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Category: Intelligence Agencies

  • MIL-OSI Security: Acting Attorney General Matthew Whitaker Delivers Remarks to State and Local Law Enforcement on Efforts to Combat Violent Crime and the Opioid Crisis

    Source: United States Attorneys General 13

    Remarks as prepared for delivery

    Thank you, Marc for that kind introduction and thank you for your leadership as United States Attorney.  You are carrying the torch on a lot of the work that we did back when I was U.S. Attorney for this district.

    Thank you also to:

    • Commissioner Roxann Ryan and Director of Investigative Operations Kevin Winker of the Iowa Department of Public Safety,
    • Acting Director Joyce Flinn of the Iowa Department of Homeland Security and Emergency Management,
    • Marshall County Sheriff Steve Hoffman,
    • Marion County Sheriff Jason Sandholdt,
    • Chief Dana Wingert and Major Stephen Waymire of the Des Moines Police Department,
    • Chief Chad McCluskey of Windsor Heights,
    • Chief Al Pizzano of Pleasant Hill,
    • Chief John Quinn of Waukee,
    • Chief Greg Stallman of Altoona,
    • Chief Michael Tupper of Marshalltown,
    • Polk County Attorney John Sarcone,
    • David Lorenzen, Motor Vehicle Enforcement Chief with the Iowa Department of Transportation, and
    • Polk County Chief Medical Examiner Dr. Gregory Schmunk.

    Thank you all for being here.

    It is good to be back. 

    This is the office where I served for nearly five and a half years.  It was the honor of a lifetime, and it was an experience that only deepened my appreciation for law enforcement.

    I worked every day with officers from the federal, state, and local levels—including people in this room—to find evidence of crime and to keep the people of Iowa safe.

    I am proud of what we accomplished together.

    I am especially proud because I have seen the results firsthand.  This is the community where I grew up, where I played football, where I went to law school and business school, where I ran a small business, and where I’m still raising my family.  I know that Iowans are safer because of what we achieved.

    Some of you may have heard that there have been some changes at the Department in recent weeks.  One thing that hasn’t changed is our unwavering support for state and local law enforcement.

    The Trump administration will always be a law-and-order administration.  We recognize that public safety is government’s first and most important task—and we honor the role that law enforcement officers play in protecting our society.

    Our federal officers are known all over the world for their professionalism and their competence.

    But we are well aware that about 85 percent of the law enforcement officers in this country serve at the state and local levels.  It is simple arithmetic that we cannot succeed without you.

    That is why this Department of Justice under President Donald Trump has given you more resources and more tools to help you succeed.

    One of President Trump’s very first Executive Orders to Attorney General Sessions was to “back the blue” and enhance the safety of law enforcement officers in this country.

    We have embraced that goal and we’ve been faithful to it every day.

    Over these last two years we have helped hire hundreds of police officers across America, including 10 here in Iowa.

    We have reinvigorated the Project Safe Neighborhoods program, which directs our U.S. Attorneys to work with you to develop a customized crime reduction plan—and to target the most violent criminals in the most violent areas.

    I ran this program as United States Attorney and I know that it works.  We are more successful at the federal level when we listen to our partners at the state and local levels.

    Our strong law enforcement partnerships are paying off.

    In fiscal year 2017, the Department of Justice prosecuted more violent criminals than in any year on record to that point.

    And then, in fiscal year 2018—we broke that record by a margin of 15 percent.

    In fiscal year 2018, we charged the highest number of federal firearm defendants in Department history.  We broke that record by a margin of 17 percent.  We charged nearly 20 percent more firearm defendants than we did in 2017 and 30 percent more than we charged in 2016.

    Over the past fiscal year we also broke records for fentanyl prosecutions and for illegal entry by illegal aliens.

    At the same time, we increased the number of white collar defendants and the number of drug defendants overall.  And we increased the number of deported illegal aliens prosecuted for re-entering our country by 38 percent.

    These are remarkable achievements.  There can be no doubt that they have had an impact on this nation.  And we’ve achieved them together with you, our partners.

    The evidence is already coming in that we’ve reduced violent crime and drug overdose deaths.

    The FBI’s violent crime numbers for 2017 show that violent crime and murder both went down in 2017 after increasing for two years in a row.  And for 2018, one estimate projects that the murder rate in our 29 biggest cities will decline by 7.6 percent.

    The DEA’s National Prescription Audit shows that in the first eight months of 2018, opioid prescriptions went down by nearly 12 percent—and last year they went down by seven percent.

    While 2017 saw more overdose deaths than 2016, overdose deaths declined by two percent from September 2017 to March 2018, the most recent month for which we have data.

    This is what we can achieve when we work together.

    Our work is not finished.  We are going to continue to support our state and local partners—and I believe that our partnerships are going to continue to deliver results.

    I want to conclude with something a mentor of mine used to say every time he spoke to law enforcement, and I believe it too: we have your back, and you have our thanks.

    MIL Security OSI –

  • MIL-OSI Security: Acting Attorney General Matthew Whitaker Delivers Remarks at the Department of Justice’s Veterans Appreciation Day Ceremony

    Source: United States Attorneys General 13

    Remarks as prepared for delivery

    Thank you, Lee for that kind introduction and thank you for your 36 years of service to the Department of Justice and your 12 years of stewardship of the Department’s finances.

    I also want to thank the Joint Armed Forces Color Guard for the Presentation of the Colors and Girale Wilson-Takahashi from our COPS office for that beautiful rendition of the National Anthem.

    Thank you all for being here for the Department’s eighth Veterans’ Appreciation Day.

    Above all, thank you to the 150 veterans who have joined us today.

    Thank you for your service in our Armed Forces—and thank you for your service in this Department.

    At this Department of Justice, we recognize that public safety is government’s first and most important priority.

    The men and women of our Armed Forces—Army, Navy, Marines, Air Force, Coast Guard—risk their lives for that mission every day, and each of us owes them a debt of gratitude.

    This Department also works for public safety by enforcing our laws—but we know that our work depends upon the bravery and sacrifice of our troops.

    We are proud of each one of the 27,000 veterans who serve in this Department.

    Your skills, your patriotism, and above all your selfless character make you the kind of employees that any employer would want.  But you’ve chosen to continue to serve your country—you’ve chosen to work in the Department of Justice.  I commend you for that.

    We are well aware that heroes walk these hallways.

    Outside of my office is a memorial with the names of colleagues who during World War II made the ultimate sacrifice in the defense of our grateful country.

    I also know firsthand of the heroes we have in department, because I am now literally surrounded by them each and every day.  Most of the FBI agents in my security detail are veterans.

    That includes Special Agent Damon Flores, who is a former Navy rescue swimmer in the Mediterranean and in the Persian Gulf.  After his service in the Navy, he went to college on the GI Bill and got an accounting and finance degree.  He quickly realized that accounting was not as exciting as being a rescue swimmer.  He wanted a little more adventure, and so he signed up with the FBI.  He marked his 14th anniversary with the Bureau just yesterday.  Damon, congratulations.

    We’re also proud to be the home of Maura Quinn of DEA.

    Maura graduated from the Naval Academy, and then in flight school she chose to fly helicopters so she could pilot a combat aircraft.  After graduation she deployed twice—first with a carrier battle group to the Indian Ocean and then in support of Operation Desert Shield. 

    She served as an instructor pilot for two years and went to law school at night.  As if she weren’t busy enough, she gave birth to two children before graduation.

    After law school, she joined the United States Attorney’s Office in the Southern District of California and then the FBI’s Office of General Counsel.  She then served for eight years in the Chief Counsel’s office at DEA.  Over that time she became an expert in technology law—and today she serves as DEA’s Deputy Assistant Administrator for Information Systems.  Maura, thank you for your service.

    I could go on and on.  There are roughly 26,998 more examples that I could talk about.

    But this is the caliber of people that we are so grateful to have in this Department.

    Through our Veterans Employment Office in the Justice Management Division, we have made hiring veterans a priority and helped them make the transition into careers with the Department.

    We want more exemplary employees like Damon Flores and Maura Quinn.

    We will continue to invest in our heroes—because you’re a good investment.  You are, in the words of General John Kelly, “the very best this country produces.”

    Now I have the honor of introducing someone who knows that as well as anyone.

    Our keynote speaker is the Director of Military Force Management Policy for the Air Force, Major General Robert LaBrutta.  You might think of him as the Air Force’s head of human resources.

    Major General LaBrutta has served in the Air Force for the last 37 years.

    Today he is responsible for setting force management policy that affects more than half a million Air Force personnel—issues like assignments, evaluation, readiness, and transitioning back to civilian life.

    Before this assignment he served as Commander of the Second Air Force at Keesler Air Force Base in Biloxi, Mississippi.

    He has earned a number of distinguished awards including the Defense Superior Service Medal, the Legion of Merit, the Meritorious Service Medal, the Air Force Commendation Medal, the Air Force Achievement Medal, and many others.

    Please join me in welcoming Major General Robert LaBrutta.

    MIL Security OSI –

  • MIL-OSI Security: Assistant Attorney General Makan Delrahim Remarks at the American Bar Association Antitrust Section Fall Forum

    Source: United States Attorneys General 13

    “November Rain”: Antitrust Enforcement on Behalf of American Consumers and Taxpayers

    Good morning, and thank you for the kind introduction.  I’d like to thank the American Bar Association for your invitation to this year’s Fall Forum and Deb Garza for her leadership of the Section this year. 

    I find it hard to believe it’s been only a little more than a year since I was confirmed as AAG and spoke at last year’s Fall Forum.  Over the past year, the Antitrust Division has been hard at work on behalf of American consumers. We made a number of significant enforcement actions this week, but before I turn to those, I’d like to update you on a few recent changes in the Front Office. 

    First, Michael Murray recently joined us from the Deputy Attorney General’s office, where he served as Associate Deputy Attorney General.  Mike now will be a Deputy Assistant Attorney General in the Front Office, where he will be overseeing our Appellate Section and our 4A damage actions on behalf of the American taxpayer.  Mike has significant appellate experience, including as a law clerk for Justice Anthony Kennedy. 

    In addition, our new acting Deputy Assistant Attorney General for Economics is Jeff Wilder.  Jeff received his Ph.D. from MIT and has distinguished himself as an outstanding economist serving as one of the leaders in the Division’s Economic Analysis Group, and we’re happy to have him join us in the Front Office.

    Some of you may remember that at last year’s Fall Forum, I spoke about antitrust and deregulation.  In those remarks, I focused on remedies, including our preference for structural remedies and our emphasis on making consent decrees more enforceable.  I also discussed our commitment to the view that antitrust enforcement is law enforcement, not industrial regulation, and that the Antitrust Division should strive to accomplish its law enforcement mission in the most efficient and effective way possible.  The Division has stood by those principles. 

