ repair efforts helped everybody, so the laggards enjoyed the benefits without raising a minuscule finger.

    I set out to investigate what these “lazy” thrips were doing. Were they like queen bees, specialising in producing eggs while others acted as workers? Other social insects have this arrangement, including many other Australian thrips.

    But no: when I dissected helpers and non-helpers I found it was the helpers
    that tended to be the ones carrying eggs.

    Maybe they were a reserve workforce, helping when others were lost, as in
    some bird societies like carrion crows. But when first responders were removed, their nestmates remained just as unhelpful as before.

    The author on a thrips collecting foray.
    James Gilbert, CC BY

    I wondered whether they were biding their time, waiting for a chance to breed later, as paper wasps do. I removed all group members except for a lazy one, gifting it a nest of its very own. They declined this opportunity as well, producing few or no eggs and taking up to five times as long to repair the nest as a helpful thrips put in the same situation.

    If the lazy non-helpers don’t even help themselves, doesn’t that make them an evolutionary paradox? Not really: while behaviour only evolves if it furthers individuals’ fitness, evolution tends to work on averages. Within a species, individuals are all different, and some are inevitably of poorer quality than others. They may carry mutations, inherit unfortunate gene combinations, experience poor environments, or all of the above. Perhaps they were jostled to the edge of the leaf as a kid.

    If life gives you lemons

    Animals in this situation will commonly make the best of a bad job. A poor quality thrips can lay only a few eggs, and can only contribute a few strands of silk to repairing a nest. She can’t build the nest she would need to raise offspring on her own. So her best option is to hang around in a group where her young can grow alongside those of others.

    It’s still a mystery why nestmates of these wastrels don’t kick them out. But it may involve their being unusually chilled out in the face of any provocation, even by dangerous intruders like their cousins Akainothrips, a new species I discovered with my colleagues. The resident Dunatothrips just stand aside.

    This pacifism may be related to how risky nestbuilding is. At any moment, out there on a leaf surface, you might fall, be blown out of the nest, or dry out in the outback sun. Given that you might die at any moment, it pays you to tolerate the presence of others who can carry on your nestbuilding work and help keep everyone’s babies alive.

    A simple evolutionary way to achieve this is to drop all aggression towards anyone, including intruders of different species. Some spiders have done this and form cooperative nurseries involving different spider species. For our lucky waster thrips, this means they get a free pass to stay in the group.

    It is also possible these bone-idle bugs may actually be helping, just in subtle ways. For example, Dunatothrips nests have rubbish dumps, so they might help by taking out the trash. In many social insects, including some thrips, workers can act as medics. Even just breathing inside the nest may raise humidity and help the group survive – cockroaches form groups at low humidity for just this reason.

    So, while non-helper Dunatothrips may be among the world’s least motivated insects, they are certainly not the least interesting. The evolutionary persistence of these laggards is helping us understand how different kinds of societies evolve.

    James Gilbert currently receives funding from UKRI (Biotechnology and Biological Sciences Research Council). This study was funded by a Marie Curie Fellowship (2011-2014) under the European Community’s Seventh Framework Programme.

    – ref. Are these tiny insects the world’s most bone-idle bugs? – https://theconversation.com/are-these-tiny-insects-the-worlds-most-bone-idle-bugs-242454

    MIL OSI – Global Reports –

  • MIL-OSI: CREDIT AGRICOLE SA : Crédit Agricole Immobilier announces the closing of the acquisition of Nexity Property Management and becomes the leader of Property Management in France

    Source: GlobeNewswire (MIL-OSI)

    Press release

    Montrouge, 6 November 2024

    Crédit Agricole Immobilier announces the closing of the acquisition
    of Nexity Property Management
    and becomes the leader of Property Management in France

    Crédit Agricole Immobilier is pleased to announce that it has completed the acquisition of Nexity Property Management, a Nexity subsidiary specialised in commercial and residential asset management. With this transaction, announced on 25 July 2024, Crédit Agricole Immobilier becomes the leader in institutional property management, in France 1.

    The acquisition of Nexity Property Management brings additional expertise to Crédit Agricole Immobilier, ranging from advisory services to accounting and technical rental management, supervision of works, shopping malls management etc.

    In addition, Nexity Property Management’s powerful network of over 30 branches and offices across France, comes as an addition to strengthens Crédit Agricole Immobilier’s own presence. It supports Crédit Agricole Immobilier in addressing the needs of its institutional customers, including the customers of the Regional Banks and subsidiaries of the Crédit Agricole Group. This increased local footprint, will allow CAI to bring their expertise to clients’ investment projects, in line with the Universal Customer-focused Banking Model approach.

    This new transaction, taking place 18 months after the acquisition of Sudeco, a long-standing Property Management player and commercial property specialist, has established Crédit Agricole Immobilier as the market leader with the most comprehensive range of services for institutional customers across all asset categories, from residential to commercial.
    Overall, Crédit Agricole Immobilier now manages more than 11,000 assets.

    For Nexity, this transaction is fully aligned with the group’s roadmap, specifically with the refocusing strategy launched in 2023.

    This transaction has no significant impact on Crédit Agricole S.A.’s CET1 ratio and should generate a return on investment that is in line with Crédit Agricole’s policy.

    “We are so delighted and proud to welcome the Nexity Property Management teams to Crédit Agricole Immobilier. This acquisition represents a decisive step forward in our strategy of becoming the leader of property management in France. We are deepening our expertise in all areas of property management and strengthening our presence across France. By joining forces, we are ready to take on new challenges. This is the perfect expression of our 2025 strategic plan, as well as the mid-term plan of Crédit Agricole Group: it will allow us to support our clients more extensively on strategic social and environmental issues, such as reducing the carbon footprint of their property assets.”

    Valérie Wanquet, Chief Executive Officer of Crédit Agricole Immobilier

    “I am delighted that we have completed this transaction with the Crédit Agricole Group, a long-term strategic partner of the Nexity group, which is fully in line with our efforts to refocus our activities, which we began at the end of 2023. I would like to thank all Nexity Property Management teams and I wish them every success with their new shareholder. We are certain that Crédit Agricole Immobilier will be able to maintain the quality of its services and enhance its market share.”

    Jean-Claude Bassien, Deputy Chief Executive Officer of Nexity

    ABOUT CRÉDIT AGRICOLE IMMOBILIER
    A subsidiary of the Crédit Agricole Group, Crédit Agricole Immobilier supports its individual, corporate and public authority customers with real estate projects throughout France while upholding three fundamental principles: sustainability and performance of buildings, respect for the environment and decarbonisation, and social cohesion and inclusion.
    As a partner in the most ambitious property development projects, we work with our customers to create value throughout their projects: transaction, letting, rental management, co-ownership associations, property strategy, residential and commercial development, refurbishment, renovation, development of spaces, property management and operation.
    To find out more, visit: www.ca-immobilier.fr/nous-connaitre

    CRÉDIT AGRICOLE IMMOBILIER PRESS CONTACT
    Vanessa Feugères – +33 (0)7 86 84 19 15 – vanessa.feugeres@ca-immobilier.fr

    NEXITY, LIFE TOGETHER
    With revenues of €4.3 billion in 2023, Nexity, the leading global real estate operator, is present all over France and operates in all areas of development and services. Our strategy as leading global real estate operator allows us to meet all our clients’ needs, whether they are individuals, corporates, institutions or authorities. Our raison d’être ‘life together’ reflects our commitment to create sustainable spaces, neighbourhoods and towns for them, that help them to build and rebuild connections. For the sixth consecutive year, Nexity was ranked the top contracting authority by Association pour le développement du Bâtiment Bas Carbone (BBCA – a French low-carbon building association), is a member of the Bloomberg Gender Equality Index, Best Workplaces 2021 and was certified a Great Place to Work® in September 2022.
    Nexity is listed on Service de Règlement Différé (SRD – Deferred Settlement Service), in Compartment A of Euronext and on the SBF 120.

    NEXITY PRESS CONTACTS
    Cyril Rizk – Media Relations Manager / +33(0)6 73 49 72 61 – presse@nexity.fr
    Emma Durel – Media Relations Officer / +33 (0)6 99 14 09 28 – presse@nexity.fr
    Anne-Sophie Lanaute – Head of Investor Relations and Financial Communications / +33 (0)6 58 17 24 22 – investorrelations@nexity.fr

    1 In terms of revenues, source: Xerfi.

    Attachment

    The MIL Network –

  • 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 –

  • 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

    The MIL Network –

  • 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 –

  • MIL-Evening Report: Government to introduce urgent legislation after High Court strikes down law to monitor former immigration detainees

    Source: The Conversation (Au and NZ) – By Michelle Grattan, Professorial Fellow, University of Canberra

    The High Court has struck down the Albanese government’s law enabling it to impose ankle bracelets and curfews on the more than 200 non-citizens it released from immigration detention in 2023 after  an earlier decision by the court.

    Wednesday’s decision, by a five-two majority, found the measures “punitive” and an infringement of the constitution.

    The plaintiff in the case  was a stateless Eritrean who was released from immigration detention last November. He was later charged  with six offences  for failing to comply with his monitoring and curfew conditions. The charges are  pending  in the Magistrates’ Court of Victoria.  His earlier criminal record includes a 2017 conviction for offences of burglary and causing injury.

    Legislation for the measures was rushed through parliament a year ago, in response to the release of the detainees, many of whom had serious criminal records, including for murder, rape and assault.

    During consideration of the bill, the opposition forced the government to toughen it – from providing for the measures only where needed for community safety, to saying the minister must act unless satisfied the person did not pose a risk.

    At the time constitutional experts such as Anne Twomey, from the University of Sydney,nas well as the Senate Standing Committee for the Scrutiny of Bills expressed doubts about the legislation.

    Twomey wrote: “the effects of the political bidding war to be seen as the ‘toughest’ and most punitive  towards non-citizens will make it infinitely harder for Commonwealth lawyers to defend these measures in the courts”.

    The opposition said in a statement the effect of the court decision would be that “215 dangerous non-citizen offenders including 12 murderers, 66 sex offenders, 97 people convicted of assault, 15 domestic violence perpetrators and others will be free in the community without any monitoring or curfews”.

    It said since being released, 65 of these people had been charged with new state or territory offences, with 45 remaining free in the community.

    Minister for Home Affairs Tony Burke said regulations were being finalised for “an adjusted process” for electronic monitoring and curfews. “I will sign off on these regulations later today.”

    Burke said that on Thursday he would introduce new legislation to support the regulations. That legislation would also strengthen the government’s power to remove to third countries people whose visas had been cancelled.

    “The court decision is not the one the government wanted – but it is one the government has prepared for,” Burke said.

    Michelle Grattan does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    – ref. Government to introduce urgent legislation after High Court strikes down law to monitor former immigration detainees – https://theconversation.com/government-to-introduce-urgent-legislation-after-high-court-strikes-down-law-to-monitor-former-immigration-detainees-243027

    MIL OSI Analysis – EveningReport.nz –

  • MIL-Evening Report: Politics with Michelle Grattan: Independent Helen Haines says the NACC has had ‘disappointing start’, and the government is pork barrelling

    Source: The Conversation (Au and NZ) – By Michelle Grattan, Professorial Fellow, University of Canberra

    Trust in politicians is at an all-time low, not only in Australia but across the world. Now more than ever, people are demanding a higher standard for our elected officials.

    The row over flight upgrades and the Qantas lounge has reinforced distrust.

    So has the strong criticism of the head of the National Anti-Corruption Commission, Paul Brereton, in his conduct over referrals from the Robodebt royal commission. The Inspector of the NACC found Brereton, who had a conflict of interest because he knew one of the people, had not properly recused himself from the consideration of whether the NACC should investigate the referrals.

    Independent MP Helen Haines, who holds the Victorian seat of Indi, has long focused on integrity issues, and she joined us on the podcast.

    Haines, who is deputy chair of the parliamentary committee with oversight of the NACC, says the new body – which she strongly believes is surrounded by too much secrecy – has not started well:

    We are just over one year in, but I’d have to say that the National Anti-Corruption Commission has got off to a disappointing start, given the Robodebt incident and the subsequent inquiry by the Inspector.

    The [parliamentary] oversight committee will have the opportunity very soon – in a public hearing on the 22nd of November, when the Commissioner comes before us in regard to the annual report of the NACC – to ask him questions. And I certainly will be giving full consideration to what line of questioning needs to happen in that committee in order to unpack the events of the past year.

    Will that committee make a decision on whether Commissioner Brereton should be asked to resign?

    I think what happens next will be determined by what the committee unpacks in that public hearing. But I think, to be clear, that under the legislation, our committee has powers to review the performance of the Commissioner and Deputy Commissioners. So that’s what we’ll be doing.

    On grant programs, Haines says the Albanese government is pork barrelling, just as the Coalition did:

    It’s a really strong example of the two major parties and the duopoly they hold. They wouldn’t do it if it didn’t work. But there are ways that we can remedy this. I’ve put forward twice in the parliament now a piece of private member’s legislation that would bring an end to pork barrelling. It would mean that eligibility criteria and guidelines by legislation must be published before grant moneys are allocated.

    It would re-institute parliamentary oversight of these grant programs. And it would make sure that in circumstances where the department had recommended particular projects but a minister wished to make a different decision to override that, which may be quite legitimate, but that the minister would need to come into the House and explain that.

    When she is reminded one argument for a vote for an independent in her seat of Indi, when her predecessor Cathy McGowan ran, had been to make it more competitive in attracting promises, she says:

    Now I think that’s regrettable. I think, though, it’s a symptom of the cynicism that everyday citizens feel when the major parties have what they consider safe seats and what they consider marginal seats.

    I think that what I’ve learnt as a member of parliament is that we never fix the system if we remain that cynical. I think we need to say, what’s the problem here? The problem is that the major parties are using taxpayer dollars for political purposes and that, yes, you can feel angry, disappointed and, in fact, so cynical that you take the approaches, as we did in Indi, to say, well, we need to change our representation.

    I’m saying it’s no wonder people buy into that when there’s no remedy. I want to see a remedy.

    On her decision to this week to cancel her membership of the Qantas chairman’s lounge and its Virgin equivalent:

    For me, the potential or perceived conflict of interest or actual conflict of interest that may arise from holding such a membership when I’m a legislator is a risk that I’m not willing to take now.

