Category: Commerce

MIL-OSI China: China’s foreign investment, cooperation remain stable in 2024: official

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

BEIJING, Jan. 26 — China’s foreign investment and cooperation saw steady growth in 2024, an official with the Ministry of Commerce (MOC) said Sunday.

The country’s non-financial outbound direct investment rose 10.5 percent year on year to 143.85 billion U.S. dollars last year, with investments in the Association of Southeast Asian Nations (ASEAN) countries increasing by 12.6 percent year on year, according to the official.

Investments in leasing, business services, manufacturing, and wholesale and retail sectors drove the growth. The turnover of China’s foreign contracted projects totaled 165.97 billion U.S. dollars in 2024, an increase of 3.1 percent year on year, the official said.

In 2024, the number of workers dispatched abroad reached 409,000, a 17.9 percent increase year on year, with a total of 594,000 Chinese workers employed overseas by the end of the year.

Non-financial investment in countries along the Belt and Road increased by 5.4 percent year on year to 33.69 billion U.S. dollars last year, MOC data showed.

MIL OSI China News –

January 26, 2025

MIL-OSI: Infinera Corporation Reports Third Quarter 2024 Financial Results

Source: GlobeNewswire (MIL-OSI)

SAN JOSE, Calif., Nov. 05, 2024 (GLOBE NEWSWIRE) — Infinera Corporation (NASDAQ: INFN) today released financial results for its third quarter ended September 28, 2024.

GAAP revenue for the quarter was $354.4 million compared to $342.7 million in the second quarter of 2024 and $392.4 million in the third quarter of 2023.

GAAP gross margin for the quarter was 39.8% compared to 39.6% in the second quarter of 2024 and 40.3% in the third quarter of 2023. GAAP operating margin for the quarter was (3.1)% compared to (8.7)% in the second quarter of 2024 and 2.0% in the third quarter of 2023.

GAAP net loss for the quarter was $(14.3) million, or $(0.06) per diluted share, compared to net loss of $(48.3) million, or $(0.21) per diluted share, in the second quarter of 2024, and net loss of $(9.4) million, or $(0.04) per diluted share, in the third quarter of 2023.

Non-GAAP gross margin for the quarter was 40.4% compared to 40.3% in the second quarter of 2024 and 41.9% in the third quarter of 2023. Non-GAAP operating margin for the quarter was 3.5% compared to (1.3)% in the second quarter of 2024 and 7.7% in the third quarter of 2023.

Non-GAAP net income for the quarter was $0.3 million, or $0.00 per diluted share, compared to non-GAAP net loss of $(14.0) million, or $(0.06) per diluted share, in the second quarter of 2024, and non-GAAP net income of $19.9 million, or $0.08 per diluted share, in the third quarter of 2023.

During the three-months ended September 28, 2024, the Company generated positive cash flow from operations of $44.5 million and ended the quarter with cash, cash equivalents and restricted cash of $115.6 million.

A further explanation of the use of non-GAAP financial information and a reconciliation of each of the non-GAAP financial measures to the most directly comparable GAAP financial measure can be found at the end of this press release.

Infinera CEO, David Heard said “Our team delivered another quarter with continued sequential improvements in our financial metrics and critical service provider and webscaler design wins across our ICE-X coherent pluggables, next-generation line systems, software, and ICE7 solutions. In addition, in October we signed a non-binding preliminary memorandum of terms with the U.S. Department of Commerce for an award under the CHIPS and Science Act that, together with other federal and state incentives, could result in more than $200 million in funds for Infinera.”

“Looking ahead, our customers remain excited about our pending acquisition by Nokia as they look forward to the combined company accelerating the pace of innovation in the industry. We are making good progress on the steps required to close the transaction, including receiving stockholder approval and attaining U.S. antitrust and CFIUS approval. There are still other regulatory approvals pending, but we believe we remain on track to close the deal in the first half of 2025,” continued Mr. Heard.

Pending Merger with Nokia

On June 27, 2024, Infinera, Nokia Corporation, a company incorporated under the laws of the Republic of Finland (“Nokia”) (NYSE: NOK) and Neptune of America Corporation, a Delaware corporation and wholly owned subsidiary of Nokia (“Merger Sub”) entered into an Agreement and Plan of Merger (as it may be amended, modified or waived from time to time, the “Merger Agreement”) that provides for Merger Sub to merge with and into Infinera (the “Merger”), with Infinera surviving the Merger as a wholly owned subsidiary of Nokia. The transaction is expected to close in the first half of 2025.

In light of the proposed transaction with Nokia, and as is customary during the pendency of an acquisition, Infinera will not be providing financial guidance during the pendency of the acquisition.

Third Quarter 2024 Investor Slides to be Made Available Online

Investor slides reviewing Infinera’s third quarter of 2024 financial results will be furnished to the U.S. Securities and Exchange Commission (“SEC”) on a Current Report on Form 8-K and published on Infinera’s Investor Relations website at investors.infinera.com.

Contacts:

Media:
Anna Vue
Tel. +1 (916) 595-8157
avue@infinera.com

Investors:
Amitabh Passi, Head of Investor Relations
Tel. +1 (669) 295-1489
apassi@infinera.com

About Infinera

Infinera is a global supplier of innovative open optical networking solutions and advanced optical semiconductors that enable carriers, cloud operators, governments, and enterprises to scale network bandwidth, accelerate service innovation, and automate network operations. Infinera solutions deliver industry-leading economics and performance in long-haul, submarine, data center interconnect, and metro transport applications. To learn more about Infinera, visit www.infinera.com, follow us on X and LinkedIn, and subscribe for updates.

Infinera and the Infinera logo are registered trademarks of Infinera Corporation.

Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements generally relate to future events or Infinera’s future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “should,” “will,” and “would” or the negative of these words or similar terms or expressions that concern Infinera’s expectations, strategy, priorities, plans or intentions. Forward-looking statements in this press release include, but are not limited to, statements regarding the amount Infinera could receive in government funding; and statements related to the Merger, including the timing of completion of the Merger and the future performance and benefits of the combined business.

These forward-looking statements are based on estimates and information available to Infinera as of the date hereof and are not guarantees of actual or future performance; actual results could differ materially from those stated or implied due to risks and uncertainties. The risks and uncertainties that could cause Infinera’s results to differ materially from those expressed or implied by such forward-looking statements include statements related to the Merger, including whether the Merger may not be completed or completion may be delayed, and if the Merger Agreement is terminated, there may be a required payment of a significant termination fee by either party; the receipt of necessary approvals to complete the Merger; the possibility that due to the Merger, and uncertainty regarding the Merger, Infinera’s customers, suppliers or strategic partners may delay or defer entering into contracts or making other decisions concerning Infinera; the significance and timing of costs related to the Merger; the impact on us of litigation or other stockholder action related to the Merger; the effects on us and our stockholders if the Merger is not completed; demand growth for additional network capacity and the level and timing of customer capital spending and excess inventory held by customers beyond normalized levels; delays in the development, introduction or acceptance of new products or in releasing enhancements to existing products; aggressive business tactics by Infinera’s competitors and new entrants and Infinera’s ability to compete in a highly competitive market; supply chain and logistics issues and their impact on our business, and Infinera’s dependency on sole source, limited source or high-cost suppliers; dependence on a small number of key customers; product performance problems; the complexity of Infinera’s manufacturing process; Infinera’s ability to identify, attract, upskill and retain qualified personnel; challenges with our contract manufacturers and other third-party partners; the effects of customer and supplier consolidation; dependence on third-party service partners; Infinera’s ability to respond to rapid technological changes; failure to accurately forecast Infinera’s manufacturing requirements or customer demand; failure to secure the funding contemplated by grants Infinera may receive from governments, agencies or research organizations, or failure to comply with the terms of those grants; Infinera’s future capital needs and its ability to generate the cash flow or otherwise secure the capital necessary to meet such capital needs; the effect of global and regional economic conditions on Infinera’s business, including effects on purchasing decisions by customers; the adverse impact inflation and higher interest rates may have on Infinera by increasing costs beyond what it can recover through price increases; restrictions to our operations resulting from loan or other credit agreements; the impacts of any restructuring plans or other strategic efforts on our business; Infinera’s international sales and operations; the impacts of foreign currency fluctuations; the effective tax rate of Infinera, which may increase or fluctuate; potential dilution from the issuance of additional shares of common stock in connection with the conversion of Infinera’s convertible senior notes; Infinera’s ability to protect its intellectual property; claims by others that Infinera infringes on their intellectual property rights; security incidents, such as data breaches or cyber-attacks; Infinera’s ability to comply with various rules and regulations, including with respect to export control and trade compliance, environmental, social, governance, privacy and data protection matters; events that are outside of Infinera’s control, such as natural disasters, acts of war or terrorism, or other catastrophic events that could harm Infinera’s operations; Infinera’s ability to remediate its recently disclosed material weaknesses in internal control over financial reporting in a timely and effective manner, and other risks and uncertainties detailed in Infinera’s SEC filings from time to time; and statements of assumptions underlying any of the foregoing. More information on potential factors that may impact Infinera’s business are set forth in Infinera’s periodic reports filed with the SEC, including its Annual Report on Form 10-K for the year ended December 30, 2023, filed with the SEC on May 17, 2024, and its Quarterly Report on Form 10-Q for the quarter ended June 29, 2024, as filed with the SEC on August 2, 2024, as well as subsequent reports filed with or furnished to the SEC from time to time. These SEC filings are available on Infinera’s website at www.infinera.com and the SEC’s website at www.sec.gov. Infinera assumes no obligation to, and does not currently intend to, update any such forward-looking statements.

Use of Non-GAAP Financial Information

In addition to disclosing financial measures prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”), this press release and the accompanying tables contain certain non-GAAP financial measures that exclude in certain cases stock-based compensation expense, amortization of acquired intangible assets, restructuring and other related costs, warehouse fire recovery, merger-related charges, foreign exchange (gains) losses, net, and income tax effects. Infinera believes these adjustments are appropriate to enhance an overall understanding of its underlying financial performance and also its prospects for the future and are considered by management for the purpose of making operational decisions. In addition, the non-GAAP financial measures presented in this press release are the primary indicators management uses as a basis for its planning and forecasting of future periods. The presentation of this additional information is not meant to be considered in isolation or as a substitute for gross margin, operating expenses, operating margin, net income (loss) and net income (loss) per common share prepared in accordance with GAAP. Non-GAAP financial measures are not based on a comprehensive set of accounting rules or principles and are subject to limitations.

For a description of these non-GAAP financial measures and a reconciliation to the most directly comparable GAAP financial measures, please see the table titled “GAAP to Non-GAAP Reconciliations” and related footnotes.

Infinera Corporation
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)

	Three months ended						Nine months ended
	September 28, 2024			September 30, 2023			September 28, 2024			September 30, 2023
Revenue:
Product	$	276,214		$	316,613		$	778,008		$	931,057
Services		78,184			75,756			226,051			229,615
Total revenue		354,398			392,369			1,004,059			1,160,672
Cost of revenue:
Cost of product		170,693			190,312			494,248			577,152
Cost of services		42,515			40,209			121,910			124,889
Amortization of intangible assets		—			3,528			—			10,621
Restructuring and other related costs		(24	)		—			652			—
Total cost of revenue		213,184			234,049			616,810			712,662
Gross profit		141,214			158,320			387,249			448,010
Operating expenses:
Research and development		73,283			76,846			225,223			237,234
Sales and marketing		35,715			41,075			118,357			124,406
General and administrative		34,160			29,368			101,114			89,762
Amortization of intangible assets		2,257			2,976			6,769			10,088
Merger-related charges		6,954			—			15,471			—
Restructuring and other related costs		(157	)		400			4,105			2,621
Total operating expenses		152,212			150,665			471,039			464,111
Income (loss) from operations		(10,998	)		7,655			(83,790	)		(16,101	)
Other income (expense), net:
Interest income		874			546			2,789			1,734
Interest expense		(8,764	)		(7,608	)		(25,556	)		(21,795	)
Other gain (loss), net		8,485			(7,540	)		(8,910	)		10,586
Total other income (expense), net		595			(14,602	)		(31,677	)		(9,475	)
Loss before income taxes		(10,403	)		(6,947	)		(115,467	)		(25,576	)
Provision for income taxes		3,910			2,466			8,528			12,510
Net loss	$	(14,313	)	$	(9,413	)	$	(123,995	)	$	(38,086	)
Net loss per common share:
Basic	$	(0.06	)	$	(0.04	)	$	(0.53	)	$	(0.17	)
Diluted	$	(0.06	)	$	(0.04	)	$	(0.53	)	$	(0.17	)
Weighted average shares used in computing net loss per common share:
Basic		235,832			228,077			233,905			225,465
Diluted		235,832			228,077			233,905			225,465

Infinera Corporation
GAAP to Non-GAAP Reconciliations
(In thousands, except percentages)
(Unaudited)

	Three months ended														Nine months ended
	September 28, 2024					June 29, 2024					September 30, 2023				September 28, 2024					September 30, 2023
Reconciliation of Gross Profit and Gross Margin:
GAAP as reported	$	141,214		39.8	%	$	135,594		39.6	%	$	158,320	40.3	%	$	387,249		38.6	%	$	448,010		38.6	%
Stock-based compensation expense⁽¹⁾		2,084		0.6	%		1,777		0.5	%		2,515	0.7	%		5,754		0.5	%		7,672		0.7	%
Amortization of acquired intangible assets⁽²⁾		—		—	%		—		—	%		3,528	0.9	%		—		—	%		10,621		0.9	%
Restructuring and other related costs⁽³⁾		(24	)	(0.0)	%		703		0.2	%		—				652		0.1	%		—		—	%
Warehouse fire recovery⁽⁴⁾		—		—	%		—		—	%		—	—	%		—		—	%		(1,985	)	(0.2)	%
Non-GAAP as adjusted	$	143,274		40.4	%	$	138,074		40.3	%	$	164,363	41.9	%	$	393,655		39.2	%	$	464,318		40.0	%

Reconciliation of Operating Expenses:
GAAP as reported	$	152,212				$	165,403				$	150,665			$	471,039				$	464,111
Stock-based compensation expense⁽¹⁾		12,305					8,024					13,230				32,967					41,721
Amortization of acquired intangible assets⁽²⁾		2,257					2,256					2,976				6,769					10,088
Restructuring and other related costs⁽³⁾		(157	)				3,948					400				4,105					2,621
Merger-related charges⁽⁵⁾		6,954					8,517					—				15,471					—
Non-GAAP as adjusted	$	130,853				$	142,658				$	134,059			$	411,727				$	409,681

Reconciliation of Income (Loss) from Operations and Operating Margin:
GAAP as reported	$	(10,998	)	(3.1)	%	$	(29,809	)	(8.7)	%	$	7,655	2.0	%	$	(83,790	)	(8.3)	%	$	(16,101	)	(1.4)	%
Stock-based compensation expense⁽¹⁾		14,389		4.1	%		9,801		2.8	%		15,745	3.9	%		38,721		3.8	%		49,393		4.3	%
Amortization of acquired intangible assets⁽²⁾		2,257		0.6	%		2,256		0.7	%		6,504	1.7	%		6,769		0.7	%		20,709		1.8	%
Restructuring and other related costs⁽³⁾		(181	)	(0.1)	%		4,651		1.4	%		400	0.1	%		4,757		0.5	%		2,621		0.2	%
Warehouse fire recovery⁽⁴⁾		—		—	%		—		—	%		—	—	%		—		—	%		(1,985	)	(0.2)	%
Merger-related charges⁽⁵⁾		6,954		2.0	%		8,517		2.5	%		—	—	%		15,471		1.5	%		—		—	%
Non-GAAP as adjusted	$	12,421		3.5	%	$	(4,584	)	(1.3)	%	$	30,304	7.7	%	$	(18,072	)	(1.8)	%	$	54,637		4.7	%

	Three months ended									Nine months ended
	September 28, 2024			June 29, 2024			September 30, 2023			September 28, 2024			September 30, 2023
Reconciliation of Net Income (Loss):
GAAP as reported	$	(14,313	)	$	(48,287	)	$	(9,413	)	$	(123,995	)	$	(38,086	)
Stock-based compensation expense⁽¹⁾		14,389			9,801			15,745			38,721			49,393
Amortization of acquired intangible assets⁽²⁾		2,257			2,256			6,504			6,769			20,709
Restructuring and other related costs⁽³⁾		(181	)		4,651			400			4,757			2,621
Warehouse fire recovery⁽⁴⁾		—			—			—			—			(1,985	)
Merger-related charges⁽⁵⁾		6,954			8,517			—			15,471			—
Foreign exchange (gains) losses, net⁽⁶⁾		(8,039	)		11,690			7,527			10,099			(9,903	)
Income tax effects⁽⁷⁾		(788	)		(2,604	)		(894	)		(3,775	)		2,072
Non-GAAP as adjusted	$	279		$	(13,976	)	$	19,869		$	(51,953	)	$	24,821

Weighted Average Shares Used in Computing GAAP Net Income (Loss) per Common Share:
Basic		235,832			234,349			228,077			233,905			225,465
Diluted⁽⁸⁾		235,832			234,349			228,077			233,905			225,465

Weighted Average Shares Used in Computing Non-GAAP Net Income (Loss) per Common Share:
Basic		235,832			234,349			228,077			233,905			225,465
Diluted⁽⁹⁾		240,502			234,349			257,219			233,905			228,735

Reconciliation of Adjusted EBITDA ⁽¹⁰⁾:
Non-GAAP net income (loss)	$	279		$	(13,976	)	$	19,869		$	(51,953	)	$	24,821
Add: Interest expense, net		7,890			7,370			7,062			22,767			20,061
Less: Other gain (loss), net		446			507			(13	)		1,189			683
Add: Income tax effects		4,698			2,529			3,360			12,303			10,438
Add: Depreciation		13,501			13,285			13,498			39,975			38,694
Non-GAAP as adjusted	$	25,922		$	8,701		$	43,802		$	21,903		$	93,331

Net Income (Loss) per Common Share: GAAP
Basic	$	(0.06	)	$	(0.21	)	$	(0.04	)	$	(0.53	)	$	(0.17	)
Diluted⁽⁸⁾	$	(0.06	)	$	(0.21	)	$	(0.04	)	$	(0.53	)	$	(0.17	)

Net Income (Loss) per Common Share: Non-GAAP
Basic	$	0.00		$	(0.06	)	$	0.09		$	(0.22	)	$	0.11
Diluted⁽⁹⁾	$	0.00		$	(0.06	)	$	0.08		$	(0.22	)	$	0.11

⁽¹⁾	Stock-based compensation expense is calculated in accordance with the fair value recognition provisions of Financial Accounting Standards Board Accounting Standards Codification Topic 718, Compensation – Stock Compensation effective January 1, 2006. The following table summarizes the effects of stock-based compensation related to employees and non-employees (in thousands):

		Three months ended						Nine months ended
		September 28, 2024		June 29, 2024		September 30, 2023		September 28, 2024		September 30, 2023
Cost of revenue		$	2,084	$	1,777	$	2,515	$	5,754	$	7,672
Research and development			4,623		4,497		5,734		14,232		17,557
Sales and marketing			3,241		2,611		3,706		9,139		11,371
General and administration			4,441		916		3,790		9,596		12,793
Total operating expenses			12,305		8,024		13,230		32,967		41,721
	Total stock-based compensation expense	$	14,389	$	9,801	$	15,745	$	38,721	$	49,393

⁽²⁾	Amortization of acquired intangible assets consists of developed technology and customer relationships acquired in connection with the acquisitions of Coriant and Transmode AB. GAAP accounting requires that acquired intangible assets are recorded at fair value and amortized over their useful lives. As this amortization is non-cash, Infinera has excluded it from its non-GAAP gross profit, operating expenses and net income measures. Management believes the amortization of acquired intangible assets is not indicative of ongoing operating performance and its exclusion provides a better indication of Infinera’s underlying business performance.
⁽³⁾	Restructuring and other related costs are primarily associated with the reduction of headcount and the reduction of operating costs. In addition, this includes accelerated amortization on operating lease right-of-use assets due to the cessation of use of certain facilities. Management has excluded the impact of these charges in arriving at Infinera’s non-GAAP results as they are non-recurring in nature and its exclusion provides a better indication of Infinera’s underlying business performance.
⁽⁴⁾	Warehouse fire losses were incurred due to inventory destroyed in a warehouse fire in the third quarter of fiscal year 2022. Recoveries are recorded when they are probable of receipt. Management has excluded the impact of this loss and subsequent recoveries in arriving at Infinera’s non-GAAP results as it is non-recurring in nature and its exclusion provides a better indication of Infinera’s underlying business performance.
⁽⁵⁾	Merger-related charges represent costs incurred directly in connection with the pending merger with Nokia. Management has excluded the impact of these charges in arriving at Infinera’s non-GAAP results as they are non-recurring in nature and the exclusion of these charges provides a better indication of Infinera’s underlying business performance.
⁽⁶⁾	Foreign exchange (gains) losses, net, have been excluded from Infinera’s non-GAAP results because management believes that this expense is not indicative of ongoing operating performance and its exclusion provides a better indication of Infinera’s underlying business performance.
⁽⁷⁾	The difference between the GAAP and non-GAAP tax provision is due to the net tax effects of above non-GAAP adjustments. Management believes the exclusion of these tax effects provides a better indication of Infinera’s underlying business performance.
⁽⁸⁾	The GAAP diluted shares include potentially dilutive securities from Infinera’s stock-based benefit plans and convertible senior notes. These potentially dilutive securities are added for the computation of diluted net income per share on a GAAP basis in periods when Infinera has net income on a GAAP basis, as its inclusion provides a better indication of Infinera’s underlying business performance.