    More recently, in a speech at Georgetown, I announced several improvements to the merger review process.  We are making good on those changes as well.  Today, we posted a model timing agreement and a model voluntary request letter on our website.  Those documents increase transparency and predictability and will help merging businesses and their counsel know what to expect as part of the merger review process.  We’ve also begun tracking the duration of merger reviews more carefully, so that we can monitor our performance and factors affecting it.  You will recall our goal is to resolve investigations within six months of filing, provided that the parties cooperate and comply with our document and data requests during the entire process.

    I would like to focus the remainder of my remarks today on four important settlements in the last week that reflect the Antitrust Division’s commitment to vigilant and effective antitrust enforcement. 

    As some of you may have seen, the Division announced just yesterday a set of global settlements with three South Korean companies.  Those unprecedented settlements resolve criminal charges and civil claims arising from a bid-rigging conspiracy that targeted fuel supply contracts to U.S. military bases in South Korea.  They are the result of tremendous hard work in parallel criminal and civil investigations by the Antitrust Division’s Washington Criminal I Section, the Transportation, Energy, and Agriculture Section, and the Fraud Section of the Civil Division.  We were assisted ably by our partners at the FBI and the Defense Criminal Investigative Service.

    The United States currently maintains numerous military bases in South Korea, housing American soldiers, marines, airmen, and sailors in the region.  These military bases need fuel for various purposes, and two Department of Defense agencies, the Defense Logistics Agency (DLA) and Army and Air Force Exchange Service (AAFES), contract with South Korean companies to supply fuel to the numerous U.S. military bases throughout South Korea. 

    Our investigation, which is ongoing, revealed that SK Energy, GS Caltex, Hanjin Transportation, along with other co-conspirators, rigged bids and fixed prices for fuel supply contracts issued by the U.S. military in South Korea for over a decade.  They cheated the Military and American taxpayers out of precious limited resources.  As a result of the conspiracy, the Department of Defense paid substantially more for fuel supply services.  Although the immediate victim here was the U.S. military, the American taxpayer, you and me, ultimately footed the bill. 

    The three companies agreed yesterday to plead guilty to criminal charges under Section 1 of the Sherman Act, and they will pay at least $82 million in criminal fines for their involvement in the conspiracy.  Importantly, the three defendants have also agreed to cooperate with the ongoing criminal investigation of the conduct. 

    Robert Jackson, who is one of my legal heroes, recognized that bid rigging is particularly harmful to government purchasers.  When he served as Assistant Attorney General in charge of the Antitrust Division, Jackson broadly denounced arrangements that “compel purchasers to pay a price based on calculation, not competition,” and specifically emphasized that “[w]hatever the effect of this on private buyers, it completely destroys the mechanism set up by federal, state, and municipal governments to keep favoritism and corruption out of public buying.”

    The harm Jackson recognized still exists today, and these settlements serve as an important reminder that the Justice Department and its law enforcement partners will investigate aggressively and prosecute without hesitation companies who cheat the United States government and the American taxpayer. 

    We did not stop there.  We are committed to using all authorities Congress has granted to us to remedy antitrust injuries to the American taxpayer.  Those tools include the authority conferred in Section 4A of the Clayton Act.  Section 4A is an important but underused enforcement tool that allows the government to recover treble damages for antitrust violations when the government itself is the victim. 

    To that end, the Division established a parallel civil enforcement team, led by Kathy O’Neill and a group of capable litigators from the Transportation, Energy, and Agriculture Section to pursue parallel civil actions for damages.  We negotiated separate civil resolutions with each of the three defendants on behalf of American taxpayers.  We also worked alongside our partners in the Civil Division’s Fraud Section, who pursued charges against the defendants under the False Claims Act for making false statements to the government in connection with their conspiracy. 

    To resolve both the civil antitrust and the False Claims Act violations, these three defendants have agreed to pay an additional $154 million in total.  They also have agreed to cooperate fully with the Division’s ongoing civil investigation and to implement effective antitrust compliance programs.

    These historic cases mark the first significant settlements under Section 4A in many years.  In fact, as far as we can tell based on our records, they are the largest settlements the government has ever recovered since the enactment of Section 4A.    

    Let me take a step back to review the history of Section 4A. 

    When Congress enacted the Sherman Act in 1890 and the Clayton Act in 1914, neither statute contained a provision specifically allowing the government to recover damages it suffered as a result of an antitrust violation.  In 1939, the United States, led by Assistant Attorney General Thurman Arnold, brought its first-ever antitrust suit for damages on its own behalf.   The government claimed authority to do so under Section 7 of the Sherman Act, which was the predecessor of Section 4 of the Clayton Act.  As most of you know, Section 4 permits “any person” injured by an antitrust violation to recover the damages they suffered. 

    In that pioneering case, United States v. Cooper, the government alleged that eighteen defendants had “collusively fixed” bids that were “identical to the penny on eighty-two different sizes of tires” sold to the United States.  The defendants successfully moved to dismiss the action on the question of whether the government is a “person” entitled to bring an action for damages under the statute.  The Second Circuit affirmed, and the Supreme Court ultimately held that the United States is not a “person” entitled to sue. 

    In 1955, Congress amended the Clayton Act in response to the Court’s ruling in Cooper by adding Section 4A.  As originally enacted, Section 4A allowed the government to recover only single damages, so that the government could recover damages where it was the victim of an antitrust violation. 

    At first, the Division used Section 4A aggressively, filing numerous cases for damages throughout the 1960s and 1970s.  In the 1980s, however, the government brought only four cases under Section 4A—a remarkable decline from the prior two decades.  Some attributed this drop, in part, to the Supreme Court’s Illinois Brick decision in 1978, because many of the cases brought in the ‘60s and ‘70s involved claims by the United States as an indirect purchaser.  The government, however, increasingly purchases goods and services directly.

    The next milestone came in 1990, when Congress amended the Clayton Act again to allow the government to seek treble damages in Section 4A cases. 

    Since 1990, a span of nearly thirty years, only three Section 4A cases have been filed.  In 1991, the Division recovered $250,000 from two companies for rigging bids to purchase surplus gunpowder.  In 1994, the Division filed suit against two defense contractors for entering into a “teaming” arrangement that eliminated competition in supplying the Department of Defense with cluster bombs.  In that case, the Division recovered $4 million on behalf of American taxpayers and obtained an $8 million discount on the bid price.  In 2012, the Division challenged collusion between two companies bidding on four natural gas leases at auctions run by the Bureau of Land Management.  The Division recovered $275,000 from each company. 

    The American Taxpayer deserves to see a revitalization of the government’s Section 4A authority.  This week’s settlements are only the first in that direction.  Going forward, the Division will exercise 4A authority to seek compensation for taxpayers when the government has been the victim of an antitrust violation.  We hope that these efforts will also deter future violations. 

    In light of our policy of seeking damages under Section 4A where available, I would like to address how parallel criminal and civil enforcement will proceed going forward. 

    First, the Division’s new focus on Section 4A enforcement will not require any changes to the Division’s leniency policy.  The Division offers strong incentives to come forward to report criminal antitrust violations in exchange for leniency, and those incentives do not change when the government is harmed by the violation. 

    The Antitrust Criminal Penalty Enhancement and Reform Act of 2004, better known as ACPERA, created another valuable incentive for leniency applications.  Under ACPERA’s detrebling provision, those who successfully qualify for leniency will be subject only to single damages in follow-on civil suits, rather than treble damages.  In addition, those who successfully qualify for leniency are not subject to joint and several liability.

    This detrebling incentive will apply to any Section 4A claims brought by the government.  We will also follow the underlying requirements for ACPERA in Section 4A cases: companies will need to cooperate with the civil team, as they would with any private plaintiff, in order to reap the detrebling benefits.

    The bottom line is that the Division’s enforcement of Section 4A will increase the incentive for co-conspirators in cartel cases to come forward. 

    Separately, I should note that global resolutions like the ones announced yesterday should serve the interests of the parties as well.  Cooperating companies subject to penalties under multiple statutes can gain certainty and finality.  Employees, customers, and investors can resolve the problem and move on. This is consistent with the Department’s broader policies on coordination of corporate penalties.

    Next, as we pursue Section 4A damages going forward, global resolutions of criminal and civil antitrust liability will help maintain a consistent policy on how to calculate civil damages.  Yesterday’s settlements underscore this point.  They provide that SK Energy, GS Caltex, and Hanjin each will pay an amount calculated to exceed the overcharge paid by the government.  At the same time, the amount reflects both the value of the cooperation commitments each defendant made as a condition of settlement and the cost savings the Division realized by avoiding extended litigation.  

    As a general matter, if the government is required to litigate claims it brings under Section 4A, the government will seek treble damages.  In addition, we anticipate that earlier cooperators will benefit by paying a lower multiple of damages, because the value of their cooperation is higher earlier in our investigation. 

    I will turn now to another significant settlement the Division filed this week, one which resolves a complaint against six broadcast television companies alleging that they engaged in widespread, unlawful sharing of non-public, competitively sensitive information.  Along with the complaint, the Division filed proposed final judgments requiring the companies to cease such conduct and to undergo rigorous compliance and reporting measures for the next seven years.

    We uncovered this conduct during our investigation into Sinclair Broadcasting Group’s proposed acquisition of Tribune Media Company, which has since been abandoned. 

    As we allege in the complaint, the defendants agreed in local broadcasting markets throughout the United States to exchange revenue pacing information and other competitively sensitive information.  “Pacing” compares a broadcast station’s revenues booked for a certain time period to the revenues booked in the same point in the previous year.  Pacing indicates how each station is performing versus the rest of the market and provides insight into each station’s remaining spot advertising for the period. 

    We discovered that the defendants had been exchanging pacing information either directly between stations or corporate headquarters, or indirectly through national representatives that help local stations sell advertisements to national advertisers.  By exchanging this information, the broadcasters were better able to anticipate whether their competitors were likely to raise, maintain, or lower spot advertising prices, which in turn helped inform the stations’ own pricing strategies and negotiations with advertisers.  As a result, the information exchanges harmed the competitive price-setting process.

    We have not heard any legitimate pro-competitive justification for this conduct.  We are therefore pleased that these companies recognized that a protracted investigation and litigation would serve no purpose, and we welcome their cooperation as our investigation continues.  We also want to remind businesses, as well as the antitrust practitioners that advise them, that agreements between competitors to exchange competitively sensitive information can violate the antitrust laws and lead to a civil enforcement action even if the conduct does not amount to the type of hard core cartel conduct that the Antitrust Division prosecutes criminally.