    Michelle Grattan does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    – ref. Politics with Michelle Grattan: Independent Helen Haines says the NACC has had ‘disappointing start’, and the government is pork barrelling – https://theconversation.com/politics-with-michelle-grattan-independent-helen-haines-says-the-nacc-has-had-disappointing-start-and-the-government-is-pork-barrelling-243029

    MIL OSI Analysis – EveningReport.nz –

  • MIL-Evening Report: Donald Trump poised to become next US president, likely sweeping all the seven key states

    Source: The Conversation (Au and NZ) – By Adrian Beaumont, Election Analyst (Psephologist) at The Conversation; and Honorary Associate, School of Mathematics and Statistics, The University of Melbourne

    Donald Trump is set to accomplish the rare feat of winning the US presidential election after losing an earlier one.

    The New York Times Needle gives Trump a 95% chance to win the Electoral College. He’s estimated to have won Georgia (16 electoral votes) by 2.5% over Democrat Kamala Harris and North Carolina (16) by 3.3%.

    Other key states have not yet been called, but Trump has an 85% probability of winning Pennsylvania (19 electoral votes), a 71% chance to win Michigan (15), a 79% chance to win Wisconsin (ten) and an 83% chance to win Arizona (11). There are still no results from Nevada (six).

    If Trump wins all the seven key states in which the “needle” favours him, he will win the Electoral College by a 312–226 margin.

    The needle’s popular vote projection also favours Trump by 1.2%. If Trump wins the popular vote as well as the Electoral College, it will be the first time Republicans have won both since 2004. In 2000 and 2016, Republicans won the Electoral College but not the popular vote.

    The main reasons for Trump’s victory were Joe Biden’s unpopularity, the US economy being only just above average, and record illegal immigration during Biden’s term. I’ve mentioned all these factors in my previous US election articles.

    Abortion was not the vote-shifter Democrats expected. In lower-turnout elections such as the 2022 midterms and byelections, Democrats have performed well owing to voters motivated by abortion. But in this high-turnout presidential election, abortion was marginalised.

    Polls understated Trump across the board, though they were not as bad as they were in 2020. Using Nate Silver’s aggregate of final polls, Trump outperformed his polls in the seven key states by two to three points. This is the third successive time that polls have underestimated Trump.

    In the past, the Selzer Iowa poll has had outlier results that turned out to be accurate. This time the final Selzer poll gave Harris a three-point lead in Iowa, but Trump will win by 13 points according to the needle’s forecast.

    Barack Obama won Florida in both 2008 and 2012, and Trump won it by one to three points in both 2016 and 2020. This year, Trump won Florida by 56–43. He won the heavily Hispanic Miami-Dade county by 55–44. At the 2016 presidential election, Hillary Clinton had defeated Trump in Miami-Dade by 63–34.

    In some states that have nearly finished counting, such as Kentucky, there were swings across the board to Trump compared with 2020. It wasn’t just a rural swing to Trump as there were also swings in urban counties.

    The New York Times said Trump had gained nine to ten points since 2020 in New York, New Jersey and Florida, all racially diverse states.

    The only comfort for Democrats from this election is that the gap between the popular vote and the Electoral College “tipping point” state has almost disappeared, if the needle is right. Democrats will lose the popular vote by 1.2% but Pennsylvania, the tipping point state, by 2.2%. This will be a gap of 1.0%, down from nearly 3.9% in 2020.

    Senate also ugly for Democrats

    Democrats and allied independents held a 51–49 Senate majority coming into this election, but they were defending 23 of the 33 regular seats up for election. Senators have six-year terms with two from each of the 50 states.

    Republicans have gained the Senate with a 51–42 lead over Democrats, after gaining West Virginia and Ohio from Democrats and defending Florida, Nebraska and Texas. Republicans lead Democrats in four more Senate races, so they could win a 55–45 Senate majority.

    All of the House of Representatives is up for election every two years. Republicans currently have a 183–155 lead over Democrats. A majority requires 218 seats.

    Adrian Beaumont does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    – ref. Donald Trump poised to become next US president, likely sweeping all the seven key states – https://theconversation.com/donald-trump-poised-to-become-next-us-president-likely-sweeping-all-the-seven-key-states-242766

    MIL OSI Analysis – EveningReport.nz –

  • MIL-Evening Report: Black balls on Sydney beaches are likely ‘fatbergs’ showing traces of human faeces, methamphetamine and PFAS: new analysis

    Source: The Conversation (Au and NZ) – By Jon Beves, Associate Professor of Chemistry, UNSW Sydney

    Jon Beves, CC BY

    The mysterious black balls that washed up on Sydney’s beaches in mid-October were likely lumps of “fatberg” containing traces of human faeces, methamphetamine and PFAS, according to a new detailed analysis of their composition.

    Initial reports suggested the ominous lumps were probably tar balls from an oil spill. However, analysis with a barrage of scientific tests has revealed a more complicated picture.

    The mysterious black balls

    On October 16, the first reports emerged from Coogee Beach in Sydney’s east. Lifeguards reported numerous black spheres on the sand that appeared at first glance to be tar-like.

    Similar sightings were soon reported at nearby Bondi, Bronte, Tamarama and Maroubra beaches, prompting immediate closures and cleanup efforts. Authorities initially feared these could be toxic “tar balls”, leading to health advisories and public warnings.

    Preliminary testing by Randwick Council was consistent with tar balls made up of oil and debris.

    Oil – or something more disgusting?

    We set out to find out exactly what the black balls were made of and where they came from. We ran a wide range of tests and analyses with colleagues from UNSW in collaboration with the Mark Wainwright Analytical Centre and the the environmental forensics arm of the federal Department of Climate Change, Environment, Energy and Water (DCCEEW). We also collaborated with the NSW Environment Protection Authority (EPA), and Randwick Council.

    Initial testing, based primarily on results from a technique called solid-state nuclear magnetic resonance spectroscopy, suggested the material resembled unrefined oil. However, further testing indicated a different, more disgusting, composition.

    A cross section of one of the balls, showing its sandy coating and surface, some fibres, and the core.
    Jake Ireland, CC BY

    Analysing the elements involved revealed the black goop was mostly carbon. Radiocarbon dating then showed only about 30% of the carbon had a fossil origin, suggesting fossil fuels were not the major component of the balls.

    We also identified significant levels of calcium, and much smaller amounts of various metals. Spectroscopic tests showed signatures in the black balls matching fats, oils and greasy molecules often found in soap scum, cooking oil and food sources. This pointed to human waste.

    PFAS, drugs and signs of faeces

    The next step was to see if we could dissolve the substance in organic solvents. Only about one-third to one-half of the mass dissolved this way.

    We were able to take a closer look at the dissolved part using a technique called mass spectrometry, which identifies molecules by their weight and electric charge. This revealed molecules found in vehicle-grade fuels as well as organic molecules such as fatty acids and glycerides.

    We also identified industrial perfluoroalkyl substances (PFAS or “forever chemicals”), steroidal compounds such as norgestrel, antihypertensive medications such as losartan, pesticides, and veterinary drugs. This is consistent with contamination from sewage and industrial runoff.

    The crushed up interior of one ball, ready for testing.
    Jon Beves, CC BY

    There were also signs of human faecal waste, including a cholesterol byproduct called epicoprostanol and residues of recreational drugs including tetrahydrocannabinol (also known as THC, a compound found in the cannabis plant) and methamphetamine. This is consistent with contributions from domestic waste.

    Analysing the part of the mass that we couldn’t dissolve proved more challenging. Here we tried solid-state nuclear magnetic resonance and a method called Fourier transform infrared spectroscopy, which uses infrared light to detect chemicals. The results suggested the presence of fats, but they were not definitive.

    Were the blobs lumps of fatberg?

    So what does all this mean? The high levels of fats, oils, greasy molecules and calcium, along with the low solubility, are consistent with a “fatberg”: a congealed mass of fats, oils and greasy molecules that can accumulate in sewage.

    The detection of markers of human fecal matter, medication and recreational drugs suggest the origin may be sewage or other urban effluent. However, while the composition of these black balls suggests they may be similar to fatbergs, we cannot definitively confirm their exact origin.

    The black ball incident does highlight the broader issue of pollution along Sydney’s coastline.

    Recent reports indicate about 28% of monitored swimming sites in New South Wales are prone to pollution. Many receive poor water quality ratings, especially after rain. Beaches such as Gymea Bay, Coogee Beach, Malabar Beach, and Frenchmans Bay have been identified as areas of concern, with advisories against swimming due to contamination from human faecal matter.

    Urban waste pollution

    Analysing and understanding urban waste pollution is not an easy task. It requires a multi-disciplinary approach.

    To unravel the complex composition of the blobs, we used carbon-14 dating, mass spectrometry, elemental analysis and microscopy techniques.

    Even after all we did, we cannot yet draw definitive conclusions regarding the primary source of the blobs. This uncertainty reflects the broader challenges faced by scientists and environmental agencies in tracking and addressing pollution in coastal areas.

    This incident underscores the importance of thorough scientific analysis in understanding environmental issues. By continuing to investigate the sources and composition of such pollutants, we can learn more about how urban waste management affects the health of our coasts.

    This research was led by UNSW researchers, including Associate Professor Jon Beves, Dr Tim Barrows, Dr Martin Bucknall, Professor William Alexander Donald, Dr Albert Fahrenbach, Dr Sarah Hancock, Dr Christopher Hansen, Ms Lisa Hua, Dr Martina Lessio, Dr Chris Marjo, Associate Professor Vinh Nguyen, Dr Martin Peeks, Dr Aditya Rawal, Dr Chowdhury Sarowar, Professor Timothy Schmidt, Dr Jake Violi and Dr Helen Wang.

    Jon Beves receives funding from the Australian Research Council and the Australian Renewable Energy Agency. He is affiliated with The Greens.

    William Alexander Donald receives funding from the Australian Research Council, the US National Institutes of Health, iCare Dust Diseases Care, Coal Services NSW Health and Safety Trust, as well as industry-funded research contracts.

    – ref. Black balls on Sydney beaches are likely ‘fatbergs’ showing traces of human faeces, methamphetamine and PFAS: new analysis – https://theconversation.com/black-balls-on-sydney-beaches-are-likely-fatbergs-showing-traces-of-human-faeces-methamphetamine-and-pfas-new-analysis-242681

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI Security: Confluence Corp. Settles Allegations of False Claims for Payment of Work Performed by Unqualified Welders

    Source: Office of United States Attorneys

    HONOLULU – United States Attorney Clare E. Connors announced that Confluence Corp. d/b/a Regal Service Company (“Regal”), a Hawaii corporation and Department of the Navy contractor, has agreed to pay $300,000 to settle allegations that it violated the False Claims Act by knowingly submitting false claims for payment for work performed by unqualified welders on the USS Chung Hoon, USS John Paul Jones, and USS William P. Lawrence at the Pearl Harbor Naval Shipyard and Intermediate Maintenance Facility between January 2020 and October 2021. 

    The United States alleged that after an initial review of Regal’s contract work, the Navy determined Regal had used welders lacking required certifications to perform the identified tasks. During a full-scale review of Regal’s work, the Navy confirmed the welders were unqualified and also determined that the welds were deficient. The United States further alleged that Regal provided the Navy falsified documents to make it appear as though its welders had obtained the required certifications when in fact they had not.

    The $300,000 payment from Regal includes $150,000 in restitution to cover costs incurred by the Navy to address the faulty welds. 

    “When anyone – an individual or corporation – does business with the United States of America, the falsification of documents and other false representations will not be tolerated,” said Clare E. Connors, the United States Attorney for the District of Hawaii. “The failure to perform the terms of a government contract risks harming our servicemembers, and our office will continue to hold companies accountable for such misconduct.”

    “Submitting false claims for work performed by unqualified welders harms operational readiness and endangers warfighter safety,” said Special Agent in Charge Greg Gross of the Naval Criminal Investigative Service (NCIS) Economic Crimes Field Office. “NCIS appreciates our investigative partners for their continued efforts to help protect the Department of the Navy from threats posed by such fraud.”

    “Department of Defense (DoD) contractors bear a solemn trust to earnestly fulfill their contractual terms. Our military readiness, as well as the health and safety of our brave men and women in uniform, depend upon it,” said Stanley A. Newell, Special Agent-in-Charge of the DoD, Office of Inspector General’s, Defense Criminal Investigative Service (DCIS), Transnational Operations Field Office. “The dedicated professionals of DCIS and our partner agencies will work tirelessly to hold those who violate the public trust accountable.”

    The False Claims Act allows for treble damages, and civil penalties of up to $27,894 per violation. DCIS’s Transnational Operations Field Office and NCIS’s Economic Crimes Field Office West investigated the case.

    Assistant United States Attorney Sydney Spector handled the matter.

    The claims against Regal resolved by the settlement are allegations only and there has been no determination of liability.

    MIL Security OSI –

  • MIL-OSI Economics: WTO members review latest notifications of anti-dumping actions

    Source: WTO

    Headline: WTO members review latest notifications of anti-dumping actions

    The Committee reviewed new notifications of legislation submitted by Brazil, Cabo Verde, Solomon Islands and the United States. It continued its review of the legislative notifications of the European Union, Ghana, Liberia, and Saint Kitts and Nevis.
    In reviewing semi-annual notifications on anti-dumping actions, delegations questioned and discussed the practices of other members including in relation to the initiation of investigations, the imposition of provisional and final anti-dumping measures, and the review of existing anti-dumping measures. Delegations questioned and discussed actions contained in the semi-annual reports submitted by Brazil, China, the European Union, India, Indonesia, Malaysia, Pakistan, South Africa, Türkiye, the United Kingdom and the United States. In presenting its semi-annual report, Ukraine expressed concerns over the war in Ukraine and the effects on its domestic industry.
    In respect of the semi-annual reports covering the period 1 January – 30 June 2024, 45 members notified the Committee of anti-dumping actions taken in this period, while 15 reported no new anti-dumping actions in the same period. In addition, 51 members submitted one-time notifications indicating they have not established an authority competent to initiate and conduct an investigation and have not, to date, taken any anti-dumping actions.
    In addition to the semi-annual reports, the WTO’s Anti-Dumping Agreement requires members to submit without delay – on an ad hoc basis – notifications of all preliminary and final anti-dumping actions taken. Ad hoc notifications reviewed during the meeting were received from Argentina; Armenia; Australia; Brazil; Canada; Chile; China; the European Union; Georgia; India; Israel; Japan; Kazakhstan; the Republic of Korea; the Kyrgyz Republic; Mexico; Morocco; Pakistan; the Russian Federation; South Africa; Chinese Taipei; Türkiye; Ukraine; the United Kingdom; and the United States. Members raised questions and discussed actions taken by Australia, China and Morocco. Canada encouraged members to submit timely ad hoc notifications and raised concerns about the conduct of investigations it considered to be politically motivated which are not based on sufficient evidence or justification. 
    In the absence of the Chair of the Committee Mr Mohamed Zuhair Taous (Tunisia), the interim Chair Mr Wolfram Spelten (Germany), who was elected to preside over the October 2024 meetings of the Committee and of its subsidiary bodies, urged members that had not submitted semi-annual reports and ad hoc notifications of actions taken to do so promptly. The interim Chair welcomed members’ continued extensive use of the anti-dumping portal to submit their semi-annual reports. 
    The Committee adopted its 2024 annual report to the Council for Trade in Goods.
    Next meetings
    The Committee decided that its spring and autumn meetings for 2025 would be held in the weeks of 28 April and 27 October 2025, respectively.