For purposes of calculating GAAP diluted earnings per share, we used the following net loss and weighted average common shares outstanding (in thousands, except per share data):

			Three months ended									Nine months ended
			September 28, 2024			June 29, 2024			September 30, 2023			September 28, 2024			September 30, 2023
GAAP net loss for basic earnings per share			$	(14,313	)	$	(48,287	)	$	(9,413	)	$	(123,995	)	$	(38,086	)
Interest expense related to the convertible senior notes, net of tax				—			—			—			—			—
GAAP net loss for diluted earnings per share			$	(14,313	)	$	(48,287	)	$	(9,413	)	$	(123,995	)	$	(38,086	)

Weighted average basic common shares outstanding				235,832			234,349			228,077			233,905			225,465
Dilutive effect of restricted and performance share units				—			—			—			—			—
Dilutive effect of 2024 convertible senior notes^(a)				—			—			—			—			—
Dilutive effect of 2027 convertible senior notes^(b)				—			—			—			—			—
Dilutive effect of 2028 convertible senior notes^(c)				—			—			—			—			—
Weighted average dilutive common shares outstanding				235,832			234,349			228,077			233,905			225,465

GAAP net loss per common share:
Basic			$	(0.06	)	$	(0.21	)	$	(0.04	)	$	(0.53	)	$	(0.17	)
Diluted			$	(0.06	)	$	(0.21	)	$	(0.04	)	$	(0.53	)	$	(0.17	)

	^(a)	For the three-months ended September 28, 2024, June 29, 2024, and September 30, 2023, there were 1.4 million, 1.9 million and 1.9 million shares, respectively, excluded from the calculation of diluted net loss per share, due to their anti-dilutive effect. For the nine-months ended September 28, 2024, and September 30, 2023, there were 1.7 million, and 7.1 million shares, respectively, excluded from the calculation of diluted net loss per share, due to their anti-dilutive effect.
	^(b)	For each of the three-months ended September 28, 2024, June 29, 2024, and September 30, 2023, there were 26.1 million shares excluded from the calculation of diluted net loss per share, due to their anti-dilutive effect. For each of the nine-months ended September 28, 2024, and September 30, 2023, there were 26.1 million shares excluded from the calculation of diluted net loss per share, due to their anti-dilutive effect.
	^(c)	For each of the three-months ended September 28, 2024, June 29, 2024, and September 30, 2023, there were no shares excluded from the calculation of diluted net loss per share. For the nine-months ended September 28, 2024, there were no shares excluded from the calculation of diluted net loss per share. For the nine-months ended September 30, 2023, there were 1.2 million shares excluded from the calculation of diluted net loss per share, due to their anti-dilutive effect.
⁽⁹⁾	The non-GAAP diluted shares include the potentially dilutive securities from Infinera’s stock-based benefit plans and convertible senior notes. These potentially dilutive securities are added for the computation of diluted net income per share on a non-GAAP basis in periods when Infinera has net income on a non-GAAP basis as its inclusion provides a better indication of Infinera’s underlying business performance. Refer to the diluted earnings per share reconciliation presented below.

For purposes of calculating non-GAAP diluted earnings per share, we used the following net income (loss) and weighted average common shares outstanding (in thousands, except per share data):

			Three months ended							Nine months ended
			September 28, 2024		June 29, 2024			September 30, 2023		September 28, 2024			September 30, 2023
Non-GAAP net income (loss) for basic earnings per share			$	279	$	(13,976	)	$	19,869	$	(51,953	)	$	24,821
Interest expense related to the convertible senior notes, net of tax				—		—			1,359		—			—
Non-GAAP net income (loss) for diluted earnings per share			$	279	$	(13,976	)	$	21,228	$	(51,953	)	$	24,821

Weighted average basic common shares outstanding				235,832		234,349			228,077		233,905			225,465
Dilutive effect of restricted and performance share units				4,670		—			1,123		—			2,005
Dilutive effect of employee stock purchase plan				—		—			—		—			70
Dilutive effect of 2024 convertible senior notes^(a)				—		—			1,899		—			—
Dilutive effect of 2027 convertible senior notes^(b)				—		—			26,120		—			—
Dilutive effect of 2028 convertible senior notes^(c)				—		—			—		—			1,195
Weighted average dilutive common shares outstanding				240,502		234,349			257,219		233,905			228,735

Non-GAAP net income (loss) per common share:
Basic			$	0.00	$	(0.06	)	$	0.09	$	(0.22	)	$	0.11
Diluted			$	0.00	$	(0.06	)	$	0.08	$	(0.22	)	$	0.11

	^(a)	For the three-months ended September 28, 2024, and June 29, 2024, there were 1.4 million, and 1.9 million shares, respectively, excluded from the calculation of diluted net income (loss) per share, due to their anti-dilutive effect. For the three-months ended September 30, 2023, there were no shares excluded from the calculation of diluted net income per share. For the nine-months ended September 28, 2024, and September 30, 2023, there were 1.7 million, and 7.1 million shares, respectively, excluded from the calculation of diluted net income (loss) per share, due to their anti-dilutive effect.
	^(b)	For each of the three-months ended September 28, 2024, and June 29, 2024, there were 26.1 million shares excluded from the calculation of diluted net income (loss) per share, due to their anti-dilutive effect. For the three-months ended September 30, 2023, there were no shares excluded from the calculation of diluted net income per share. For each of the nine-months ended September 28, 2024, and September 30, 2023, there were 26.1 million shares excluded from the calculation of diluted net income (loss) per share, due to their anti-dilutive effect.
	^(c)	For each of the three-months ended September 28, 2024, June 29, 2024, and September 30, 2023, there were no shares excluded from the calculation of diluted net income (loss) per share. For each of the nine-months ended September 28, 2024, and September 30, 2023, there were no shares excluded from the calculation of diluted net income (loss) per share.
⁽¹⁰⁾	Adjusted EBITDA is a non-GAAP supplemental measure of operating performance that does not represent and should not be considered an alternative to operating loss or cash flow from operations, as determined by GAAP. Infinera’s adjusted EBITDA is calculated by excluding the above non-GAAP adjustments, interest expense, net, other gain (loss), net, income tax effects and depreciation expenses. Management believes that adjusted EBITDA is an important financial measure for use in evaluating Infinera’s financial performance, as it measures the ability of our business operations to generate cash.

Infinera Corporation
GAAP to Non-GAAP Reconciliations
(In thousands)
(Unaudited)

Free Cash Flow

We define free cash flow as net cash provided by (used in) operating activities in the period minus the purchase of property and equipment made in the period.

Free cash flow is considered a non-GAAP financial measure under the SEC’s rules. Management believes that free cash flow is an important financial measure for use in evaluating Infinera’s financial performance, as it measures our ability to generate additional cash from our business operations. Free cash flow should be considered in addition to, rather than as a substitute for, net loss as a measure of our performance or net cash provided by (used in) operating activities as a measure of our liquidity. Additionally, our definition of free cash flow is limited and does not represent residual cash flows available for discretionary expenditures due to the fact that the measure does not deduct the payments required for debt service and other obligations. Therefore, we believe it is important to view free cash flow as supplemental to our entire statement of cash flows.

	Three months ended									Nine months ended
	September 28, 2024			June 29, 2024			September 30, 2023			September 28, 2024			September 30, 2023
Net cash provided by (used in) operating activities	$	44,563		$	(59,954	)	$	(29,793	)	$	8,635		$	(30,142	)
Purchase of property and equipment		(24,090	)		(14,582	)		(13,318	)		(46,748	)		(40,900	)
Free cash flow	$	20,473		$	(74,536	)	$	(43,111	)	$	(38,113	)	$	(71,042	)

Infinera Corporation
Condensed Consolidated Balance Sheets
(In thousands, except par values)
(Unaudited)

	September 28, 2024			December 30, 2023
ASSETS
Current assets:
Cash and cash equivalents	$	115,089		$	172,505
Short-term restricted cash		42			517
Accounts receivable, net		288,265			381,981
Inventory		356,119			431,163
Prepaid expenses and other current assets		162,560			129,218
Total current assets		922,075			1,115,384
Property, plant and equipment, net		231,190			206,997
Operating lease right-of-use assets		39,359			39,973
Intangible assets, net		18,050			24,819
Goodwill		237,509			240,566
Long-term restricted cash		446			837
Other long-term assets		57,128			50,662
Total assets	$	1,505,757		$	1,679,238
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	259,225		$	299,005
Accrued expenses and other current liabilities		137,078			110,758
Accrued compensation and related benefits		48,683			85,203
Short-term debt, net		10,473			25,512
Accrued warranty		12,635			17,266
Deferred revenue		116,332			136,248
Total current liabilities		584,426			673,992
Long-term debt, net		667,205			658,756
Long-term accrued warranty		12,554			15,934
Long-term deferred revenue		21,626			21,332
Long-term deferred tax liability		1,770			1,805
Long-term operating lease liabilities		44,563			47,464
Other long-term liabilities		39,767			43,364
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.001 par value Authorized shares – 25,000 and no shares issued and outstanding		—			—
Common stock, $0.001 par value Authorized shares – 500,000 as of September 28, 2024 and December 30, 2023 Issued and outstanding shares – 236,296 as of September 28, 2024 and 230,994 as of December 30, 2023		236			231
Additional paid-in capital		2,012,820			1,976,014
Accumulated other comprehensive loss		(30,409	)		(34,848	)
Accumulated deficit		(1,848,801	)		(1,724,806	)
Total stockholders’ equity		133,846			216,591
Total liabilities and stockholders’ equity	$	1,505,757		$	1,679,238

Infinera Corporation
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)

	Nine months ended
	September 28, 2024			September 30, 2023
Cash Flows from Operating Activities:
Net loss	$	(123,995	)	$	(38,086	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization		46,744			59,403
Non-cash restructuring charges and other related costs		32			1,183
Amortization of debt issuance costs and discount		2,750			2,970
Operating lease expense		6,905			6,402
Stock-based compensation expense		38,721			49,393
Other, net		139			(683	)
Changes in assets and liabilities:
Accounts receivable		92,364			89,248
Inventory		74,527			(82,983	)
Prepaid expenses and other current assets		(48,141	)		16,811
Accounts payable		(57,127	)		(27,798	)
Accrued expenses and other current liabilities		(5,386	)		(46,163	)
Deferred revenue		(18,898	)		(59,839	)
Net cash provided by (used in) operating activities		8,635			(30,142	)
Cash Flows from Investing Activities:
Purchase of property and equipment		(46,748	)		(40,900	)
Net cash used in investing activities		(46,748	)		(40,900	)
Cash Flows from Financing Activities:
Proceeds from issuance of 2028 Notes, net of discount		—			98,751
Repayment of 2024 Notes		(18,747	)		(83,446	)
Payment of debt issuance cost		—			(2,108	)
Proceeds from asset-based revolving credit facility		50,000			—
Repayment of asset-based revolving credit facility		(40,000	)		—
Repayment of mortgage payable		(354	)		(381	)
Principal payments on finance lease obligations		(469	)		(784	)
Payment of term license obligation		(7,882	)		(7,720	)
Proceeds from issuance of common stock		5			14,931
Tax withholding paid on behalf of employees for net share settlement		(1,860	)		(2,217	)
Net cash (used in) provided by financing activities		(19,307	)		17,026
Effect of exchange rate changes on cash		(862	)		(8,551	)
Net change in cash, cash equivalents and restricted cash		(58,282	)		(62,567	)
Cash, cash equivalents and restricted cash at beginning of period		173,859			189,203
Cash, cash equivalents and restricted cash at end of period⁽¹⁾	$	115,577		$	126,636

Infinera Corporation
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)

	Nine months ended
	September 28, 2024		September 30, 2023
Supplemental disclosures of cash flow information:
Cash paid for income taxes, net	$	18,205	$	9,955
Cash paid for interest	$	25,967	$	21,579
Supplemental schedule of non-cash investing and financing activities:
Property and equipment included in accounts payable and accrued liabilities	$	26,779	$	18,529
Transfer of inventory to fixed assets	$	—	$	1,207
Unpaid term licenses (included in accounts payable, accrued liabilities and other long-term liabilities)	$	16,380	$	16,510

⁽¹⁾Reconciliation of cash, cash equivalents and restricted cash to the condensed consolidated balance sheets (in thousands):

	September 28, 2024		September 30, 2023
Cash and cash equivalents	$	115,089	$	123,927
Short-term restricted cash		42		1,725
Long-term restricted cash		446		984
Total cash, cash equivalents and restricted cash	$	115,577	$	126,636

Infinera Corporation
Supplemental Financial Information
(Unaudited)

		Q4’22			Q1’23			Q2’23			Q3’23			Q4’23			Q1’24			Q2’24			Q3’24
GAAP Revenue $(Mil)		$	485.9		$	392.1		$	376.2		$	392.4		$	453.5		$	306.9		$	342.7		$	354.4
GAAP Gross Margin %			37.1	%		37.5	%		38.0	%		40.3	%		38.6	%		36.0	%		39.6	%		39.8	%
	Non-GAAP Gross Margin %⁽¹⁾		38.7	%		38.8	%		39.3	%		41.9	%		39.6	%		36.6	%		40.3	%		40.4	%
GAAP Revenue Composition:
Domestic %			61	%		60	%		58	%		59	%		68	%		54	%		58	%		60	%
International %			39	%		40	%		42	%		41	%		32	%		46	%		42	%		40	%
Customers >10% of Revenue			1			—			1			1			1			—			—			2
Cash Related Information:
Cash from Operations $(Mil)		$	(0.6	)	$	(1.8	)	$	1.4		$	(29.7	)	$	79.6		$	24.0		$	(59.9	)	$	44.5
Capital Expenditures $(Mil)		$	8.3		$	16.8		$	10.8		$	13.3		$	21.4		$	8.1		$	14.6		$	24.0
Depreciation & Amortization $(Mil)		$	19.8		$	19.6		$	19.8		$	20.0		$	19.4		$	15.4		$	15.6		$	15.7
DSOs⁽²⁾			79			78			79			76			77			79			76			74
Inventory Metrics:
Raw Materials $(Mil)		$	48.7		$	67.6		$	85.4		$	110.4		$	133.6		$	132.5		$	119.4		$	105.2
Work in Process $(Mil)		$	66.6		$	71.8		$	71.9		$	69.9		$	68.4		$	68.6		$	68.7		$	67.6
Finished Goods $(Mil)		$	259.6		$	273.6		$	270.1		$	276.6		$	229.2		$	219.6		$	196.1		$	183.3
Total Inventory $(Mil)		$	374.9		$	413.0		$	427.4		$	456.9		$	431.2		$	420.7		$	384.2		$	356.1
Inventory Turns⁽³⁾			3.4			2.4			2.2			2.1			2.5			1.8			2.0			2.3
Worldwide Headcount			3,267			3,351			3,365			3,369			3,389			3,323			3,334			3,340
Weighted Average Shares Outstanding (in thousands):
Basic			219,921			222,393			225,922			228,077			230,509			231,533			234,349			235,832
Diluted			258,030			265,921			262,712			257,219			259,210			260,980			265,591			267,999

⁽¹⁾	Non-GAAP adjustments include stock-based compensation expense, amortization of acquired intangible assets, restructuring and other related costs and warehouse fire recovery. For a description of this non-GAAP financial measure, please see the section titled, “GAAP to Non-GAAP Reconciliations” of this press release for a reconciliation to the most directly comparable GAAP financial measures. For reconciliations of prior periods that are not otherwise provided herein, see the prior period earnings releases available on our Investor Relations webpage.
⁽²⁾	Infinera calculates DSO based on 91 days. Fiscal year 2022 was 53 weeks and the fourth quarter of fiscal year 2022 was 98 days. When calculation is based on 98 days, DSO was 85 days for the fourth quarter of fiscal year 2022.
⁽³⁾	Infinera calculates non-GAAP inventory turns as annualized non-GAAP cost of revenue, which is calculated as GAAP cost of revenue less stock-based compensation expense, amortization of acquired intangible assets, restructuring and other related costs and warehouse fire recovery, as illustrated in the reconciliation of gross profit above, divided by the average inventory for the quarter.

The MIL Network –

January 26, 2025

MIL-OSI: Key Tronic Corporation Announces Results for the First Quarter of Fiscal Year 2025

Source: GlobeNewswire (MIL-OSI)

SPOKANE VALLEY, Wash., Nov. 05, 2024 (GLOBE NEWSWIRE) — Key Tronic Corporation (Nasdaq: KTCC), a provider of electronic manufacturing services (EMS), today announced its results for the quarter ended September 28, 2024.

For the first quarter of fiscal year 2025, Key Tronic reported total revenue of $131.6 million, compared to $150.1 million in the same period of fiscal year 2024. Revenue in the first quarter of fiscal year 2025 was adversely impacted by customer-driven design and qualification delays of three programs that we believe impacted revenue by approximately $9 million. These delays have since been resolved on two of these programs and shipments have resumed in the second quarter. Production in Key Tronic’s Mexico facilities in the first quarter of fiscal year 2025 increased by approximately 10% sequentially from the prior quarter.

The Company saw significant improvement in its production efficiencies compared to the first quarter of fiscal year 2024, primarily as a result of recent headcount reductions, continued improvements in the supply chain and a favorable decline in the exchange rate of the Mexican Peso. Gross margins were 10.1% and operating margins were 3.4% in the first quarter of fiscal year 2025, up from 7.2% and 2.2%, respectively, in the same period of fiscal year 2024.

Net income was $1.1 million or $0.10 per share for the first quarter of fiscal year 2025, compared to net income of $0.3 million or $0.03 per share for the same period of fiscal year 2024. Adjusted net income was $1.2 million or $0.11 per share for the first quarter of fiscal year 2025, compared to $0.0 million or $0.00 per share for the same period of fiscal year 2024. See “Non-GAAP Financial Measures,” below for additional information about adjusted net income and adjusted net income per share.

“While we did not meet revenue expectations in our first quarter of fiscal 2025 due to unavoidable delays for a few programs, we are pleased to see our improved operating efficiencies, margins, and liquidity,” said Brett Larsen, President and CEO. “The recent workforce reductions in Mexico, trimming of non-profitable programs, and making a concerted effort to improve working capital are starting to pay off. We also continued to reduce our inventories, which are now much more in line with our revenue levels. Over the longer term, we expect that these strategic changes will improve our overall profitability.”

“During the first quarter, we also continued to win new business, including new programs in manufacturing equipment, vehicle lighting, and commercial pest control. We believe we are well positioned for increased growth and profitability in coming periods.”

The financial data presented for the first quarter of fiscal 2025 should be considered preliminary and could be subject to change, as the Company’s independent auditor has not completed their review procedures.

Business Outlook

For the second quarter of fiscal 2025, Key Tronic expects to report revenue in the range of $130 million to $140 million and earnings in the range $0.05 to $0.15 per diluted share. These expected results assume an effective tax rate of 20% in the coming quarter.

Conference Call

Key Tronic will host a conference call to discuss its financial results at 2:00 PM Pacific (5:00 PM Eastern) today. A broadcast of the conference call will be available at www.keytronic.com under “Investor Relations” or by calling 888-394-8218 or +1-313-209-4906 (Access Code: 7268667). The Company will also reference accompanying slides that can be viewed with the webcast at www.keytronic.com under “Investor Relations”. A replay will be available at www.keytronic.com under “Investor Relations”.

About Key Tronic

Key Tronic is a leading contract manufacturer offering value-added design and manufacturing services from its facilities in the United States, Mexico, China and Vietnam. The Company provides its customers with full engineering services, materials management, worldwide manufacturing facilities, assembly services, in-house testing, and worldwide distribution. Its customers include some of the world’s leading original equipment manufacturers. For more information about Key Tronic visit: www.keytronic.com

Forward-Looking Statements

Some of the statements in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to those including such words as aims, anticipates, believes, continues, estimates, expects, hopes, intends, plans, predicts, projects, targets, will, or would, similar verbs, or nouns corresponding to such verbs, which may be forward looking. Forward-looking statements also include other passages that are relevant to expected future events, performances, and actions or that can only be fully evaluated by events that will occur in the future. Forward-looking statements in this release include, without limitation, the Company’s statements regarding its expectations with respect to financial conditions and results, including revenue and earnings, cost savings from headcount reduction and the Mexican Peso exchange rate, demand for certain products and the effectiveness of some of its programs, business from customers and programs, and impacts from operational streamlining and efficiencies. There are many factors, risks and uncertainties that could cause actual results to differ materially from those predicted or projected in forward-looking statements, including but not limited to: the future of the global economic environment and its impact on our customers and suppliers; the availability of components from the supply chain; the availability of a healthy workforce; the accuracy of suppliers’ and customers’ forecasts; development and success of customers’ programs and products; timing and effectiveness of ramping of new programs; success of new-product introductions; the risk of legal proceedings or governmental investigations relating to the previously reported financial statement restatements and related material weaknesses, the May 2024 cybersecurity incident and the subject of the internal investigation by the Company’s Audit Committee and related or other unrelated matters; acquisitions or divestitures of operations or facilities; technology advances; changes in pricing policies by the Company, its competitors, customers or suppliers; impact of new governmental legislation and regulation, including tax reform, tariffs and related activities, such trade negotiations and other risks; and other factors, risks, and uncertainties detailed from time to time in the Company’s SEC filings.

Non-GAAP Financial Measures

To supplement our consolidated financial statements, which are prepared in accordance with generally accepted accounting principles in the United States (GAAP), we use certain non-GAAP financial measures, adjusted net income and adjusted net income per share, diluted. We provide these non-GAAP financial measures because we believe they provide greater transparency related to our core operations and represent supplemental information used by management in its financial and operational decision making. We exclude (or include) certain items in our non-GAAP financial measures as we believe the net result is a measure of our core business. We believe this facilitates operating performance comparisons from period to period by eliminating potential differences caused by the existence and timing of certain income and expense items that would not otherwise be apparent on a GAAP basis. Non-GAAP performance measures should be considered in addition to, and not as a substitute for, results prepared in accordance with GAAP. We strongly encourage investors and shareholders to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. Our non-GAAP financial measures may be different from those reported by other companies. See the table below entitled “Reconciliation of GAAP to non-GAAP measures” for reconciliations of adjusted net income to the most directly comparable GAAP measure, which is GAAP net income, and the computation of adjusted net income per share, diluted.