    Finally, this morning we announced the third significant enforcement resolution this week—a settlement with Atrium Health, formerly known as Carolinas Healthcare System.  We were joined in the settlement by the North Carolina Attorney General’s Office, and we thank them for their partnership in this action.  The settlement resolves over two years of civil antitrust litigation challenging the hospital system’s use of anticompetitive steering restrictions in its contracts with major health insurers.  These steering restrictions prevented health insurers from promoting innovative health plans and more cost-effective healthcare providers.  

    Atrium is the dominant hospital system in the Charlotte, North Carolina metropolitan area.  It used its market power to limit major health insurers’ ability to introduce plans designed to encourage consumers to choose cost-effective healthcare providers.  Specifically, Atrium would agree to participate in a broad network plan only if the insurer would commit not to introduce other plans that would steer patients away from Atrium.  The steering restrictions also deliberately constrained insurers from providing consumers with transparency into the comparative cost and quality of their healthcare alternatives.

    Because the steering restrictions were in place, insurers could not introduce more innovative health insurance plans that create financial incentives for patients to use lower-cost healthcare services.  Needless to say, competition for patients encourages healthcare providers to reduce costs, lower prices, and increase quality.  These steering restrictions inhibited competition among healthcare providers to provide higher quality, lower-cost services.  

    The resolution prevents Atrium from enforcing the steering restrictions in its contracts with major health insurers.  If approved by the Court, it will restore competition between healthcare providers in Charlotte, North Carolina.

    I would like to make a broader point about the Division’s settlements this week.  The consent decrees in all three cases, like all other decrees the Division has entered into the past 13 months, include specific new provisions designed to improve their enforceability. 

    These provisions (i) address the burden of proof in a civil contempt action by providing that the preponderance standard will apply; (ii) make defendants responsible for reimbursing the government for all costs it incurs in connection with enforcing the decree; (iii) allow the United States to seek a one-time extension of the term of the decree in the event of a violation, or to terminate the decree early if continuation is no longer necessary or in the public interest.  Another provision addresses interpretation of the decree by stating that courts can enforce any provisions that are stated specifically and in reasonable detail, whether or not they are clear and unambiguous on their face.

    The Division serves as a guardian of American consumers, and we act in the public’s trust.  When the Division enters into a consent decree to resolve charges of anticompetitive conduct, we will hold parties’ feet to the fire and enforce the decrees. 

    Finally, last Friday, three defendants pled guilty to conspiring to rig bids and allocate the market in auctions of foreclosed properties in Palm Beach County, Florida.  This case is unlike the Division’s prior foreclosure auction prosecutions because the auction occurred online rather than in-person, and the collusion occurred primarily by text message rather than in-person.  It is a good illustration of the fact that while defendants may use new platforms and technologies to commit antitrust crimes, the Division too is evolving and stands ready to prosecute these crimes in the digital age.

    The conspiracy took place in the aftermath of the financial crisis, which affected the housing market nationwide and the Florida real estate market in particular.  Defendants and their affiliated business entities were the largest buyers of foreclosed properties in Palm Beach County.  Together, the commerce affected by the defendants’ collusion was $25 million. 

    The Division began an investigation into possible collusion in online foreclosure auctions in Palm Beach County, Florida after receiving an anonymous citizen complaint that included a link to a YouTube video detailing the collusion. 

    Co-conspirators texted each other to coordinate their bidding and facilitate the conspiracy to obtain foreclosed homes at suppressed prices.  Most commonly, bidders would agree to stop bidding or to refrain from bidding at their co-conspirators’ request.  In some instances, they lowered bids for each other’s benefit. 

    After learning of the investigation, one of the defendants used and encouraged other co-conspirators to use a text messaging application to continue colluding.  He believed that law enforcement would be unable to read or trace any messages sent through the application.

    The three defendants were indicted by a grand jury in November 2017.  Since then, all three have pleaded guilty.

    I will conclude by taking this opportunity to highlight the outstanding attorneys and economists at the Antitrust Division.  They are the core of executing the Division’s mission and work tirelessly in their commitment to protect competition and consumers.    

    It has been a busy year at the Antitrust Division.  We have been working hard on behalf of America’s consumers and taxpayers, and look forward to continuing our efforts on their behalf in the year to come. 

    Thank you.

    MIL Security OSI –

  • MIL-OSI Security: Acting Attorney General Matthew Whitaker Delivers Remarks to the Joint Terrorism Task Force

    Source: United States Attorneys General 13

    NOTE: The remarks originally included a case that was scheduled to be sentenced but was continued, and so that case was removed from the speech. However, a reference to the case was inadvertently left in. As such, there is no extradition relating to the Chelsea bomber case.

    Remarks as prepared for delivery

    Thank you, Geoff (Berman), for that kind introduction, and thank you for your leadership as United States Attorney for the Southern District of New York. And thank you also to United States Attorney Richard Donoghue from the Eastern District of New York.

    It is wonderful to be in New York during the holiday season.  I’m told that this is the best time of year to visit—but I must say I am looking forward to Thanksgiving in Des Moines.

    But before I say anything else, I want to take a moment to acknowledge that the law enforcement community is in mourning today.

    Chicago police officer Samuel Jimenez was shot and killed during Monday’s shooting at Mercy hospital. Officer Jimenez had just joined the force in 2017 and he was only 28 years old.  He leaves behind a wife—his high school sweetheart—and three young children.

    Officer Jimenez was on his way to respond to a different call when he heard of shots fired at the hospital.  Then he did what police officers do every day in America: he went toward the danger, so that the rest of us could run away from it.  He and his fellow officers saved a lot of lives that day.

    This tragedy is another reminder of both the danger and the nobility of police work.  Today, as we prepare for Thanksgiving Day, we should all be especially grateful for our police officers.

    It is an honor to be here in the J.O.C., where so many consequential law enforcement decisions have been made—so many decisions that have saved American lives.

    This is where a number of terrorism investigations have begun—and it’s where security is monitored for events like the Thanksgiving Day parade or New Year’s Eve.

    And it is an even greater honor to be with some of the most respected law enforcement leaders in the world.  Thank you to:

    • Commissioner O’Neill,
    • FBI Assistant Director in Charge, William Sweeney,
    • Deputy Commissioner Miller,
    • NYPD Chief Paul Ciorra,
    • Chief Owen Monaghan,
    • Ashan Benedict of ATF,
    • Michael Greco with the Marshals Service,
    • Troy Miller with CBP,
    • Director Frank Russo,
    • Phil Bartlett and our Postal Inspectors, and
    • Scott Sarafian with Secret Service.

    It is an honor to be with all of you.

    NYPD in particular has earned a reputation as perhaps the greatest police department on Earth.

    There are more NYPD officers than there are members of the military in entire nations, like Belgium or Ireland.

    But even more impressive than the quantity of your officers is the quality of your officers.

    You are known all over the country for your Compstat program, which enables you to monitor crime rates in real time and to quickly reallocate officers when crime begins to rise.

    And over the past three decades, your achievements have been staggering.  In 1990, there were 2,245 murders in New York City.  Last year there were 292.  Since 2000, burglaries are down by nearly two-thirds and robberies have been cut in half.  One weekend in October there were zero murders or shootings in New York City for the first time in 25 years.

    These results are a testament to the effectiveness of NYPD, and of many people in this room.  You’ve been able to start a virtuous cycle of safety, prosperity—and more safety.  That is what we want to achieve all across America.

    President Donald Trump is a lifelong New Yorker.  He invested in this city when its future was in doubt.  He bet on this city—and that proved to be a smart bet. 

    The President witnessed New York’s transformation firsthand. I think that made his support for law enforcement even stronger.

    One of his very first Executive Orders was to tell the Department of Justice to improve the safety of state and local law enforcement officers.  And over these past two years, we have followed that order.

    Today I am announcing our next step to carry out that order.  Today I am announcing that the Department of Justice is providing $56 million in grant funding to support law enforcement all across America.

    That includes $29 million for bulletproof vests, $12.2 million for body-worn cameras, and $2 million in health and safety research.

    This is just a small way of saying thank you to the officers who take care of us every day.  We understand the sacrifices that you make—and so we want you to have the right equipment and the right training.

    If anybody out there doesn’t appreciate the role of law enforcement officers in our society, then I would tell them to come to New York.

    Earlier today I visited the 9/11 Memorial.  It was an extremely moving experience.

    We all remember where we were when we heard the news.  I know I do.

    Some of you were here.  Some of you were at Ground Zero.

    It was the worst terrorist attack in American history and the most shocking attack on our soil since Pearl Harbor.  It led to the largest investigation in FBI history.

    None of us have ever been the same.  Speaking for myself, 9/11 strengthened my appreciation for our servicemembers and our first responders and law enforcement officers.

    More than 70 police officers were killed in New York City that day.  Dozens more died of illnesses related to their service at Ground Zero.  Some of you knew them.

    The Department of Justice honors their memory and law enforcement holds them up as examples of our highest ideals.  They died in a rescue mission that saved thousands of lives.

    We are indescribably proud of our federal officers.  But we recognize that the vast majority of the officers in American law enforcement is at the state and local levels.  We cannot succeed without you.

    We’re at our best when we work together—and that’s what the JTTF is all about.

    This is the oldest JTTF in America.  Today there are more than 100 JTTFs nationwide, including at least one in each of our FBI field offices.  The vast majority of these were created in response to 9/11.

    This JTTF set the model for the rest to follow.  You bring together 500 employees from 50 different partner agencies.

    And you’ve achieved so much for this city and for this country.

    You investigated the 2007 JFK bomb plot, the 2009 Subway bomb plot, and the 2010 attempted bombing of Times Square.

    And I am well aware that, under this administration, you’ve continued to have success in investigating terrorism.

    Three times a week, I receive a threat briefing where the FBI and the National Security Division tell me about the national security investigations that we are working on in our United States Attorneys’ offices.  We’ve talked about the work done here.

    People in this room have achieved successes that have made this country safer.

    This February, prosecutors in Geoff’s office secured a life sentence for the Chelsea bomber, Ahmad Rahimi. He planted nine improvised explosive devices in New Jersey and New York, including two not far from here in Chelsea.  He detonated one of them and injured more than 30 people.  The bomb was so powerful that it launched a 100-pound dumpster more than 120 feet.  It shattered windows 400 feet away and three stories above ground level.

    Another bomb here in Chelsea was rendered safe by law enforcement before it was detonated.

    That investigation started right here in this room.

    And so to all of the agents, officers, and the AUSAs who worked on this case—Emil Bove, Andrew DeFilippis, and Shawn Crowley—thank you for this outstanding work.

    People in this room also worked to convict the Bangladeshi national who detonated a bomb near the Port Authority bus terminal last December. The explosion was caught on surveillance video and the defendant was found lying on the ground with parts of a pipe bomb on and around his body.  After he was arrested, he admitted that he detonated the bomb to express his support for ISIS.  He attempted to make the bomb as dangerous as he could and to target a public place during rush hour.