    Share

    MIL OSI Economics –

  • MIL-OSI Security: Harbour Grace — RCMP Traffic Services East arrests prohibited driver for impaired operation in Carbonear

    Source: Royal Canadian Mounted Police

    A 58-year-old man, who has a lifetime driving prohibition, was arrested by RCMP Traffic Services East for impaired driving on November 1, 2024, in Carbonear.

    Shortly after 10:00 a.m. on Friday, police attempted to stop a vehicle on Adelaide Street. The driver fled from police and was located a short time later after he got his vehicle stuck in a field on Mahaney’s Lane.

    The driver showed signs of impairment and was arrested. At the detachment, he refused to provide breath samples.

    He will appear in court at a later date to answer to charges of prohibited driving, impaired operation and refusing a breath demand. The driver was also ticketed for having no registration or insurance. The vehicle was seized and impounded.

    RCMP NL continues to fulfill its mandate to protect public safety, enforce the law, and ensure the delivery of priority policing services in Newfoundland and Labrador.

    MIL Security OSI –

  • MIL-OSI: Pax8 Unveils Pax8 Voyager Alliance: The Partner Marketplace Experience

    Source: GlobeNewswire (MIL-OSI)

    DENVER, Nov. 04, 2024 (GLOBE NEWSWIRE) — Pax8, the leading cloud commerce marketplace, today announced Pax8 Voyager Alliance, its new partner program that provides global partners with a modern approach to achieving success. Fueled by innovation and investment, the program is tailored to meet partners’ specific needs and provides a scalable, strategic growth path. Through elevated enablement, education, and support, Pax8 Voyager Alliance empowers partners to thrive at every stage of their journey.

    “Pax8 Voyager Alliance represents our commitment to putting partners first and recognizing their unique journey to success,” said Craig Donovan, Chief Experience Officer at Pax8. “The intentionally designed program provides our partners with the competitive advantage to accelerate their growth and succeed in the evolving channel. This advancement lays the foundation for an exciting new chapter, and we will introduce a Pax8 Rewards program and additional benefits over the coming months, empowering our partners to scale to new heights.”

    Pax8 Voyager Alliance is built entirely around the partner Marketplace experience and introduces partners to a tiered model. This approach provides differentiated experiences thoughtfully curated to match their unique business needs and size. As partners reach higher levels in the program, they’ll unlock new benefits that elevate their experience and fuel their growth.

    Pax8 will continue to roll out exciting new opportunities for Pax8 partners to take advantage of as they rise through the program tiers to earn new benefits. Some early benefits include curated event experiences and tiered pricing for professional services projects, which will help partners manage costs. Partners can also expect to receive higher levels of technical support as they advance through the program. In addition, Pax8 Voyager Alliance introduces flexible payment options, offering multiple solutions dependent on a partner’s tier to aid in making financial business decisions.

    Future program benefits will include Pax8 Voyager Alliance Rewards. Partners will be able to accrue points that can be used to invest back into their business by applying them to Pax8 services, education and Pax8 Marketplace purchases.

    “Next year, we will introduce enhancements to Voyager Alliance that revolutionize partner rewards in the SMB cloud marketplace,” said Donovan. “We have tremendous loyalty within our partner base, and we’re excited to launch industry-changing rewards that acknowledge their Marketplace investment. Just as enterprise cloud providers have successfully driven growth through consumption-based incentives, we’re bringing that powerful model to the Pax8 Marketplace. By recognizing our partners’ historical and ongoing Marketplace spend, we’re creating a compelling ecosystem that helps MSPs accelerate their cloud journey and maximize their return on investment with Pax8.”

    “Cloud marketplace growth is expected to exceed $45 billion by 2025, driven by various service partners within the channel ecosystem,” said Jay McBain, Chief Analyst at Canalys. “Adopting a tiered model that provides a more curated experience is critical to enabling these varying partners and their goals. With its new program, Pax8 establishes the foundation to effectively support partners at scale and guide them on their path to success.”

    In addition to the Marketplace of the future, Pax8 Voyager Alliance provides access to the following benefits:   

    Pax8 enablement

    • 100+ award-winning Pax8 Academy on-demand courses 
    • Industry-leading partner support
    • Pax8 Academy instructor-led courses 
    • Pax8 Professional Services 
    • Pax8 Academy Peer Groups 
    • Pax8 Academy Business Coaching

    Pax8 events 

    • Learning journeys 
    • Pax8 Launch Briefings 
    • Pax8 Mission Briefings 
    • Pax8 Bootcamps 
    • Pax8 Momentum 
    • Curated event experiences

    “I love Pax8 Voyager Alliance, and it’s a much-needed program,” said Natalia Scheidegger, CEO at 3rdmill, a Sydney, Australia-based MSP. “With the transparency it provides, you can see exactly where you fit, the resources available, and the benefits you’ll unlock at the next tier. We’re excited to strengthen our relationship with Pax8 and continue growing together.”

    To learn more about Pax8 Voyager Alliance, please visit pax8.com.

    About Pax8
    Pax8 is the technology marketplace of the future, linking partners, vendors, and small to midsized businesses (SMBs) through AI-powered insights and comprehensive product support. With a global partner ecosystem of over 38,000 managed service providers, Pax8 empowers SMBs worldwide by providing software and services that unlock their growth potential and enhance their security. Committed to innovating cloud commerce at scale, Pax8 drives customer acquisition and solution consumption across its entire ecosystem.

    Follow Pax8 on Blog, Facebook, LinkedIn, X, and YouTube

    Media Contact:
    Kristen Beatty
    Sr. Director of Public Relations
    kbeatty@pax8.com

    The MIL Network –

  • MIL-OSI: Altus Group Recognized as Top 10 Data & Analytics Team in 2024 OnCon Icon Awards

    Source: GlobeNewswire (MIL-OSI)

    TORONTO, Nov. 04, 2024 (GLOBE NEWSWIRE) — Altus Group Limited (“Altus”) (TSX: AIF), a leading provider of asset and fund intelligence for commercial real estate (“CRE”), is pleased to announce that its technology team has been selected as a Top 10 Data and Analytics Team in the esteemed 2024 OnCon Icon Awards.

    The OnCon Icon Awards program recognizes and celebrates the outstanding achievements of leading organizations and teams worldwide, determined through peer and community voting. Voters select teams that have made a significant impact on their organization or the broader industry, contributed to their professional community through thought leadership, driven innovation, and demonstrated outstanding leadership.

    Altus’ data and analytics solutions are leveraged by many of the world’s leading CRE companies to uncover opportunities, identify risks, understand portfolio impacts, and enhance asset and portfolio performance. With one of the industry’s most comprehensive and unified data platforms, Altus is leveraging its extensive dataset to provide new performance insights to its customers. A recent innovation stemming from this platform is the new ARGUS Intelligence product, which provides performance insights to help transform the way investors model, monitor and manage their assets and portfolios.

    “It’s a tremendous honour for our technology organization to be recognized in the 2024 OnCon Icon Awards,” said David Ross, Chief Technology Officer at Altus. “This achievement is a testament to the hard work and dedication of our exceptional team and their relentless pursuit of innovation and excellence. Together, we’re fulfilling our mission of leading CRE intelligence through innovative advanced analytics capabilities.”

    For more information about the OnCon Icon Awards and to view the full list of winners, please click here.

    About Altus Group

    Altus Group is a leading provider of asset and fund intelligence for commercial real estate. We deliver intelligence as a service to our global client base through a connected platform of industry-leading technology, advanced analytics, and advisory services. Trusted by the largest CRE leaders, our capabilities help commercial real estate investors, developers, proprietors, lenders, and advisors manage risks and improve performance returns throughout the asset and fund lifecycle. Altus Group is a global company headquartered in Toronto with approximately 2,900 employees across North America, EMEA and Asia Pacific. For more information about Altus Group (TSX: AIF) please visit altusgroup.com.

    FOR FURTHER INFORMATION PLEASE CONTACT:

    Elizabeth Lambe
    Director, Global Communications, Altus Group
    (416) 641-9787
    Elizabeth.Lambe@altusgroup.com

    The MIL Network –

  • MIL-OSI: Volta Finance Limited – Director/PDMR Shareholding

    Source: GlobeNewswire (MIL-OSI)

    Volta Finance Limited (VTA/VTAS)

    Notification of transactions by directors, persons discharging managerial
    responsibilities and persons closely associated with them

    NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES

    *****
    Guernsey, 4 November 2024

    Pursuant to the announcements made on 5 April 2019 and 26 June 2020 relating to changes to the payment of directors fees, Volta Finance Limited (the “Company” or “Volta”) has purchased 3,403 ordinary shares of no par value in the Company (“Ordinary Shares”) at an average price of €5.5 per share.

    Each director receives 30% of their Director’s fees for any year in the form of shares, which they are required to retain for a period of no less than one year from their respective date of issue.

    The shares will be issued to the Directors, who for the purposes of Regulation (EU) No 596/2014 on Market Abuse (“MAR“) are “persons discharging managerial responsibilities” (a “PDMR“).

    • Dagmar Kershaw, Chairman and a PDMR for the purposes of MAR, acquired 1,047 additional Ordinary Shares in the Company. Following the settlement of this transaction, Ms Kershaw will have an interest in 13,885 Ordinary Shares, representing 0.04% of the issued shares of the Company;
    • Stephen Le Page, Director and a PDMR for the purposes of MAR, acquired 733 additional Ordinary Shares in the Company. Following the settlement of this transaction, Mr Le Page will have an interest in 51,295 Ordinary Shares, representing 0.14% of the issued shares of the Company;
    • Yedau Ogoundele, Director and a PDMR for the purposes of MAR acquired 733 additional Ordinary Shares in the Company. Following the settlement of this transaction, Mrs Ogoundele will have an interest in 7,595 Ordinary Shares, representing 0.02% of the issued shares of the Company; and
    • Joanne Peacegood, Director and a PDMR for the purposes of MAR acquired 890 additional Ordinary Shares in the Company. Following the settlement of this transaction, Mrs Peacegood will have an interest in 4,395 Ordinary Shares, representing 0.01% of the issued shares of the Company;

    The notifications below, made in accordance with the requirements of MAR, provide further detail in relation to the above transactions:

    1. Details of the person discharging managerial responsibilities / person closely associated
    a)   Dagmar Kershaw
    CHAIRMAN & DIRECTOR      		 b) Stephen Le Page
    DIRECTOR    		   c) Yedau Ogoundele
    DIRECTOR    		 d) Joanne Peacegood
    DIRECTOR
    1. Reason for the notification
    a. Position/status Director
    b. Initial notification/Amendment Initial notification
    1. Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor
    a. Name Volta Finance Limited
    b. LEI 2138004N6QDNAZ2V3W80
    1. Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted
    a. Description of financial instrument, type of instrument Ordinary Shares
    b. Identification code GG00B1GHHH78
    c. Nature of the transaction Purchase and allocation of Ordinary Shares relation to the part-payment of Directors’ fees for the quarter ended 31 October 2024
    d. Price(s) €5.5 per share
    e. Volume(s) Total: 3,403
    f. Date of transaction 1 November 2024
    g. Place of transaction On-market – London
    1. Aggregate Purchase Information
    a)
    Dagmar Kershaw
    Chairman and Director    		 b)
    Stephen Le Page
    Director    		   c)
    Yedau Ogoundele
    Director    		 d)
    Joanne Peacegood
    Director
    Aggr. Volume:
    1,047

    Price:
    €5.5per share

    		 Aggr. Volume:
    733

    Price:
    €5.5 per share

    		   Aggr. Volume:
    733

    Price:
    €5.5 per share

    		 Aggr. Volume:
    890

    Price:
    €5.5 per share

    CONTACTS

    For the Investment Manager
    AXA Investment Managers Paris
    François Touati
    francois.touati@axa-im.com
    +33 (0) 1 44 45 80 22

    Olivier Pons
    Olivier.pons@axa-im.com
    +33 (0) 1 44 45 87 30

    Company Secretary and Administrator
    BNP Paribas S.A, Guernsey Branch
    guernsey.bp2s.volta.cosec@bnpparibas.com 
    +44 (0) 1481 750 853

    Corporate Broker
    Cavendish Securities plc
    Andrew Worne
    Daniel Balabanoff
    +44 (0) 20 7397 8900

    *****
    ABOUT VOLTA FINANCE LIMITED

    Volta Finance Limited is incorporated in Guernsey under the Companies (Guernsey) Law, 2008 (as amended) and listed on Euronext Amsterdam and the London Stock Exchange’s Main Market for listed securities. Volta’s home member state for the purposes of the EU Transparency Directive is the Netherlands. As such, Volta is subject to regulation and supervision by the AFM, being the regulator for financial markets in the Netherlands.

    Volta’s Investment objectives are to preserve its capital across the credit cycle and to provide a stable stream of income to its Shareholders through dividends that it expects to distribute on a quarterly basis. The Company currently seeks to achieve its investment objectives by pursuing exposure predominantly to CLO’s and similar asset classes. A more diversified investment strategy across structured finance assets may be pursued opportunistically. The Company has appointed AXA Investment Managers Paris an investment management company with a division specialised in structured credit, for the investment management of all its assets.

    *****

    ABOUT AXA INVESTMENT MANAGERS
    AXA Investment Managers (AXA IM) is a multi-expert asset management company within the AXA Group, a global leader in financial protection and wealth management. AXA IM is one of the largest European-based asset managers with 2,700 professionals and €844 billion in assets under management as of the end of December 2023.  

    *****

    This press release is published by AXA Investment Managers Paris (“AXA IM”), in its capacity as alternative investment fund manager (within the meaning of Directive 2011/61/EU, the “AIFM Directive”) of Volta Finance Limited (the “Volta Finance”) whose portfolio is managed by AXA IM.