KEY TRONIC CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (Unaudited)

	Three Months Ended
	September 28, 2024		September 30, 2023
Net sales	$	131,558	$	150,112
Cost of sales		118,255		139,250
Gross profit		13,303		10,862
Research, development and engineering expenses		2,289		2,241
Selling, general and administrative expenses		6,570		5,784
Gain on insurance proceeds, net of losses		—		(431	)
Total operating expenses		8,859		7,594
Operating income		4,444		3,268
Interest expense, net		3,263		3,011
Income before income taxes		1,181		257
Income tax (benefit) provision		57		(78	)
Net income	$	1,124	$	335
Net income per share — Basic	$	0.10	$	0.03
Weighted average shares outstanding — Basic		10,762		10,762
Net income per share — Diluted	$	0.10	$	0.03
Weighted average shares outstanding — Diluted		10,762		11,003


KEY TRONIC CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited)

	September 28, 2024			June 29, 2024
ASSETS
Current assets:
Cash and cash equivalents	$	6,555		$	4,752
Trade receivables, net of credit losses of $3,129 and $2,918		133,984			132,559
Contract assets		23,626			21,250
Inventories, net		95,845			105,099
Other, net of credit losses of $1,642 and $1,679		28,273			24,739
Total current assets		288,283			288,399
Property, plant and equipment, net		27,910			28,806
Operating lease right-of-use assets, net		14,612			15,416
Other assets:
Deferred income tax asset		18,394			17,376
Other		6,735			5,346
Total other assets		25,129			22,722
Total assets	$	355,934		$	355,343
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	83,768		$	79,394
Accrued compensation and vacation		6,870			6,510
Current portion of long-term debt		3,057			3,123
Other		18,450			15,149
Total current liabilities		112,145			104,176
Long-term liabilities:
Long-term debt, net		109,675			116,383
Operating lease liabilities		9,573			10,312
Deferred income tax liability		74			263
Other long-term obligations		124			219
Total long-term liabilities		119,446			127,177
Total liabilities		231,591			231,353
Shareholders’ equity:
Common stock, no par value—shares authorized 25,000; issued and outstanding 10,762 and 10,762 shares, respectively		47,351			47,284
Retained earnings		78,045			76,921
Accumulated other comprehensive income (loss)		(1,053	)		(215	)
Total shareholders’ equity		124,343			123,990
Total liabilities and shareholders’ equity	$	355,934		$	355,343

KEY TRONIC CORPORATION AND SUBSIDIARIES Reconciliation of GAAP to non-GAAP measures (In thousands, except per share amounts) (Unaudited)

	Three Months Ended
	September 28, 2024			September 30, 2023
GAAP net income	$	1,124		$	335
Gain on insurance proceeds (net of losses)		—			(431	)
Stock-based compensation expense		67			59
Income tax effect of non-GAAP adjustments (1)		(13	)		74
Adjusted net income:	$	1,178		$	37

Adjusted net income per share — non-GAAP Diluted	$	0.11		$	0.00
Weighted average shares outstanding — Diluted		10,762			11,003

(1) Income tax effects are calculated using an effective tax rate of 20%, which approximates the statutory GAAP tax rate for the presented periods.


CONTACTS:	Tony Voorhees	Michael Newman
	Chief Financial Officer	Investor Relations
	Key Tronic Corporation	StreetConnect
	(509)-927-5345	(206) 729-3625

The MIL Network –

January 26, 2025

MIL-OSI Security: Albuquerque FBI Division Announces It’s 2025 Citizen’s Academy
Source: Federal Bureau of Investigation (FBI) State Crime Alerts (c)

Have you ever wondered how the FBI solves a case? Want to hear about the work agents are doing across New Mexico? Special Agent in Charge Raul Bujanda welcomes business, civic, and faith-based community leaders to apply for FBI Albuquerque’s Citizens Academy program, where we will give participants a first-hand look into life at the FBI.

“The FBI’s Citizens Academy provides an incredible opportunity for members of the community to better understand the work of the FBI and partner with us in keeping New Mexico citizens safe,” said Raul Bujanda, special agent in charge for the FBI Albuquerque Division. “The FBI Citizens Academy program is a unique opportunity for us to share our work one-on-one with community leaders of all backgrounds, and for them to provide us with feedback. Through frank discussion and information sharing, we can improve relationships and advance our mission to protect all Americans.”

FBI Albuquerque is now accepting nominations for the 2025 FBI Citizens Academy. Over the course of 8 sessions this spring, select business, religious, civic, and community leaders will be given an opportunity to go behind the scenes of local FBI operations and experience case studies and demonstrations led by Special Agents, Intelligence Analysts, and FBI Professional Staff. Topics will include how the FBI works to combat violent crime, human trafficking, cybercrime, counterintelligence, Indian Country, terrorism, and how teams train in forensics, firearms, evidence recovery, and more.
- When: Wednesday evenings February 19th, 2025 – April 23rd, 2025
- Where: FBI Albuquerque 4200 Luecking Park Ave NE, Albuquerque New Mexico 87107
How to Apply: The FBI Citizens Academy is open to anyone with an interest in learning how the FBI works to protect and serve the community. Candidates can be nominated by a program alumnus, former or current FBI employee, or self-nominated. The nomination form must be completed in full and returned by the close of business on Friday, December 20, 2024. If selected, there is no cost to attend. Questions regarding the program or application process can be directed to aq.outreach@fbi.gov

Requirements:
- Business, religious, civic, or community leader
- Be at least 21 years of age
- No felony or serious misdemeanor convictions
- Cannot be under investigation as a subject in a criminal case
- Must live or work in New Mexico
- Must agree to and pass a limited background check
- Must be able to attend classes in person
MIL Security OSI –
January 26, 2025

MIL-OSI: DLC Releases Q3-2024 Results; Achieves $19.7 Billion in Funded Volumes for Q3-2024 (11% Increase over Prior Year)

Source: GlobeNewswire (MIL-OSI)

VANCOUVER, British Columbia, Nov. 05, 2024 (GLOBE NEWSWIRE) — Dominion Lending Centres Inc. (TSX:DLCG) (“DLCG” or the “Corporation”) is pleased to report its financial results for the three (“Q3-2024”) and nine months ended September 30, 2024. For complete information, readers should refer to the interim financial statements and management discussion and analysis which are dated November 5, 2024 and are available on SEDAR+ at www.sedarplus.ca and on the Corporation’s website at www.dlcg.ca. All amounts are presented in Canadian dollars unless otherwise stated.

DLCG includes the Corporation and its three main subsidiaries: MCC Mortgage Centres Canada Inc. (“MCC”), MA Mortgage Architects Inc. (“MA”), and Newton Connectivity Systems Inc. (“Newton”).

Gary Mauris, Executive Chairman and CEO, commented, “The DLC Group maintained its strong momentum from the first half of the year, achieving an 11% increase in funded volumes and a 13% increase in revenues for Q3-2024 compared to Q3-2023. We are pleased that the adoption of our technology connectivity platform ‘Velocity’ continues to grow, increasing to 73% of DLCG-submitted volumes in Q3-2024. As we look ahead, we are focused on our core objectives of recruitment and retention of franchises and brokers, and onboarding of brokers onto Velocity. The DLC Group, its franchisees, and its mortgage professionals have worked hard to achieve the continued success, and we feel well positioned to capitalize on market conditions as interest rates decline.”

Q3-2024 Summary:

Q3-2024 funded volumes of $19.7 billion, representing an 11% increase as compared to Q3-2023;
Q3-2024 revenue of $22.1 million, representing a 13% increase compared to Q3-2023;
Q3-2024 adjusted EBITDA of $12.2 million as compared to $10.1 million in Q3-2023;
The Corporation’s Q3-2024 net income of $5.3 million is consistent with Q3-2023, primarily from higher income from operations from increased funded volumes, and increased revenues offset by higher non-cash finance expense on the Preferred Share liability;
The Corporation declared a quarterly dividend of $0.03 per class A common share (“Common Share”), resulting in a dividend payment of $1.4 million in Q3-2024; and
On October 2, 2024, the Corporation entered into an acquisition agreement with KayMaur Holdings Ltd. and certain minority holders to acquire (“Proposed Acquisition”) all of the issued and outstanding Preferred Shares in exchange for $137 million payable as follows: 30,500,000 class “A” common shares (having a 20 day volume weighted average price of $4.00 per share on the date of announcement) and an aggregate cash payment of $15.0 million. The Proposed Acquisition is subject to a number of conditions, including approval by the Exchange. If such conditions are met, the Corporation anticipates closing to occur at or near the end of 2024.

Selected Consolidated Financial Summary:
Below is a summary of our financial results for the three and nine months ended September 30, 2024 and September 30, 2023.

	Three months ended Sept. 30,					Nine months ended Sept. 30,
(in thousands, except per share and KPIs)		2024		2023	Change		2024		2023	Change
Revenues	$	22,073	$	19,578	13%	$	54,497	$	46,759	17%
Income from operations		10,215		8,879	15%		21,063		14,397	46%
Adjusted EBITDA ⁽¹⁾		12,218		10,116	21%		25,746		17,913	44%
Adjusted EBITDA margin		55%		52%	3%		47%		38%	9%
Free cash flow attributable to common shareholders ⁽¹⁾		5,609		4,607	22%		10,529		5,424	94%
Net income ⁽²⁾		5,271		5,271	–		11,987		2,067	480%
Adjusted net income ⁽¹⁾		3,754		3,115	21%		7,792		4,973	57%
Diluted earnings per Common Share ⁽²⁾		0.11		0.11	–		0.25		0.04	525%
Adjusted diluted earnings per Common Share ⁽¹⁾		0.08		0.06	33%		0.16		0.10	60%
Dividends declared per share	$	0.03	$	0.03	–	$	0.09	$	0.09	–

Funded mortgage volumes ⁽³⁾		19.7		17.7	11%		47.8		42.3	13%
Number of franchises ⁽⁴⁾		521		526	(1%)		521		526	(1%)
Number of brokers ⁽⁴⁾		8,784		8,081	9%		8,784		8,081	9%
% of DLCG funded mortgage volumes submitted through Velocity		73%		64%	9%		72%		63%	9%

₍₁₎	_{Please see the Non-IFRS Financial Performance Measures section of the accompanying MD&A for additional information.}
₍₂₎	_{Net income for the three and nine months ended September 30, 2024 includes $2.0 million and $4.5 million of non-cash finance expense on the Preferred Share liability (September 30, 2023 – $0.9 million and $8.0 million expense). The Preferred Share liability is revalued at the end of each reporting period to reflect our most recent outlook and forecast. Refer to the Preferred Shares section of the accompanying MD&A for additional information.}
₍₃₎	_{Funded mortgage volumes are presented in billions.}
₍₄₎	_{The number of franchises and brokers are as at the respective period end date (not in thousands).}

During the three and nine months ended September 30, 2024, the Corporation saw an increase in revenues over the three and nine months ended September 30, 2023 from higher Newton revenues primarily due to an increase in Velocity adoption and lender contract renewals. In addition, revenue increased from an increase in mortgage brokers under a DLC Corporate franchise contributing to higher revenues from the brokering of mortgages. Further, our funded mortgage volumes increased during the three and nine month periods when compared to 2023’s equivalent periods, which contributed to increased revenues during those periods.

As the Corporation’s operating expenses are largely fixed in nature and are not necessarily proportionate to changes in revenues, changes in the Corporation’s revenues have a more pronounced impact on adjusted net income, adjusted EBITDA, and adjusted EBITDA margins. As such, these metrics have increased, with higher revenues during the three and nine months ended September 30, 2024 when compared to the three and nine months ended September 30, 2023.

Income from operations increased from higher revenues but was partly offset by an increase in operating expenses during the three and nine months ended September 30, 2024 when compared to the three and nine months ended September 30, 2023. The increase in operating expenses is primarily from an increase in direct costs from higher franchise recruiting and support costs.

Net income increased during the nine months ended September 30, 2024, and was consistent for the three months ended September 30, 2024 compared to the prior year periods. The increase during the nine-month period is primarily from higher revenue and lower other expenses. Other expenses decreased during the nine months ended September 30, 2024, primarily from period-over-period variances in finance expense on the Preferred Share liability (refer to Preferred Shares section the accompanying MD&A for additional information), finance expense, gain on disposal of an equity-accounted investment, and other income. During the three months ended September 30, 2024, higher revenue was partly offset by higher operating expenses and higher other expenses. Other expenses increased during the three months ended September 30, 2024, primarily from period-over-period variances in finance expense on the Preferred Share liability (refer to Preferred Shares section of the accompanying MD&A for additional information).

On April 25, 2024, the Corporation disposed of its 52% interest in Cape Communications International Inc. (operating as “Impact”) for cash proceeds of $3.7 million which was used to fully repay the Junior Credit Facility. The $0.7 million gain on disposal of an equity-accounted investment for the nine months ended September 30, 2024 relates to cumulative amounts arising on foreign exchange translation of Impact that were previously recognized in other comprehensive income (loss) and were reclassified to income on the sale of Impact. Other income for the nine months ended September 30, 2024 includes $1.0 million related to reversal of the liquidation rights liability on the sale of Impact (refer to Related Party section of the accompanying MD&A for additional information).

Free cash flow increased during the three months ended September 30, 2024, primarily from higher adjusted cash flows from operations (in turn from higher income from operations), and partly offset by higher maintenance CAPEX. Free cash flow increased during the nine ended September 30, 2024, primarily from higher adjusted cash flows from operations (in turn from higher income from operations), and lower maintenance CAPEX.

Non-IFRS Financial Performance Measures
Management presents certain non-IFRS financial performance measures which we use as supplemental indicators of our operating performance. These non-IFRS measures do not have any standardized meaning, and therefore are unlikely to be comparable to the calculation of similar measures used by other companies and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Non-IFRS measures are defined and reconciled to the most directly-comparable IFRS measure. Non-IFRS financial performance measures include adjusted EBITDA, adjusted net income, adjusted earnings per share, and free cash flow. Please see the Non-IFRS Financial Performance Measures section of the Corporation’s MD&A dated November 5, 2024 for further information on key performance indicators. The Corporation’s MD&A is available on SEDAR+ at www.sedarplus.ca.

The following table reconciles adjusted EBITDA from income before income tax, which is the most directly-comparable measure calculated in accordance with IFRS:

	Three months ended Sept. 30,				Nine months ended Sept. 30,
(in thousands)		2024		2023		2024		2023
Income before income tax	$	7,926	$	7,445	$	17,013	$	5,033
Add back:
Depreciation and amortization		1,117		939		2,994		2,848
Finance expense		605		832		2,072		2,329
Finance expense on the Preferred Share liability		2,025		880		4,539		7,991
		11,673		10,096		26,618		18,201
Adjustments:
Share-based payments expense (recovery)		453		(12)		531		(333)
Promissory note income		(21)		(40)		(78)		(116)
Foreign exchange loss		3		6		26		26
Loss on contract settlement		16		(10)		36		58
Gain on disposal of equity-accounted investment		–		–		(681)		–
Non-cash impairment of equity-accounted investments		–		–		198		–
Other expense (income) ⁽¹⁾		94		76		(904)		77
Adjusted EBITDA ⁽²⁾	$	12,218	$	10,116	$	25,746	$	17,913

₍₁₎	_{Other expense (income) for the three and nine months ended September 30, 2024 relates to the reversal of the liquidation rights liability on the sale of Impact (see the Related Party Transactions section of the accompanying MD&A) and costs associated with the Proposed Acquisition. Other expense (income) for the three and nine months ended September 30, 2023 relates to a loss on the disposal of an intangible asset.}
₍₂₎	_{Amortization of franchise rights and relationships of $1.3 million and $3.9 million for the three and nine months ended September 30, 2024, respectively (September 30, 2023 – $1.1 million and $3.7 million) is classified as a charge against revenue and has not been added back for adjusted EBITDA.}

The following table reconciles free cash flow from cash flow from operating activities, which is the most directly-comparable measure calculated in accordance with IFRS:

	Three months ended Sept. 30,				Nine months ended Sept. 30,
(in thousands)		2024		2023		2024		2023
Cash flow from operating activities	$	11,289	$	9,243	$	26,929	$	13,653
Changes in non-cash working capital and other non-cash items		(620)		(382)		(2,929)		2,952
Cash provided from operations excluding changes in non-cash working capital and other non-cash items		10,669		8,861		24,000		16,605
Adjustments:
Distributions from equity-accounted investees		–		125		285		275
Maintenance CAPEX		(886)		(630)		(4,349)		(6,039)
Lease payments		(117)		(160)		(343)		(476)
Loss on contract settlement		16		(10)		36		58
Share-based payments		68		–		68		–
NCI portion of cash provided from operations excluding changes in non-cash working capital		(242)		–		(311)		–
Other non-cash items ⁽¹⁾		76		–		(956)		1
		9,584		8,186		18,430		10,424
Free cash flow attributable to Preferred Shareholders ⁽²⁾		(3,975)		(3,579)		(7,901)		(5,000)
Free cash flow attributable to common shareholders	$	5,609	$	4,607	$	10,529	$	5,424

₍₁₎	_{Other non-cash items for the three and nine months ended September 30, 2024 represents foreign exchange losses and promissory note income. The three and nine months ended September 30, 2023 includes losses on disposal of an intangible asset.}
₍₂₎	_{Free cash flow attributable to the Preferred Shareholders is determined based on free cash flow of the Core Business Operations (as defined in the Preferred Shares section of the accompanying MD&A).}

The following table reconciles adjusted net income from net income, which is the most directly-comparable measure calculated in accordance with IFRS:

	Three months ended Sept. 30,				Nine months ended Sept. 30,
(in thousands)		2024		2023		2024		2023
Net income	$	5,271	$	5,271	$	11,987	$	2,067
Adjustments:
Gain on sale of an equity-accounted investment		–		–		(681)		–
Non-cash impairment of equity-accounted investments		–		–		198		–
Foreign exchange loss		3		6		26		26
Finance expense on the Preferred Share liability ⁽¹⁾		2,025		880		4,539		7,991
Loss on contract settlement		16		(10)		36		58
Promissory note interest income		(21)		(40)		(78)		(116)
Other expense (income) ⁽²⁾		94		76		(904)		77
Income tax effects of adjusting items		(25)		(1)		(29)		(4)
		7,363		6,182		15,094		10,099
Income attributable to Preferred Shareholders ⁽³⁾		(3,609)		(3,067)		(7,302)		(5,126)
Adjusted net income		3,754		3,115		7,792		4,973
Adjusted net income attributable to common shareholders		3,673		3,113		7,655		4,957
Adjusted net income attributable to non-controlling interest		81		2		137		16
Diluted adjusted earnings per Common Share	$	0.08	$	0.06	$	0.16	$	0.10

₍₁₎	_{The Preferred Share liability is revalued at the end of each reporting period to reflect our most recent outlook and forecast. Refer to the Preferred Shares section of the accompanying MD&A.}
₍₂₎	_{Other expense (income) for the three and nine months ended September 30, 2024 relates to the reversal of the liquidation rights liability on the sale of Impact (see the Related Party Transactions section of the accompanying MD&A) and costs associated with the Proposed Acquisition. Other expense (income) for the three and nine months ended September 30, 2023 relates to a loss on the disposal of intangible assets.}
₍₃₎	_{Adjusted net income attributable to the Preferred Shareholders is determined based on adjusted net income of the Core Business Operations (as defined in the Preferred Shares section of the accompanying MD&A).}

Forward-Looking Information
Certain statements in this document constitute forward-looking information under applicable securities legislation. Forward-looking information typically contains statements with words such as “anticipate,” “believe,” “estimate,” “will,” “expect,” “plan,” or similar words suggesting future outcomes or outlooks. Forward-looking information in this document includes, but is not limited to, our anticipation of further interest rate reductions.

Such forward-looking information is based on many estimates and assumptions, including material estimates and assumptions, related to the following factors below that, while considered reasonable by the Corporation as at the date of this press release considering management’s experience and perception of current conditions and expected developments, are inherently subject to significant business, economic, and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Such factors include, but are not limited to:

Changes in interest rates;
The DLC Group’s ability to maintain its existing number of franchisees and add additional franchisees;
Changes in overall demand for Canadian real estate (via factors such as immigration);
Changes in overall supply for Canadian real estate (via factors such as new housing-start levels);
At what period in time the Canadian real estate market stabilizes;
Changes in Canadian mortgage lending and mortgage brokerage laws and regulations;
Changes in the Canadian mortgage lending marketplace;
Changes in the fees paid for mortgage brokerage services in Canada; and
Demand for the Corporation’s products remaining consistent with historical demand.

Many of these uncertainties and contingencies may affect our actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, us. Readers are cautioned that forward-looking statements are not guarantees of future performance. All forward-looking statements made in this document are qualified by these cautionary statements. The foregoing list of risks is not exhaustive. The forward-looking information contained in this document is made as of the date hereof and, except as required by applicable securities laws, we undertake no obligation to update publicly or revise any forward-looking statements or information, whether because of new information, future events or otherwise.

About Dominion Lending Centres Inc.
Dominion Lending Centres Inc. is Canada’s leading network of mortgage professionals. DLCG operates through Dominion Lending Centres Inc. and its three main subsidiaries, MCC Mortgage Centre Canada Inc., MA Mortgage Architects Inc. and Newton Connectivity Systems Inc., and has operations across Canada. DLCG extensive network includes over 8,500 agents and over 500 locations. Headquartered in British Columbia, DLC was founded in 2006 by Gary Mauris and Chris Kayat.

DLCG can be found on X (Twitter), Facebook and Instagram and LinkedIn @DLCGmortgage and on the web at www.dlcg.ca.

Contact information for the Corporation is as follows:

Eddy Cocciollo President 647-403-7320 eddy@dlc.ca		James Bell EVP, Corporate and Chief Legal Officer 403-560-0821 jbell@dlcg.ca

NEITHER THE TSX EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

The MIL Network –

January 26, 2025

MIL-OSI Global: No, America’s battery plant boom isn’t going bust – construction is on track for the biggest factories, with thousands of jobs planned

Source: The Conversation – USA – By James Morton Turner, Professor of Environmental Studies, Wellesley College

Workers install battery packs in a BMW X5 in South Carolina. A new battery plant under construction nearby will supply BMW factories. BMW

The United States is in the midst of the biggest boom in clean energy manufacturing investments in history, spurred by laws like the bipartisan Infrastructure Investment and Jobs Act and the Inflation Reduction Act.

These laws have leveraged billions of dollars in government support to drive private sector investments in clean energy supply chains across the country.

For several years, one of us, Jay Turner, and his students at Wellesley College have been tracking clean energy investments in the U.S. and sharing the data at The Big Green Machine website. That research shows that companies have announced 225 projects, totaling US$127 billion in investment, and more than 131,000 new jobs since the Inflation Reduction Act became law in 2022.