    Just two weeks ago, thanks to the hard work of Geoff’s Assistant U.S. Attorneys Shawn Crowley, Rebekah Donaleski, and George Turner, he was convicted on six counts.  Now he is facing a potential life sentence.

    These are terrific accomplishments.  The dangerous terrorists in these cases can’t hurt anyone now—and that’s because of your hard work.

    But these cases are also a reminder that the terrorist threat is not going away on its own.  Sadly, our work is not finished.

    Terrorists are going to continue to target us.  So we’ve got to keep targeting them—during this holiday season and all year round.

    And so I want to assure all of you that this work remains the top priority of the Department of Justice.  We will not let up.

    We will continue to support you with resources—like the grant funding that I mentioned—with personnel, and with intelligence.

    I want to conclude with something a mentor of mine used to say every time he spoke to law enforcement, and I believe it too: we have your back, and you have our thanks.

    MIL Security OSI –

  • MIL-OSI Security: Acting Attorney General Matthew Whitaker Delivers Remarks at John F. Kennedy International Airport’s International Mail Distribution Center

    Source: United States Attorneys General 13

    Remarks as prepared for delivery

    Thank you, Director Russo, for that kind introduction.  I especially want to thank you and your brother for following in your Dad’s footsteps and going into law enforcement.  Thank you for 23 years of service.

    I also want to thank:

    • Rich Donoghue, our U.S. Attorney for the Eastern District of New York,
    • Phil Bartlett and our postal inspectors,
    • Keith Kruskall and Michael Abraham with DEA,
    • Port Director Frank Russo,
    • Director of Operations Troy Miller, and
    • Assistant Special Agent in Charge Christopher Lau.

    Thank you all for the tour and for the briefing. 

    But most of all, thank you to our CBP, DEA, Postal Inspection Service Agents who are here for the interdiction work you do every day.

    Your work is more important than ever—because today we are facing the deadliest drug crisis in American history.  Last year 72,000 Americans lost their lives to drug overdoses.  That’s the highest drug death toll in American history.  More Americans died of drug overdoses last year than from car crashes or from AIDS at the height of the AIDS epidemic.

    Despite rising prosperity and better technology, life expectancy in the United States actually declined over the last two years in a row.  The last time that happened was 55 years ago.

    Millions of people are living with the painful consequences of a family member’s addiction or an addiction of their own.  I personally know people whose families have been torn apart by drug addiction.  These days, it is likely that most of you do, too.  We all do.

    New York has not been immune to this problem.  No one has. 

    Drug overdose deaths in New York City have gone up by 81 percent in just the last three years.

    The situation is daunting.  But law enforcement has a unique opportunity to reverse these trends.

    President Trump has a comprehensive plan to end this crisis.  The three parts of the plan are prevention, treatment, and enforcement.

    The President has improved our prevention efforts by launching a national awareness campaign about the dangers of opioid abuse—a campaign I strongly support.  In the long run, getting more and more people to reject drug abuse in the first place will stop addiction from spreading.

    The drugs on the street today are as potent and as dangerous as they have ever been.  That is because of synthetic opioids—drugs like fentanyl and carfentanil. 

    These drugs killed 20,000 Americans last year—more than any other kind of drug.  Three milligrams of fentanyl can be fatal.  That’s equivalent to a pinch of salt.

    And you don’t have to go to a street corner to buy these drugs.  With a few clicks of a button you can go online and have them shipped from overseas right to your door.  The odds are good that those packages come through this room.

    I’m told that you process more than 800,000 pieces of mail every day just at this airport, including a majority of international mail entering the United States.  I’m also told that you intercepted dozens of packages of fentanyl just in this last fiscal year.  That is incredible work and I have no doubt that it has saved lives.

    Just last month, the President signed into law major legislation that I believe will make you more effective.  Under the new law, the Postal Service must share electronic information with CBP about packages coming into the United States.  That information includes where it’s from, where it’s going, and what’s in it.  That will help law enforcement track suspicious packages, find criminals, and it will help us prove our case at trial.

    And that is critical.  You are our strong first line of defense against these drugs.  But you need a strong offense, too. 

    And that’s where we come in.

    We don’t just want to stop packages once they get here—we want to prevent them from being sent in the first place.

    By prosecuting traffickers and breaking up the supply chain, our work ultimately will make your work safer and easier.

    One of President Trump’s first Executive Orders was to the Department of Justice, telling us to dismantle the networks of transnational organized crime.  We have been faithful to that order.

    In fact, the Trump administration is the first administration to prosecute Chinese fentanyl traffickers.  We know that China is responsible for the vast majority of fentanyl in this country.

    Last October, we announced the first two indictments against Chinese nationals for trafficking synthetic drugs in the United States.  Over the summer we announced our third case—a 43-count indictment against a drug trafficking organization based in Shanghai.

    This summer I went to China and I spoke with Chinese officials about this exact problem.  I made it clear to them that we need better information from them on packages coming to this country.  Just like we want to improve our law enforcement cooperation with them, we need their cooperation on this issue, as well.  This administration is paying very close attention to this problem.

    Nevertheless, with your help, the United States is interdicting drugs coming into this country at record levels.

    In just the first three months of 2018, the DEA seized a total of more than 200 pounds of suspected fentanyl in cases from Detroit to New York to Boston.  Depending on its purity, that can be enough to kill tens of millions of people.

    In fiscal year 2017, we broke the record for fentanyl prosecutions at the federal level—and in fiscal year 2018, we broke that record again.

    Last July, the Department announced the seizure of the largest dark net marketplace in history – AlphaBay.  This site allowed you to send packages of drugs from China straight to your door.  They hosted some 220,000 drug listings and was responsible for countless synthetic opioid overdoses, including the tragic death of a 13 year old in Utah.

    Earlier this year we filed charges against a married couple who we believe were once the most prolific synthetic opioid traffickers on Alpha Bay and on the darknet in North America in general.  We also worked with our partners in Canada to help them indict a man we believe was the third most prolific darknet synthetic opioid dealer in North America.

    And we have new weapons to be even more effective in the future.  In January we began J-CODE, a new team at the FBI that focuses specifically on the threat of online opioid sales—the sales that are so often sending packages through this building.  J-CODE has already begun carrying out enforcement actions nationwide, arresting dozens of people across the country.

    And in the districts where drug deaths are the highest, we are now prosecuting synthetic opioid trafficking cases, even when the amount is small.  We have sent 10 more prosecutors to help implement this strategy in those 10 districts.  We call this effort Operation Synthetic Opioid Surge—or Operation S.O.S.

    We tried this strategy in Manatee County, Florida—which is just south of Tampa—and it worked.  This past January, they had half the number of overdose deaths as the previous January.  We want to replicate those results across the country.

    We have also sent more than 300 new federal prosecutors to our U.S. Attorneys offices across America.  This is the largest surge in prosecutors in decades.

    We have also hired more than 400 DEA task force officers this year alone.  That is a record increase.

    All of these efforts are delivering results. 

    Federal drug prosecutions overall went up by six percent over the last fiscal year, and fentanyl prosecutions have increased dramatically for two years in a row.

    Most importantly, we are seeing an impact on people’s lives.  While 2017 saw more overdose deaths than 2016, data for the last months of the year show that the increases may have finally come to an end.  Drug overdose deaths fell by two percent from September 2017 to March 2018.

    We are right to celebrate these accomplishments, but we have to acknowledge that we still have a lot more work to do—and the stakes have never been higher.

    That is why I am so glad that we have this incredible facility and the dedicated professionals who make it a success.  You are our strong first line of defense—and we appreciate you.

    And so I want each of you to know: we have your back and you have our thanks.

    MIL Security OSI –

  • MIL-OSI Security: Deputy Attorney General Rod J. Rosenstein Delivers Remarks at the Department of Justice American Indian and Alaska Native Heritage Month Observance Program

    Source: United States Attorneys General 13

    Remarks as prepared for delivery

    Thank you, Tracy, for your kind introduction. I appreciate your devoted service as Director of the Office of Tribal Justice. I first met Tracy more than 20 years ago when we were young attorneys in the Criminal Division.  I am grateful to the employees of the Office of Tribal Justice for everything that they do to promote public safety in Indian Country.

    I also want to thank everyone throughout the Department who works to improve our relationship with tribes and to further tribal justice, as well as those who worked to create today’s event.

    It is my great privilege to join you in celebrating American Indian and Alaska Native Heritage Month.

    The theme for this year’s observance is, “Sovereignty, Trust and Resilience.” It encourages us to reflect on the important contributions of Native Americans and Alaska Natives to the Department, and to our nation’s economic, academic, and cultural institutions.

    American Indians and Alaska Natives are an indispensable part of our national fabric. They are business owners, teachers, first responders, law enforcement offices, and community leaders. They serve with honor in our Armed Forces. And they work proudly in the Department of Justice.

    President Donald Trump said last month, “Native Americans have fortified our country with their traditions and values, making tremendous contributions to every aspect of our national life.  We remain committed to preserving and protecting Native American cultures, languages, and history, while ensuring prosperity and opportunity for all Native Americans.”

    Consistent with the President’s words, we recognize the many contributions and sacrifices by members of this community. Today, we recommit ourselves to ensuring opportunities for all Americans. Every American enriches the quality and character of our great nation.

    The Department of Justice plays a unique role in the government-to-government relationship between the United States and Tribal Nations.

    Our U.S. Attorney’s Offices and law enforcement components, such as the FBI and the DEA, are responsible for investigations, prosecutions, and victim services in 51 judicial districts that include Indian country. Federal prosecutors exercise criminal jurisdiction over 250 distinct regions of Indian country, covering more than 55 million acres of land.

    Our offices work together with Tribal law enforcement, state and local law enforcement agencies, and the Bureau of Indian Affairs to improve the safety and security of Native American and Alaska Native communities.

    The Justice Department also handles a large caseload of civil litigation in Indian country. Our civil cases include matters relating to environmental and natural resources, Tribal treaty rights, and Native Americans’ civil rights.

    Our grant making components provided over $259 million to Tribes last year. Those components include the Office of Justice Programs, the Office for Victims of Crime, the Office on Violence Against Women, and the Office of Community Oriented Policing Services. Their grants support police, serve victims, combat domestic violence and sexual abuse, and strengthen tribal justice systems.

    We are particularly proud of the Tribal Access Program. That effort is coordinated by the Office of Tribal Justice and the Department’s Chief Information Officer. It provides computer kiosks that allow Tribes to access federal crime databases. The kiosks allow Tribes to protect victims of domestic violence, identify sex offenders, keep guns out of criminals’ hands, and help locate missing people.