    This press release is for information only and does not constitute an invitation or inducement to acquire shares in Volta Finance. Its circulation may be prohibited in certain jurisdictions and no recipient may circulate copies of this document in breach of such limitations or restrictions. This document is not an offer for sale of the securities referred to herein in the United States or to persons who are “U.S. persons” for purposes of Regulation S under the U.S. Securities Act of 1933, as amended (the “Securities Act”), or otherwise in circumstances where such offer would be restricted by applicable law. Such securities may not be sold in the United States absent registration or an exemption from registration from the Securities Act. Volta Finance does not intend to register any portion of the offer of such securities in the United States or to conduct a public offering of such securities in the United States.

    *****

    This communication is only being distributed to and is only directed at (i) persons who are outside the United Kingdom or (ii) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) or (iii) high net worth companies, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as “relevant persons”). The securities referred to herein are only available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents. Past performance cannot be relied on as a guide to future performance.

    *****
    This press release contains statements that are, or may deemed to be, “forward-looking statements”. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms “believes”, “anticipated”, “expects”, “intends”, “is/are expected”, “may”, “will” or “should”. They include the statements regarding the level of the dividend, the current market context and its impact on the long-term return of Volta Finance’s investments. By their nature, forward-looking statements involve risks and uncertainties and readers are cautioned that any such forward-looking statements are not guarantees of future performance. Volta Finance’s actual results, portfolio composition and performance may differ materially from the impression created by the forward-looking statements. AXA IM does not undertake any obligation to publicly update or revise forward-looking statements.

    Any target information is based on certain assumptions as to future events which may not prove to be realised. Due to the uncertainty surrounding these future events, the targets are not intended to be and should not be regarded as profits or earnings or any other type of forecasts. There can be no assurance that any of these targets will be achieved. In addition, no assurance can be given that the investment objective will be achieved.

    The figures provided that relate to past months or years and past performance cannot be relied on as a guide to future performance or construed as a reliable indicator as to future performance. Throughout this review, the citation of specific trades or strategies is intended to illustrate some of the investment methodologies and philosophies of Volta Finance, as implemented by AXA IM. The historical success or AXA IM’s belief in the future success, of any of these trades or strategies is not indicative of, and has no bearing on, future results.

    The valuation of financial assets can vary significantly from the prices that the AXA IM could obtain if it sought to liquidate the positions on behalf of the Volta Finance due to market conditions and general economic environment. Such valuations do not constitute a fairness or similar opinion and should not be regarded as such.

    Editor: AXA INVESTMENT MANAGERS PARIS, a company incorporated under the laws of France, having its registered office located at Tour Majunga, 6, Place de la Pyramide – 92800 Puteaux. AXA IMP is authorized by the Autorité des Marchés Financiers under registration number GP92008 as an alternative investment fund manager within the meaning of the AIFM Directive.

    *****

    The MIL Network –

  • MIL-OSI Canada: Oil and gas greenhouse gas pollution cap – Backgrounder to CGI Regulations

    Source: Government of Canada News

    Backgrounder

    November 4, 2024

    Context

    The proposed oil and gas greenhouse gas (GHG) pollution cap will incentivize the sector to invest in technically achievable decarbonization to attain significant emission reductions by 2030-2032. The policy will put the sector on a pathway to carbon neutrality by 2050, while enabling it to continue to respond to global demand.

    Oil and gas companies in Canada have proven repeatedly that they can innovate and develop new technologies to produce more competitive oil and gas with less pollution.

    While it continues to be a major supplier to global markets, Canada’s oil and gas sector has the opportunity to reinvest in its own competitiveness ahead of the anticipated future decline in global demand for oil and gas in a low-carbon future. Reinvesting in cleaner oil and gas production ensures that the sector contributes its fair share to GHG reductions in Canada and positions Canada for a stronger future for its workers and economy.

    The oil and gas sector is experiencing record profits within Canada. Coming out of the pandemic, operating profits in the oil and gas sector increased tenfold from $6.6 billion in 2019 to $66.6 billion in 2022. Despite that, there has been limited and declining overall investment in the sector in Canada over the last several years.

    The proposed Regulations would establish a cap-and-trade system that is designed to recognize producers with better emission performance and motivate higher-polluting facilities to reinvest record profits into more pollution-reducing projects.

    The oil and gas sector is a major contributor to Canada’s economy. In 2023, the sector generated $209 billion in gross domestic product (GDP) (PDF) and accounted for 25% of Canada’s exports (valued at $177 billion). It is also a major employer across the country, directly employing 181,800 people in 2023.

    The oil and gas sector is also Canada’s largest source of GHG pollution, responsible for 31% of Canada’s GHG emissions in 2022. Decreasing emissions in the oil and gas sector by introducing a cap on GHG pollution is necessary to ensure that the sector contributes its fair share to Canada’s ongoing efforts to tackle climate change and reach our GHG emission reduction targets and international commitments under the Paris Agreement.

    Strengthening emission performance and carbon management technologies in Canada’s oil and gas sector

    Canada’s oil and gas sector has the potential to be a supplier of choice as the demand for oil and gas for combustion declines in a low-carbon future. This would enable the sector to continue to be a major employer and source of economic activity across Canada, particularly in oil- and gas-producing regions.

    The proposed Regulations put a limit on pollution, not production. The proposed Regulations are carefully designed around what is technically achievable within the sector, while enabling continued production growth in response to global demand. In fact, modelling shows that Canadian oil and gas production is projected to increase 16% between 2019 and the 2030-2032 period with the proposed Regulations in place.

    Major emissions-reduction opportunities are available, and oil and gas producers are already investing in them. Methane is a particularly potent greenhouse gas, and most methane emissions represent a wasted resource because they are from leaks and other unintended sources. Preventing methane emissions is one of the lowest-cost ways to reduce GHG emissions, and the sector’s efforts have resulted in a steady decline in these emissions. New regulations to be finalized later this fall will ensure that the sector continues to cut methane emissions by at least 75% from 2012 levels by 2030. 

    Carbon capture is also going to play an increasingly important role in reducing emissions from oil and gas production, and Canada is well placed to cement its position as a global leader in this critical technology. According to both the Intergovernmental Panel on Climate Change (IPCC) and the International Energy Agency (IEA), there is no credible path to carbon neutrality without carbon management technologies, such as carbon capture and storage, and their deployment must be rapid and immense, scaling up by nearly 200 times by 2050.

    The shift toward a low-carbon economy has created a rush of capital toward carbon management technologies worldwide. In the United States, there are many new carbon capture projects being deployed, with 150 currently under review at the U.S. Environmental Protection Agency.

    Canada has already established itself as a first mover and leader in the global carbon management sector, with some of the world’s first large-scale projects; favourable geology; cutting-edge innovators and start-ups; early investments in research, development, and demonstration; deep technical expertise; a robust policy and regulatory environment at the federal and provincial levels; and active international collaboration. The Government of Canada has launched a suite of policies with a mix of financial supports and regulatory measures to better position Canada’s economy for success.

    Approximately one-sixth of the world’s active large-scale carbon management projects, which use a range of approaches to capture carbon dioxide from point sources or directly from the atmosphere to be reused or durably stored, can be found in Canada, with a growing number in the construction, design and development phase across multiple sectors and regions.

    The continued development and deployment of carbon management technologies to help achieve Canada’s climate objectives will form the basis of a world-leading, multi-billion-dollar carbon management sector in Canada that supports inclusive, high-value employment, significant export opportunities and a more sustainable economy.

    Point-source carbon capture is a leading option for deep emissions reductions from the upstream oil and gas sector. Given the long lifespan of many existing heavy industrial facilities and the value of these industries to the Canadian economy, public-private collaboration is critical to advance strategic, economical, and regionally appropriate decarbonization pathways.

    The GHG oil and gas pollution cap adds to a suite of policy measures, which are designed to shift the oil and gas industry increasingly toward cleaner production through the use of carbon management systems and other technologies, including to reduce methane emissions and to switch to cleaner fuels. Those include other successful regulatory measures, such as federal, provincial, and territorial carbon pricing systems for industry, including Alberta’s TIER system, the federal Output-Based Pricing System, federal and provincial methane regulations, and the Clean Fuel Regulations.

    They also include a wide range of financial supports to support deployment and help develop the innovation ecosystem for carbon reduction technologies in Canada, including:

    • $319 million over 7 years for RD&D to advance the commercial viability of emerging carbon management technologies.
    • Refundable CCUS Investment Tax Credit (ITC), expected to provide $12.5 billion between 2022-2023 and 2034-2035, for eligible projects that enable permanent CO2 storage.
    • The Canada Growth Fund, totalling $15 billion, offers investment tools such as contracts for differences designed to address risk and accelerate private sector investment to grow Canada’s clean economy, including in the carbon management sector.
    • Strategic Innovation Fund, with $8 billion in funding to help companies reduce emissions and grow their business sustainably.
    • The Canada Infrastructure Bank (CIB) invests in CCUS infrastructure projects, including through its Project Acceleration funding for front-end engineering and design (FEED) capital expenditures.

    Increasingly, large-scale carbon capture projects are being built in both the oil and gas sector and other sectors. Recent projects include:

    • Strathcona Resources, an oilsands company with assets in Saskatchewan and Alberta and Canada’s fifth-largest oil producer, is launching a $2 billion project to store up to two million tonnes of CO2 per year, while creating hundreds of new jobs. The project has received support from the Canada Growth Fund.
    • Entropy, an Alberta-based company, is working on a project that will enable emissions reductions of approximately 2.8 million tonnes over 15 years and support more than 1,200 good jobs for Albertans.
    • Shell announced two new projects in Alberta: the Polaris Carbon Capture project and the Atlas Carbon Storage Hub. These projects aim to reduce industrial emissions by transitioning to cleaner technology. The Polaris project will capture approximately 650,000 tonnes of carbon a year while the Atlas project will store the captured carbon from Polaris and potentially other industrial facilities in the future. Once complete in 2028, these projects are expected to generate up to 2,000 jobs for Albertans.
    • The North West Redwater (NWR) Sturgeon Refinery, also operating in the Alberta Industrial Heartland, is the world’s first bitumen refinery built with carbon capture. 
    • The Alberta Carbon Trunk Line (ACTL), which transports captured carbon from facilities for storage in oil fields, will be used by new carbon capture projects throughout the province to transport captured CO2 to final storage sites.  
    • Linde announced an investment of more than $2 billion to build a clean hydrogen facility that will supply Dow’s Path2Zero production complex in Alberta. The facility will capture more than 2 million tonnes of carbon dioxide emissions per year for sequestration.

    Extensive consultation to date on the oil and gas GHG pollution cap

    The Government of Canada has engaged a broad range of partners and stakeholders on the oil and gas GHG pollution cap, including provinces and territories, Indigenous partners, industry, environmental groups, and Canadians. The government has held webinars, convened meetings, and published discussion papers to seek input and feedback. Since November 2021, the government has received over 250 written submissions from organizations, held over 100 meetings, and hosted seven public webinars.  

    The government published a Regulatory Framework to Cap Oil and Gas Sector GHG Emissions in December 2023. This Framework confirmed the government’s intent to implement the oil and gas GHG pollution cap through a new cap-and-trade system, and proposed various regulatory design features, including which subsectors would be covered by the oil and gas GHG pollution cap, the level of the GHG pollution cap, and rules about flexible compliance options.

    The proposed Regulations are carefully designed based on what is technically achievable in the sector, setting a limit on pollution, not production. Technically achievable emissions reductions were estimated based on an assessment of the abatement technologies that could feasibly be deployed within the upstream and LNG activities in the oil and gas sector by 2030-2032, considering the status of available technologies, projected levels of production, the availability of equipment and labour, and timelines for permitting and approvals.

    Estimates of technically achievable reductions included reductions related to compliance with the strengthened methane regulations, installation of carbon capture and storage technology, and electrification. The risk that not all technically achievable reductions would be implemented in time for the first compliance period was also taken into consideration.

    The government has now published proposed Regulations (PDF) to implement the oil and gas GHG pollution cap, and invites input from November 9, 2024, to January 8, 2025. The government will continue to engage with partners and stakeholders in the development of final regulations.

    Key components of the proposed national cap-and-trade system for oil and gas greenhouse gas pollution

    The proposed Oil and Gas Sector Greenhouse Gas Emissions Cap Regulations (proposed Regulations) would establish a national cap-and-trade system that would apply to upstream oil and gas activities including onshore and offshore oil and gas production; oil sands production and upgrading; natural gas production and processing; and the production of LNG.

    The proposed Regulations have been developed under the Canadian Environmental Protection Act, 1999 (CEPA). Since 1988, CEPA has been used to address a wide range of environmental issues, including air pollution, chemicals, plastics and GHG emissions.

    • The cap-and-trade system will freely allocate emissions allowances to facilities covered by the system. At the end of each year, each facility will need to remit to the government one allowance for each tonne of carbon pollution it has emitted. Over time, the government will give out fewer allowances, corresponding to the declining emissions cap.
    • Operators will face an ongoing incentive to reduce their emissions. If an operator does not have enough allowances to cover their emissions, they will be able to buy allowances from other operators that have invested in pollution reduction. Operators can also contribute to a decarbonization program or use GHG offset credits to cover a small portion of their emissions (up to 10% for the decarbonization program and up to 20% for offsets, for a maximum of 20% for both options). The decarbonization program would fund projects that support the reduction of emissions from the sector. The total of all allowances and the overall 20% limit on compliance flexibility creates a legal upper bound on emissions from the sector.
    • The oil and gas GHG pollution cap will limit emissions, not production, and will encourage industry to reinvest into projects that lower pollution while providing flexibility to respond to changes in the global market.  
    • To make sure the oil and gas GHG pollution cap accounts for current activity levels, the proposed Regulations would use data reported by operators for 2026 to set the first oil and gas GHG pollution cap level. The oil and gas GHG pollution cap for the first compliance period, 2030-2032, would be set at 27% below emissions reported for 2026, which is estimated to be equivalent to 35% below 2019 emissions.
    • Using 2026 for reported data means the oil and gas GHG pollution cap would be based on real-world conditions. The final oil and gas GHG pollution cap level would be published before the end of 2027.
    • The proposed Regulations allocate allowances to covered operators using specified distribution rates—defined in allowances per unit of production—for each type of covered activity. Allowances will be distributed before the start of each year (starting in 2029 for 2030, the first compliance year). To ensure that allowances are distributed to the level of the emissions cap for each year, the allowances distributed would be pro-rated across all facilities receiving them.