You may have seen news stories that said these projects are at risk of failure or significant delays. In August 2024, the Financial Times reported that 40% of more than 100 projects it evaluated were delayed. These included battery manufacturing, renewable energy projects and metals and hydrogen projects, as well as semiconductor manufacturing plants. More recently, The Information, which covers the technology industry, warned that 1 in 4 companies were walking away from government-supported grants for battery investments.

Workers assemble battery packs for electric vehicles in Spartanburg, S.C. New battery plants in the state will help move the supply chain closer to U.S. EV factories.
BMW

We checked up on all 23 battery cell factories announced or expanded since the Inflation Reduction Act was signed – almost all of them gigafactories, which are designed to produce over 1 gigawatt-hour of battery cell capacity. These factories have some of the largest employment potential of any project supported by the act.

We wanted to find out if the boom in U.S.-based clean energy manufacturing is about to go bust. What we have learned is mostly reassuring.

The biggest battery factories are on track

While the exact investment totals are challenging to pin down, our research shows that planned capital expenditures add up to $52 billion, which would support 490 gigawatt-hours of battery manufacturing capacity per year – enough to put roughly 5 million new electric vehicles on the road.

While not all 23 companies have announced their hiring plans, these facilities are expected to support nearly 30,000 new jobs, with projects mostly in the U.S. Southeast, Midwest and Southwest.

We wanted to know if these projects are on track or experiencing delays or problems.

To do that, we first reached out to local and state economic development agencies. In many instances, local and state tax incentives are supporting these projects. Where possible, we sought to confirm the project’s status through public data or formal announcements. In other instances, we looked for news stories to see if there is evidence of construction or hiring.

Of the 23 projects, our research shows that 13 appear to be on track, with total planned capital investments in excess of $40 billion and nearly 352 gigawatt-hours per year of capacity. Importantly, these include most of the biggest projects with the largest investments and projected production.

By our count, 77% of the total planned capital investment, 79% of the proposed jobs and 72% of the planned battery production are on track, which means that a project is likely to happen, roughly on time, and generally with their expected level of investment and employment.

Three projects are on the bubble. These have shown progress but experienced delays in construction or financing.

Five others show deeper signs of distress. We don’t yet have enough information to draw a conclusion on two projects.

An example of a project that is on track is Envision AESC’s battery factory in Florence, South Carolina. Its scale has been expanded twice since it was first announced in December 2022. It is now a $3 billion investment intended to manufacture 30 gigawatt-hours of batteries annually to supply BMW’s factory in Woodruff, South Carolina.

In early October 2024, South Carolina Secretary of Commerce Harry Lightsey conducted a tour of the Envision site and posted a video. Construction on the plant started in February 2024, and 850 workers are working six days a week to finish the 1.4 million-square-foot facility by August 2025. Once it goes into full production, the project is expected to employ 2,700 people.

2024 election could end or accelerate the boom

But a lot hinges on what happens in the upcoming elections.

Our data suggests the real risk that these projects and projects like them face isn’t slow demand for electric vehicles, as some people have suggested – in fact, demand continues to climb. Nor is it local opposition, which has slowed only a few projects.

The biggest risk is policy change. Many of these projects are counting on Advanced Manufacturing Tax Credits authorized by the Inflation Reduction Act through 2032.

On the campaign trail, Republicans up and down the ticket are promising to repeal key Biden-led legislation, including the Inflation Reduction Act, which includes grant funding and loans to support clean energy as well as tax incentives to support domestic manufacturing.

While full repeal of the act may be unlikely, an administration hostile to clean energy could divert its unspent funds to other purposes, slow the pace of grants or loans by slow-walking project approvals, or find other ways to make the tax incentives harder to get. While our research has focused on the battery industry, this concern extends to investments in wind and solar power too.

So, is the big boom in U.S.-based clean energy manufacturing about to go bust? Our data is optimistic, but the politics is uncertain.

Joshua Busby receives funding from the U.S. Department of Defense. He is affiliated with the Center for Climate and Security and the Chicago Council on Global Affairs.

James Morton Turner and Nathan Jensen do not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.

– ref. No, America’s battery plant boom isn’t going bust – construction is on track for the biggest factories, with thousands of jobs planned – https://theconversation.com/no-americas-battery-plant-boom-isnt-going-bust-construction-is-on-track-for-the-biggest-factories-with-thousands-of-jobs-planned-242567

MIL OSI – Global Reports –

January 26, 2025

MIL-OSI USA: Savencia Cheese USA Announces an Expanded Voluntary Recall of Select Soft Ripened Cheeses

Source: US Department of Health and Human Services – 3

Summary

Company Announcement Date:: November 04, 2024
FDA Publish Date:: November 05, 2024
Product Type:: Food & Beverages
Reason for Announcement:: Recall Reason Description

Potential Foodborne Illness – Listeria monocytogens
Company Name:: Savencia Cheese USA
Brand Name:: Brand Name(s)

Aldi, La Bonne Vie and others
Product Description:: Product Description

Soft ripened cheeses

Company Announcement

NEW HOLLAND, Pa. (Nov. 4, 2024) – Savencia Cheese USA is recalling select soft ripened cheeses manufactured in our Lena manufacturing facility because it has the potential to be contaminated with Listeria monocytogenes, an organism which can cause serious and sometimes fatal infections in young children, frail or elderly people, and others with weakened immune systems. Although healthy individuals may suffer only short-term symptoms such as high fever, severe headache, stiffness, nausea, abdominal pain and diarrhea, Listeria infection can cause miscarriages and stillbirths among pregnant women.

The following products are affected by this recall:

Description	Best Buy Date	Case GTIN	Product UPC	Mfg Date
Aldi Emporium Selection Brie, 12/8oz Brie	12/24/2024		4099100084016	9/30/2024
Supreme Oval 7oz, 6/7oz	12/24/2024	10071448504211	071448504214	9/30/2024
La Bonne Vie Brie, 6/8oz	12/24/2024	10820581678538		9/30/2024
La Bonne Vie Camember, 6/8oz	12/24/2024	10820581678613		9/30/2024
12/8oz Industrial Brie	12/24/2024	10077901005226	077901005229	9/30/2024
Market Basket Brie 6/8oz	12/24/2024	10049705666309	049705666302	9/30/2024
Glenview Farms Spreadable Brie, 2/3lb	1/13/2025	50758108712312		10/15/2024

The only products being recalled are those in the table above. You can identify these products by reviewing the UPC and the best buy date on the product labels. These products had limited regional distribution in the United States. The few retailers that received the product have been informed of this possible contamination and are in the process of removing products from shelves. Consumers that have any of the recalled products listed in the table above should refrain from consuming them and return them to their place of purchase for a full refund.

At this time, there have been no confirmed reports of adverse health events due to consumption of these products.

Through routine testing, it was identified that processing equipment at the site may have been contaminated with Listeria monocytogenes. While finished product testing has not identified contaminated product, we have initiated a voluntary recall to retrieve the potentially affected product.

This voluntary recall is being conducted in coordination with the U.S. Food and Drug Administration.

Consumers with questions regarding the recall can contact Consumer Relations at (800)-322-2743 or email sc.customer.service@savencia.com.

*UPC was stated incorrectly in original release. Updated to reflect correct UPC.

Media Contact:
Kriston Ohm
kriston.ohm@savencia.com

Labels for Identification Purposes:

Product Name	UPC -A	UPC – B	Label
Aldi Emporium Selection Brie, 12/8oz Brie	4099100084016		See image below
La Bonne Vie Brie, 6/8oz			See image below
La Bonne Vie Camembert, 6/8oz			See image below
12/8oz Industrial Brie		077901005229	See image below
Market Basket Brie 6/8oz	004970566630	049705666302	See image below
Supreme Oval 7oz, 6/7oz	007144850421	071448504214	See image below
Glenview Farms Spreadable Brie, 2/3lb	50758108712312		See image below

Initial Press

Company Contact Information

Product Photos

MIL OSI USA News –

January 26, 2025

MIL-OSI USA: FDA Roundup: November 5, 2024
Source: US Department of Health and Human Services – 3
For Immediate Release:

November 05, 2024

Today, the U.S. Food and Drug Administration is providing an at-a-glance summary of news from around the agency:
- Today, the FDA published “Catching Up with Califf: One Health – Optimal Public Health Outcomes for Humans and Animals in Our Shared Environment,” by FDA Commissioner Robert M. Califf, M.D. Dr. Califf discusses One Health and the FDA’s mission to collaborate across disciplines and sectors to promote the health of humans and animals; and taking into account agricultural and environmental issues, using science, technology, and innovation to better understand and define policies that involve these intersections. The blog also provides details on FDA Center for Veterinary Medicine’s upcoming Symposium: “Paws, Claws, Hooves, Fins, and Feet—Advancements through a One Health Approach.”
- On Monday, the FDA published the Supplement to the 2022 Food Code. The Supplement updates the 2022 Food Code with recommendations made by regulatory officials, industry, academia, and consumers at the 2023 Biennial Meeting of the Conference for Food Protection. The Food Code and its Supplement provide government and industry with practical, science-based controls for reducing the risk of foodborne illness in retail and foodservice establishments of all types. The Food Code and the Supplement are joint projects by the FDA, the Centers for Disease Control and Prevention, and the United States Department of Agriculture – Food Safety and Inspection Service.
- On Monday, the FDA, in collaboration with the Environmental Protection Agency (EPA), announced the registration of the first antimicrobial treatment for pathogen reduction in pre-harvest agricultural water—a landmark achievement in enhancing food safety. This product effectively combats foodborne pathogens such as E. coli and Salmonella in water used to grow crops. It is the first label amendment approved under a revised efficacy protocol–designed by the FDA and EPA–to ensure robust treatment options are available for agricultural use.
- On Monday, the FDA authorized marketing of LumiThera, Inc.’s Valeda Light Delivery System to help improve vision in certain dry age-related macular degeneration (AMD) patients. According to data on AMD prevalence estimates analyzed by the CDC, in 2019 an estimated 19.8 million Americans aged 40 years and older were living with some type (dry or wet) of AMD.
  “Today’s action brings to market the first therapeutic option for adult patients with dry AMD,” said Malvina Eydelman, M.D., director of the Office of Ophthalmic, Anesthesia, Respiratory, ENT and Dental Devices at the FDA’s Center for Devices and Radiological Health. “This authorization reinforces FDA’s commitment to assuring access to innovative, safe and effective medical devices to treat high-prevalence, degenerative conditions.”
  
  The Valeda Light Delivery System uses three light emitting diodes that generate light at different wavelengths to provide treatment to the patient’s eye. Treatment with the device after approximately two years can provide an average improvement in vision equivalent to around one line on an eye chart.
- On Friday, the FDA Office of Criminal Investigations arrested a Massachusetts spa owner, Rebecca Fadanelli, for allegedly performing thousands of illegal injections of counterfeit Botox, Sculptra and Juvederm on clients for over three years. If you or a family member believe you received services involving a counterfeit drug or counterfeit device from Fadanelli and/or Skin Beaute Med Spa in Randolph and South Easton, Mass. between 2021 through and including to the present date, please complete the questionnaire located on the FDA’s website here.
Related Information

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The FDA, an agency within the U.S. Department of Health and Human Services, protects the public health by assuring the safety, effectiveness, and security of human and veterinary drugs, vaccines and other biological products for human use, and medical devices. The agency also is responsible for the safety and security of our nation’s food supply, cosmetics, dietary supplements, radiation-emitting electronic products, and for regulating tobacco products.

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Content current as of:

11/05/2024

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MIL OSI USA News –
January 26, 2025

MIL-OSI: Main Street Financial Services Corp. Announces Earnings for Third Quarter of 2024

Source: GlobeNewswire (MIL-OSI)

Business Highlights

Financial results reflect a full quarter following the completed merger of Main Street Financial Services Corp. (Main Street) and Wayne Savings Bancshares, Inc. (Wayne) on May 31, 2024.
Net income for the third quarter of 2024 totaled $3.4 million, or $0.44 per common share
Annualized deposit growth of 7.8% for the quarter ended September 30, 2024
Annualized loan growth of 4.6% for the quarter ended September 30, 2024
Announced implementation of Dividend Reinvestment Plan for shareholders on October 3, 2024
Declared cash dividend of $0.14 per share on October 11, 2024

WOOSTER, Ohio, Nov. 05, 2024 (GLOBE NEWSWIRE) — Main Street Financial Services Corp. (OTCQX: MSWV), (the “Company”), the holding company parent of Main Street Bank Corp. reported a net income of $3.4 million, or $0.44 per common share, for the three months ended September 30, 2024. Excluding the merger-related expenses (non-GAAP) for the three months ended September 30, 2024, net income was $3.6 million, or $0.46 per share. Merger-related expenses totaled $0.2 million for the quarter, consisting of legal and professional services.

The Company announced a merger of equals transaction with Wayne Savings Bancshares, Inc. (“Legacy Wayne”) on February 23, 2023. On May 31, 2024 (the “Merger Date”), the Company completed the transaction, forming a financial holding company with assets of $1.4 billion. On the Merger Date, Legacy Wayne merged with and into Main Street, with Main Street surviving the merger (the “Merger”). Immediately following the Merger, Main Street’s wholly owned bank subsidiary, Main Street Bank Corp., merged with and into Wayne Savings Community Bank, with Wayne Savings Community Bank surviving the merger. Upon completion of the Merger, Wayne Savings Community Bank was renamed Main Street Bank Corp.

The Merger was accounted for as a reverse merger using the acquisition method of accounting, therefore, Legacy Wayne was deemed the acquirer for financial reporting purposes, even though Main Street was the legal acquirer. Accordingly, Legacy Wayne’s historical financial statements are the historical financial statements of the combined company for all periods before the Merger Date. Our consolidated statements of income for the quarters ended June 30, 2024 and September 30, 2024, include the results from Main Street on and after May 31, 2024. Results for periods before May 31, 2024, reflect only those of Legacy Wayne and do not include the consolidated statements of income of Main Street. Accordingly, comparisons of our results for the quarter ended September 30, 2024, with those of prior periods may not be meaningful. The number of shares issued and outstanding, earnings per share, dividends paid and all references to share quantities of Main Street have been retrospectively adjusted to reflect the equivalent number of shares issued in the Merger.

The return on average equity and return on average assets for the third quarter of 2024 was 12.58% and 1.00%, compared to 14.41% and 0.91%, for the third quarter of 2023. Excluding merger-related expenses (non-GAAP), return on average equity and return on average assets for the quarter ended September 30, 2024, was 13.21% and 1.05%, respectively.

President and CEO James R. VanSickle commented “2024 has been the most transformational year in the 125-year history of our bank. The successful merger of Main Street and Wayne has provided long-term value for our shareholders and benefits for our customers, communities and employees. We are pleased with our growth in loans and deposits and our solid earnings during our first full quarter of operations ended on September 30, 2024. We remain optimistic about the increased capabilities, scale and profitability of our combined organization.”

Third Quarter 2024 Financial Results

Net interest income was $10.7 million for the quarter ended September 30, 2024, an increase of 97.6% from $5.4 million for the quarter ended September 30, 2023. The net interest margin of 3.28% for the third quarter of 2024 increased 40 basis points from 2.88% for the third quarter of 2023. Loan yields were 6.17% for the quarter ended September 30, 2024, an increase of 99 basis points when compared to 5.18% for the quarter ended September 30, 2023. Investment yields increased 111 basis points to 3.45% as of September 30, 2024 when compared to the quarter ended September 30, 2023. The cost of funds for the third quarter of 2024, was 2.64%, an increase of 102 basis points when compared to the third quarter of 2023. The cost of funds increase is largely due to utilizing higher-cost wholesale funding, such as FHLB advances, and shifting deposit composition to higher-yielding product offerings. The cost of total deposits was 2.29% for the quarter ended September 30, 2024, a 90 basis point increase when compared to 1.39% for the quarter ended September 30, 2023. The cost of borrowings for the quarter ended September 30, 2024 totaled 5.45%, an increase of 25 basis points when compared to the quarter ended September 30, 2023.

A provision for credit losses and unfunded commitments of $109,000 was recorded for the quarter ended September 30, 2024. During the quarter, the Company recognized 86,000 in charge-offs and $36,000 in recoveries, reflecting relatively stable asset quality.

Noninterest income totaled $1.6 million for the quarter ended September 30, 2024. The Company elected to sell approximately $15 million of the acquired securities portfolio during the quarter, recognizing a gain on sale of investments totaling $702,000.

Noninterest expense totaled $7.9 million for the quarter ended September 30, 2024, an increase of $4.1 million when compared to the quarter ended September 30, 2023. The increase reflects a full quarter of combined expenses after completion of the merger. Merger-related noninterest expenses (non-GAAP) totaled $0.2 million for the quarter, consisting of legal and professional services. Excluding merger-related expenses (non-GAAP), the Company’s efficiency ratio was 62.9% for the quarter ended September 30, 2024, compared to 58.2% for the quarter ended September 30, 2023.

September 30, 2024 Financial Condition

At September 30, 2024, the Company had total assets of $1.39 billion with net loan balances totaling $1.11 billion. Net loans receivable increased by $12.6 million during the third quarter of 2024, or 4.6% annualized, primarily in the commercial loan portfolio. As part of the merger, the Company acquired $430.8 million in loans.

The allowance for credit losses was $11.8 million at September 30, 2024, compared to $7.3 million at December 31, 2023. The increase is a result of establishing an allowance for credit losses on the acquired non-PCD loan portfolio during the second quarter of 2024. The allowance for credit losses as a percent of total loans was 1.04%, compared to 1.09% as of December 31, 2023. The allowance for credit losses and the related provision for credit losses is based on management’s judgment and evaluation of the loan portfolio. Management believes the current allowance for credit losses is adequate, however, changing economic and other conditions may require future adjustments to the allowance for credit losses.

Total nonperforming loans (NPLs) was $5.4 million at September 30, 2024, an increase from $0.4 million at December 31, 2023. The NPL to net loan receivable ratio was 0.48% as of September 30, 2024. Past due loan balances of 30 days and more increased from $2.8 million at December 31, 2023, to $13.2 million, or 1.18% of net loans outstanding, at September 30, 2024. The increase in nonperforming and past due loans is due to the impact of the acquired loan portfolio.

Improvement in Asset Quality Since Merger Announcement: The combined level of classified loans and loans past due 30 or more days was $24.4 million and $19.1 as of December 31, 2022. Since the merger announcement on February 23, 2023, the management teams of both Main Street and Wayne invested a great deal of time ensuring our combined organization utilizes strong underwriting standards and proactively monitors credit quality. Main Street sold approximately $15.2 million of loans in August 2023 and April 2024, of which approximately $12.7 million were classified loans. As of September 30, 2024, the resultant Company has $14.6 of classified loans and $13.2 of loans past due 30 or more days.

Total liabilities increased to $1.28 billion at September 30, 2024 with deposits totaling $1.10 billion and FHLB advances totaling $140.0 million. Deposits grew by $21.2 million, or 7.8% annualized, during the third quarter of 2024. As part of the merger, the Company acquired $487.4 million in deposits. As of September 30, 2024, the Company held no brokered deposits compared to $116.7 million at December 31, 2024. The Company leverages FHLB advances for short-term funding needs due to their accessibility and alignment with prevailing market rates. As of September 30, 2024, the Company held $140.0 million in FHLB advances.

Total stockholders’ equity was $111.3 million at September 30, 2024, an increase of $58.4 million when compared to the December 31, 2023 balance. The increase was primarily driven by the merger between Main Street and Wayne. Total stockholders’ equity increased during the third quarter of 2024 by $5.3 million, primarily from net income of $3.4 million and an increase in accumulated other comprehensive income benefit of $2.8 million, partially offset by dividends of $1.1 million.

Main Street Financial Services Corp. is a holding company headquartered in Wooster, Ohio. Its primary subsidiary, Main Street Bank Corp. was founded in 1899 and provides full-service banking, commercial lending, and mortgage services across its branch infrastructure. Today, Main Street Bank Corp. operates 19 branch locations in Wooster, Ohio, Wheeling, West Virginia and other surrounding communities in Ohio and West Virginia. Additional information about Main Street Bank Corp. is available at www.mymainstreetbank.bank.

Non-GAAP Disclosure
This press release includes disclosures of the Company’s return on average equity, return on average assets, net income, and efficiency ratios which are excluding costs related to merger activities which are financial measures not prepared in accordance with generally accepted accounting principles in the United States (GAAP). A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flow that excludes or includes amounts that are required to be disclosed by GAAP. The Company believes that these non-GAAP financial measures provide both management and investors a more complete understanding of the underlying operational results and trends and the Company’s marketplace performance. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the numbers prepared in accordance with GAAP.

Forward-Looking–Statements
This release contains forward-looking statements that are not historical facts and that are intended to be “forward-looking statements” as that term is defined by the Private Securities Litigation Reform Act of 1995. These forward-looking statements may include, but are not limited to, statements about the Company’s plans, objectives, expectations and intentions and other statements contained in this release that are not historical facts and pertain to the Company’s future operating results. When used in this release, the words “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and similar expressions are generally intended to identify forward-looking statements. Actual results may differ materially from the results discussed in these forward-looking statements, because such statements are inherently subject to significant assumptions, risks and uncertainties, many of which are difficult to predict and are generally beyond the Company’s control. These include but are not limited to: the possibility of adverse economic developments that may, among other things, increase default and delinquency risks in the Company’s loan portfolios; shifts in interest rates; shifts in the rate of inflation; shifts in the demand for the Company’s loan and other products; unforeseen increases in costs and expenses; lower-than-expected revenue or cost savings in connection with acquisitions; changes in accounting policies; changes in the monetary and fiscal policies of the federal government; and changes in laws, regulations and the competitive environment. Unless legally required, the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact Information:
Matthew Hartzler
Senior Vice President, Chief Financial Officer
(330) 264-5767


MAIN STREET FINANCIAL SERVICES CORP.
Condensed Consolidated Balance Sheets
(Dollars in thousands, except share data – unaudited)
	September 30, 2024			December 31, 2023
ASSETS

Cash and cash equivalents	$	40,654		$	20,884
Securities, net (1)		152,915			86,405
Loans held for sale		–			–
Loans receivable, net		1,118,781			669,603
Federal Home Loan Bank stock		7,420			3,959
Premises & equipment, net		11,119			4,904
Bank-owned life insurance		22,013			11,706
Other assets		40,351			12,486
TOTAL ASSETS	$	1,393,252		$	809,947

LIABILITIES AND STOCKHOLDERS’ EQUITY

Deposit accounts	$	1,101,999		$	693,126
Other short-term borrowings		25,715			8,743
Federal Home Loan Bank advances		140,000			47,000
Accrued interest payable and other liabilities		14,218			8,111
TOTAL LIABILITIES		1,281,932			756,980


Common stock (7,801,011 shares of $1.00 par value issued)		7,801			398
Additional paid-in capital		55,640			36,715
Retained earnings		54,133			55,342
Treasury Stock, at cost – 0 shares and 1,777,824 shares at
September 30, 2024 and December 31, 2023, respectively.		–			(30,330	)
Accumulated other comprehensive loss		(6,254	)		(9,158	)
TOTAL STOCKHOLDERS’ EQUITY		111,320			52,967

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,393,252		$	809,947

(1) Includes available-for-sale and held-to-maturity classifications.
Note: The December 31, 2023 Condensed Consolidated Balance Sheet has been derived from the audited Consolidated Balance Sheet as of that date.