    There are many success stories involving the kiosks.

    Last year, the Gila River Police Department received a report about a sexual assault against a juvenile. Police quickly identified a suspect, and a warrant followed. But the suspect fled.

    Using a kiosk, tribal police entered the warrant into the FBI’s National Crime Information Center, which we call NCIC. NCIC is a computerized index of criminal justice information. One of its most important functions is to help police apprehend fugitives.

    When police encountered the suspect outside Tribal territory, an NCIC check revealed the tribal warrant. Police took the suspect into custody and transported him to the tribal jail where he was booked using a federal workstation.

    Successes likes that would not be possible without the kiosk system. Since the program started in 2015, 47 participating Tribes have entered more than 600 sex offender registrations into the system. Participating Tribes also have entered arrest data that prevents criminals from purchasing firearms. And Tribes have conducted more than 4,500 fingerprint-based record checks for civil purposes, including employment.

    The total number of tribes with kiosk access will expand to 114 by the end of 2019.

    We are also proud of the Department’s new program to appoint Special Assistant United States Attorneys to work on Tribal issues. The initiative, funded through the Office on Violence Against Women, hires prosecutors to bring cases in both tribal and federal courts. That increases prosecution capacity and helps to prevent criminals from avoiding prosecution because of jurisdiction or sovereignty issues. It will promote the goal of ensuring that every perpetrator of domestic or sexual violence is brought to justice.

    These initiatives demonstrate our Department’s steadfast commitment to improving public safety in Indian country by promoting coordination among tribal, state, and federal law enforcement agencies.

    As part of our observance today, we are fortunate that John Tahsuda is here as a guest speaker.

    Mr. Tahsuda is an enrolled member of the Kiowa Tribe of Oklahoma. He earned a Bachelor of Science degree from Oklahoma State University, and a law degree from Cornell Law School.

    Mr. Tahsuda then worked as the acting general counsel of the Oneida Indian Nation of New York. He also taught classes at Cornell Law School about federal Indian law, policy, and history.

    Mr. Tahsuda later served as general counsel and legislative director of the National Indian Gaming Association, where he monitored legislation and policy issues affecting the organization’s 180 member tribes and assisted with their lobbying efforts.

    In 2002, Mr. Tahsuda joined the staff of the U.S. Senate Committee on Indian Affairs, first as senior counsel and later as staff director. He handled policy and legislation affecting gaming, federal recognition, self-governance, and Indian health care.

    From 2007 through 2017, Mr. Tahsuda worked in the private sector, providing clients with advocacy and counsel services about tribal affairs policy issues.

    Last year, Mr. Tahsuda was appointed as the Principal Deputy Assistant Secretary for Indian Affairs at the Department of the Interior. Indian Affairs manages Federal trust, treaty, and other responsibilities to 573 federally recognized Indian Tribes. Mr. Tahsuda helps to develop and interpret policies affecting Indian Affairs bureaus, offices, and programs.

    He is a strong advocate for Indian country issues, and we are grateful to him for joining us today. Please welcome John Tahsuda.

    MIL Security OSI –

  • MIL-OSI Security: Deputy Attorney General Rod J. Rosenstein Delivers Remarks at the “SamSam” Ransomware Press Conference

    Source: United States Attorneys General 13

    Remarks as prepared for delivery

    Good morning. I am joined by Criminal Division Assistant Attorney General Brian Benczkowski, New Jersey U.S. Attorney Craig Carpenito, and FBI Executive Assistant Director Amy Hess.

    Also on stage are the two prosecutors handling this matter: Assistant U.S. Attorney Justin Herring, and Computer Crimes and Intellectual Property Section Senior Counsel William Hall Jr.

    A federal grand jury in New Jersey indicted two Iranian citizens for a three-year scheme that involved hacking into computers of hospitals, municipalities, public institutions, and businesses. It involved a high-tech, sophisticated extortion plot.

    The defendants allegedly hijacked victims’ computer systems and shut them down until the victims paid a “ransom.”

    The conspirators collected more than $6 million in extortion payments and caused more than $30 million in losses.

    Many of the victims were public agencies with missions that involve saving lives and performing other critical functions for the American people. 

    The indictment was returned on November 26, and unsealed today in Newark, New Jersey. It alleges that Faramarz Shahi Savandi and Mohammad Mehdi Shah Mansouri used sophisticated software to execute their computer hacking and extortion scheme.

    Acting from inside Iran, the men developed and deployed a form of ransomware that they named “SamSam.”  Ransomware is a destructive computer code that encrypts victims’ computers and then holds the computers “hostage” until a “ransom” fee is paid.

    Starting in January 2016, the defendants gained access to victims’ computers by exploiting cyber security weaknesses.  After gaining access to the computers, they remotely installed ransomware.  The ransomware encrypted computer data, crippling the ability of the victims to operate their businesses and provide critical services to the public. 

    The victims included two major municipalities – the City of Atlanta, Georgia and the City of Newark, New Jersey.  The defendants also sought to interrupt critical transportation infrastructure by infiltrating the Port of San Diego, California, and the Colorado Department of Transportation. 

    In addition, the defendants infected the computers of six health-care related entities from across the country, impairing the ability of these businesses to provide health care to sick and injured people. 

    The defendants chose to focus their scheme on public entities, hospitals, and municipalities.  They knew that shutting down those computer systems could cause significant harm to innocent victims.

    The indictment alleges that the defendants demanded payment from their victims in the form of the virtual currency known as Bitcoin.  Bitcoin contributes to the increasing sophistication of criminal schemes.  It is a common currency for criminal schemes, including websites that distribute child pornography and deadly opioid drugs, and ransomware and other tools of extortion.

    The defendants allegedly communicated with victims using Tor, an encrypted computer network designed to facilitate anonymous communication over the Internet. 

    We support the use of encryption to safeguard private information and strengthen cybersecurity.  But this case highlights another example of the challenges posed to law enforcement by encryption designed to resist law enforcement. 

    Sophisticated encryption technologies like the Tor network are used by cybercriminals to commit serious offenses.  These sophisticated technologies pose a real threat to the government’s ability to keep people safe and ensure that criminals and terrorists are caught and brought to justice.

    Every sector of our economy is a target of malicious cyber activity.  But the events described in this Indictment highlight the urgent need for municipalities, public utilities, health care institutions, universities and other public organizations to enhance their cyber security. 

    Publicly revealing this nefarious hacking scheme makes it harder for the perpetrators, and others like them, to do business in the future.  As a result of the Indictment, the defendants are now fugitives from justice.  They face arrest and extradition to the United States in many nations that honor the rule of law. 

    We call on all civilized nations to prevent their citizens from using the internet to perpetrate fraud schemes in foreign countries.

    By making clear that criminal actions have consequences, we deter schemes to victimize the United States government, businesses, and citizens, and we help to protect foreign allies.

    This case demonstrates the Department of Justice’s commitment to identifying and prosecuting cybercriminals, regardless of where they base their operations. 

    We are grateful for outstanding work and collaboration between American and international law enforcement partners in this investigation.  In particular, I want to thank two United Kingdom agencies – the National Crime Agency, and the West Yorkshire Police – and two Canadian agencies, the Calgary Police Service, and the Royal Canadian Mounted Police. 

    Our National Security Division and our Criminal Division’s Office of International Affairs also provided critical support.

    Next, I want to invite Assistant Attorney General Brian Benczkowski to provide some remarks. 

    MIL Security OSI –

  • MIL-OSI Security: Assistant Attorney General Delrahim Delivers Remarks at the Antitrust Division’s Seventh Annual Diversity Celebration

    Source: United States Attorneys General 13

    Thank you, Matthew, for that kind introduction.

    And good afternoon everyone.  It is great to be joined by so many colleagues from across the Antitrust Division and beyond. 

    I would also like to acknowledge our special guest from the FBI, Special Agent Voviette Morgan.  I’m honored to be introducing Ms. Morgan and grateful she accepted my invitation to this year’s Annual Diversity Celebration. 

    This is my fourth Annual Diversity Celebration as Assistant Attorney General of the Antitrust Division.  In my tenure, we have had some incredibly inspiring speakers: former Treasurer of the United States Anna Cabral, former FTC Chairwoman Edith Ramirez, and former U.S. Attorney for the District of Columbia Jessie Liu. This annual event complements the regular opportunities we have throughout the year to discuss diversity and inclusion with distinguished guests.  Some of those outstanding events included Roberta Cordano, the President of Gallaudet University; Leslie Overton, a former DAAG at the Division; and Dr. Kay Redfield Jamison of Johns Hopkins University. 

    Before I hand things over to Special Agent Morgan, I’d like to pick up where Matthew left off and touch briefly on the Antitrust Division’s enduring commitment to diversity and inclusion.  When I rejoined the Division in 2017 as AAG, I pledged to build upon the Division’s robust support for diversity and inclusion to ensure a workplace tolerant and representative of a full diversity of ideas and backgrounds.  The Diversity Committee has helped ensure we honor that pledge, and I thank them for constantly bringing new ideas for furthering the Antitrust Division’s record as a place that welcomes diversity in all its forms. 

    This has been an extraordinarily challenging year for all of us.  We’ve been trying to do our part to advance the Division’s mission while trying to stop the spread of coronavirus in our communities, homeschooling our kids, providing eldercare, and supporting our families and neighbors in countless other ways.  All of this against a backdrop of recent events in our country that strike at our collective conscience. 

    I commend the Diversity Committee for juggling all of these challenges and yet remaining incredibly productive.  The Division remains a leader in advancing diversity within the Department because of this Committee’s innovation and sustained diligence.

    Matthew spoke about some of the recent Diversity Committee initiatives.  I’ll note that several of these key recommendations are the work of the newest subcommittee, the Women’s subcommittee.  Launched in 2019, this subcommittee hit the ground running and has made an indelible impact on the Division with initiatives such as the Stork program, the Parental Leave Q&A, and the Wellness/Lactation Rooms, all initiatives I am proud to have worked with you on these past several years.   

    Not to put too much pressure on the 2021 members of the Diversity Committee, but it is my hope that you will be just as successful as the 2020 and 2019 members have been.  Indeed, you’ll have an early opportunity to leave your mark on the Division as well with the creation of a new Subcommittee within the Diversity Committee – the Veterans Subcommittee.

    This subcommittee will launch next year with a focus on increasing awareness of reservists’ and veterans’ valuable contributions to the Division’s mission, and addressing some of the issues unique to their circumstances, with the overarching goal of improving recruiting and retention of veterans and reservists. 

    As you all know, in addition to recapping the Committee’s recent accomplishments, and previewing plans for the coming year, the Annual Celebration is also an opportunity to hear from a special guest speaker.