    The system would be phased in for the first four years (2026-2029). During that period, operators would be required to register and report their emissions and production. Large emitters will start reporting in 2027 for their 2026 emissions and production levels. Reporting for small operators would start in 2029 for their 2028 levels. Operators would need to submit verified annual reports to Environment and Climate Change Canada for their facilities for every calendar year. Reports would be due on June 1 of the following year. The reports would be used to identify which operators will be subject to the pollution cap and have remittance obligations.

    Annual reports would include the GHG emissions attributed to the facility and the production amount by industrial activity. The Quantification Methods for the Oil and Gas Sector Greenhouse Gas Emissions Cap Regulations (the Quantification Methods) would define methods to calculate each source of emissions and would provide certain default values. In addition to the draft regulations, the government is seeking feedback on the Quantification Methods.

    All operators would be required to register and report, but only large operators (producing above an annual threshold of 365,000 barrels of oil equivalent) would have to remit allowances to cover their emissions. Large operators account for approximately 99% of the upstream sector’s emissions. The government would distribute emissions allowances to covered operators annually, before the start of each compliance year. Allowances would be pro-rated across all covered operators’ facilities based on historical production volumes. Allowances would not be able to be used for compliance under other carbon pricing systems, such as the federal Output-Based Pricing System (OBPS). There would be no limits to the number of allowances operators covered under the oil and gas GHG pollution cap could hold, and allowances could be traded among operators.

    Emissions allowances and offsets could be banked for use in a limited number of future years. Decarbonization units would not be tradable or bankable.

    Economic impacts of the proposed Regulations

    Environment and Climate Change Canada undertook an economic cost-benefit analysis of the proposed Regulations. Costs and benefits have been evaluated relative to a baseline that assumes production in the oil and gas sector grows, existing federal and provincial GHG measures remain in place, and the sector achieves the 75% reduction in methane emissions relative to 2012 levels, as a result of the forthcoming oil and gas methane regulations.

    The proposed pollution cap Regulations are estimated to result in net cumulative GHG emission reductions of 13.4 Mt above the baseline of reductions between 2025 and 2030-2032 that will be achieved by existing measures. That incremental reduction is valued at almost $4 billion in avoided global climate change damages. When compared to the costs, modelling showed that the proposed Regulations are estimated to have net benefits of $428 million for Canada.

    Importantly, this multi-million-dollar benefit does not account for a wide range of additional benefits likely to be associated with the proposed Regulations, including:

    • the additional economic activity and jobs associated with post-2032 investments in carbon capture, utilization and storage (CCUS) and other major decarbonization activities;
    • the stimulation of innovation and new low-carbon industries, such as clean hydrogen;
    • the economic and health benefits of reducing air pollution, which will improve the quality of life for many people and reduce the strain on our healthcare systems; and
    • the longer-term competitiveness benefits of a decarbonized Canadian oil and gas sector in a world that continues to take action to fight climate change and adhere to existing international and domestic climate commitments.

    The oil and gas sector directly and indirectly supports a significant workforce, especially in British Columbia, Alberta, Saskatchewan, and Newfoundland and Labrador. Modelling for the 2019 to 2030-2032 period shows that labour expenditure in the sectors covered by the proposed Regulations is expected to grow by 53%, which is only slightly below the 55 % growth in the baseline scenario.

    Additionally, jobs in clean energy will continue to grow. A 2023 Clean Energy Canada report found that Canada will see 700,000 more energy jobs in a carbon-neutral 2050 scenario than we have today. 419,000 of these jobs will be in Alberta, representing three jobs for every individual worker employed in Alberta’s upstream energy sector as of 2022.

    Oil and gas prices correspond to global market demand, and they do not typically reflect the cost of production. As such, the risk of compliance costs passed through from the oil and gas sector to Canadians is very low, and the proposed Regulations are not expected to affect the cost of everyday items such as fuel or groceries.

    Provincial leadership

    British Columbia previously announced it will put in place an oil and gas emissions cap to serve as a backstop to the federal policy. The goal will be to meet BC’s greenhouse gas emission reduction targets and avoid regulatory duplication and administrative burden for the oil and gas sector.

    Alberta, in its Emissions Reduction and Energy Development Plan (2023), communicated its goal to achieve carbon neutrality by 2050 and signalled it would explore options to achieve a 75-80% reduction in methane emissions from conventional oil and gas by 2030. Alberta has had a price on carbon emissions since 2007, making it the first jurisdiction in North America to price carbon. The province’s industrial carbon pricing system, implemented as set out in the Technology Innovation and Emissions Reduction (TIER) Regulation, recycles its proceeds to invest in emissions reduction projects including in the oil and gas sector, such as methane emissions abatement.

    Saskatchewan is a leader in carbon capture and sequestration technology, with several projects aimed at capturing CO2 emissions from oil and gas production. In 2014, the Boundary Dam project became the first power station in the world to successfully use carbon capture and storage technology. The province is also addressing methane emissions, including improving leak detection and repair practices and implementing best practices for gas flaring and venting.

    Newfoundland and Labrador’s offshore oil sector is already one of the lowest-emitting in the country. The newest planned production project—Bay du Nord—was approved with the historic requirement for the project to reach net-zero emissions by 2050. Like all other oil- and gas-producing provinces, NL implements a price on industrial carbon emissions via its provincial output-based pricing system.

    Note on third party reports

    The Government of Canada is aware of third-party reports conducted by Conference Board of Canada, Deloitte and S&P.

    These reports are based on a broad range of assumptions including elements of the previously published Regulatory Framework or, in some cases, other assumptions made by the authors. A common assumption found in the reports was that the oil and gas sector would take limited to no additional action to reduce emissions without the regulations.

    These reports do not reflect an accurate analysis of the current draft regulations. The Government of Canada welcomes continued sharing of analysis to help refine the proposed Regulations.

    MIL OSI Canada News –

  • MIL-OSI USA: Winter Park Express Will Offer Expanded Service for 2025 Winter Season; Including the 2024 December Holidays

    Source: US State of Colorado

    WINTER PARK — Today, the Winter Park Express (WPE), operated by Amtrak, announced in cooperation with the State of Colorado and the Colorado Department of Transportation, that it will kick off the 2025 season with expanded service five days a week, launching on Thursday, Jan. 9, 2025. To offer even more convenience and to meet demand, the Winter Park Express will also offer a special expanded holiday service Dec. 20-22, and Dec. 27-29, 2024. Regular expanded service will run Thursday through Monday, from January 9 through March 31, 2025. Tickets, with a significantly lower price this year, go on sale today, Monday, November 4. 

    “The Winter Park Express is a great opportunity for Coloradans and visitors to explore our mountains without the hassle of driving or traffic. Now with expanded service and lower costs, Coloradans can save time and money on our way to enjoying our great outdoors. I look forward to taking the train into the mountains this season,” said Governor Jared Polis. 

    Winter Park Resort offers its expanded and improved WPE through cooperation and partnership with the State of Colorado and the Colorado Department of Transportation (CDOT). Tickets for this year’s Winter Park Express range from $19 – $39 and children 2-12 are eligible for 50% off base fares. These fare prices are 43% lower than previous years’ fares and will be available beginning today. 

    Passenger rail along the Front Range and through the U.S. Highway 40 mountain corridor is an important priority for Coloradans and the Polis-Primavera administration, and the Winter Park Express shows public demand for more mass transit options through the mountains and beyond. The rail line on which the Winter Park Express operates is the first leg of proposed mountain passenger rail that would run from Denver to Craig. 

    Winter Park Express expanded service will run every Thursday through Monday, January through March. The expanded service is also adding a stop at the Fraser platform, five miles west of Winter Park. That means the Winter Park Express will more effectively serve non-ski passengers wanting to travel from Denver to the Fraser Valley whether for business or recreation. Passengers can also load the train in Fraser for the return trip to Denver. The expanded service will also carry two additional passenger cars, raising the number of seats available from approximately 268 to 402 on each trip. A total of 69 roundtrips will operate this season, 29 more than during the 2024 season. 

    “The Winter Park Express ski train has long been a beloved tradition for Colorado and our guests from around the globe. It has demonstrated the desire from both residents and visitors for transportation options other than passenger vehicles. The Winter Park Express gives people another way to get to the slopes that’s more scenic, sustainable, and relaxing than getting in a car and driving,” said Sky Foulkes, president of Winter Park Resort. 

    Bring your skis and snowboards as a carry-on for no additional charge. While onboard, you’ll enjoy a trip in Coach class featuring wide, reclining seats with a big picture window, ample legroom and no middle seat. The train also features a bi-level Sightseer Lounge – the social hub of the train – offering panoramic views of the Rocky Mountains from upstairs and café service with snacks and drinks for sale downstairs. 

    “At CDOT, we know that big ski days often mean tough drives in the mountains, and the Winter Park Express offers a great option to take a relaxing, affordable trip. We are excited to join in this innovative partnership to expand service and lower costs for an iconic Colorado travel experience,” said CDOT Executive Director Shoshana Lew. 

    Tickets between Denver Union Station (station code: DEN) to Winter Park Resort (station code: WPR) and Fraser (station code: WIP) can be purchased at Amtrak.com/WinterParkExpress and the Amtrak app. The train departs Denver at 7 a.m. and arrives at the resort at 9 a.m. The return trip departs Winter Park Resort at 4:30 p.m. and arrives in Denver at 6:40 p.m. All times Mountain. Denver Union Station is served by the Regional Transportation District’s commuter trains from Denver International Airport as well as light rail, local or intercity buses, ride-sharing services, and taxis. 

    Customers in groups of up to eight can purchase Winter Park Express tickets at Amtrak.com/WinterParkExpress and the Amtrak app. Customers in groups of 9-14 can call 800-USA-RAIL (1-800-872-7245) to make a reservation. Groups of 15 or more—including requests for exclusive railcar occupancy—should fill out this form. For more information about group travel, call 800-USA-1GRP (1-800-872-1477) weekdays 6 a.m. – 6 p.m. MT, or email GroupSales@Amtrak.com. 

    Lift tickets and other passes can be purchased directly from the Winter Park Resort website. Winter Park Resort is an Alterra Mountain Company property and its Ikon Pass welcomes skiers and riders to a community of inspiring mountain destinations across the Americas, Europe, Australia, New Zealand and Japan 

    About Winter Park Resort 

    Winter Park Resort, Colorado’s quintessential mountain and ski resort, is located less than 70 miles from the city of Denver. Flanked by the dramatic Continental Divide and Rocky Mountains, the resort is defined by its pure natural environment, and its unique Colorado adventure culture. During the winter, Winter Park receives some of the state’s most consistent snowfall across its 3000+ acres of world-class terrain, and has been voted USA Today’s #1 Ski Resort in North America multiple times. During summer, the resort is home to renowned Trestle bike park, and has been named as Colorado’s Top Adventure Town. For more information, visit www.winterparkresort.com. 

    ###

    MIL OSI USA News –

  • MIL-OSI Global: Scott Moe won in Saskatchewan promising economic prosperity, but does that truly help citizens?

    Source: The Conversation – Canada – By Iryna Khovrenkov, Associate Professor, Johnson Shoyama Graduate School of Public Policy, University of Regina

    After winning the recent provincial election, the Saskatchewan Party’s Scott Moe promised a “strong economy, bright future.”

    But does a strong economy necessarily guarantee a bright future?

    Between 1998 and 2018, Saskatchewan’s gross domestic product (GDP) grew by 45 per cent, making it the fourth largest in Canada.

    Even after the impact of the COVID-19 pandemic, Saskatchewan led the nation in economic growth, registering a hike of six per cent.

    Over the same 20 years, however, Saskatchewan’s well-being increased by only 13 per cent, according to the Saskatchewan Index of Wellbeing.

    This lag in well-being has only amplified the struggles of the province’s citizens in terms of drug use, youth mental health, homelessness and hate crimes.

    Evidently, and despite its impressive magnitude, Saskatchewan’s economic growth alone does not fully reflect the province’s progress in terms of citizen well-being.

    What is well-being?

    Well-being is a multi-dimensional concept that goes beyond the level or rate of growth of GDP and can illuminate ongoing major policy challenges. GDP, on the other hand, is one-dimensional, developed prior to the Second World War and well before today’s significant policy concerns.

    As defined by the Saskatchewan Index of Wellbeing, it’s achieved when people are physically, emotionally and spiritually healthy; economically secure; have a strong sense of identity, belonging and place; and have the confidence and capacity to engage as citizens.

    Well-being encompasses many aspects that make our lives good — happiness and wellness at the personal level, strong social capital and belonging at the community level. These aspects can then form a strong foundation to tackle larger issues at the societal level such as social justice and environmental sustainability.

    International well-being initiatives

    Many countries, including Canada with its Canadian Index of Wellbeing, have not only developed well-being frameworks but many now routinely collect and publish well-being indicators.

    A handful of jurisdictions — like France, Italy and Sweden — have also begun including quality-of-life measures as benchmarks of their progress.

    New Zealand even formally budgets for well-being and released its first Wellbeing Budget in 2019.

    Regardless of geography or political structure, one common motivation for developing these well-being frameworks is a recognition that economic metrics such as GDP are insufficient to measure a country’s human and environmental progress.



    Read more:
    Australia’s wellbeing budget: what we can – and can’t – learn from NZ

    A well-being approach to policy

    For an effective path forward, citizen well-being should be a guiding principle for government leaders. Community Initiatives Fund and Heritage Saskatchewan, joint forces behind the Saskatchewan Index of Wellbeing, have long called on decision-makers to incorporate well-being into policy.

    The federal government has recently introduced the Quality-of-Life Framework as its first step towards integrating well-being into policymaking. But are these efforts reaching local governments, which carry a regulatory duty of fostering citizen well-being?

    I partnered with the Community Initiatives Fund and Heritage Saskatchewan to survey more than 25 per cent of rural and urban municipalities in Saskatchewan on what’s facilitated or hindered the adoption of well-being into policy in their communities.

    We learned that only 17 per cent of our participating municipalities adopted a well-being approach in their official community plans, although 55 per cent of them consider community well-being elements when developing policies and budgets.

    Additionally, 46 per cent are interested in adopting a well-being approach but have cited lack of financial and human resources, time, community and team support as key challenges in shifting to a well-being approach.

    Finally, we learned that arts, culture and sports amenities were identified as a pressing community need by 36 per cent of our respondents, compared to only six per cent referencing economic sustainability and growth.

    Our findings also support existing evidence that rural communities become stronger when they value well-being more than economic growth.