MAIN STREET FINANCIAL SERVICES CORP.
Condensed Consolidated Statements of Income
(Dollars in thousands, except share data – unaudited)


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
		2024		2023		2024		2023

Interest income	$	18,930	$	9,078	$	41,196	$	25,550
Interest expense		8,308		3,673		19,134		8,590
Net interest income		10,622		5,405		22,062		16,960
Provision for credit losses		109		138		4,703		526
Net interest income after provision for credit losses		10,513		5,267		17,359		16,434
Non-interest income		1,600		691		2,994		2,000
Non-interest expense
Salaries and employee benefits		3,799		2,049		8,688		5,949
Net occupancy and equipment expense		1,465		629		2,970		1,806
Federal deposit insurance premiums		118		117		440		374
Franchise taxes		51		98		358		299
Advertising and marketing		190		49		408		179
Legal		195		11		508		362
Professional fees		371		54		1,664		270
ATM network		79		121		474		320
Auditing and accounting		193		60		386		180
Other		1,403		545		2,625		1,337
Total non-interest expense		7,863		3,733		18,520		11,076
Income before federal income taxes		4,251		2,225		1,833		7,358
Provision for federal income taxes		804		452		315		1,562
Net income	$	3,446	$	1,773	$	1,517	$	5,796

Earnings per share
Basic	$	0.44	$	0.46	$	0.27	$	1.51
Diluted	$	0.44	$	0.46	$	0.27	$	1.50


MAIN STREET FINANCIAL SERVICES CORP.
Selected Condensed Consolidated Financial Data
(Dollars in thousands, except share data – unaudited)


	September			June			March			December
		2024			2024			2024			2023

Interest and dividend income	$	18,930		$	12,572		$	9,694		$	9,545
Interest expense		8,308			6,185			4,641			4,330
Net interest income		10,622			6,387			5,053			5,215
Provision for credit losses		109			4,720			(126	)		4
Net interest income after
provision for credit losses		10,513			1,666			5,179			5,211
Non-interest income		1,600			716			678			1,017
Non-interest expense		7,863			6,723			3,934			3,748
Income before federal income taxes		4,251			(4,341	)		1,923			2,480
Provision for federal income taxes		804			(873	)		384			443
Net income	$	3,446		$	(3,468	)	$	1,539		$	2,037

Earnings per share – basic	$	0.44		$	(0.68	)	$	0.40		$	0.53
Earnings per share – diluted	$	0.44		$	(0.67	)	$	0.40		$	0.53
Dividends per share	$	0.14		$	0.14		$	0.14		$	0.14
Return on average assets		1.00	%		-1.38	%		0.76	%		1.02	%
Return on average equity		12.58	%		-17.16	%		11.63	%		16.90	%
Shares outstanding at quarter end		7,801,011			7,787,055			3,840,575			3,839,702
Book value per share	$	14.27		$	13.60		$	13.81		$	13.80
Tangible equity per share	$	12.15		$	11.49		$	13.36		$	13.35


	September			June			March			December
		2023			2023			2023			2022

Interest and dividend income	$	9,078		$	8,571		$	7,901		$	7,518
Interest expense		3,673			2,867			2,050			1,248
Net interest income		5,405			5,704			5,851			6,270
Provision for credit losses		138			170			218			381
Net interest income after
provision for credit losses		5,267			5,534			5,633			5,889
Non-interest income		691			706			603			631
Non-interest expense		3,733			3,949			3,394			3,508
Income before federal income taxes		2,225			2,291			2,842			3,012
Provision for federal income taxes		452			547			563			603
Net income	$	1,773		$	1,744		$	2,279		$	2,409

Earnings per share – basic	$	0.46		$	0.46		$	0.60		$	0.62
Earnings per share – diluted	$	0.46		$	0.45		$	0.59		$	0.63
Dividends per share	$	0.14		$	0.14		$	0.14		$	0.14
Return on average assets		0.91	%		0.92	%		1.23	%		1.36	%
Return on average equity		14.41	%		14.36	%		19.58	%		22.87	%
Shares outstanding at quarter end		3,837,609			3,837,085			3,831,939			3,825,451
Book value per share	$	12.40		$	12.64		$	12.51		$	11.69
Tangible equity per share	$	11.95		$	12.20		$	12.06		$	11.24


MAIN STREET FINANCIAL SERVICES CORP.
Non-GAAP reconciliation
(Dollars in thousands, except per share data – unaudited)

	For three months ended						For the nine months ended
	September 30,						September 30,
		2024			2023			2024			2023

Net Income as reported – GAAP	$	3,446		$	1,773		$	1,518		$	5,796
Effect of merger related expenses (net of tax benefit)		170			160			5,743			597
Net Income non-GAAP	$	3,616		$	1,933		$	7,261		$	6,393

Earnings per share – GAAP	$	0.44		$	0.46		$	0.27		$	1.51
Effect of merger related expenses		0.02			0.04			1.03			0.16
Earnings per share non-GAAP	$	0.46		$	0.50		$	1.30		$	1.67

Return on average assets – GAAP		1.00	%		0.91	%		0.19	%		1.02	%
Effect of merger related expenses		0.05	%		0.08	%		0.72	%		0.10	%
Return on average assets non-GAAP		1.05	%		0.99	%		0.91	%		1.12	%

Return on average equity – GAAP		12.58	%		14.41	%		2.66	%		16.06	%
Effect of merger related expenses		0.62	%		1.29	%		10.06	%		1.65	%
Return on average equity non-GAAP		13.20	%		15.70	%		12.72	%		17.71	%

Efficiency Ratio – GAAP		64.34	%		61.24	%		73.92	%		58.42	%
Effect of merger related expenses		-1.39	%		-3.07	%		-9.90	%		-3.29	%
Efficiency Ratio non-GAAP		62.9	%		58.17	%		64.02	%		55.13	%

The MIL Network –

January 26, 2025

MIL-OSI Australia: ACCC to livestream public hearings for Supermarkets Inquiry
Source: Australian Competition and Consumer Commission

The ACCC will conduct a series of public hearings from 7 to 22 November as part of its ongoing Supermarkets Inquiry.

The public hearings will be livestreamed via the ACCC website and will be an opportunity for the ACCC to gain a more complete understanding of the key issues in the retail grocery sector and its associated supply chains.

The hearings will involve executives of Aldi, Coles, Metcash, Woolworths and other stakeholders.

“We have received a large volume of information from the major participants in the supermarket sector and these hearings will provide an opportunity for us to seek clarification on a range of the very complex matters that are detailed in that information,” ACCC Deputy Chair Mick Keogh said.

“Our inquiry is ongoing and as such, we have not yet reached concluded views on the key issues flagged in our interim report. We will outline our views and recommendations in the final report for the inquiry, which is due to the Treasurer by 28 February 2025.”

The scheduled hearing dates and attendees are as follows:
- 7-8 November – Consumer advocacy groups, supplier industry representative bodies and supplier(s)
- 11-12 November – Aldi
- 14-15 November – Metcash
- 18-19 November – Woolworths
- 21-22 November – Coles
More information on the hearings can found on the ACCC website. The livestream will become available on this webpage: Supermarkets inquiry public hearings

Background

On 25 January 2024, the Australian Government announced that it will direct the ACCC to conduct an inquiry into Australia’s supermarket sector.

The ACCC received the formal direction from the Australian Government and the terms of the reference for the inquiry on 1 February 2024.

On 29 February 2024, the ACCC published an online survey and issues paper seeking views from consumers, farmers and other interested parties.

On 27 September 2024, the ACCC published its interim report outlining what it has heard at the half-way point of the inquiry.

The final report for the inquiry is due to be provided to the Government by 28 February 2025.

The ACCC’s proceedings against Woolworths and Coles are separate to the inquiry, and the issues in dispute in these proceedings will not be considered by the Supermarkets Inquiry.

MIL OSI News –
January 26, 2025
MIL-OSI New Zealand: BusinessNZ – Small business welcome new procurement rules

Source: BusinessNZ

Small businesses will welcome the Government’s firm direction to government agencies to pay their bills on time, BusinessNZ says.

Chief Executive Katherine Rich says many businesses supply goods and services to government agencies and can experience hardship from late payment times.

“Businesses can look forward to their invoices being paid within 10 business days, given explicit requirements now placed on government agencies.”

Mrs Rich also welcomed the Government’s intention to require government agencies to use e-invoicing from 2026.

“BusinessNZ has consistently advocated for improvements to procurement practices, and we are grateful for this e-invoicing requirement and other planned changes to the Procurement Rules.”

The BusinessNZ Network including BusinessNZ, EMA, Business Central, Business Canterbury and Business South, represents and provides services to thousands of businesses, small and large, throughout New Zealand.

MIL OSI New Zealand News –

January 26, 2025
MIL-OSI USA: Entrepreneur, Gender-Equity Advocate to Discuss How Women Can Move from the Sidelines to the C-Suite

Source: US State of Connecticut

Any company that strives to be profitable and successful needs to include women and other diverse representatives in its leadership. Yet even in the most forward-focused organizations, women may still face obstacles to inclusion.

Sameer Somal, a tech entrepreneur and the co-founder of Girl Power Talk and Girl Power USA, a non-profit organization dedicated to helping you women become leaders in business and society, will share his experiences and perspective on empowering women during the next Equity Now presentation on Nov. 19. The event is sponsored by School of Business.

“If you look at society for the last 1,000 years, women have too often been sidelined from positions of leadership. Yet studies have repeatedly shown that when women are added to the C-Suite and to Boards of Directors, those companies outperform their peers,’’ Somal said.

“I want business students to be aware that investing in and supporting women is not a trend or a fad, but something that can help your company reach its full potential,’’ he said.
His presentation, “Empowering Girls and Women in Organizations: A Conversation with Sameer Somal,” begins at noon on Nov. 19. The program is available via livestream. To register, please visit the registration page.

Women Walk a Tightrope of Expectations

Somal is the CEO and co-Founder of Blue Global Technology, focused on digital transformation, risk management, and technology development. Raised by a progressive father, and inspired by a friend, he began a journey to help girls and women advance in both business and society.

He will discuss how his organization inspires young women to be their best in their personal and professional lives, and how passionate engagement with girls today empowers them to build a career full of purpose.

Somal will also discuss the obstacles that women and other diverse employees face in the workplace, including how corporate structure has historically been designed to keep women out; hiring and promotion processes that favor men; and adverse institutional mindsets about who qualifies for certain roles, particularly in leadership.

Even today, women often walk a tightrope of expectations, he said. They are expected to exhibit assertiveness, independence, and dominance but still convey sensitivity and compassion.

“While both gender-specific roles and traits are dated concepts, female leaders often have to strike a hard balance to be seen as worthy, adding to the pressure that leadership brings with it,’’ he said.

Finally, women face ‘affinity bias’ in the workplace. Most corporate decisionmakers are still men, and affinity bias can lead them to consciously or unconsciously hire and promote people who are like them, he said.

Somal is a member of the Board of Directors of Future Business Leaders or America, the Abraham Lincoln Association, the Academy of Legal Studies in Business and the American Bar association. A graduate of Georgetown University, he has held leadership roles at Bank of America, Morgan Stanley, and Scotiabank before creating his own company.

Series Brings Business Expectations into Sharp Focus

The 2024-25 Equity Now series began in October with a presentation by Lauren Cleary, an ethics and compliance professional at Patagonia, who spoke about the importance of privacy in organizations.

“Each speaker in the Equity Now speaker series brings their own unique perspective on how legal and ethical issues are deeply intertwined in both business and society,’’ said business law professor Robert Bird, who spearheads the programs.

“For an organization to be truly successful, it must meet, if not exceed, the expectations of stakeholders in the society in which it conducts business,’’ he said. “The Equity Now speaker series brings those expectations into clear focus through the expert academics and practitioners that are invited to share their ideas.’’

The Equity Now series features expert insight on how law and policy can create diversity, equity and fairness in both organizations and society. The UConn program is conducted in affiliation with the Academy of Legal Studies in Business, Virginia Tech, Indiana, Boston and Temple universities.

MIL OSI USA News –

January 26, 2025

MIL-OSI: Parex Resources Announces Third Quarter Results, Declaration of Q4 2024 Dividend, and Operational Update

Source: GlobeNewswire (MIL-OSI)

CALGARY, Alberta, Nov. 05, 2024 (GLOBE NEWSWIRE) — Parex Resources Inc. (“Parex” or the “Company”) (TSX: PXT) is pleased to announce its financial and operating results for the three-month period ended September 30, 2024, the declaration of its Q4 2024 regular dividend of C$0.385 per share, as well as an operational update. All amounts herein are in United States Dollars (“USD”) unless otherwise stated.

“Following lower than expected results, Management is focused on driving production efficiency and optimizing performance from our key assets,” commented Imad Mohsen, President & Chief Executive Officer.

“As we transition from 2024 to our 2025 planning phase, we are committed to improving results, delivering safe and reliable production, and positioning Parex to outperform.”

Key Highlights

Generated Q3 2024 funds flow provided by operations (“FFO”)⁽¹⁾ of $152 million and FFO per share⁽²⁾⁽³⁾ of $1.50.
FY 2024 average production guidance increased from 48,000-50,000 boe/d to 49,000-50,000 boe/d, based on stable operations at key assets as well as successful well results at Capachos and LLA-32.
FY 2024 capital expenditure⁽⁶⁾ guidance updated from $370-390 million to $350-370 million, based on a conservative capital program focused on improving capital returns.
Declared Q4 2024 regular dividend of C$0.385 per share⁽⁴⁾ or C$1.54 per share annualized.
Repurchased approximately 4.5 million shares YTD 2024 under the Company’s current normal course issuer bid (“NCIB”).
October 2024 average production was 47,000 boe/d⁽⁵⁾.

Q3 2024 Results

Quarterly average oil & natural gas production was 47,569 boe/d⁽⁷⁾.
Realized net income of $66 million or $0.65 per share basic⁽³⁾.
Generated quarterly FFO⁽¹⁾ of $152 million and FFO per share⁽²⁾⁽³⁾ of $1.50, a 4% decrease and a 1% increase from Q3 2023, respectively.
Current taxes decreased from Q2 2024 by $39 million due to reduced corporate production as well as lower global oil prices; the Company also moved from an estimated 15% surtax to a projected 10% surtax with the depreciation of Brent oil price in the quarter.
Produced an operating netback⁽²⁾ of $39.64/boe and an FFO netback⁽²⁾ of $34.58/boe from an average Brent price of $78.71/bbl.
Incurred $82 million of capital expenditures⁽⁶⁾, primarily from activities at LLA-34, Capachos, LLA-32 and LLA-122.
Generated $69 million of free funds flow⁽⁶⁾ that was used for return of capital initiatives and $20 million of bank debt repayment; working capital surplus⁽¹⁾ was $38 million and cash $147 million at quarter end.
Paid a C$0.385 per share⁽⁴⁾ regular quarterly dividend and repurchased 1,584,650 shares.

(1) Capital management measure. See “Non-GAAP and Other Financial Measures Advisory.”
(2) Non-GAAP ratio. See “Non-GAAP and Other Financial Measures Advisory.”
(3) Per share amounts (with the exception of dividends) are based on weighted-average common shares; dividends paid per share are based on the number of common shares outstanding at each dividend date.
(4) Supplementary financial measure. See “Non-GAAP and Other Financial Measures Advisory.”
(5) Light & medium crude oil: ~8,956 bbl/d, heavy crude oil: ~37,325 bbl/d, conventional natural gas: ~4,316 mcf/d; rounded for presentation purposes.
(6) Non-GAAP financial measure. See “Non-GAAP and Other Financial Measures Advisory.”
(7) See “Operational and Financial Highlights” for a breakdown of production by product type.

Operational and Financial Highlights	Three Months Ended						Nine Months Ended
(unaudited)	Sep. 30,		Sep. 30,		Jun. 30,		Sep. 30,
	2024		2023		2024		2024
Operational
Average daily production
Light Crude Oil and Medium Crude Oil (bbl/d)	9,064		8,837		9,541		8,615
Heavy Crude Oil (bbl/d)	37,777		44,779		43,229		42,167
Crude Oil (bbl/d)	46,841		53,616		52,770		50,782
Conventional Natural Gas (mcf/d)	4,368		5,742		4,788		4,170
Oil & Gas (boe/d)⁽¹⁾	47,569		54,573		53,568		51,477

Operating netback ($/boe)
Reference price – Brent ($/bbl)	78.71		85.92		85.03		81.82
Oil & gas sales⁽⁴⁾	68.75		75.83		75.21		71.69
Royalties⁽⁴⁾	(10.59	)	(13.72	)	(12.54	)	(11.48	)
Net revenue⁽⁴⁾	58.16		62.11		62.67		60.21
Production expense⁽⁴⁾	(14.81	)	(9.73	)	(12.95	)	(13.43	)
Transportation expense⁽⁴⁾	(3.71	)	(3.56	)	(3.40	)	(3.50	)
Operating netback ($/boe)⁽²⁾	39.64		48.82		46.32		43.28

Funds flow provided by operations netback ($/boe)⁽²⁾	34.58		31.28		37.34		34.43

Financial ($000s except per share amounts)

Net income	65,793		119,736		3,845		129,731
Per share – basic⁽⁶⁾	0.65		1.13		0.04		1.27

Funds flow provided by operations⁽⁵⁾	151,773		157,839		180,952		481,032
Per share – basic⁽²⁾⁽⁶⁾	1.50		1.49		1.77		4.71

Capital expenditures⁽³⁾	82,367		156,747		97,797		265,585

Free funds flow⁽³⁾	69,406		1,092		83,155		215,447

EBITDA⁽³⁾	167,763		221,271		195,940		555,781
Adjusted EBITDA⁽³⁾	164,002		225,784		230,547		582,777

Long-term inventory expenditures	(6,318	)	(374	)	9,817		7,342

Dividends paid	28,467		29,239		28,528		85,526
Per share – Cdn$⁽⁴⁾	0.385		0.375		0.385		1.145

Shares repurchased	20,723		24,273		21,367		57,381
Number of shares repurchased (000s)	1,585		1,240		1,298		3,803

Outstanding shares (end of period) (000s)
Basic	100,031		105,014		101,616		100,031
Weighted average basic	100,891		105,621		102,259		102,203
Diluted⁽⁸⁾	100,933		105,722		102,528		100,933

Working capital surplus (deficit)⁽⁵⁾	37,509		(57,511	)	34,156		37,509
Bank debt⁽⁷⁾	30,000		—		50,000		30,000
Cash	147,454		34,548		119,468		147,454

(1) Reference to crude oil or natural gas in the above table and elsewhere in this press release refer to the light and medium crude oil and heavy crude oil and conventional natural gas, respectively, product types as defined in National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities.
(2) Non-GAAP ratio. See “Non-GAAP and Other Financial Measures Advisory”.
(3) Non-GAAP financial measure. See “Non-GAAP and Other Financial Measures Advisory”.
(4) Supplementary financial measure. See “Non-GAAP and Other Financial Measures Advisory”.
(5) Capital management measure. See “Non-GAAP and Other Financial Measures Advisory”.
(6) Per share amounts (with the exception of dividends) are based on weighted average common shares. Dividends paid per share are based on the number of common shares outstanding at each dividend record date.
(7) Syndicated bank credit facility borrowing base of $200.0 million as at September 30, 2024.
(8) Diluted shares as stated include common shares and stock options outstanding at period end; September 30, 2024 closing price was C$12.00 per share.

Operational Update

2024 Corporate Guidance Update

FY 2024 average production guidance has been updated to 49,000 to 50,000 boe/d (49,500 boe/d midpoint) and concurrently, capital expenditure⁽⁵⁾ guidance for the year has been updated to $350 to $370 million ($360 million midpoint).

At $80/bbl Brent crude oil price, funds flow provided by operations⁽⁴⁾ is expected to be $575 to $585 million and generate roughly $220 million of free funds flow⁽⁵⁾ at the midpoint of guidance. A key driver of the funds flow provided by operations increase from the prior updated guidance is a lower projected effective tax rate for FY 2024.

Category	2024 Updated Guidance (August 28, 2024)	2024 Updated Guidance (November 5, 2024)
Brent Crude Oil Average Price	$80/bbl	$80/bbl
Average Production	48,000-50,000 boe/d	49,000-50,000 boe/d
Funds Flow Provided by Operations Netback^(1)(2)(3)	$30-32/boe	$31-33/boe
Funds Flow Provided by Operations⁽⁴⁾	$545-565 million	$575-585 million
Capital Expenditures⁽⁵⁾	$370-390 million	$350-370 million
Free Funds Flow⁽⁵⁾	$175 million (midpoint)	$220 million (midpoint)

(1) Non-GAAP ratio. See “Non-GAAP and Other Financial Measures Advisory”.
(2) 2024 updated assumptions: Vasconia differential: ~$4/bbl; production expense: $13-14/bbl; transportation expense: ~$3.50/bbl; G&A expense: ~$4.00/bbl; effective tax rate: 14-17%.
(3) Supplementary financial measure. See “Non-GAAP and Other Financial Measures Advisory”.
(4) Capital management measure. See “Non-GAAP and Other Financial Measures Advisory”.
(5) Non-GAAP financial measure. See “Non-GAAP and Other Financial Measures Advisory”.