    Today’s speaker is in the mold of the impressive leaders who have celebrated with us in past years: I could not be happier to introduce FBI Special Agent in Charge, Voviette Morgan.  

    Special Agent Morgan is a trailblazing public servant that has inspired others to careers in public service and law enforcement.  A Los Angeles native, she joined the Bureau more than two decades ago focusing on white-collar crime.  She’s risen through the ranks and held several leadership positions in the Office of Public and Congressional Affairs and the Counterterrorism Division.  She has also served as the chief of the Internal Investigations Section in the Inspection Division at FBI Headquarters in Washington, D.C. 

    In August 2017, FBI Director Christopher Wray named Special Agent Morgan as the Special Agent in Charge of the Criminal Division for the Los Angeles Field Office, which is responsible for investigating all federal crimes in the Los Angeles area.[1]  

    Her office investigates everything from public corruption including police, law enforcement, legislative and judicial corruption, to organized crime and drug offenses, to a laundry list of white-collar crimes including antirust, financial institution and healthcare fraud.  Her office also investigates civil rights violations and human trafficking.  

    We know just how busy Special Agent Morgan is and we very much appreciate her spending time with us this afternoon. 

    From one Angeleno to another, I thank you, Voviette, for your tireless work protecting my beloved hometown.  It is my distinct privilege to welcome you to the Antitrust Division.

    I now will hand things over to our moderator, Michelle, and thank you for being with us today.

    MIL Security OSI –

  • MIL-OSI Security: Twenty-Nine Individuals Sentenced to 378 Combined Years in Federal Prison for Running Armed Fentanyl and Methamphetamine Trafficking Ring

    Source: Federal Bureau of Investigation FBI Crime News (b)

    EVANSVILE- 29 defendants have been sentenced to a combined 378 years in federal prison for their roles in a large methamphetamine and fentanyl drug trafficking organization that operated in Southern Indiana.

    According to court documents, between January 2020 and November 2021, the following 29 individuals conspired together to distribute a total of nearly 500 pounds of methamphetamine and over three kilograms of fentanyl. This investigation led to the seizure of over 80 pounds of methamphetamine, over 560 grams of fentanyl, and $240,000 in United States currency.

    Jeramey Smith served as the leader of the drug trafficking operation. Smith began obtaining multiple pound quantities of crystal methamphetamine from Julian Green in early 2020 until April of 2021 when he changed his source of supply to a cartel linked individual based in Houston, Texas. In June of 2021, Smith was robbed of a large amount of cash and was unable to pay his supplier for the lost product. Smith resorted back to Green to obtain the crystal methamphetamine.

    DeJarnett was one of Smith’s top methamphetamine customers, often purchasing up to 20 pounds at a time. After Smith obtained the methamphetamine from either Green or his Mexican source of supply, he then distributed the methamphetamine to mid -level distributors in Indianapolis and Evansville.   

    In September 2021, Smith branched out to also begin selling large quantities of fentanyl-laced pills. Smith would obtain fentanyl powder from Markey and/or Moore, who would then press the powder into pills. Smith then used his same distributors to distribute the fentanyl throughout Southern Indiana. Law enforcement seized an automated pill press during the course of the investigation. Smith also used violence and intimidation to further his drug business by having his distributors robbed of their drug proceeds at gun point.

    Additionally, several members of the drug trafficking used firearms to protect themselves and their profits. In total, law enforcement officers seized over 30 firearms from the defendants during court-authorized searches at multiple locations in Indianapolis and Evansville.

    The charges and sentences are described below:

    Defendant Charge(s) Prison Sentence
    Jeramey Smith, 35
    Indianapolis, IN

    Conspiracy to Possess with the Intent to Distribute Methamphetamine

    Conspiracy to Possess with the Intent to Distribute Fentanyl

    Felon in Possession of a Firearm

    Obstruction of Commerce by Robbery

    240 months (20 years)

    5 years supervised release

    Julian Green, 36

    Indianapolis, IN

    Conspiracy to Possess with the Intent to Distribute Methamphetamine

    Felon in Possession of a Firearm

    210 months (17.5 years)

    Indianapolis, IN

    Hannah Kissel, 28

    Indianapolis, IN

    Conspiracy to Possess with the Intent to Distribute Methamphetamine

    Conspiracy to Possess with the Intent to Distribute Fentanyl

    97 months (8 years)

    3 years supervised release

    Jordan Wilson, 41

    Evansville, IN

    Conspiracy to Possess with the Intent to Distribute Methamphetamine

    Conspiracy to Possess with the Intent to Distribute Fentanyl

    Felon in Possession of a Firearm

    216 months (15.7 years)

    5 years supervised release

    Timothy Rice, 35

    Evansville, IN

    		 Conspiracy to Possess with the Intent to Distribute Methamphetamine

    204 months (17 years)

    5 years supervised release

    Archilles Johnson, 40

    Evansville, IN

    		 Conspiracy to Distribute Methamphetamine

    180 months (15 years)

    5 years supervised release

    Deonte Howard, 36

    Evansville, IN

    		 Conspiracy to Distribute Methamphetamine

    180 months (15 years)

    5 years supervised release

    Julie Hunt, 37

    Petersburg, IN

    Conspiracy to Possess with the Intent to Distribute Methamphetamine

    Conspiracy to Possess with the Intent to Distribute Fentanyl

    60 months (5 years)

    3 years supervised release

    Torrance Mimms, 34

    Evansville, IN

    		 Conspiracy to Possess with the Intent to Distribute Methamphetamine

    180 months (15 years)

    5 years supervised release

    Keisha Jewell, 40

    Princeton, IN

    Conspiracy to Possess with the Intent to Distribute Methamphetamine

    Conspiracy to Possess with the Intent to Distribute Fentanyl

    108 years (9 years)

    3 years supervised release

    Davion Hays, 38

    Evansville, IN

    		 Conspiracy to Distribute Methamphetamine

    144 months (12 years)

    5 years supervised release

    Jason Mitchell, 43

    Henderson, KY

    		 Conspiracy to Distribute Methamphetamine

    204 months (17 years)

    5 years supervised release

    Denny Taylor, 49

    Princeton, IN

    		 Conspiracy to Distribute Methamphetamine

    180 months (15 years)

    5 years supervised release

    Aaron Hardiman, 42

    Princeton, IN

    		 Conspiracy to Distribute Fentanyl

    120 months (10 years)

    5 years supervised release

    Roman Wills, 43

    Evansville, IN

    		 Conspiracy to Distribute Methamphetamine

    180 months (15 years)

    5 years supervised release

    Michael Sanders, 48

    Owensboro, KY

    		 Conspiracy to Possess with the Intent to Distribute Methamphetamine

    168 months (14 years)

    5 years supervised release

    Gregory Snyder, 62

    Evansville, IN

    		 Conspiracy to Distribute Methamphetamine

    36 months (3 years)

    4 years supervised release

    Joshua Gahagan, 41

    Evansville, IN

    		 Conspiracy to Distribute Methamphetamine

    180 months (15 years)

    5 years supervised release

    Gregory Markey, 35

    Indianapolis, IN

    		 Conspiracy to Possess with the Intent to Distribute Fentanyl

    168 months (14 years)

    5 years supervised release

    L.C. Moore, II, 31

    Indianapolis, IN

    		 Conspiracy to Possess with the Intent to Distribute Fentanyl

    120 months (5 years)

    5 years supervised release

    Dominique Baquet, 31

    Indianapolis, IN

    		 Obstruction of Commerce by Robbery

    57 months (4.7 years)

    3 years supervised release

    Antonio DeJarnett, 36

    Evansville, IN

    		 Conspiracy to Distribute Methamphetamine

    264 months (22 years)

    5 years supervised release

    Ryan Pinkston, 42

    Evansville, IN

    Conspiracy to Possess with the Intent to Distribute Methamphetamine

    Felon in Possession of Ammunition

    240 months (20 years)

    5 years supervised release

    Robert Embry, 46

    Evansville, IN

    		 Conspiracy to Possess with the Intent to Distribute Methamphetamine

    60 months (5 years)

    5 years supervised release

    Becky Edwards, 39

    Evansville, IN

    		 Conspiracy to Possess with the Intent to Distribute Methamphetamine

    120 months (10 years)

    5 years supervised release

    Edward Meredith, 59

    Evansville, IN

    		 Conspiracy to Possess with the Intent to Distribute Methamphetamine

    120 months (10 years)

    5 years supervised release

    Joshua Wilson, 33

    Evansville, IN

    		 Use of a Communication Facility with the Intent to Commit or Facilitate the Distribution of Methamphetamine

    30 months (2.5 years)

    No supervised release

    Tabitha Seabeck, 32

    Henderson, KY

    		 Conspiracy to Possess with the Intent to Distribute Methamphetamine

    180 months (15 years)

    5 years supervised release

    Zachary Addison, 42

    Evansville, IN

    Conspiracy to Possess with the Intent to Distribute Methamphetamine

    Felon in Possession of a Firearm

    300 months (25 years)

    5 years supervised release

    “The members of this conspiracy will spend decades in federal prison for pumping pounds of methamphetamine and fentanyl onto our streets,” said John E. Childress, Acting United States Attorney for the Southern District of Indiana. “Drug use devastates so many families and kills hundreds of Hoosiers every year. That’s why we will work with our federal, state, and local law enforcement partners to dismantle armed organizations trafficking in deadly drugs. The sentences imposed in this case demonstrate our continued commitment to protecting the public from these dangerous criminals.”

    “Dismantling a major drug trafficking organization that was responsible for distributing multi-hundred-pound quantities of methamphetamine and kilogram quantities of fentanyl onto the streets of Indiana was a big win for law enforcement. Because of the exceptional collaborative efforts by law enforcement, we were able to achieve this remarkable outcome,” said DEA Assistant Special Agent in Charge, Michael Gannon. “This investigation was a wonderful victory for all Hoosiers and sends a crystal-clear message to major drug dealers we will continue working together with our partners to dismantle their illicit operations.”   

    “This sentencing is a significant victory in the relentless fight against the trafficking of deadly drugs and underscores the FBI’s commitment to pursue those who wreak havoc on our communities through their illegal drug trade,” said FBI Indianapolis Special Agent in Charge Herbert J. Stapleton. “The FBI will continue to work with our law enforcement partners to ensure those who endanger public safety and contribute to this crisis are held accountable.”

    “I would like to thank the dedicated Evansville Police Officers and Vanderburgh County Sheriff’s Office Deputies as well as our federal partners in the DEA and US Attorney’s Office for their roles in getting these individuals off our streets. The manufacturing and distribution of methamphetamine and fentanyl have brought death and destruction to our communities and have done irreversible damage to families in the worst way possible. This community will not tolerate that kind of behavior and illegal activity, and we will use every resource available to us to stop it and put dealers behind bars.”