    The five elements of a well-being economy. (ICLEI Europe YouTube Channel)

    Municipal action required

    As the government level closest to the people, municipalities matter. Services provided by local authorities define citizens’ well-being and their quality of life. Also, local efforts have the potential to inspire province-wide change.

    With urban municipalities in Saskatchewan gearing up for their own elections on Nov. 13, it’s a good time to consider prioritizing community well-being.

    In the words of Jacinda Ardern, the former prime minister of New Zealand: “Growth alone does not lead to a great country …. so it’s time to focus on those things that do.”

    For real change to occur, well-being should lie at the heart of policymaking.

    The research project about well-being in municipal policy is a product of a partnership between Iryna Khovrenkov at the University of Regina, Tracey Mann at Community Initiatives Fund and Ingrid Cazakoff at Heritage Saskatchewan. The financial support of Social Sciences and Humanities Research Council Partnership Engage Grant number 892-2021-3028 is gratefully acknowledged.

    – ref. Scott Moe won in Saskatchewan promising economic prosperity, but does that truly help citizens? – https://theconversation.com/scott-moe-won-in-saskatchewan-promising-economic-prosperity-but-does-that-truly-help-citizens-242574

    MIL OSI – Global Reports –

  • MIL-OSI New Zealand: The Achieving Society, and Paku Manu Ariki Whakatakapōkai

    Source: ACT Party

    The Haps

    The media and the usual suspects are breathless at David Seymour’s school lunch success. He’s halved the cost and delivered for more children, despite believing it’s the parents’ job in the first place. If Labour had done it the same way, they could have saved over $800 million. First they said he’d cancel it. Then they said he couldn’t do it. Now they say the savings are too great, and not enough businesses will make money from the scheme. Moaning Report managed to hang their coverage of the Government saving $170m off one Principal who didn’t like it.

    The Achieving Society, and Paku Manu Ariki Whakatakapōkai

    David McClelland was a psychologist who analysed children’s books to understand the values of different cultures. His work is summarised in Richard Prebble’s classic I’ve Been thinking.

    The basic conclusion is that societies who tell their children they can make a difference in their own lives, if they take responsibility and make an effort, will grow wealthy and peaceful. Those who tell their children that life is a bit like bad weather, something you’re powerless to change, have difficult times ahead.

    It worked. Writing in the 1950s, McClelland was able to forecast Japan’s economic miracle based on his study of their nursery rhymes. It was a big call for a war-torn country under foreign occupation.

    That basic story has become the kernel of the modern ACT Party. Own your future, change your future, real change, change makers, make a difference in your own life and the lives of those you care about… Individuals matter because they’re the only entity that can choose to act, and sometimes the most unlikely people have insights that will benefit us all.

    Why does the Party care about property rights? Because it’s hard to make a difference if everything you acquire gets nicked by criminals, or the IRD, or if you can’t use your property the way you want to because of red tape. It’s also why education matters, and you shouldn’t be discriminated against on any personal characteristic.

    What, then to make of Paku Manu Ariki Whakatakapōkai? Apparently the best picture book at the book awards for children this year, by McClelland’s standards it shows New Zealand is stuffed.

    The story has barely been covered in New Zealand, with two exceptions. A beautiful op-ed by Josie Pagani, that contrasts the book with Barack Obama’s liberalism, and a gushing interview with the author published by the parallel state-funded universe that is The Spinoff.

    The story is a stream of consciousness from a young boy. My name is Paku Manu Ariki Whakatakapōkai, you can call me Paku Manu Ariki Whakatakapōkai. And he’s off. The usual reason for saying ‘you can call me…’ is to offer an alternative. It’s a sign of friendship and a will to get on with one another. Instead Paku uses the phrase to insist right off the bat that you must use his 13 syllables.

    The book carries on in this vein, Paku believes that he was created at the same time as the universe and everyone was created at the same time. He doesn’t understand why there are rules or anyone is required to follow them, but he’s sure they shouldn’t apply to him.

    Then the author has him say “I will hit all the English people in the face because they stole the land”. And “My Dad is Māori like me. I feel sorry for my Mum. She’s only Pākehā.”

    The kind interpretation, that the author sells (and may genuinely believe) is that the book is designed to ‘stimulate conversations.’ The voice is simply the musings of a child, why be so hard on him?

    As Pagani says, ‘those sound like adult words.’ The author doesn’t challenge the tropes that she puts in the mouth of the young child. There’s no conclusion that racially motivated violence is actually a bad thing. There’s only reference to Nana, who says you shouldn’t hit people, but she is abandoned as a quaint figure.

    Parents (Paku is modelled on the author’s son) are apparently not to guide their children, they’re there to be their friends. Rather than passing on values of achievement, cooperation, respect for the dignity of others, Paku’s worst instincts (or is that the author’s prejudices?) are amplified.

    Besides winning the Picture Book award, this book was funded by Creative New Zealand. This is the same Creative New Zealand that funded Tusi’ata Avia’s poem that cast Captain Cook as an avatar for Europeans in New Zealand and celebrated stabbing him with a pig knife.

    Of course, the Government, and specifically Arts Minister Paul Goldsmith, is turning over appointments in these outfits and setting new expectations. Nonetheless this book, its taxpayer funding, and its national award show how deeply ingrained is New Zealand’s appetite for self-destruction.

    Only by recommitting ourselves to universal human rights—equal rights—for each and every person can we overcome such corrosive thinking. Thankfully, there is a whole political party committed to doing just that.

    MIL OSI New Zealand News –

  • MIL-OSI: Announcement of the total number of voting rights as at 31 October 2024

    Source: GlobeNewswire (MIL-OSI)

    Regulated information, Leuven, 4 November 2024 (17.40 hrs CET)

    In application of Article 15 of the Act of 2 May 2007 on the disclosure of major shareholdings in issuers whose shares are admitted to trading on a regulated market, KBC Ancora publishes on its website and via a press release on a monthly basis the total capital, the movements in the total number of voting shares and the total number of voting rights, in so far as these particulars have changed during the preceding month.

    Situation as at 31 October 2024
    Total capital :         EUR 3,158,128,455.28
    Total number of voting shares :            77,011,844
    Number of shares with double voting rights :        39,855,415
    Total number of voting rights (= denominator) :        116,867,259

    The total number of voting rights (the ‘denominator’) serves as the basis for the disclosure of major shareholdings by shareholders.

    On the basis of this information, shareholders of KBC Ancora can verify whether they are above or below one of the thresholds of 3% (threshold set by the Articles of Association), 5%, 10%, and so on (in multiples of five) of the total voting rights, and whether there is therefore an obligation to notify the company that they have exceeded this threshold.

    ———————————

    KBC Ancora is a listed company which holds 18.6% of the shares in KBC Group and which together with Cera, MRBB and the Other Permanent Shareholders ensures the shareholder stability and further development of the KBC group. As core shareholders of KBC Group, they have to this end signed a shareholder agreement.

    Financial calendar:
    31 January 2025                        Interim financial report 2024/2025
    29 August 2025                        Annual press release for the financial year 2024/2025
    23 September 2025 (17.40 CEST)        Annual report 2024/2025 available

    This press release is available in Dutch, French and English on the website www.kbcancora.be.

    KBC Ancora Investor Relations & Press contact: Jan Bergmans
    tel.: +32 (0)16 27 96 72 – e-mail: jan.bergmans@kbcancora.be or mailbox@kbcancora.be

    Attachment

    The MIL Network –

  • MIL-OSI: Gaia Partners with EigenLayer to Bring Powerful AVS Security to Decentralized AI

    Source: GlobeNewswire (MIL-OSI)

    By integrating Gaia’s AI Agent deployment framework with EigenLayer’s AVS security, developers can now build more secure, robust, incentive-aligned AI systems.

    NEW YORK, Nov. 04, 2024 (GLOBE NEWSWIRE) — Gaia, a decentralized, open-source AI infrastructure platform, is partnering with EigenLayer to integrate Gaia’s AI services with EigenLayer’s Active Validator Services (AVS) framework. This collaboration will enhance AI inferencing, enable multitoken staking, and deliver advanced security for decentralized AI applications.

    Gaia’s AI agents will integrate with EigenLayer’s AVS validators to monitor and provide security for nodes on the Gaia network. This system will ensure the accuracy of AI model updates, proper execution of AI tasks, and consistent node performance and uptime. Additionally, the partnership with EigenLayer will verify that AI Agents deployed on the Gaia network are behaving in a way that encourages positive actions across the network. By leveraging EigenLayer’s security infrastructure, Gaia can ensure that its AI tasks and models are safeguarded within a decentralized and secure environment.

    “At Gaia, we see AI’s future rooted in decentralization, security, and shared innovation,” said Matt Wright, CEO of Gaia. “Our collaboration with EigenLayer strengthens this vision by combining Gaia’s decentralized AI infrastructure with EigenLayer’s advanced security model. Together, we’re enabling developers to build intelligent, secure, and scalable applications that prioritize both transparency and community engagement within a trusted ecosystem.”

    The partnership will also allow for integrations between Gaia’s AI framework and EigenDA, a decentralized data availability network. This integration will enable shared datasets to be used for AI inference, improving both speed and accuracy. EigenLayer has already implemented a Gaia integration to filter user-submitted ideas on the EigenDA feedback board, demonstrating the practical impact of this collaboration.

    Gaia and EigenLayer will offer tools and SDKs to facilitate the deployment of AI-powered decentralized applications. These resources will allow developers to quickly and easily deploy AI dApps using both Gaia and EigenLayer, benefiting from streamlined, one-click deployment and security via EigenLayer’s AVS.

    By integrating with EigenLayer, Gaia aims to allow developers to build more secure and scalable AI-driven applications.

    To stay up-to-date on developments and opportunities through Gaia, follow Gaia on Twitter @Gaianet_AI and visit the website: www.Gaianet.ai.

    About Gaia
    Gaia is a pioneering decentralized AI platform dedicated to transforming knowledge into a dynamic, secure, and collaborative ecosystem. By addressing the issues introduced by centralized AI solutions, such as censorship, bias, and IP infringement, Gaia offers a knowledge-sharing ecosystem and foundation for new applications that protects information and rewards knowledge sharers. With a commitment to privacy, adaptability, and collaboration, Gaia is redefining the future of AI, making knowledge a vibrant, protected, and accessible resource for all.

    Website: www.Gaianet.ai
    Github: https://github.com/Gaia-AI
    Twitter: @Gaianet_AI

    About EigenLayer

    EigenLayer is a decentralized re-staking protocol that enhances the security and scalability of blockchain ecosystems by allowing Ethereum validators to extend their security guarantees to additional networks and services. By leveraging the existing Ethereum staking infrastructure, EigenLayer enables developers and decentralized applications to benefit from Ethereum’s robust security without the need to establish separate validator networks.

    Website: eigenlayer.xyz
    Twitter: @eigenlayer

    Contact:

    Gaia
    Ali Adkins
    Email: hello@gaianet.ai

    EigenLayer
    Nader
    nader@eigenlayer.xyz

    MEDIA CONTACT:
    Melrose PR
    gaia@melrosepr.com
    (310) 260-7901

    Disclaimer: This content is provided by Gaia. The statements, views and opinions expressed in this column are solely those of the content provider. The information provided in this press release is not a solicitation for investment, nor is it intended as investment advice, financial advice, or trading advice. It is strongly recommended you practice due diligence, including consultation with a professional financial advisor, before investing in or trading cryptocurrency and securities. Please conduct your own research and invest at your own risk.

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/64c8ffe8-fb65-402d-bb30-0b7dde2b31fb

    The MIL Network –

  • MIL-OSI: HighPeak Energy, Inc. Announces Third Quarter 2024 Financial and Operating Results

    Source: GlobeNewswire (MIL-OSI)

    FORT WORTH, Texas, Nov. 04, 2024 (GLOBE NEWSWIRE) — HighPeak Energy, Inc. (“HighPeak” or the “Company”) (NASDAQ: HPK) today announced financial and operating results for the quarter and nine months ended September 30, 2024, and provided updated 2024 production guidance.

    Highlights
    Third Quarter 2024

    • Sales volumes averaged 51,346 barrels of crude oil equivalent per day (“Boe/d”), consisting of 88% liquids (crude oil and NGL), representing a 6% increase over the second quarter 2024.
    • Net income was $49.9 million, or $0.35 per diluted share, and EBITDAX (a non-GAAP financial measure defined and reconciled below) was $214.3 million, or $1.51 per diluted share.
    • Generated free cash flow (a non-GAAP financial measure defined and reconciled below) of $36.1 million, which marks the fifth consecutive quarter of positive free cash flow generation.
    • The Company reduced long-term debt by $30 million during the third quarter and has reduced long-term debt by $90 million year-to-date, paid a quarterly dividend of $0.04 per share and continued to execute its share buyback plan by repurchasing over 870,000 shares during the third quarter.

    Recent Events

    • Increased 2024 average production guidance by more than 5% from the second quarter guidance revision and 10% from our original 2024 guidance to a range of 48,000 to 51,000 Boe/d expected for the full year 2024.
    • On November 4, 2024, the Company’s Board of Directors declared a quarterly dividend of $0.04 per common share outstanding payable in December 2024.

    Statement from HighPeak Chairman and CEO, Jack Hightower:

    “We promised this would be a year marked by steady and reliable achievements, and I am proud we have continued to demonstrate that commitment. There are three main takeaways from our third quarter results. First, our current well performance has led us to increase our full year production guidance 10% higher than originally projected. Second, our operations team continues to tighten costs, resulting in more capital and operating efficiencies across the corporate structure. Third, we continue to generate free cash flow, more than $200 million over the last five quarters, which in turn has strengthened our balance sheet and positioned us to take advantage of opportunities that increase shareholder value.

    “With HighPeak’s core values of maintaining disciplined operations, strengthening our balance sheet and maximizing value for our shareholders, we will finish strong in 2024 and set the course for continued momentum in 2025. Concurrently, we will remain diligent in our strategic alternatives process, with the goal of identifying a line of sight that will realize optimal value of this high quality asset.”

    Third Quarter 2024 Operational Update

    HighPeak’s sales volumes during the third quarter of 2024 averaged 51,346 Boe/d, a 6% increase over second quarter of 2024. Third quarter sales volumes consisted of approximately 88% liquids (crude oil and NGL).

    The Company ran two drilling rigs and one frac crew during the third quarter, drilled 17 gross (16.9 net) horizontal wells and completed 14 gross (10.5 net) producing horizontal wells. At September 30, 2024, the Company had 24 gross (23.9 net) horizontal wells and 1 gross (1.0 net) salt-water disposal well in various stages of drilling and completion.