Cabrestero and LLA-34⁽¹⁾⁽²⁾

The Cabrestero and LLA-34 blocks had average production of approximately 37,000 bbl/d of heavy crude oil (net) combined in Q3 2024. During the quarter, both blocks experienced higher-than-expected downtime that adversely affected quarterly production.

Additionally, at both blocks, annual decline rates are broadly in line with Management budgeting where there is a continued focus on ramping up injection rates. At Cabrestero specifically, the Company continues to progress its polymer injection pilot and is moving towards approving a full field expansion based on success to date.

(1) Cabrestero: 100% W.I.
(2) LLA-34: 55% W.I.

LLA-32 – Exploitation Update⁽¹⁾

Following the mid-year reallocation of 2024 capital to LLA-32, the Company has now drilled three successful wells on the block. The most recent well, the second follow-up appraisal well, is producing roughly 2,000 bbl/d of light crude oil (gross)⁽²⁾. Based on success to date, Parex is continuing to invest capital and has spud a horizontal well.

(1) 87.5% W.I.
(2) Short-term production rate. See “Oil & Gas Matters Advisory.”

Northern Llanos – Capachos Update⁽¹⁾

The first well of a three-well campaign came online in late Q3 2024. The well is currently producing roughly 4,000 bbl/d of light crude oil with approximately 6,000 mcf/d of natural gas (gross)⁽²⁾.

Parex plans to fulfill an exploration commitment and spud the second well of the campaign in the coming weeks.

(1) 50% W.I.
(2) Short-term production rate. See “Oil & Gas Matters Advisory.”

Northern Llanos – Arauca⁽¹⁾

The Arauca-81 well is expected to be onstream in Q4 2024, following a successful operational sidetrack.

(1) Business Collaboration Agreement with Ecopetrol S.A. (Parex 50% Participating Share); Ecopetrol S.A. currently holds 100% of the working interest in the Convenio Arauca while the assignment procedure is pending.

Big ‘E’ Exploration – Llanos Foothills – LLA-122⁽¹⁾

The drilling of the Arantes well in the high-potential Colombian Foothills continues to progress on an extended timeline. In Q3 2024, an operational sidetrack was executed following a stuck pipe event; the sidetrack was successful, and the well is now at roughly 17,750 feet. Parex is progressing toward the setting of the final liner immediately above the zones of interest, prior to drilling and evaluating the prospective zones. Based on the current pace of operations, the Company expects preliminary results by YE 2024.

(1) 50% W.I.

Return of Capital Update

Q4 2024 Dividend

Parex’s Board of Directors have approved a Q4 2024 regular dividend of C$0.385 per share to shareholders of record on December 9, 2024, to be paid on December 16, 2024. This regular dividend payment to shareholders is designated as an “eligible dividend” for purposes of the Income Tax Act (Canada).

Current Normal Course Issuer Bid

As at October 31, 2024, Parex has repurchased approximately 4.5 million shares under its current NCIB, for total consideration of roughly C$85 million.

2025 Budget & Guidance

The Company continues to assess its short- and long-term development and exploration opportunities as it progresses through its 2025 budgeting and planning process, with next year’s corporate guidance expected to be released in January 2025.

Q3 2024 Results – Conference Call & Webcast

Parex will host a conference call and webcast to discuss its Q3 2024 results on Wednesday, November 6, 2024, beginning at 9:30 am MT (11:30 am ET). To participate in the conference call or webcast, please see the access information below:

Conference ID:		7102953
Participant Toll-Free Dial-In Number		1-646-307-1963
Participant Dial-In Number:		1-647-932-3411
Webcast:		https://events.q4inc.com/attendee/321063614

About Parex Resources Inc.

Parex is one of the largest independent oil and gas companies in Colombia, focusing on sustainable conventional production. The Company’s corporate headquarters are in Calgary, Canada, with an operating office in Bogotá, Colombia. Parex shares trade on the Toronto Stock Exchange under the symbol PXT.

For more information, please contact:

Mike Kruchten
Senior Vice President, Capital Markets & Corporate Planning
Parex Resources Inc.
403-517-1733
investor.relations@parexresources.com

Steven Eirich
Investor Relations & Communications Advisor
Parex Resources Inc.
587-293-3286
investor.relations@parexresources.com

NOT FOR DISTRIBUTION OR FOR DISSEMINATION IN THE UNITED STATES

Non-GAAP and Other Financial Measures Advisory

This press release uses various “non-GAAP financial measures”, “non-GAAP ratios”, “supplementary financial measures” and “capital management measures” (as such terms are defined in NI 52-112), which are described in further detail below. Such measures are not standardized financial measures under IFRS and might not be comparable to similar financial measures disclosed by other issuers. Investors are cautioned that non-GAAP financial measures should not be construed as alternatives to or more meaningful than the most directly comparable GAAP measures as indicators of Parex’s performance.

These measures facilitate management’s comparisons to the Company’s historical operating results in assessing its results and strategic and operational decision-making and may be used by financial analysts and others in the oil and natural gas industry to evaluate the Company’s performance. Further, management believes that such financial measures are useful supplemental information to analyze operating performance and provide an indication of the results generated by the Company’s principal business activities.

Set forth below is a description of the non-GAAP financial measures, non-GAAP ratios, supplementary financial measures and capital management measures used in this press release.

Non-GAAP Financial Measures

Capital expenditures, is a non-GAAP financial measure which the Company uses to describe its capital costs associated with oil and gas expenditures. The measure considers both property, plant and equipment expenditures and exploration and evaluation asset expenditures which are items in the Company’s statement of cash flows for the period and is calculated as follows:


	For the three months ended							For the nine months ended
	Sep. 30,		Sep. 30,		Jun. 30,			Sep. 30,
($000s)		2024		2023		2024		2024
Property, plant and equipment expenditures	$	68,406	$	93,957	$	49,214	$	158,451
Exploration and evaluation expenditures		13,961		62,790		48,583		107,134
Capital expenditures	$	82,367	$	156,747	$	97,797	$	265,585

Free funds flow, is a non-GAAP financial measure that is determined by funds flow provided by operations less capital expenditures. The Company considers free funds flow to be a key measure as it demonstrates Parex’s ability to fund return of capital, such as the NCIB and dividends, without accessing outside funds and is calculated as follows:


	For the three months ended									For the nine months ended
		Sep. 30,		Sep. 30,			Jun. 30,			Sep. 30,
($000s)		2024			2023		2024			2024
Cash provided by operating activities	$	181,874		$	87,568	$	222,782		$	502,068
Net change in non-cash working capital		(30,101	)		70,271		(41,830	)		(21,036	)
Funds flow provided by operations		151,773			157,839		180,952			481,032
Capital expenditures		82,367			156,747		97,797			265,585
Free funds flow	$	69,406		$	1,092	$	83,155		$	215,447

EBITDA, is a non-GAAP financial measure that is defined as net income adjusted for finance income and expenses, income tax expense (recovery) and depletion, depreciation and amortization.

Adjusted EBITDA, is a non-GAAP financial measure defined as EBITDA adjusted for non-cash impairment charges, unrealized foreign exchange gains (losses), unrealized gains (losses) on risk management contracts and share-based compensation expense (recovery).

The Company considers EBITDA and Adjusted EBITDA to be key measures as they demonstrates Parex’s profitability before finance income and expenses, taxes, depletion, depreciation and amortization and other non-cash items. A reconciliation from net income to EBITDA and Adjusted EBITDA is as follows:


	For the three months ended										For the nine months ended
		Sep. 30,			Sep. 30,			Jun. 30,			Sep. 30,
($000s)		2024			2023			2024			2024
Net income	$	65,793		$	119,736		$	3,845		$	129,731
Adjustments to reconcile net income to EBITDA:
Finance income		(963	)		(2,496	)		(1,097	)		(3,317	)
Finance expense		7,494			5,219			5,421			18,109
Income tax expense		42,767			49,995			130,888			249,472
Depletion, depreciation and amortization		52,672			48,817			56,883			161,786
EBITDA	$	167,763		$	221,271		$	195,940		$	555,781
Non-cash impairment charges		—			2,189			4,661			4,661
Share-based compensation expense (recovery)		(7,994	)		4,642			5,770			(4,687	)
Unrealized foreign exchange loss (gain)		4,233			(2,318	)		24,176			27,022
Adjusted EBITDA	$	164,002		$	225,784		$	230,547		$	582,777

Non-GAAP Ratios

Operating netback per boe, is a non-GAAP ratio that the Company considers to be a key measure as it demonstrates Parex’ profitability relative to current commodity prices. Parex calculates operating netback per boe as operating netback (calculated as oil and natural gas sales from production, less royalties, operating, and transportation expense) divided by the total equivalent sales volume including purchased oil volumes for oil and natural gas sales price and transportation expense per boe and by the total equivalent sales volume excluding purchased oil volumes for royalties and operating expense per boe.

Funds flow provided by operations netback per boe or FFO netback per boe, is a non-GAAP ratio that includes all cash generated from operating activities and is calculated before changes in non-cash working capital, divided by produced oil and natural gas sales volumes. The Company considers funds flow provided by operations netback per boe to be a key measure as it demonstrates Parex’s profitability after all cash costs relative to current commodity prices.

Basic funds flow provided by operations per share or FFO per share, is a non-GAAP ratio that is calculated by dividing funds flow provided by operations by the weighted average number of basic shares outstanding. Parex presents basic funds flow provided by operations per share whereby per share amounts are calculated using weighted-average shares outstanding, consistent with the calculation of earnings per share. The Company considers basic funds flow provided by operations per share or FFO per share to be a key measure as it demonstrates Parex’s profitability after all cash costs relative to the weighted average number of basic shares outstanding.

Capital Management Measures

Funds flow provided by operations, is a capital management measure that includes all cash generated from operating activities and is calculated before changes in non-cash working capital. The Company considers funds flow provided by operations to be a key measure as it demonstrates Parex’s profitability after all cash costs. A reconciliation from cash provided by operating activities to funds flow provided by operations is as follows:


	For the three months ended									For the nine months ended
		Sep. 30,		Sep. 30,			Jun. 30,			Sep. 30,
($000s)		2024			2023		2024			2024
Cash provided by operating activities	$	181,874		$	87,568	$	222,782		$	502,068
Net change in non-cash working capital		(30,101	)		70,271		(41,830	)		(21,036	)
Funds flow provided by operations	$	151,773		$	157,839	$	180,952		$	481,032

Working capital surplus (deficit), is a capital management measure which the Company uses to describe its liquidity position and ability to meet its short-term liabilities. Working capital surplus (deficit) defined as current assets less current liabilities.


	For the three months ended								For the nine months ended
	Sep. 30,			Sep. 30,		Jun. 30,			Sep. 30,
($000s)		2024		2023			2024		2024
Current assets	$	248,208	$	240,559		$	281,846	$	248,208
Current liabilities		210,699		298,070			247,690		210,699
Working capital surplus (deficit)	$	37,509	$	(57,511	)	$	34,156	$	37,509

Supplementary Financial Measures

“Oil and natural gas sales per boe” is determined by sales revenue excluding risk management contracts, as determined in accordance with IFRS, divided by total equivalent sales volume including purchased oil volumes.

“Royalties per boe” is comprised of royalties, as determined in accordance with IFRS, divided by the total equivalent sales volume and excludes purchased oil volumes.

“Net revenue per boe” is comprised of net revenue, as determined in accordance with IFRS, divided by the total equivalent sales volume and excludes purchased oil volumes.

“Production expense per boe” is comprised of production expense, as determined in accordance with IFRS, divided by the total equivalent sales volume and excludes purchased oil volumes.

“Transportation expense per boe” is comprised of transportation expense, as determined in accordance with IFRS, divided by the total equivalent sales volumes including purchased oil volumes.

“Dividends paid per share” is comprised of dividends declared, as determined in accordance with IFRS, divided by the number of shares outstanding at the dividend record date.

Oil & Gas Matters Advisory

The term “Boe” means a barrel of oil equivalent on the basis of 6 Mcf of natural gas to 1 barrel of oil (“bbl”). Boe’s may be misleading, particularly if used in isolation. A boe conversation ratio of 6 Mcf: 1 Bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6 Mcf: 1Bbl, utilizing a conversion ratio at 6 Mcf: 1 Bbl may be misleading as an indication of value.

This press release contains a number of oil and gas metrics, including, operating netbacks and FFO netbacks. These oil and gas metrics have been prepared by management and do not have standardized meanings or standard methods of calculation and therefore such measures may not be comparable to similar measures used by other companies and should not be used to make comparisons. Such metrics have been included herein to provide readers with additional measures to evaluate the Company’s performance; however, such measures are not reliable indicators of the future performance of the Company and future performance may not compare to the performance in previous periods and therefore such metrics should not be unduly relied upon. Management uses these oil and gas metrics for its own performance measurements and to provide security holders with measures to compare the Company’s operations over time. Readers are cautioned that the information provided by these metrics, or that can be derived from the metrics presented in this news release, should not be relied upon for investment or other purposes.

Any reference in this press release to short-term production rates are useful in confirming the presence of hydrocarbons, however such rates are not determination of the rates at which such wells will continue production and decline thereafter and readers are cautioned not to place reliance on such rates in calculating the aggregate production of Parex.

Distribution Advisory

The Company’s future shareholder distributions, including but not limited to the payment of dividends and the acquisition by the Company of its shares pursuant to an NCIB, if any, and the level thereof is uncertain. Any decision to pay further dividends on the common shares (including the actual amount, the declaration date, the record date and the payment date in connection therewith and any special dividends) or acquire shares of the Company will be subject to the discretion of the Board of Directors of Parex and may depend on a variety of factors, including, without limitation the Company’s business performance, financial condition, financial requirements, growth plans, expected capital requirements and other conditions existing at such future time including, without limitation, contractual restrictions and satisfaction of the solvency tests imposed on the Company under applicable corporate law. Further, the actual amount, the declaration date, the record date and the payment date of any dividend are subject to the discretion of the Board. There can be no assurance that the Company will pay dividends or repurchase any shares of the Company in the future.

Advisory on Forward Looking Statements

Certain information regarding Parex set forth in this document contains forward-looking statements that involve substantial known and unknown risks and uncertainties. The use of any of the words “plan”, “expect”, “prospective”, “project”, “intend”, “believe”, “should”, “anticipate”, “estimate”, “forecast”, “guidance”, “budget” or other similar words, or statements that certain events or conditions “may” or “will” occur are intended to identify forward-looking statements. Such statements represent Parex’s internal projections, estimates or beliefs concerning, among other things, future growth, results of operations, production, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, plans for and results of drilling activity, environmental matters, business prospects and opportunities. These statements are only predictions and actual events or results may differ materially. Although the Company’s management believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievement since such expectations are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause Parex’s actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, Parex.

In particular, forward-looking statements contained in this document include, but are not limited to, statements with respect to: the Company’s focus, plans, priorities and strategies; average production guidance and capital expenditure guidance; expectations and plans regarding the Cabrestero and LLA-34 blocks, the LLA-32 block, Northern Llanos – Capachos, the Arauca-81 well, and Llanos Foothills – LLA-122; the anticipated terms of the Company’s Q4 2024 regular quarterly dividend, including its expectation that it will be designated as an “eligible dividend”; and the anticipated date and time of Parex’s conference call to discuss Q3 2024 results.

These forward-looking statements are subject to numerous risks and uncertainties, including but not limited to, the impact of general economic conditions in Canada and Colombia; prolonged volatility in commodity prices; industry conditions including changes in laws and regulations including adoption of new environmental laws and regulations, and changes in how they are interpreted and enforced in Canada and Colombia; determinations by OPEC and other countries as to production levels; competition; lack of availability of qualified personnel; the results of exploration and development drilling and related activities; obtaining required approvals of regulatory authorities in Canada and Colombia; the risks associated with negotiating with foreign governments as well as country risk associated with conducting international activities; volatility in market prices for oil; fluctuations in foreign exchange or interest rates; environmental risks; changes in income tax laws or changes in tax laws and incentive programs relating to the oil industry; changes to pipeline capacity; ability to access sufficient capital from internal and external sources; failure of counterparties to perform under contracts; the risk that Brent oil prices may be lower than anticipated; the risk that Parex’s evaluation of its existing portfolio of development and exploration opportunities may not be consistent with its expectations; the risk that Parex may not have sufficient financial resources in the future to provide distributions to its shareholders; the risk that the Board may not declare dividends in the future or that Parex’s dividend policy changes; the risk that Parex may not be responsive to changes in commodity prices; the risk that Parex may not meet its production guidance for the year ended December 31, 2024; the risk that Parex’s 2024 capital expenditures may be greater than anticipated; the risk that plans and expectations related to Parex’s drilling program as disclosed herein do not materialize as expected and/or at all; the risk that Parex may not be able to increase production into year end; and other factors, many of which are beyond the control of the Company.

Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect Parex’s operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR+ website (www.sedarplus.ca).

Although the forward-looking statements contained in this document are based upon assumptions which Management believes to be reasonable, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. With respect to forward-looking statements contained in this document, Parex has made assumptions regarding, among other things: current and anticipated commodity prices and royalty regimes; availability of skilled labour; timing and amount of capital expenditures; future exchange rates; the price of oil, including the anticipated Brent oil price; the impact of increasing competition; conditions in general economic and financial markets; availability of drilling and related equipment; effects of regulation by governmental agencies; receipt of partner, regulatory and community approvals; royalty rates; future operating costs; uninterrupted access to areas of Parex’s operations and infrastructure; recoverability of reserves and future production rates; the status of litigation; timing of drilling and completion of wells; on-stream timing of production from successful exploration wells; operational performance of non-operated producing fields; pipeline capacity; that Parex will have sufficient cash flow, debt or equity sources or other financial resources required to fund its capital and operating expenditures and requirements as needed; that Parex’s conduct and results of operations will be consistent with its expectations; that Parex will have the ability to develop its oil and gas properties in the manner currently contemplated; that Parex’s evaluation of its existing portfolio of development and exploration opportunities is consistent with its expectations; current or, where applicable, proposed industry conditions, laws and regulations will continue in effect or as anticipated as described herein; that the estimates of Parex’s production and reserves volumes and the assumptions related thereto (including commodity prices and development costs) are accurate in all material respects; that Parex will be able to obtain contract extensions or fulfill the contractual obligations required to retain its rights to explore, develop and exploit any of its undeveloped properties; that Parex will have sufficient financial resources to pay dividends and acquire shares pursuant to its NCIB in the future; that Parex is able to execute its plans with respect to the Company’s drilling program as disclosed herein; and other matters.

Management has included the above summary of assumptions and risks related to forward-looking information provided in this document in order to provide shareholders with a more complete perspective on Parex’s current and future operations and such information may not be appropriate for other purposes. Parex’s actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what benefits Parex will derive. These forward-looking statements are made as of the date of this document and Parex disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

This press release contains information that may be considered a financial outlook under applicable securities laws about the Company’s potential financial position, including, but not limited to; Parex’s FY 2024 capital expenditure guidance and midpoint capital expenditure guidance; Parex 2024 guidance, including anticipated Brent crude oil average prices, funds flow provided by operations netback; funds flow provided by operations, capital expenditures, free funds flow; and the anticipated terms of the Company’s Q4 2024 regular quarterly dividend including its expectation that it will be designated as an “eligible dividend”, all of which are subject to numerous assumptions, risk factors, limitations and qualifications, including those set forth in the above paragraphs. The actual results of operations of the Company and the resulting financial results will vary from the amounts set forth in this press release and such variations may be material. This information has been provided for illustration only and with respect to future periods are based on budgets and forecasts that are speculative and are subject to a variety of contingencies and may not be appropriate for other purposes. Accordingly, these estimates are not to be relied upon as indicative of future results. Except as required by applicable securities laws, the Company undertakes no obligation to update such financial outlook. The financial outlook contained in this press release was made as of the date of this press release and was provided for the purpose of providing further information about the Company’s potential future business operations. Readers are cautioned that the financial outlook contained in this press release is not conclusive and is subject to change.

The following abbreviations used in this press release have the meanings set forth below:

bbl		one barrel
bbls		barrels
bbl/d		barrels per day
boe		barrels of oil equivalent of natural gas; one barrel of oil or natural gas liquids for six thousand cubic feet of natural gas
boe/d		barrels of oil equivalent of natural gas per day
mcf		thousand cubic feet
mcf/d		thousand cubic feet per day
W.I.		working interest

PDF available: http://ml.globenewswire.com/Resource/Download/036d688c-0a1e-4b88-a59e-ea8a6ec811a7

The MIL Network –

January 26, 2025

MIL-OSI: CEO Hwang Kyu-jin of Ionpolis Co., Ltd. Targets the Southeast Asian Market by Participating in K-Expo

Source: GlobeNewswire (MIL-OSI)

SEOUL, KOREA, Nov. 05, 2024 (GLOBE NEWSWIRE) — Ionpolis Co., Ltd., a company specializing in filter showerheads, will participate in the K-Expo held from November 14th to 17th at the Sheraton Grand Gandaria City Hotel in Jakarta, Indonesia. This expo is an important event aimed at promoting excellent Korean products and technologies worldwide and facilitating entry into global markets. It is particularly regarded as an opportunity for Korean companies to solidify their position in the Southeast Asian market.

Ionpolis, a company specializing in filter showerheads that provide clean water and a healthy shower environment, plans to actively target the Southeast Asian market through this expo. CEO Hwang kyu-jin stated, “Consumers across Southeast Asia, including Indonesia, are showing increased interest in healthy water. Therefore, we expect the demand for filter showerheads to steadily expand.” He emphasized that this expo will be a crucial opportunity to widely promote Ionpolis’s technological prowess to the world and strengthen networks with local partners.

At this expo, Ionpolis plans to exhibit various filter showerhead products. In particular, they intend to showcase their latest product lineup that reflects diverse consumer needs. Ionpolis’s filter showerheads are gaining significant attention for their ability to effectively remove harmful substances that may be present in tap water during showers. Notably, CEO Hwang kyu-jin emphasized the technological excellence and environmentally friendly design of the products, explaining why Ionpolis can be competitive in the global market.