    This case was investigated by the Drug Enforcement Administration’s Evansville Resident Office, with the FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, Evansville Vanderburgh County Joint Task Force, DEA Indianapolis and Indianapolis Metro Drug Task Force providing valuable assistance. The sentenced were imposed by U.S. District Court Judge Matthew P. Brookman.

    Acting U.S. Attorney John E. Childress thanked Assistant United States Attorneys Lauren Wheatley and Jeremy Kemper, who prosecuted this case. 

    According to the Drug Enforcement Administration, as little as two milligrams of fentanyl can be fatal, depending on a person’s body size, tolerance, and past usage—a tiny amount that can fit on the tip of a pencil. Seven out of ten illegal fentanyl tablets seized from U.S. streets and analyzed by the DEA have been found to contain a potentially lethal dose of the drug.

    One Pill Can Kill: Avoid pills bought on the street because One Pill Can Kill. Fentanyl has now become the leading cause of death for adults in the United States. Fentanyl is a highly potent opioid that drug dealers dilute with cutting agents to make counterfeit prescription pills that appear to be Oxycodone, Percocet, Xanax, and other drugs. Fake prescription pills laced with fentanyl are usually shaped and colored to look like pills sold at pharmacies. For example, fake prescription pills known as “M30s” imitate Oxycodone obtained from a pharmacy, but when sold on the street the pills routinely contain fentanyl. These pills are usually round tablets and often light blue in color, though they may be in different shapes and a rainbow of colors. They often have “M” and “30” imprinted on opposite sides of the pill. Do not take these or any other pills bought on the street – they are routinely fake and poisonous, and you won’t know until it’s too late.

    ###

    MIL Security OSI –

  • MIL-OSI Security: Convicted Felon Sentenced to Seven Years for Possession of Firearm

    Source: Federal Bureau of Investigation (FBI) State Crime News

    Tampa, FL – U.S. District Judge Thomas P. Barber has sentenced Sherron Gary (41, Tampa) to seven years in federal prison for possessing a firearm and ammunition as a convicted felon. Gary pleaded guilty in October 2024.

    According to court documents, on April 9, 2023, officers with the Tampa Police Department (TPD) attempted a traffic stop on a vehicle driven by Gary after observing the vehicle had a broken taillight. Gary failed to pull over and instead fled from the officers at a high rate of speed. A police helicopter followed Gary. After Gary’s vehicle was boxed in by law enforcement, Gary fled from the officers on foot, which the helicopter was also able to capture.

    As Gary fled, the helicopter crew observed Gary discard an item as he was running that resembled a firearm. TPD officers apprehended Gary. After the arrest, the helicopter crew directed officers back to the location where they had observed Gary discard the firearm. Officers located a 9mm Walther Creed semiautomatic pistol at the location.

    At the time, Gary had four prior felony convictions, including aggravated battery and armed burglary of a dwelling, trafficking of cocaine, delivery of cocaine, and delivery of cocaine within 1,000 feet of church. As a convicted felon, Gary is prohibited from possessing firearms or ammunition under federal law.

    This case was investigated by the Federal Bureau of Investigation, the Tampa Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Samantha Newman. The forfeiture was handled by Assistant United States Attorney Suzanne Nebesky.

    This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

    MIL Security OSI –

  • MIL-OSI Security: Serial Fraudster Sentenced to 10 Years in Federal Prison for Stealing Nearly $3 Million and Five Indianapolis Homes

    Source: Federal Bureau of Investigation (FBI) State Crime News

    EVANSVILLE— James Henley, 35, of Greenwood, Indiana, has been sentenced to ten years in federal prison, followed by three years of supervised release after pleading guilty to aggravated identity theft, conspiracy to commit access device fraud, two counts of money laundering, and eight counts of wire fraud. Henley has also been ordered to pay $1,887,426.63 in restitution.

    According to court documents, over the course of three years, Henley orchestrated multiple large and complex fraud schemes, resulting in a total loss of $2,927,758.95 to individual homeowners, an Indiana attorney, a bank, and ten state governments. As part of his fraud schemes, Henley registered five fake businesses (OnTrack Real Estate Solutions, LDI Investments Corp, Lucario Investments, 317 Traffic, and Henley Real Estate Solutions) with the states of Indiana and Kentucky, claiming to serve as the Chief Executive Officer for most of them. None of the businesses were legitimate. Instead, Henley used the businesses to mask his identity, make his schemes appear more credible, and launder the stolen money.

    Henley’s schemes are broken down as follows:

    COVID-19 Fraud:

    Between May 2020 and March 2021, James Henley, his wife Jameka Henley, and his associate Jimmie Bickers used the stolen personally identifiable information of 76 real individuals to submit 120 unemployment insurance applications to ten states during the COVID-19 pandemic. Once the applications were approved, the trio used 65 unemployment insurance debit cards to make purchases at retailers and withdraw cash at ATMs in the Evansville and Indianapolis areas. The states paid a total of $1,119,426.63 in unemployment benefits in connection with the group’s fraudulent applications.  In July 2020, Henley used funds withdrawn from ATMs to buy a Chevrolet Camaro for $22,801.

    Bickers and Jameka Henley have been formally charged for their roles in this scheme but have not pleaded guilty.

    Home Title Fraud:

    Between December 2021 and May 2023, Henley stole five homes in Indianapolis by filing fraudulent deeds with the Marion County Recorder’s Office. Through the filings, Henley claimed that the homeowners had sold their homes to his fake businesses, but, in reality, he had never even spoken with the homeowners.  Unbeknownst to the victims, Henley filed these fraudulent deeds and then sold the homes for significantly less than their market value, pocketing more than $260,000 in profits.

    Henley also attempted to steal and sell an additional 14 homes in Indianapolis and Evansville.  With one exception, the individuals who bought the homes from Henley took possession and ultimately kept the homes.

    For one homeowner, the property Henley stole was her childhood home. She purchased the home while her mother was in the hospital with the hope that, when her mother’s condition improved, her mother would be able to live out her remaining years in the house.

    Mortgage Fraud:

    In November 2021, an associate of Henley’s purchased a home in Indianapolis, using a mortgage loan from a bank.  In April 2022, Henley filed a fraudulent document with the Marion County Recorder’s Office to make it seem as if the mortgage loan had been paid off, when it had not been paid. Henley then filed a deed naming himself a joint owner of the home. Henley and his associate subsequently sold the property for $255,000, pocketing all the proceeds, even though the bank should have received the majority of the funds.

    Auto Loan Fraud:

    In March 2023, Henley purchased a Dodge Durango in Indianapolis for $71,479, using an auto loan from Everwise Credit Union. A few months later, in June 2023, Henley purchased a Chevrolet Silverado in Plainfield for $54,270, using a second loan from Everwise Credit Union.

    In October 2023, Henley connected a JPMorgan Chase bank account to his auto loans, via Everwise’s online payment portal.  Henley falsely represented that the Chase account belonged to Jimmie Bickers, and that he had authority to make payments on his loans using funds from the Chase account.

    The Chase account was actually an Indiana attorney’s Interest on Lawyers’ Trust Account (IOLTA), which is a highly regulated bank account used by lawyers to hold client funds.  The interest earned on IOLTA accounts is used to fund grants for nonprofit groups that promote pro bono and access to justice programs. Henley did not have the attorney’s permission to access or withdraw funds from the IOLTA account.

    Between October and November 2023, Henley used the IOLTA account to make two payments, totaling $98,000, toward his auto loans.

    Henley has prior felony convictions for financial crimes, including theft, forgery, and fraud.

    “James Henley went to great lengths to coordinate exceptionally greedy, complex schemes that exploited hard-working families and state government programs,” said John E. Childress, Acting U.S. Attorney for the Southern District of Indiana. “Undeterred by prior felony convictions for the same conduct, this defendant stole over a million dollars, wreaking financial and logistical havoc on hundreds of victims. The Department of Justice will continue to work with our law enforcement partners to investigate allegations of fraud and seek prosecution as appropriate.”

    “James Henley filed fraudulent unemployment insurance (UI) claims in the names of identity theft victims in order to receive UI benefits to which he was not entitled. He enriched himself by defrauding a program that was intended to assist struggling American workers during an unprecedented global pandemic,” said Megan Howell, Acting Special Agent-in-Charge, Great Lakes Region, U.S. Department of Labor, Office of Inspector General. “We and our law enforcement partners are committed to protecting the integrity of the UI system from those who seek to exploit this critical benefit program.”

    “This lengthy prison sentence sends a clear message: individuals who attempt to exploit and commit financial crime and identity theft will be brought to justice,” said Ramsey E. Covington, Acting Special Agent in Charge, IRS Criminal Investigation, Chicago Field Office. “IRS Criminal Investigation and our fellow law enforcement partners are committed to protecting the integrity of our financial institutions and will continue to hold criminals like James Henley accountable to the fullest extent of the law.”

    “This case should serve as a powerful reminder that individuals with a history of financial crimes will face significant consequences when they demonstrate a blatant disregard for the law and continue to exploit and deceive others for personal gain,” said FBI Indianapolis Special Agent in Charge Herbert J. Stapleton. “The FBI, working alongside our law enforcement partners, will continue to hold those who perpetuate such offenses accountable and protect the public from those who manipulate the system for their own benefit.”

    The Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, Department of Labor-Office of the Inspector General, and the Indiana Attorney General’s Office Homeowner Protection Unit investigated this case. The sentence was imposed by U.S. District Judge Matthew B. Brookman.

    Acting U.S. Attorney Childress thanked Assistant U.S. Attorney Matthew Miller, who prosecuted this case.

    On May 17, 2021, the Attorney General established the COVID‑19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts.

    Anyone with information about allegations of attempted fraud involving COVID‑19  can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form

    ###

    MIL Security OSI –

  • MIL-OSI Security: Providence Man Pleads Guilty to Fentanyl Trafficking Charge

    Source: Office of United States Attorneys

    PROVIDENCE, RI – A Providence man who was the target of an FBI Safe Streets Task Force investigation into drug trafficking pleaded guilty on Tuesday in federal court to a charge of possession with intent to distribute fentanyl, announced United States Attorney Zachary A. Cunha.

    According to charging documents and information presented to the court, a court authorized search of the Providence residence of Montrell Dennis, 34, on May 3, 2024, resulted in the discovery of several plastic baggies containing fentanyl and an assortment of other drugs. Toxicology reports of the seized narcotics indicate there were 29.4 grams of a mixture containing Fentanyl, Heroin, Cocaine, and Xylazine and 1.37 grams of crack cocaine. Multiple digital scales, multiple smartphones, and two firearms were also seized.