    HighPeak President, Michael Hollis, commented,

    “The third quarter was another operationally disciplined, beat-and-raise quarter for HighPeak Energy. We increased the midpoint of our yearly production guide by an additional 5%, which is up 10% from our original guide. We also have exciting results both in our northern extension areas and our first well in the Middle Spraberry zone. The results of these successful wells bolster our massive runway of over 1,150 sub $50 oil breakeven drilling location inventory. At our current development cadence, that is over two decades of highly economic inventory.

    “As most are aware, there are structural differences between the Delaware and the Midland Basins that results in the D,C&E cost to be less in the Midland Basin. These structural differences of depth, pressure and horse-power requirements for stimulation can lead to over $3 million of savings per well. HighPeak’s acreage enjoys similar structural differences compared with the more central portions of the Midland Basin. HighPeak’s D,C&E costs are roughly $2 million dollars cheaper per well than average Midland Basin wells. Generating similar oil recoveries for roughly 25% less cost per foot, generates superior returns. Sustaining this for decades will drive significant shareholder value.

    “The HighPeak team continues to be focused on reducing operational and capital costs. All the hard work and effort over the last few years is now paying off. HighPeak lowered the midpoint of its 2024 LOE guide by 12.5% last quarter and we reaffirm our LOE range and tightened capital expenditure range for 2024. As continuous improvement is in our DNA, we look forward to achieving additional efficiency gains in 2025.”

    Third Quarter 2024 Financial Results

    HighPeak reported net income of $49.9 million for the third quarter of 2024, or $0.35 per diluted share. The Company reported EBITDAX of $214.3 million, or $1.51 per diluted share.

    Third quarter average realized prices were $75.99 per barrel (“$/Bbl”) of crude oil, $21.14 per barrel of NGL and $0.42 per Mcf of natural gas, resulting in an overall realized price of $57.49 per Boe, or 76.3% of the weighted average of NYMEX crude oil prices, excluding the effects of derivatives. HighPeak’s cash costs for the third quarter were $11.81 per Boe, including lease operating expenses of $7.12 per Boe, workover expenses of $0.38 per Boe, production and ad valorem taxes of $3.26 per Boe and G&A expenses of $1.05 per Boe. As a result, the Company’s unhedged EBITDAX per Boe was $45.68, or 79.5% of the overall realized price per Boe for the quarter, excluding the effects of derivatives.

    HighPeak’s third quarter 2024 capital expenditures to drill, complete, equip, provide facilities and for infrastructure were $140.0 million. 

    Dividends

    During the third quarter of 2024, HighPeak’s Board of Directors approved a quarterly dividend of $0.04 per share, or $5.0 million in dividends paid to stockholders during the quarter. In addition, in November 2024, the Company’s Board of Directors declared a quarterly dividend of $0.04 per share, or approximately $5.0 million in dividends, to be paid on December 23, 2024 to stockholders of record on December 2, 2024.

    Conference Call

    HighPeak will host a conference call and webcast on Tuesday, November 5, 2024, at 10:00 a.m. Central Time for investors and analysts to discuss its results for the third quarter of 2024. Conference call participants may register for the call here. Access to the live audio-only webcast and replay of the earnings release conference call may be found here. A live broadcast of the earnings conference call will also be available on the HighPeak Energy website at www.highpeakenergy.com under the “Investors” section of the website. A replay will also be available on the website following the call.

    When available, a copy of the Company’s earnings release, investor presentation and Quarterly Report on Form 10-Q may be found on its website at www.highpeakenergy.com.

    About HighPeak Energy, Inc.

    HighPeak Energy, Inc. is a publicly traded independent crude oil and natural gas company, headquartered in Fort Worth, Texas, focused on the acquisition, development, exploration and exploitation of unconventional crude oil and natural gas reserves in the Midland Basin in West Texas. For more information, please visit our website at www.highpeakenergy.com.

    Cautionary Note Regarding Forward-Looking Statements

    The information in this press release contains forward-looking statements that involve risks and uncertainties. When used in this document, the words “believes,” “plans,” “expects,” “anticipates,” “forecasts,” “intends,” “continue,” “may,” “will,” “could,” “should,” “future,” “potential,” “estimate” or the negative of such terms and similar expressions as they relate to HighPeak Energy, Inc. (“HighPeak Energy,” the “Company” or the “Successor”) are intended to identify forward-looking statements, which are generally not historical in nature. The forward-looking statements are based on the Company’s current expectations, assumptions, estimates and projections about the Company and the industry in which the Company operates. Although the Company believes that the expectations and assumptions reflected in the forward-looking statements are reasonable as and when made, they involve risks and uncertainties that are difficult to predict and, in many cases, beyond the Company’s control. For example, the Company’s review of strategic alternatives may not result in a sale of the Company, a recommendation that a transaction occur or result in a completed transaction, and any transaction that occurs may not increase shareholder value, in each case as a result of such risks and uncertainties.

    These risks and uncertainties include, among other things, the results of the strategic review being undertaken by the Company’s Board and the interest of prospective counterparties, the Company’s ability to realize the results contemplated by its 2024 guidance, volatility of commodity prices, product supply and demand, the impact of a widespread outbreak of an illness, such as the coronavirus disease pandemic, on global and U.S. economic activity, competition, the ability to obtain environmental and other permits and the timing thereof, other government regulation or action, the ability to obtain approvals from third parties and negotiate agreements with third parties on mutually acceptable terms, litigation, the costs and results of drilling and operations, availability of equipment, services, resources and personnel required to perform the Company’s drilling and operating activities, access to and availability of transportation, processing, fractionation, refining and storage facilities, HighPeak Energy’s ability to replace reserves, implement its business plans or complete its development activities as scheduled, access to and cost of capital, the financial strength of counterparties to any credit facility and derivative contracts entered into by HighPeak Energy, if any, and purchasers of HighPeak Energy’s oil, natural gas liquids and natural gas production, uncertainties about estimates of reserves, identification of drilling locations and the ability to add proved reserves in the future, the assumptions underlying forecasts, including forecasts of production, expenses, cash flow from sales of oil and gas and tax rates, quality of technical data, environmental and weather risks, including the possible impacts of climate change, cybersecurity risks and acts of war or terrorism. These and other risks are described in the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K and other filings with the SEC. The Company undertakes no duty to publicly update these statements except as required by law.

    Reserve engineering is a process of estimating underground accumulations of hydrocarbons that cannot be measured in an exact way. The accuracy of any reserve estimate depends on the quality of available data, the interpretation of such data and price and cost assumptions made by reserve engineers. Reserves estimates included herein may not be indicative of the level of reserves or PV-10 value of oil and natural gas production in the future. In addition, the results of drilling, testing and production activities may justify revisions of estimates that were made previously. If significant, such revisions could impact HighPeak’s strategy and change the schedule of any further production and development drilling. Accordingly, reserve estimates may differ significantly from the quantities of oil and natural gas that are ultimately recovered.

    Use of Projections

    The financial, operational, industry and market projections, estimates and targets in this press release and in the Company’s guidance (including production, operating expenses and capital expenditures in future periods) are based on assumptions that are inherently subject to significant uncertainties and contingencies, many of which are beyond the Company’s control. The assumptions and estimates underlying the projected, expected or target results are inherently uncertain and are subject to a wide variety of significant business, economic, regulatory and competitive risks and uncertainties that could cause actual results to differ materially from those contained in the financial, operational, industry and market projections, estimates and targets, including assumptions, risks and uncertainties described in “Cautionary Note Regarding Forward-Looking Statements” above. These projections are speculative by their nature and, accordingly, are subject to significant risk of not being actually realized by the Company. Projected results of the Company for 2024 are particularly speculative and subject to change. Actual results may vary materially from the current projections, including for reasons beyond the Company’s control. The projections are based on current expectations and available information as of the date of this release. The Company undertakes no duty to publicly update these projections except as required by law.

    Drilling Locations

    The Company has estimated its drilling locations based on well spacing assumptions and upon the evaluation of its drilling results and those of other operators in its area, combined with its interpretation of available geologic and engineering data. The drilling locations actually drilled on the Company’s properties will depend on the availability of capital, regulatory approvals, commodity prices, costs, actual drilling results and other factors. Any drilling activities conducted on these identified locations may not be successful and may not result in additional proved reserves. Further, to the extent the drilling locations are associated with acreage that expires, the Company would lose its right to develop the related locations.

           
    HighPeak Energy, Inc.
    Unaudited Condensed Consolidated Balance Sheet Data
    (In thousands)
           
      September 30, 2024   December 31, 2023
    Current assets:          
    Cash and cash equivalents $ 135,573     $ 194,515  
    Accounts receivable   76,444       94,589  
    Derivative instruments   24,843       31,480  
    Inventory   7,966       7,254  
    Prepaid expenses   3,921       995  
    Total current assets   248,747       328,833  
    Crude oil and natural gas properties, using the successful efforts method of accounting:          
    Proved properties   3,798,128       3,338,107  
    Unproved properties   75,088       72,715  
    Accumulated depletion, depreciation and amortization   (1,079,113 )     (684,179 )
    Total crude oil and natural gas properties, net   2,794,103       2,726,643  
    Other property and equipment, net   3,483       3,572  
    Derivative instruments   —       16,059  
    Other noncurrent assets   15,133       5,684  
    Total assets $ 3,061,466     $ 3,080,791  
               
    Current liabilities:          
    Current portion of long-term debt, net $ 120,000     $ 120,000  
    Accounts payable – trade   52,557       63,583  
    Accrued capital expenditures   30,388       39,231  
    Revenues and royalties payable   28,532       29,724  
    Other accrued liabilities   25,499       19,613  
    Derivative instruments   1,937       13,054  
    Advances from joint interest owners   425       262  
    Operating leases   290       528  
    Accrued interest   —       1,398  
    Total current liabilities   259,628       287,393  
    Noncurrent liabilities:          
    Long-term debt, net   953,825       1,030,299  
    Deferred income taxes   227,966       197,068  
    Asset retirement obligations   14,231       13,245  
    Operating leases   126       —  
    Derivative instruments   —       65  
    Commitments and contingencies          
               
    Stockholders’ equity          
    Common stock   13       13  
    Additional paid-in capital   1,173,231       1,189,424  
    Retained earnings   432,446       363,284  
    Total stockholders’ equity   1,605,690       1,552,721  
    Total liabilities and stockholders’ equity $ 3,061,466     $ 3,080,791  
               
    HighPeak Energy, Inc.
    Unaudited Condensed Consolidated Statements of Operations
    (in thousands, except per share data)
                 
      Three Months Ended September 30,   Nine Months Ended September 30,
      2024   2023   2024   2023
    Operating revenues:                      
    Crude oil sales $ 270,636     $ 338,372     $ 827,595     $ 790,458  
    NGL and natural gas sales   942       7,214       7,013       19,682  
    Total operating revenues   271,578       345,586       834,608       810,140  
    Operating costs and expenses:                      
    Crude oil and natural gas production   35,413       39,820       98,482       107,696  
    Production and ad valorem taxes   15,412       18,839       46,410       44,395  
    Exploration and abandonments   362       1,728       1,027       4,372  
    Depletion, depreciation and amortization   136,578       117,420       395,121       291,562  
    Accretion of discount   241       122       722       360  
    General and administrative   4,971       6,934       14,391       11,952  
    Stock-based compensation   3,753       14,057       11,326       22,095  
    Total operating costs and expenses   196,730       198,920       567,479       482,432  
    Other expense   1,404       540       3,405       8,042  
    Income from operations   73,444       146,126       263,724       319,666  
    Interest income   2,172       730       6,964       923  
    Interest expense   (42,579 )     (37,022 )     (129,204 )     (103,278 )
    Loss on derivative instruments, net   32,334       (29,655 )     (23,411 )     (30,898 )
    Loss on extinguishment of debt   —       (27,300 )     —       (27,300 )
    Income before income taxes   65,371       52,879       118,073       159,113  
    Income tax expense   15,438       14,100       31,985       38,251  
    Net income $ 49,933     $ 38,779     $ 86,088     $ 120,862  
                           
    Earnings per share:                      
    Basic net income $ 0.36     $ 0.28     $ 0.62     $ 0.94  
    Diluted net income $ 0.35     $ 0.28     $ 0.60     $ 0.90  
                           
    Weighted average shares outstanding:                      
    Basic   124,988       123,159       125,595       115,164  
    Diluted   129,094       127,006       129,581       120,531  
                           
    Dividends declared per share $ 0.04     $ 0.025     $ 0.12     $ 0.075  
                                   

     

    HighPeak Energy, Inc.
    Unaudited Condensed Consolidated Statements of Cash Flows
    (in thousands)
               
      Nine Months Ended September 30,
      2024   2023
    CASH FLOWS FROM OPERATING ACTIVITIES:          
    Net income $ 86,088     $ 120,862  
    Adjustments to reconcile net income to net cash provided by operations:          
    Provision for deferred income taxes   30,898       38,251  
    Loss on extinguishment of debt   —       27,300  
    Loss on derivative instruments   23,411       30,898  
    Cash paid on settlement of derivative instruments   (11,897 )     (21,032 )
    Amortization of debt issuance costs   6,199       9,352  
    Amortization of original issue discounts on long-term debt   7,385       12,660  
    Stock-based compensation expense   11,326       22,095  
    Accretion expense   722       360  
    Depletion, depreciation and amortization expense   395,121       291,562  
    Exploration and abandonment expense   386       3,747  
    Changes in operating assets and liabilities:          
    Accounts receivable   18,145       (29,385 )
    Prepaid expenses, inventory and other assets   (12,387 )     (1,628 )
    Accounts payable, accrued liabilities and other current liabilities   (4,524 )     16,700  
    Net cash provided by operating activities   550,873       521,742  
    CASH FLOWS FROM INVESTING ACTIVITIES:          
    Additions to crude oil and natural gas properties   (452,148 )     (840,663 )
    Changes in working capital associated with crude oil and natural gas property additions   (13,214 )     (86,468 )
    Acquisitions of crude oil and natural gas properties   (10,367 )     (9,602 )
    Proceeds from sales of properties   118       —  
    Deposit and other costs related to pending acquisitions   —       (409 )
    Other property additions   (216 )     (103 )
    Net cash used in investing activities   (475,827 )     (937,245 )
    CASH FLOWS FROM FINANCING ACTIVITIES:          
    Repayments under Term Loan Credit Agreement   (90,000 )     —  
    Repurchased shares under buyback program   (27,247 )     —  
    Dividends paid   (15,082 )     (8,706 )
    Dividend equivalents paid   (1,602 )     (903 )
    Debt issuance costs   (58 )     (26,401 )
    Proceeds from exercises of warrants   1       1,728  
    Borrowings under Term Loan Credit Agreement   —       1,170,000  
    Repayments under Prior Credit Agreement   —       (525,000 )
    Repayments of 10.000% Senior Notes and 10.625% Senior Notes   —       (475,000 )
    Borrowings under Prior Credit Agreement   —       255,000  
    Proceeds from issuance of common stock   —       155,768  
    Stock offering costs   —       (5,371 )
    Premium on extinguishment of debt   —       (4,457 )
    Proceeds from exercises of stock options   —       148  
    Net cash (used in) provided by financing activities   (133,988 )     536,806  
    Net (decrease) increase in cash and cash equivalents   (58,942 )     121,303  
    Cash and cash equivalents, beginning of period   194,515       30,504  
    Cash and cash equivalents, end of period $ 135,573     $ 151,807  
               