Ionpolis has established itself as a trusted brand in the South Korean domestic market with great success. CEO Hwang kyu-jin said, “Based on the technological prowess and customer trust we’ve accumulated domestically, we are expecting a new leap forward in the Southeast Asian market.” He also added, “At this expo, we are focusing on expanding partnerships through meetings with local buyers and developing localization strategies tailored to the Indonesian market.” Through this, Ionpolis plans to go beyond simply selling products and introduce customized products that meet the needs and lifestyle patterns of local consumers.

CEO Hwang kyu-jin sees this K-Expo as a crucial turning point for Ionpolis’s global market expansion. He particularly expects successful entry into Southeast Asian markets, including Indonesia. He expressed confidence, saying, “The Southeast Asian market is a region with huge growth potential, and I believe Ionpolis’s filter showerheads can be loved by many consumers in this region.”

The K-Expo is an international trade event where various Korean industries gather to showcase innovative products and technologies. Every year, numerous overseas buyers and visitors participate. Through this expo, Ionpolis plans to introduce its innovative filter showerhead products to the world and lay the groundwork for its leap to becoming a global brand.

CEO Hwang kyu-jin stated, “This expo is an important opportunity for Ionpolis to take another step forward in the global market,” and expressed his ambition, “We will continue to establish ourselves as a brand that consumers around the world can trust and choose through continuous innovation and quality improvement.” Under Ionpolis’s global strategy and CEO Hwang’s leadership, successful expansion in the filter showerhead market is anticipated.

Media contact

Company: Ionpolis Co., Ltd

Contact: Park Ki Woong

Email: cs@ionpolis.com

Website: http://ionpolis.com/

The MIL Network –

January 26, 2025
MIL-OSI: AvePoint Launches AI Lab in Singapore to Drive Industry-Focused Innovation
Source: GlobeNewswire (MIL-OSI)

SINGAPORE, Nov. 06, 2024 (GLOBE NEWSWIRE) — AvePoint (Nasdaq: AVPT), the global leader in data management and data governance, today announced the launch of its AI Lab, supported by the Singapore Economic Development Board (EDB), to advance AI-driven research and innovation in the cutting-edge domains of artificial intelligence (AI) and machine learning. The AI Lab is set to address global industry challenges by fostering new research and embedding AI across the AvePoint Confidence Platform.

The AI Lab will serve as a central hub for high-impact research in AI, focusing on spurring industry-relevant R&D while having a global reach. Researchers, drawn from both local and international talent pools, will have the opportunity to work with AvePoint’s global teams on use cases from different countries, ensuring an international exchange of knowledge and insights.

The lab will hire over 25 AI researchers and program specialists in the next three years to support these initiatives, driving AI innovation not only in Singapore but also across the globe. It will enable local PhD-qualified researchers to work with top foreign researchers via a global rotational program to AvePoint’s HQ. Additionally, the lab will provide collaboration with a network of universities, and with AvePoint’s global product teams.

“We are excited to launch the AvePoint AI Lab, which will be instrumental in advancing AI-driven research and addressing industry needs,” said Wei Chen, Head of R&D, AvePoint. “With this lab, we aim to develop impactful solutions that benefit industries globally while enhancing our SaaS products.”

Global Focus on AI Innovation

With its international exchange element, the AvePoint AI Lab will develop AI-driven solutions for key sectors including:
- Education: AI technologies will be harnessed to transform learning and assessments, offering personalized, AI-driven academic advisors tailored to students’ levels of study.
- FinTech: AI will streamline banking processes through advanced data aggregation and fraud detection, as well as automating Know Your Customer (KYC) services for improved financial product recommendations.
The AI Lab will also develop solutions that cut across various sectors, such as enhancing collaboration and knowledge management through AI, and creating innovative recommendation systems for career development and lifelong learning, applicable to a global audience.

Philbert Gomez, Executive Director & Head, Digital Industry Singapore (DISG) said, “EDB is committed to fostering AI innovation that addresses real-world industry challenges. We are pleased to support AvePoint’s AI Lab in Singapore, which will not only advance cutting-edge AI research but also translate these innovations into practical solutions for global markets. This initiative aligns with our goal of positioning Singapore as a hub for AI talent and innovation, creating high-value job opportunities and driving the development of AI applications that can enhance productivity and competitiveness across various sectors worldwide.”

Commercialization and Global Business Impact

The AI Lab’s primary goal is to commercialize its research into AvePoint’s SaaS products, creating new business opportunities while enhancing existing product offerings to address evolving global market needs.

“As we explore new areas of AI applications, our focus remains on translating these breakthroughs into practical applications for our customers worldwide,” added Wei Chen. “This lab enables us to collaborate on a global scale, ensuring that the innovations we develop here in Singapore can impact industries around the world.”

About AvePoint

Securing the Future. AvePoint is the global leader in data management and data governance, and over 21,000 customers worldwide rely on our solutions to secure the digital workplace across Microsoft, Google, Salesforce and other cloud environments. AvePoint’s global partner program includes over 3,500 managed service providers, value-added resellers, and systems integrators, with our solutions available in more than 100 cloud marketplaces.

Disclosure Information

AvePoint uses the https://ir.avepoint.com/ website as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.

Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 and other federal securities laws including statements regarding the future performance of and market opportunities for AvePoint. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: changes in the competitive and regulated industries in which AvePoint operates, variations in operating performance across competitors, changes in laws and regulations affecting AvePoint’s business and changes in AvePoint’s ability to implement business plans, forecasts, and ability to identify and realize additional opportunities, and the risk of downturns in the market and the technology industry. You should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of AvePoint’s most recent Annual Report on Form 10-K and its registration statement on Form S-3 and related prospectus and prospectus supplements filed with the SEC. Copies of these and other documents filed by AvePoint from time to time are available on the SEC’s website, www.sec.gov. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and AvePoint does not assume any obligation and does not intend to update or revise these forward-looking statements after the date of this release, whether as a result of new information, future events, or otherwise, except as required by law. AvePoint does not give any assurance that it will achieve its expectations.

Investor Contact
AvePoint
Jamie Arestia
ir@avepoint.com
(551) 220-5654

Media Contact
AvePoint
Nicole Caci
pr@avepoint.com
(201) 201-8143

The MIL Network –
January 26, 2025
MIL-OSI China: Moves seen helping boost consumption

Source: China State Council Information Office

China’s recent introduction of a potent stimulus policy package, including dedicated efforts to shore up consumer spending, will provide massive opportunities for global businesses keen to tap into its super-sized market and facilitate the transition toward a consumption-led growth model, global executives said on Tuesday.

In particular, the China International Import Expo, running from Tuesday to Sunday in Shanghai, will play a key role in scaling up imports of quality goods and services and boosting the country’s consumption upgrading, they said during the ongoing trade event.

Noting the great confidence in China’s consumption landscape, Jean-Paul Agon, L’Oreal Group chairman, said that the optimism is rooted in China’s vision for modernization, especially driven by recent government initiatives.

Both national and local authorities have rolled out policy measures to bolster consumer confidence and unlock the full potential of domestic demand, he said.

Governmental stimulus is key to elevating consumer sentiment, and this significant support will be instrumental in upgrading consumption and driving high-quality development, he added.

China has solidified its position as the world’s second-largest consumer market for several consecutive years, and the trend continues to hold strong this year, said Li Gang, director-general of the department of market operation and consumption promotion of the Ministry of Commerce.

Consumption has remained the primary driving force for China’s economic development as the growth in consumption contributed 49.9 percent to GDP growth in the first three quarters, said the Bureau of National Statistics.

“The future of consumption in China is full of potential. That is why we at L’Oreal firmly believe that the next China is China, and that investing in China is investing in our future,” Agon said.

Notably, the CIIE has emerged as a critical channel for expanding imports of high-quality goods and services to cater to the growing demand of the Chinese people and create more development opportunities for enterprises from all over the world.

This year’s expo has set new benchmarks, drawing the participation of 3,496 exhibitors from 152 countries and regions — the highest number represented in the event’s history.

As China’s consumption-driven economic transformation continues to gain momentum, the CIIE has emerged as an indispensable gateway for international enterprises to showcase their latest innovations.

Healthcare company Abbott has utilized the expo as a significant platform to showcase hundreds of its latest products over the years, with many of them successfully transitioning from exhibition items to commercially available goods.

This year, the company is again leveraging the CIIE stage to debut dozens of new-to-market products, said Fanny Chen, vice-president of Abbott Core Diagnostics, adding that this will allow the company to better understand the evolving needs of Chinese consumers and tailor its products accordingly.

Between January and September, the total number of new consumer products launched nationwide came in at 15.18 million, representing a 13.1 percent year-on-year growth, according to data from the State Administration for Market Regulation.

The sheer size and growth potential of the Chinese market make it a highly attractive and strategic destination for any businesses looking to expand their global footprint, Chen said.

Moreover, the expo will significantly enrich China’s supply-side and bring new development frontiers for the country’s enterprises, said Wang Wei, senior research fellow at the Institute of Market Economy, which is part of the Development Research Center of the State Council.

The trade event brings together a vast array of premium global brands and service providers that will introduce a wide range of cutting-edge products, technologies and services from around the world, Wang said.

MIL OSI China News –

January 26, 2025
MIL-OSI New Zealand: Release: Government continues to fail small business

Source: New Zealand Labour Party

The Government is leaving small businesses high and dry in difficult economic times, by letting big business get away with not paying their bills.

Data from Xero shows there has been an 81 percent increase in the cost of late payments to Kiwi small businesses, now costing firms more than $827 million a year.

“That’s a huge jump from $456 million in 2021, and shows this Government is failing our small businesses. This is effectively theft and bullying by big businesses,” Labour’s small business and manufacturing spokesperson Helen White said.

“Andrew Bayly repealed Labour’s Business Payment Practices Act, which required large businesses to report how long they took to pay invoices.

“The Minister is simply out of touch if he thinks by telling Government departments to pay their bills on time that this large problem will go away.

“Removing the requirement to report now means big multinational companies can do what they want and take as long as they want to pay without any consequences.

“It’s unfair. Big businesses are forcing the little guy to carry their debt, hindering their ability to pay their own bills and wages.

“Small business represents almost 30 percent of employment and contributes more than a quarter of New Zealand’s gross domestic product. It is critical the Government supports them to thrive and grow New Zealand’s economy.

“Liquidations are at an all-time high. With the first eight months of 2024 seeing liquidations 40 percent higher than last year, the Minister should be taking urgent action to support small businesses,” Helen White said.

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MIL OSI New Zealand News –

January 26, 2025
MIL-OSI Economics: [User Guide] Balancing Work and Leisure With Galaxy Book5 Pro 360

Source: Samsung

A new era of AI-powered PCs has arrived, blending the efficiency of a laptop with the versatility of a tablet. In September,1 Samsung Electronics introduced the Galaxy Book5 Pro 360 — featuring a 360-degree rotating display that adapts to any task.

What does life look like with an AI PC powered by the advanced Intel® Core Ultra processors (Series 2)? Samsung Newsroom spent a day using the Galaxy Book5 Pro 360 to find out.

Getting Ready for Work: A Lightweight Tablet and a Large Display

▲ Galaxy Book5 Pro 360

The morning begins with browsing the news — and the Galaxy Book5 Pro 360 adds a new dimension to this daily habit. Rotating the screen 360 degrees and turning on tablet mode makes viewing content easy on this large display. The keyboard and touchpad automatically lock to prevent any accidental input.

▲ Vertical mode

When lifting the 16-inch screen vertically, the display automatically rotates to match the orientation. The 120 Hz adaptive refresh rate offers an effortless scrolling experience — almost like flipping through a digital newspaper.

▲ The Galaxy Book5 Pro 360 is built for portability.

The Galaxy Book5 Pro 360’s slim 12.8 mm thickness and lightweight 1.69 kg design makes the device easy to carry to work. Supporting up to 25 hours of video playback,2 the laptop can be used uninterrupted even if users left their charger at home.

Business Hours: Maximum Efficiency With AI
▲ Laptop mode

Upon arriving at the office, the Galaxy Book5 Pro 360 can be switched to laptop mode — in which the powerful AI performance of the Copilot+ PC3 and the Intel® Core Ultra processors (Series 2) truly shine.

▲ Microsoft Copilot key

There’s no need to worry when the workload piles up. A quick press on the keyboard’s Copilot key instantly activates Microsoft’s AI service, Microsoft Copilot. This AI assistant serves as an invaluable work partner, handling everything from searching and summarizing information to generating images.

With Microsoft’s Phone Link,4 Galaxy AI features supported on Galaxy smartphones can be accessed on the large PC screen. Furthermore, Samsung Knox provides robust protection for sensitive information.

Lunch Break: A Burst of Inspiration
▲ The S Pen is included with the Galaxy Book5 Pro 360.

Lunchtime is the perfect moment to switch back to tablet mode and jot down some ideas or sketches in the office break room. The Galaxy Book5 Pro 360 instantly transitions from a work partner to a digital canvas, offering an enjoyable sketching and writing experience with the remarkably precise S Pen.

▲ Dynamic AMOLED 2X display

After sketching, it’s time to relax by watching a video. Even when seated by a sunny window, the 3K high-resolution display with Vision Booster adjusts brightness for sharp and vivid clarity. The anti-reflective cover glass further enhances the experience by ensuring distraction-free viewing from any angle.

Effective Collaboration With Adjustable Screen Rotation
▲ The Galaxy Book5 Pro 360 opens to 180 degrees for easy screen sharing during meetings.

In the meeting room, teamwork is enhanced with the Galaxy Book5 Pro 360. The 360-degree rotating screen allows for flexible adjustments to 180 degrees, 210 degrees and more — so sharing materials and engaging with colleagues is a breeze.

▲ Quick Share

After the meeting, sending meeting minutes from a smartphone to the Galaxy Book5 Pro 360 is fast and easy. The Quick Share feature significantly saves time when transferring large files, photos and even videos without the need for additional software.

Dinner Time: A Moment To Reflect and Relax

▲ Multi Control

After work, the Galaxy Book5 Pro 360 can be transitioned back to tablet mode when journaling at the end of the day. The laptop’s keyboard and mouse can be used on a smartphone with Multi Control for effortless switching between devices. Photos from the smartphone’s gallery can be dragged and dropped onto the PC screen and inserted into the journal using the touchpad — much like adding stickers to a digital diary filled with memories.

▲ The Galaxy Book5 Pro 360 delivers a cinematic viewing experience.

At the end of the day, unwinding means curling up in bed to finally watch that long-awaited movie. The bedroom transforms into a personal theater with the Galaxy Book5 Pro 360’s sharp 3K resolution display, Quad speakers featuring Dolby Atmos® technology and larger woofer5 for deeper, richer sound.

The Galaxy Book5 Pro 360 is more than just a work tool. The device serves as a professional AI partner in the office, a personalized entertainment hub at home and a creative digital canvas for the moments in the middle. This powerful AI-powered PC sets new standards for personal computing, adapting to different lifestyles and blurring the boundary between work and leisure.

1 Availability may vary by region.2 Actual battery life may vary depending on model, network environment, usage patterns and other factors.3 Future updates will support Microsoft Copilot+ PC AI capabilities.4 Requires a Galaxy device from the Galaxy S22 Series, Flip4 or Fold4 (running One UI 6.1 or later) to connect with a Windows PC through Microsoft Phone Link. Follow the setup prompts, ensuring both devices are signed into the same Microsoft account. Microsoft Phone Link is preloaded on select Samsung Galaxy devices. The PC (Microsoft Phone Link app) requires Windows 10 or later. For optimal performance, it’s recommended that both the Samsung Galaxy device and the PC are on the same Wi-Fi network. Some mobile apps may limit content sharing on other screens. Feature availability may vary by model.5 Galaxy Book5 Pro 360 features a 38 mm woofer, while the Galaxy Book4 Pro 360 features an 18 mm woofer.

MIL OSI Economics –

January 26, 2025
MIL-OSI Asia-Pac: Speech by SJ at Hong Kong Legal Week 2024: Beyond Litigation: The Vibrant Landscape of Alternative Dispute Resolution of Hong Kong (English only)

Source: Hong Kong Government special administrative region

Speech by SJ at Hong Kong Legal Week 2024: Beyond Litigation: The Vibrant Landscape of Alternative Dispute Resolution of Hong Kong (English only)
Speech by SJ at Hong Kong Legal Week 2024: Beyond Litigation: The Vibrant Landscape of Alternative Dispute Resolution of Hong Kong (English only)
******************************************************************************************

Following are the opening remarks by the Secretary for Justice, Mr Paul Lam, SC, at Hong Kong Legal Week 2024: Beyond Litigation: The Vibrant Landscape of Alternative Dispute Resolution of Hong Kong today (November 6): Distinguished guests, ladies and gentlemen, It is a great pleasure to see you all again on day three of Hong Kong Legal Week 2024. After two days of fruitful discussions on issues relating to international law, today we will put our focus back on Hong Kong, in particular, our alternative dispute resolution (ADR) services. Today’s theme is “Beyond Litigation: The Vibrant Landscape of Alternative Dispute Resolution of Hong Kong”. Hong Kong takes pride in our world-class ADR services and legal talents. It is immensely encouraging that in the latest World Competitiveness Yearbook 2024, Hong Kong ranks fifth globally as the most competitive economy, and, most importantly, ranks first in the sub-topics of “Business Legislation” and “International Trade”. In the recent “Business Ready 2024 Report” published by the World Bank Group, Hong Kong ranks eighth in the topic of “Dispute Resolution” among the 50 economies covered. In recent years, the Government has formulated a comprehensive set of policy initiatives, which aim at deepening the mediation culture in Hong Kong. At present, mediation clauses are not mandatory in government contracts but various forms of such clauses can be found in some of them. Resolving disputes through mediation can save public funds, achieve early resolution of disputes and lessen the burden on our courts. There have been a multitude of successful instances of mediation involving the Government, from personal injuries cases, construction works disputes, adverse possession claims to medical negligence cases. Against such a background, it was first mentioned in the Chief Executive’s 2023 Policy Address and repeated in “The Chief Executive’s 2024 Policy Address” that the Government will take the lead, and incorporate mediation clauses in government contracts, while encouraging private organisations to incorporate similar clauses in their contracts. The key effect of including such clauses is that, if any dispute arises, the parties are obliged to try to resolve it by mediation first, and will resort to arbitration or litigation if, but only if, mediation fails. Taking the opportunity of today’s event with a strong emphasis on mediation, I am very pleased to announce that today, the Government will formally issue a policy statement on the incorporation of mediation clauses in all government contracts. The policy statement is a confirmation of the Government’s commitment to use mediation to resolve contractual disputes. Upon the taking effect of the policy, the Government will incorporate mediation clauses in all future government contracts; and departure from that policy will need to be justified by exceptional circumstances, for example, the existence of an inconsistent statutory provision. Supporting and monitoring mechanisms to be provided by the Department of Justice to other policy bureaux and departments will be put in place to ensure the smooth implementation of this policy. Through this policy, we do not only aim at ensuring that contractual disputes involving the Government may be resolved in a flexible, economical and time-saving manner. We also hope that, with the Government taking the lead, the policy will also encourage the private sectors to follow suit, contributing to the cultivation of a mediation culture in Hong Kong and bringing more harmony and peace to society. With this policy initiative in mind, I would like to introduce our three panels and distinguished speakers for today’s event. The first panel discussion this morning, entitled “Mediation in Action: Harmony and Peace for All”, will cover how mediation can be used effectively in various sectors of the community, for instance, in areas of family disputes, civil claims, improving relations between citizens and government departments, and not simply for resolving the disputes but, more importantly, to foster a culture that embraces mutual respect, harmony and inclusiveness. The Government has always been a staunch supporter of mediation for the community. Since 2009, we have launched the Mediate First Pledge campaign to encourage the use of mediation as the first step to resolve disputes. The Mediate First Pledge is a non-legally binding commitment by pledgees to first explore the use of mediation to resolve disputes before resorting to other means of dispute resolution. At present, over 900 companies, organisations and individuals coming from different sectors have signed the pledge. The biennial Mediation Week and Mediation Conference, coupled with the Mediate First Pledge Event, are our flagship events to explore and promote wider use of mediation to resolve disputes in Hong Kong. The last one was just held a few months ago in May this year. A very significant event about mediation with global significance took place in Hong Kong on October 17, less than a month ago. On that day, the four-day Fifth Session of the Elaboration of the Convention on the Establishment of The International Organization for Mediation (IOMed) was concluded. Representatives from various countries completed negotiations on the Convention at that session and decided that the signing ceremony for the Convention will be held in Hong Kong in 2025. The IOMed is the first intergovernmental international legal body dedicated to settling international disputes by mediation. With the support of our motherland China and the agreement of other state parties, it was agreed that the headquarters of the International Organization for Mediation will be established in Hong Kong in 2025. This represents a strong vote of confidence in Hong Kong and a clear acknowledgement from the international community of Hong Kong’s status as an international dispute resolution centre. I am delighted that Dr Sun Jin, Director-General of the International Organization for Mediation Preparatory Office, will deliver a keynote speech before lunch today. Later this afternoon, we will discuss ADR in the context of artificial intelligence (AI). While there is no doubt that the use of AI may enhance the efficiency in resolving disputes, it is vital to ensure that the integrity of the dispute resolution process will not be compromised by the misuse of AI, whether intentionally, negligently or even inadvertently. Our distinguished speakers will consider the opportunities and risks associated with the use of artificial intelligence in ADR. They will also discuss the adoption of lawtech by Hong Kong practitioners, the benefits of lawtech in improving legal services and enhancing access to justice. Our last panel of today’s event is on sports disputes. As stated in “The Chief Executive’s 2024 Policy Address”, with our thriving development of sports activities and the industry, sports disputes have become increasing complicated. Hence, Hong Kong will explore establishing a sports dispute resolution system and promoting sports arbitration. In this session, our speakers will share their experiences and insights regarding the demand, application, effectiveness and challenges of sports ADR. To round up today’s events, we will have the 2024 Hong Kong Mediation Lecture at the office of Herbert Smith Freehills this evening. Professor Shahla Ali, through her perspective as a mediator with the World Bank and the Energy Community Panel, would explore the unique challenges and opportunities involved in the use of mediation in deals relating to natural resources, particularly in the Belt and Road Initiative, and how mediation can contribute to ensure that energy and natural resources agreements are environmentally sustainable and foster collaborative approaches. While today’s programmes are focused on mediation, we must not forget that Hong Kong has always been promoting and expanding our arbitration services proactively not just in Hong Kong but also the Mainland and other countries. Two examples would suffice. First, the Hong Kong Arbitration Week was just been held between October 21 and 25. Second, the Hong Kong International Arbitration Centre has recently announced its imminent opening of a Beijing office, being its second office in the Mainland since the opening of its Shanghai office back in 2015. As I mentioned on different occasions previously, Hong Kong is an international legal dispute resolution centre in which numerous options, all of top quality, are made available to the parties to disputes. On this note, let me conclude by wishing you very fruitful exchanges and discussions in today’s sessions to come. Thank you very much.

Ends/Wednesday, November 6, 2024Issued at HKT 11:15

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MIL OSI Asia Pacific News –

January 26, 2025
MIL-OSI China: Singapore firms take long-term view towards Chinese market

Source: China State Council Information Office 3

Singapore firms take a long-term view towards China, a market with huge potential and growing sophistication, and regard investing in the country as a long game, according to the Singapore Business Federation (SBF) CEO.

“The number that I have been told many times is that China is home to over 400 million middle-income population. Market growth might not always be in a rocketing state. However, the world’s second-largest consumer market will still grow,” SBF CEO Kok Ping Soon told Xinhua during the 7th China International Import Expo (CIIE).

Led by the SBF, a delegation of nearly 400 representatives from 44 Singaporean businesses are attending the CIIE held from Nov. 5 to Nov. 10 this year, which marks the seventh year for the SBF’s delegation to participate in the world’s first national-level expo on import.

“Some of the previous delegation participants have ‘graduated’ from the delegation by outgrowing the Singapore Pavilion and setting up their own booths at other exhibition areas of CIIE,” Kok said.

With a total exhibition area of close to 912 square meters, the Singapore Pavilion spans the Consumer Goods Hall, Food & Agricultural Products Hall, and Trade in Services Hall.

“We are very encouraged to see some of those companies are no longer just in the food and beverage sector. We are starting to see companies responding to China’s call for more high-quality investment in fields like biotech,” he noted.

China has been Singapore’s largest trading partner for 11 consecutive years. Singapore is China’s second-largest foreign investment source and the top destination for Chinese overseas investment.

Kok said there are broad areas of collaboration between the two countries, such as green transformation, AI security and governance, and smart city development.

According to the SBF National Business Survey 2023/2024, China is one of the top three countries that Singapore businesses have a presence in and is among the top three countries in Asia that Singapore businesses are looking to expand into.

China has intensified its opening up in the medical sector to meet the growing healthcare demands of the population. The country announced in September that it would give the green light to establishing wholly foreign-owned hospitals in some cities like Beijing and Shanghai.

“The opening up of the healthcare sector in China presents tremendous opportunity for us,” Kok said, citing the case of Mirxes, a CIIE participant seeking local partnerships such as promoting its solution to screen early-stage stomach cancer, drawn by China’s huge market potential and enhanced intellectual property protection.

RMA Contracts, a Singapore business process outsourcing company, will be using the CIIE platform to tap into the China-Singapore Tianjin Eco-City, a representative cooperation project between the two countries, according to Kok.

Another interesting thing Kok observed is that Singapore companies are looking beyond penetrating the Chinese market via the CIIE, citing examples of participating companies seeking cooperation with non-Chinese firms.

Kok said CIIE is an important platform for reaching the global market. “You don’t just come in thinking to connect with China. If you broaden your mind, you can look for partners in your home country or even outside of China, which is the charm of a platform like CIIE.”

MIL OSI China News –

January 26, 2025
MIL-OSI Asia-Pac: Speech by SITI at Seminar on Life Science and Global Health “Innovation Â·Inclusion Â· Impact” (English only) (with photo)

Source: Hong Kong Government special administrative region

Following is the speech by the Secretary for Innovation, Technology and Industry, Professor Sun Dong, at the Seminar on Life Science and Global Health “Innovation ·Inclusion · Impact” on November 5 (Ottawa time):

Ms Wu (Board Director of Hong Kong Canada Business Association, Ottawa, and Department Chair of Algonquin College School of Business and Hospitality, Ms Sandra Wu), Mr Eng (President of Hong Kong Canada Business Association, Ottawa, Mr Frank Eng), Senator Woo (Senator of Canada, Mr Woo Yuen-pau), Mr McLean (Member of the House of Commons of Canada, Mr Greg McLean), Mr Arya (Member of the House of Commons of Canada, Mr Chandra Arya), distinguished guests, ladies and gentlemen,

Good evening. It is my great pleasure to join you all here today in Ottawa and in such a historic building for the Seminar of Life Science and Global Health, to explore the vital intersection of life science and global health, through the lenses of innovation, inclusion, and impact.

Over the years, Hong Kong has established close ties with Canada in many façades, say economically, culturally and people-to-people bond. We share many similarities and a wide range of common interests. While Canada has long been recognised as a powerhouse in the field of life and health science, Hong Kong is emerging as an international innovation and technology (I&T) centre, as well as a health and medical innovation hub in the Asia-Pacific region. Taking this opportunity, I would like to give you a brief update on Hong Kong’s I&T landscape and the opportunities that lie ahead in the field of life and health technology.

Promoting I&T development is of top priority on the policy agenda of the Hong Kong Special Administrative Region (SAR) Government. Back in December 2022, we promulgated the Hong Kong I&T Development Blueprint, which clearly indicated our development direction to perfect the I&T ecosystem by promoting positive interaction between upstream for basic research, midstream for technology transfer, and downstream for all industries development. We greatly support the development of technology industries with an edge and of strategic importance.

Life and health technology is one of our focuses.

Hong Kong possesses professional medical services and a well-established healthcare system. Supported by five top 100 universities and two top 40 medical schools in the world, together with a multitude of world-class experts in the life and health disciplines, Hong Kong enjoys significant advantages in developing life and health technology.

To capitalise on our strength in basic research and foster global I&T collaboration, Hong Kong’s flagship R&D (research and development) initiative, namely InnoHK, has built collaboration with more than 30 world-renowned universities and research institutes from 12 economies, including Canada of course, and set up a total of 29 InnoHK research laboratories. Of these, 16 of them focus on healthcare-related technologies and have brought notable scientific achievements and benefits to society. For example, the Centre for Eye and Vision Research, which was jointly established by the University of Waterloo and Hong Kong Polytechnic University, is one of them.

Furthermore, we will launch a HK$6 billion subsidy programme, roughly $1.1 billion Canadian dollars, to support setting up cross-institutional and multidisciplinary life and health technology research institutes in Hong Kong. We have also earmarked HK$3 billion, that is approximately $540 million Canadian dollars, for the Frontier Technology Research Support Scheme to accelerate cross-disciplinary researches in various frontier technology fields, including clinical medicine and health, gene and biotechnology, spearheaded by the local funded universities and renowned scholars from around the world. These initiatives will empower us to create a vibrant research atmosphere with the participation of global talent, thereby strengthening Hong Kong’s capability for forward-looking and disruptive scientific researches.

A few weeks ago, the Chief Executive of the Hong Kong SAR Government announced his 2024 Policy Address, in which a series of new initiatives are introduced to accelerate the pace of the development of Hong Kong into an international I&T centre. Among them, we will launch a new HK$10 billion I&T Industry-Oriented Fund, which is equivalent to around $1.8 billion Canadian dollars, to form a fund-of-funds to channel more market capital to invest in specified emerging and future industries of strategic importance, including life and health technology. Indeed, we launched a HK$10 billion Research, Academic and Industry Sectors One-plus Scheme last year to accelerate the transformation and commercialisation of outstanding research outcomes from universities, and another HK$10 billion New Industrialisation Acceleration Scheme this year to encourage industries of strategic importance, including life and health technology, to set up new smart production facilities in Hong Kong. Just these three funding schemes alone, totalling HK$30 billion, almost $5.4 billion Canadian dollars in financial commitment, demonstrates our strong commitment to promoting industry development and placing a strong emphasis on investment in the I&T sector.

Adequate sites and sophisticated infrastructure are equally important for the long-term I&T development. Located in the border area between Hong Kong and Shenzhen, the Hetao Hong Kong Park, or the Loop in short, will serve as an I&T hub of strategic value connecting Mainland China and the international community. We will set up the InnoLife Healthtech Hub in the Loop to attract top-notch research teams and talent from around the world. We will allocate another HK$2 billion to support the InnoHK research clusters to establish presence in the Loop, and HK$200 million to support start-ups in the Loop engaging in life and health technology in the form of incubation and acceleration programmes.

Besides, new I&T land will be available in San Tin Technopole in the northern part of Hong Kong to support I&T industry development, creating synergy with the nearby Shenzhen I&T Zone. With the new I&T platform in the Loop and new I&T land in San Tin Technopole, coupling with the gigantic market of the Guangdong-Hong Kong-Macao Greater Bay Area, there are indeed many I&T opportunities and possibilities lying ahead in Hong Kong.

While the global economic and political situation is becoming more complicated, Asia will still play a pivotal role in the technological revolution. Under the principle of “one country, two systems” and with a strategic geographical location on the doorstep of Mainland China, Hong Kong is the best platform to connect I&T talent and companies from Mainland China and around the world. Whether you are looking for job opportunities, capital or investment, there is always a place for you in Hong Kong. I strongly believe that apart from life and health technology, there is a lot of room for bilateral collaboration between Hong Kong and Canada, say, in green technology, renewable energy, environmental protection and sustainability, where Canada has an edge.

Ladies and gentlemen, the challenges we face in global health are complex and multifaceted. By fostering global I&T collaboration, we amplify the impact brought by innovation and inclusion, from zero to one, from one to many, to unlock new possibilities and drive the next wave of technological advancement for the betterment of the mankind. Hong Kong stands ready to play the promising role as a “super-connector” and a “super value-adder” to create value and impact to the world.

In closing, I would like to express my gratitude to Hong Kong – Canada Business Association (Ottawa) and Invest Hong Kong for organising today’s seminar. I look forward to the fruitful collaborations that will arise from this seminar. Thank you very much.

MIL OSI Asia Pacific News –

January 26, 2025
MIL-OSI Banking: Coca-Cola ad campaigns during Q3 2024 celebrate culture, togetherness and refreshment, reveals GlobalData

Source: GlobalData

Coca-Cola ad campaigns during Q3 2024 celebrate culture, togetherness and refreshment, reveals GlobalData

Posted in Business Fundamentals

Coca-Cola’s advertising campaigns during the third quarter (Q3) (01 July to 30 September) of 2024 showcases a diverse range of strategies tailored to specific cultural contexts and demographics. This targeted approach reflects the beverage giant’s understanding of the diverse needs and preferences of its global consumer base, according to the Global Ads Platform of GlobalData, a leading data and analytics company.

Shreyasee Majumder, Social Media Analyst at GlobalData, comments: “From leveraging the excitement of cultural festivals to partnering with other iconic brands, Coca-Cola demonstrated its commitment to connecting with consumers on a deeper level. The company utilized limited-edition products, culturally relevant symbolism, and strategic partnerships to enhance brand engagement and drive sales across different markets.”

The campaigns effectively tap into cultural moments and values, ranging from the excitement of K-pop to the traditions surrounding Chinese New Year and the Nepalese festival of Dashain. The strategic partnerships with McDonald’s and Oreo further amplify Coca-Cola’s reach, offering compelling flavor combinations and enhancing the consumer experience.

Below are the key focus areas of Coca-Cola’s advertisements, revealed by GlobalData’s Global Ads Platform:

Limited-edition products and collaborations: Coca-Cola’s Q3 advertising showcased several limited-edition products, creating a sense of urgency and exclusivity. The “Coca-Cola K-Wave” targeted K-pop fans with a unique flavor and design, while the Oreo collaboration introduced a novel flavor combination and emphasized shared moments of indulgence. These limited-time offerings generate excitement and encourage consumer engagement through the fear of missing out.

Emphasis on festive celebrations and cultural traditions: Several ads tapped into the spirit of cultural celebrations. The “Dashain Dhamaka” campaign connected Coca-Cola with the Nepalese festival of Dashain, emphasizing togetherness and shared experiences. Similarly, the Chinese New Year campaign associated Coca-Cola with good fortune and family traditions, reinforcing the brand’s relevance in specific cultural contexts.

Strategic partnerships and combo meals: Coca-Cola strategically partnered with McDonald’s to promote the pairing of a Double Beef Burger with Coca-Cola Zero Sugar. This collaboration broadened reach and presented Coca-Cola as the ideal complement to a satisfying meal. The emphasis on a zero-sugar option also catered to health-conscious consumers, expanding the brand’s appeal.

Visual storytelling and appealing aesthetics: Across all campaigns, Coca-Cola utilized vibrant visuals, dynamic animation, and appetizing close-ups to enhance the perceived refreshment and desirability of its products. The use of culturally relevant colors and imagery further amplified the emotional connection with target audiences.

Promotional offers and price discounts: Several ads highlighted promotional offers and price discounts, creating an immediate incentive for purchase. The Dashain Dhamaka campaign offered a discounted price on 2-liter bottles, while the Chinese New Year campaign offered bonus gifts with purchase. These promotions drive sales and reward consumer loyalty.

Majumder concludes: “By combining limited-edition products, targeted promotions, and culturally relevant messaging, Coca-Cola reinforces its position as a globally recognized and beloved brand.”

MIL OSI Global Banks –

January 26, 2025
MIL-OSI Asia-Pac: SITI continues visit to Canada (with photos)

Source: Hong Kong Government special administrative region

The Secretary for Innovation, Technology and Industry, Professor Sun Dong, arrived in Ottawa to continue his visit to Canada on November 5 (Ottawa time).

Professor Sun attended the Seminar on Life Science and Global Health, themed “Innovation · Inclusion · Impact” and organised by the Hong Kong-Canada Business Association (Ottawa Chapter) and Invest Hong Kong, at the Parliament Building. In his keynote speech, Professor Sun said while Canada has long been recognised as a powerhouse in the field of life and health science, Hong Kong is also emerging as an international innovation and technology (I&T) centre. The Hong Kong Special Administrative Government strives to support the development of life and health technology as one of the technology industries with an edge and of strategic importance.

Professor Sun outlined a number of significant advantages that Hong Kong enjoys in developing life and health technology. Hong Kong’s flagship research and development initiative, InnoHK, has built collaboration with more than 30 world-renowned universities and research institutes from 12 economies, including Canada, and set up a total of 29 research laboratories with 16 of them focusing on healthcare-related technologies. A $6 billion subsidy programme to support local universities to set up life and health technology research institutes and a $3 billion Frontier Technology Research Support Scheme to accelerate cross-disciplinary researches are in place.

“Adequate sites and sophisticated infrastructure are equally important for long-term I&T development. We will set up the InnoLife Healthtech Hub in the Hetao Hong Kong Park (the Loop) to attract top-notch research teams and talent from around the world. We will allocate another HK$2 billion to support the InnoHK research clusters to establish presence in the Loop, and HK$200 million to support start-ups in the Loop engaging in life and health technology in the form of incubation and acceleration programmes.” Professor Sun added that new I&T land will be available in San Tin Technopole to support I&T industry development, creating synergy with the nearby Shenzhen I&T Zone.

Professor Sun continued that having the distinctive advantages of enjoying strong support of the motherland and being closely connected to the world under “one country, two systems”, Hong Kong is the best platform to connect I&T talent and companies from the Mainland and around the world. He strongly believes that apart from life and health technology, there is a lot of room for bilateral collaboration between Hong Kong and Canada in fields such as green technology, renewable energy, environmental protection and sustainability.

Professor Sun also met with Canada-Hong Kong Parliamentary Friendship Group Member and Senator of Canada, Mr Woo Yuen-pau; the Group Chair and Member of Parliament of Canada, Mr Greg McLean; and Member of Parliament of Canada Mr Chandra Arya, at the Parliament Building. They had a brief exchange of views on areas of common interest, such as enhancing further collaboration on science, innovation and research between Hong Kong and Canada, as well as people and cultural exchanges between the two places.

Professor Sun also called on the Chinese Ambassador to Canada, Mr Wang Di, to brief him on the progress of building Hong Kong into an international I&T centre, as well as the city’s continuous efforts in integrating into national I&T development. Professor Sun said that Hong Kong spares no effort in developing new quality productive forces tailored to local conditions, including optimising the strategy and institutional set-up for the development of new industrialisation, and increasing investment for I&T industries.

Professor Sun will proceed to visit Waterloo on November 6 (Toronto time).

MIL OSI Asia Pacific News –

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

Source: Hong Kong Government special administrative region

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

MIL OSI Asia Pacific News –

January 26, 2025
MIL-OSI 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 –

January 26, 2025

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

Source: GlobeNewswire (MIL-OSI)

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

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

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

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

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

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

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

Crédit Agricole Group

Group activity

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

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

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

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

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

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

Continued support of transition

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

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

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

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

Group results

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Regional banks

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

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

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

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

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

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

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

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

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

Crédit Agricole S.A.

Results

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Activity of the Asset Gathering division

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

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

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

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

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

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

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

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

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

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

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

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

Results of the Asset Gathering division

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

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

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

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

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

Insurance results

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

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

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

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

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

Asset Management results

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

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

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

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

Wealth Management results³³

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

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

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

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

Activity of the Large Customers division

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

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

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

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

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

Results of the Large Customers division

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

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

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

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

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

Corporate and Investment Banking results

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

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

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

Asset servicing results

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

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

Specialised financial services activity

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

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

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

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

Specialised financial services’ results

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

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

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

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

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

Personal Finance and Mobility results

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

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

Leasing & Factoring results

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

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

Crédit Agricole S.A. Retail Banking activity

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

Retail banking activity in France

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

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

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

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

Retail banking activity in Italy

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

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

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

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

International Retail Banking activity excluding Italy

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

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

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

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

French retail banking results

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

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

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

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

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

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

International Retail Banking results⁴⁷

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

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

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

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

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

Results in Italy

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

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

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

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

International Retail Banking results – excluding Italy

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

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

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

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

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

Corporate Centre results

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

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

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

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

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

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

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

Financial strength

Crédit Agricole Group

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

During the third quarter 2024:

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

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

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

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

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

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

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

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

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

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

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

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

TLAC

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

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

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

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

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

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

MREL

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

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

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

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

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

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

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

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

Crédit Agricole S.A.

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

During the third quarter 2024:

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

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

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

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

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

Liquidity and Funding

Liquidity is measured at Crédit Agricole Group level.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The decrease in liquidity reserves was mainly due to:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Crédit Agricole Group – Specific items

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

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

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

Crédit Agricole S.A. – Specific Items

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Appendix 4 – Data per share

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

(€m)		Q3-2024	Q3-2023	9M-24	9M-23

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


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

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

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

Alternative Performance Indicators⁵⁸

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Disclaimer

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

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

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

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

Applicable standards and comparability

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

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

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

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

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

Financial Agenda

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

Contacts

CREDIT AGRICOLE PRESS CONTACTS

CRÉDIT AGRICOLE S.A. INVESTOR RELATIONS CONTACTS

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

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


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

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

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

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

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

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

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

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

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

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

Attachment

CASA_PR_2024-Q3 results

The MIL Network –

January 26, 2025

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

Source: Hong Kong Government special administrative region

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

Question:

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

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

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

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

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

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

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

Reply:

President,

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

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

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

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

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

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

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

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

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

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

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

MIL OSI Asia Pacific News –

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

Source: Hong Kong Government special administrative region

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

Question:

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

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

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

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

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

Reply:

President,

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

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

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

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

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

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

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

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

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

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

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

MIL OSI Asia Pacific News –

January 26, 2025
MIL-OSI Russia: Excursion without a reason: Russpass offers original ideas for walks around the capital

Translation. Region: Russian Federation –

Source: Moscow Government – Government of Moscow –

The online publication “Russpass-magazine” has published a selection of short routes around Moscow. City residents and tourists are invited to arrange city tour for the price of one trip with the Troika card, as well as take a walk near one of the city’s train stations.

Stations and squares

For many, getting to know Moscow begins at the train stations, where not only long-distance trains arrive, but also express trains from airports. Tourists are offered excursions to while away the time between trips.

So, you can take a fascinating walk by arriving at Paveletsky Station. Tourists from Saratov, Tambov, Volgograd and other cities of Russia, as well as passengers from Domodedovo Airport, arrive here. Not far from the station is Zatsepskaya Square, and if you go on foot in a straight line, then in half an hour you can reach Red Square. You can also take tram No. 38 and go to Krutitsky Podvorye. An alternative option is to stay in the vicinity of Paveletsky Station and go explore the alleys of the Zamoskvorechye district.

The city from the tram window

Interesting routes are not only in the center of the capital. Russpass offers to travel from the Voykovskaya metro station on tram No. 27. From the panoramic window you can see historical buildings and untouched islands of living nature. The tram goes past the complex of the Russian State Agrarian University – Moscow Agricultural Academy named after K.A. Timiryazev through former academic fields and forest dachas to the Dmitrovskaya metro station.

A Walk Around VDNKh and the History of Food: The Most Popular Audio Tours from the Russpass Service Travel Builder: Russpass Helped Tourists Plan 38,000 Trips

Service Rosspas launched in 2020. In four years, it has become an entire tourism ecosystem, with the help of which it is easy to plan a trip, book tickets and a hotel, and select excursions. Interesting facts about traveling in Russia are posted in the online publication “Russpass-magazine”. In addition, since June 2023, a portal has been operating for representatives of the tourism industry “Russpass. Business”.

The service was created on the initiative of the Moscow Government. The project is supervised by the capital Tourism Committee together with the city Department of Information Technology.

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

Please note; This information is raw content directly from the information source. It is accurate to what the source is stating and does not reflect the position of MIL-OSI or its clients.

http://vvv.mos.ru/nevs/item/146208073/

MIL OSI Russia News –

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

Source: Hong Kong Government special administrative region

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

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

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

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MIL OSI Asia Pacific News –

January 26, 2025

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