    HighPeak Energy, Inc.
    Unaudited Summary Operating Highlights
                           
      Three Months Ended September 30,   Nine Months Ended September 30,
      2024   2023   2024   2023
    Average Daily Sales Volumes:                      
    Crude oil (Bbls)   38,710       44,381       38,581       37,171  
    NGLs (Bbls)   6,497       4,708       5,890       3,895  
    Natural gas (Mcf)   36,831       21,716       32,418       18,221  
    Total (Boe)   51,346       52,708       49,874       44,102  
                           
    Average Realized Prices (excluding effects of derivatives):                      
    Crude oil per Bbl $ 75.99     $ 82.87     $ 78.29     $ 77.90  
    NGL per Bbl $ 21.14     $ 20.08     $ 21.96     $ 22.23  
    Natural gas per Mcf $ 0.42     $ 1.89     $ 0.58     $ 1.58  
    Total per Boe $ 57.49     $ 71.27     $ 61.07     $ 67.29  
                           
    Margin Data ($ per Boe):                      
    Average price, excluding effects of derivatives $ 57.49     $ 71.27     $ 61.07     $ 67.29  
    Lease operating expenses   (7.12 )     (7.87 )     (6.74 )     (8.23 )
    Expense workovers   (0.38 )     (0.34 )     (0.47 )     (0.71 )
    Production and ad valorem taxes   (3.26 )     (3.89 )     (3.40 )     (3.69 )
    General and administrative expenses   (1.05 )     (1.43 )     (1.05 )     (0.99 )
      $ 45.68     $ 57.74     $ 49.41     $ 53.67  
                           
    HighPeak Energy, Inc.
    Unaudited Earnings Per Share Details
                           
      Three Months Ended September 30,   Nine Months Ended September 30,
      2024   2023   2024   2023
    Net income as reported $ 49,933     $ 38,779     $ 86,088     $ 120,862  
    Participating basic earnings   (4,835 )     (3,771 )     (8,280 )     (12,413 )
    Basic earnings attributable to common shareholders   45,098       35,008       77,808       108,449  
    Reallocation of participating earnings   66       54       102       192  
    Diluted net income attributable to common shareholders $ 45,164     $ 35,062     $ 77,910     $ 108,641  
                           
    Basic weighted average shares outstanding   124,988       123,159       125,595       115,164  
    Dilutive warrants and unvested stock options   1,952       1,688       1,832       3,208  
    Dilutive unvested restricted stock   2,154       2,159       2,154       2,159  
    Diluted weighted average shares outstanding   129,094       127,006       129,581       120,531  
                           
    Net income per share attributable to common shareholders:                      
    Basic $ 0.36     $ 0.28     $ 0.62     $ 0.94  
    Diluted $ 0.35     $ 0.28     $ 0.60     $ 0.90  
                           
    HighPeak Energy, Inc.
    Unaudited Reconciliation of Net Income to EBITDAX, Discretionary Cash Flow and Net Cash Provided by Operations
    (in thousands)
                 
      Three Months Ended September 30,   Nine Months Ended September 30,
      2024   2023   2024   2023
    Net income $ 49,933     $ 38,779     $ 86,088     $ 120,862  
    Interest expense   42,579       37,022       129,204       103,278  
    Interest income   (2,172 )     (730 )     (6,964 )     (923 )
    Income tax expense   15,438       14,100       31,985       38,251  
    Depletion, depreciation and amortization   136,578       117,420       395,121       291,562  
    Accretion of discount   241       122       722       360  
    Exploration and abandonment expense   362       1,728       1,027       4,372  
    Stock based compensation   3,753       14,057       11,326       22,095  
    Derivative related noncash activity   (33,775 )     15,883       11,514       9,866  
    Loss on extinguishment of debt   —       27,300       —       27,300  
    Other expense   1,404       540       3,405       8,042  
    EBITDAX   214,341       266,221       663,428       625,065  
    Cash interest expense   (38,020 )     (33,798 )     (115,620 )     (85,723 )
    Other (a)   53       4,480       1,831       (3,287 )
    Discretionary cash flow   176,374       236,903       549,639       536,055  
    Changes in operating assets and liabilities   729       (78,837 )     1,234       (14,313 )
    Net cash provided by operating activities $ 177,103     $ 158,066     $ 550,873     $ 521,742  
                           
    (a) includes interest and other income net of current tax expense, other expense and operating portion of exploration and abandonment expenses.
     
    HighPeak Energy, Inc.
    Unaudited Free Cash Flow Reconciliation
    (in thousands)
               
      Three Months Ended September 30, 2024   Nine Months Ended September 30, 2024
               
    Net cash provided by operating activities $ 177,103     $ 550,873  
    Changes in operating assets and liabilities   (729 )     (1,234 )
    Discretionary cash flow   176,374       549,639  
    Less: Additions to crude oil and natural gas properties (excluding acquisitions)   (140,251 )     (452,148 )
    Free cash flow $ 36,123     $ 97,491  
               

    Investor Contact:

    Ryan Hightower
    Vice President, Business Development
    817.850.9204
    rhightower@highpeakenergy.com

    Source: HighPeak Energy, Inc.

    The MIL Network –

  • MIL-OSI Canada: Indoor shelter spaces opening for winter

    Source: Government of Canada regional news

    The Province, through BC Housing, is funding 6,118 shelter spaces in 59 communities throughout British Columbia, including permanent, temporary and extreme-weather response (EWR) shelters, as well as Homeless Encampment Action Response Temporary Housing (HEARTH) shelter spaces.

    Listed below are shelters that opened in six major cities as of Nov. 1, 2024. For a full list of shelters throughout B.C., visit: https://smap.bchousing.org/

    Shelter information, including the openings of EWR and other shelters, is updated daily. For shelter bed availability, people are encouraged to reach out to their local shelter.

    Additional shelter spaces are expected to open in the coming months.

    Kamloops

    Total shelter spaces: 230

    • Temporary shelters
      • Stuart Wood, 245 St. Paul St., 35 spaces (including 10 accessible spaces for seniors)
      • Yacht Club, 1140 River St., 20 spaces
      • Olive Branch, 245 St. Paul St., 10 spaces
    • Permanent year-round shelters
      • Emerald Centre, 259 Victoria St., 40 spaces
      • Harbour Shelter (women only), 181 Victoria St. W., 12 spaces
      • Merit Place, 715 Notre Dame Dr., 50 spaces
      • Moira House, 600 Kingston Ave., 41 spaces
      • Mustard Seed Shelter, 181 Victoria St. W., 22 spaces

    Kelowna

    Total shelter spaces: 305

    • Temporary shelters
      • Bay Avenue Shelter, 858 Ellis St., 72 spaces
      • Kelowna Motel shelter, 25 spaces (referral only)
    • Permanent year-round shelters
      • Alexandra Gardner Safe Centre, 1069 Gordon Dr., 20 spaces
      • Cornerstone Shelter, 425 Leon Ave., 80 spaces
      • Kelowna Gospel Mission, 251 Leon Ave., 60 spaces
      • Richter Street Shelter, 1083 Richter St., 48 spaces

    Prince George

    Total shelter spaces: 161

    • Permanent year-round shelters
      • Bridget Moran Place, 1188 6th Ave., 45 spaces
      • AWAC Women’s Shelter, 144 George St., 40 spaces
      • Ketso Yoh Centre Men’s Hostel, 140 Quebec St., 36 spaces
      • Prince George Native Friendship Centre (youth shelter), 171 George St., 10 spaces
      • Second Ave Shelter, 1151 2nd Ave., 30 spaces

    Surrey

    Total shelter spaces: 566

    • Temporary shelters
      • Nourish, 13539 King George Blvd., 16 spaces (an additional 15 spaces to open later this season).
      • Cloverdale, 5337 180 St., 25 spaces
    • Extreme weather response shelters (open only during EWR alerts)
      • PCRS, 10453 Whalley Blvd., 10 spaces
      • SUMs NightShift, 10635 King George Blvd., 15 spaces
      • Shimai House, 13327 100A Ave., six spaces
      • Lookout Surrey Alliance, 13474 96 Ave., 30 spaces
      • South Surrey, 14601 20 Ave., 45 spaces
    • Permanent year-round shelters
      • Bill Reid Place, 17910 Colebrook Rd., 16 spaces
      • Cynthia’s Place, 14337/14347 108 Ave., 18 spaces
      • Foxglove Shelter, 9810 Foxglove Dr., 27 spaces
      • Lookout Gateway, 10667 135A St., 40 spaces
      • Lookout Guildford, 14716 104 Ave., 46 spaces
      • Lookout Parkway, 10667 135A St., 40 spaces
      • Hyland House, 6595 King George Blvd., 45 spaces
      • Rosewood Shelter, 9683 137 St., 60 spaces
      • Surrey Urban Mission, 10776 King George Blvd., 40 spaces
      • The Cove, 10607 King George Blvd., 42 spaces
      • The Olive Branch, 10731 City Parkway, 45 spaces

    Vancouver

    Total shelter spaces: 1,838

    • Temporary shelters
      • Directions Youth Services Centre, 1138 Burrard St., 12 spaces
      • Klahowya,  875 Terminal Ave., 20 spaces
      • 1660 East Hastings St., 100 spaces
      • Lookout Commercial Hastings, 1738 E. Hastings St., 20 spaces
      • Gathering Place,  609 Helmcken St., 34 spaces
      • Lookout 325 Main, 325 Main St., 20 spaces
      • Harbour Light, 119 E. Cordova St.,  40 spaces
      • Evelyne Saller, 404 Alexander St., 42 spaces
      • Lookout Tenth Church, 11 10th Ave. West, 25 spaces
      • Lookout Jubilee,  239 Main St., 13 spaces
      • UGM Women’s Shelter, 616 Cordova St. E., 20 spaces
      • CSS Mat Program, 1302 Seymour St., 10 spaces
    • Extreme weather response shelters (open only during EWR alerts)
      • Aboriginal Front Door, 205 E. Hastings, 34 spaces
      • Directions Youth Resource Centre, 1138 Burrard St., 10 spaces
      • The Nest, 320 Alexander St., 20 spaces
      • Lookout Hastings Commercial, 1726 E. Hastings, 15 spaces
      • Lookout Kiwassa, 2425 Oxford St., 20 spaces
      • Lookout Marpole, 8585 Hudson St., 30 spaces
      • PCRS Vancouver, 2455 Fraser St., 20 spaces 
      • Belkin House, 555 Homer St., 25 spaces
    • Permanent year-round shelters
      • 1401 Hornby St., 52 spaces
      • Metson, 1060 Howe St., 38 spaces
      • Sisters Shelter, 131 Dunlevy Ave., 16 spaces
      • Sisterhood, 342 Alexander St., 21 spaces
      • Kye7e, 172 Cordova St. E., 10 spaces
      • 398 Powell St., 11 spaces
      • WISH, 340 Alexander St., 23 spaces
      • 265 Hastings St. E., 31 spaces
      • Osborn, 15 Hastings St. W., 80 spaces
      • Klahowya at Terminal, 875 Terminal Ave., 60 spaces
      • The Haven, 108 E. Hastings St., 34 spaces
      • The Beacon, 108 E. Hastings St., 66 spaces
      • Crosswalk, 108 E. Hastings St., 36 spaces
      • Lookout Walton Hotel , 261 Hastings St. E., 15 spaces
      • The Lark, 103 Hastings St. E., 14 spaces
      • Covenant House, 1280 Seymour St., 60 spaces
      • Catholic Charities Men’s Hostel, 1056 Comox St., 108 spaces
      • First United Church Shelter, 467 Alexander St., 51 spaces
      • Lookout Yukon St. Shelter, 2088 Yukon St., 71 spaces
      • Lookout Al Mitchell Shelter, 346 Alexander St., 46 spaces
      • New Fountain Shelter, 356 E. Hastings, 60 spaces
      • RainCity HPP and Triage Emergency Shelter, 707 Powell St., 28 spaces
      • Springhouse Shelter, 333 E. 16th Ave., 32 spaces
      • Powell Place Emergency Shelter, 329 Powell St., 52 spaces
      • Downtown Eastside Women’s Shelter, 412 E. Cordova St., 57 spaces
      • Belkin House, 555 Homer St., 81 spaces
      • Vi Fineday Family Shelter, 1906 15th Ave. W., 18 spaces
      • Aboriginal Shelter, 201 Central St., 55 spaces
      • Union Gospel (Heatley) Housing Society, 601 Hastings St. E., 82 spaces

    Victoria

    Total shelter spaces: 400

    • Extreme weather response shelters (open only during EWR alerts)
      • Rock Bay Landing, 535 Ellice St., 20 spaces
      • Addictions and Rehabilitation Centre, 525 Johnson St., 30 spaces
    • Permanent year-round shelters
      • Douglas Community Shelter, 2915 Douglas St., 29 spaces
      • 919 Pandora Ave., 54 spaces
        • Includes 20 HEARTH-funded spaces
      • Out of the Rain Victoria, 1450 Elford St., 15 spaces
      • My Place, 1240 Yates St., 56 spaces
        • Includes two HEARTH-funded spaces
      • Addictions and Rehabilitation Centre, 525 Johnson St., 42 spaces
        • Includes 21 HEARTH-funded spaces
      • Sandy Merriman House, 809 Burdett Ave., 25 spaces
      • Next Steps, 2317 Dowler Pl., 15 spaces
      • Rock Bay Landing, 535 Ellice St., 84 spaces
      • St. John the Divine Shelter, 1611 Quadra St., 30 spaces (HEARTH-funded)

    MIL OSI Canada News –