    Dennis, who has been detained since his arrest on May 3, 2025, is scheduled to be sentenced on April 22, 2025. The defendant’s sentence will be determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.

    The case is being prosecuted by Assistant United States Attorneys Peter I. Roklan and Taylor A. Dean.

    The matter was investigated by the FBI Rhode Island Safe Streets Gang Task Force.

    ###

    MIL Security OSI –

  • MIL-OSI Security: Jacksonville Convicted Child Sex Offender Pleads Guilty To Attempting To Entice A 13-Year-Old To Engage In Sexual Activity

    Source: Office of United States Attorneys

    Jacksonville, Florida – United States Attorney Roger B. Handberg announces that Jeremy Wayne Leggett (38, Jacksonville) has pleaded guilty to attempting to entice a child to engage in sexual activity. Leggett faces a minimum penalty of 10 years, up to life, in federal prison, and a potential lifetime term of supervised release. Leggett is a registered child sex offender, having been previously convicted in Florida in 2020 of traveling to meet a minor to commit an unlawful sexual offense and transmitting harmful materials to a minor. Leggett was arrested on June 19, 2023, and has been in custody since then. His sentencing hearing is scheduled for April 28, 2025.   

    According to court documents, on June 16, 2023, an undercover FBI agent (UC) in the Jacksonville area, posing as a minor child, was working online in a particular social media application (app) to identify individuals seeking to contact and engage in sexual activity with children. The UC engaged in an online conversation with an app user “dAddi” who posted a notice in a public chatroom that read “Lookingfor[under 18 emoji] wannaspoiladaughter.” During this online conversation, user “dAddi,” who was subsequently identified as Leggett, was advised that the “child” was 13 years old. Leggett asked if the “child” “[l]ike[d] older men,” and sent the “child” a photo of himself. After more conversation, Leggett suggested that they meet in person for sexual activity, and he sent the “child” an explicit photo of himself. On June 17, 18, and 19, 2023, Leggett reinitiated text messages with the UC and continued attempting to persuade the “child” to meet for sex and to send him sexually suggestive photos.

    On June 19, 2023, Leggett and the “child” made arrangements to meet at a location in Jacksonville. Later that evening, Leggett went to the agreed-upon location and drove around the parking lot for about 30 minutes. When law enforcement officers attempted to make contact with Leggett, he quickly reversed his vehicle and fled the scene. A short time later, officers with the Jacksonville Sheriff’s Office and FBI agents located Leggett at a home in Jacksonville and he was arrested. 

    This case was investigated by the Federal Bureau of Investigation, the Jacksonville Sheriff’s Office, and the Naval Criminal Investigative Service. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.

    It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue child victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. 

    MIL Security OSI –

  • MIL-OSI: Paperclip SAFE Announces Alignment with Encryption Requirements Mandated within EU DORA Act

    Source: GlobeNewswire (MIL-OSI)

    HACKENSACK, N.J., Feb. 05, 2025 (GLOBE NEWSWIRE) — Paperclip, Inc. (OTCMKTS:PCPJ) announces its SAFE technology aligns with new European Union DORA requirements mandating data encryption.

    The Digital Operational Resilience Act (DORA) went into effect on January 17th, 2025, impacting all European Union (EU) financial services organizations and their Information and Communications Technology (ICT) suppliers. This regulation has far-reaching implications, and not only for Financial Institutions operating in the EU, but for US organizations as well.

    “We should look at DORA as a foreshadowing of U.S. regulations to come,” said Chad Walter, CRO at Paperclip, Inc. “The demand is increasing for better resiliency due to increased data theft, manipulation, and ransomware attacks. DORA is likely to influence data resiliency requirements globally, just as GDPR did for data privacy. There are key pieces to the DORA regulations that are coming to a regulation near you.”

    A key aspect of DORA is its specificity around encryption. To comply with DORA, organizations that do business with the financial sector in the EU must enhance their encryption tools to support encryption of data at rest, in transit, and in use. This type of encryption technology isn’t widely adopted to date and is reliant on newer, innovative technologies like Paperclip SAFE®.

    Paperclip SAFE® always-encrypted technology is uniquely positioned to help organizations on their path to data resiliency and DORA compliance. Paperclip SAFE meets DORA requirements by assuring that confidentiality, availability, and integrity of data is protected via its always-encrypted technology.

    DORA introduces significant personal accountability for compliance and cybersecurity leaders at financial entities, and the service providers they work with. To learn more about DORA requirements and the impact on your organization—US or EU—visit https://paperclip.com/dora-regulations/

    Paperclip will be attending TechEx Global in London this week, Feb. 5-6, to meet with EU and non-EU companies to discuss DORA, encryption strategies, and appetite for innovation. Our team will be learning about and discussing EU regulations along with other global data security requirements.

    About Paperclip Inc.
    With over three decades of customer-centric innovation, Paperclip is a proven strategic partner that continues to revolutionize data encryption, content supply chain, and document management for Fortune 1000 companies worldwide. Every second of every day, Paperclip solutions securely process, transcribe, store, and communicate our client’s most sensitive content, such as PII, PHI, NPI, and corporate IP. Paperclip enables enterprises to harness the power of their data without ever sacrificing security. As a trusted leader, Paperclip continues to innovate, adapt and excel within a rapidly changing digital world. Learn more at www.paperclip.com.

    About Paperclip SAFE®
    Paperclip’s proprietary SAFE® encryption solution builds upon an established foundation of trust and collaboration earned from over three decades of consistent performance. Paperclip SAFE utilizes our team’s in-depth knowledge of the data supply chain to ensure that private, sensitive, and controlled data is always encrypted and removed from risk of data theft and ransom. Originally developed as an internal solution, Paperclip has operationalized SAFE for more than four years to protect the critical data behind our active customer base, including nine of the top 10 life insurance and annuity enterprises. With Paperclip SAFE, critical data assets are always encrypted, always available, and always ahead of evolving risk. For more information, visit https://paperclip.com/safe.

    CONTACT
    Megan Brandow, Director of Marketing
    Paperclip, Inc.
    (585) 727-0983
    mbrandow@paperclip.com

    The MIL Network –

  • MIL-OSI: Cyabra Launches AI-Powered ‘Insights’ Feature, Safeguarding Brands and Governments Against AI-Driven Digital Disinformation

    Source: GlobeNewswire (MIL-OSI)

    • False news stories are 70% more likely to be shared than true stories across digital platforms, and experts predict disinformation will become the top challenge for public and private sectors worldwide in 2025.
    • Cyabra’s Insights feature equips organizations to quickly and confidently detect and comprehend digital threats.

    New York, NY, Feb. 05, 2025 (GLOBE NEWSWIRE) —  Cyabra Ltd. (“Cyabra”), a leading AI platform for real-time disinformation detection, introduces Insights, a powerful new AI-feature designed to transform complex social media disinformation data into clear, actionable answers in seconds.

    False narratives, fake accounts, and AI-generated content are spreading faster than ever, costing businesses and governments billions annually and eroding public trust and reputations. With AI-generated disinformation spreading six times faster than the truth—especially during high-stakes events like elections and holiday seasons—the need for rapid-response tools has never been more critical.

    Insights takes the complexity out of disinformation detection by breaking down Cyabra’s robust data findings into intuitive visuals and an automated Q&A format. In response to users’ most common requests and questions, Insights empowers brands and governments to quickly uncover harmful narratives, identify fake accounts (bots), and understand how false content spreads—saving time, resources, and reputations during critical moments.

    “Every second matters when identifying and countering disinformation,” said Dan Brahmy, CEO and co-founder of Cyabra. “Insights turns vast amounts of data into clear, actionable knowledge, empowering our clients to uncover the real story behind the data and respond before the damage is done. It’s like having an expert analyst at your fingertips.”

    Key Features of Insights:

    1. Automated Disinformation Analysis: Identifies bots, fake profiles, and harmful narratives without manual input.
    2. Clear, Actionable Visuals: Unveils trends, patterns, and key metrics with heatmaps and charts that anyone can understand.
    3. User-Friendly Q&A Format: Answers critical questions about disinformation scans in seconds, helping users decide their next steps with confidence.

    “Clients often ask, ‘What’s next?’ when confronting disinformation,” said Yossef Daar, CPO and co-founder of Cyabra. “Insights takes the guesswork out of analysis, giving users a straightforward, visual way to see where false narratives are spreading, who’s behind them, and what’s driving engagement. This enables them to respond to digital threats faster and more effectively.”

    During beta testing, Insights enabled:

    • A Fortune 500 company to neutralize reputational damage in minutes after detecting a disinformation spike about its CEO.
    • A government agency to uncover and disrupt hashtags fueling disinformation campaigns, enabling quicker interventions.

    Insights is now available on Cyabra’s platform.

    Cyabra has entered into a business combination agreement (the “Business Combination Agreement”) with Trailblazer Merger Corporation I (NASDAQ: TBMC) (“Trailblazer”), a blank-check special-purpose acquisition company.

    About Cyabra
    Cyabra Strategy Ltd. (“Cyabra”) is a real-time AI-powered platform that uncovers and analyzes online disinformation and misinformation by uncovering fake profiles, harmful narratives, and GenAI content across social media and digital news channels. Cyabra’s AI protects corporations and governments against brand reputation risks, election manipulation, foreign interference, and other online threats. Cyabra’s platform leverages proprietary algorithms and NLP solutions, gathering and analyzing publicly available data to provide clear, actionable insights and real-time alerts that inform critical decision-making. Cyabra uncovers the good, bad, and fake online.

    For more information, visit www.cyabra.com.

    Media Contact:
    Jill Burkes
    Jill@cyabra.com
    Signal Contact: Jillabra.24

    Investor Relations Contact:
    Miri Segal
    MS-IR
    msegal@ms-ir.com

    About Trailblazer
    Trailblazer Merger Corporation I (Nasdaq: TBMC) is a blank check company formed and entered into a merger, shared exchange, asset acquisition, stock purchase, recapitalization, reorganization, or other similar business combination with one or more businesses or entities. For more information, visit: www.trailblazermergercorp.com

    Forward-Looking Statements
    This press release contains certain forward-looking statements within the meaning of the federal securities laws with respect to certain products that will be the subject of a proposed transaction between Trailblazer Merger Corporation I (“Trailblazer”) and Cyabra Strategy Ltd. (“Cyabra”). All statements other than statements of historical facts contained in this press release, including statements regarding Cyabra’s business strategy, products, research and development costs, plans and objectives of management for future operations, and future results of current and anticipated product offerings, are forward-looking statements. 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. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including, but not limited to, the following risks relating to the proposed transaction: the ability to complete the Business Combination or, if Trailblazer does not consummate such Business Combination, any other initial business combination; expectations regarding Cyabra’s strategies and future financial performance, including its future business plans or objectives, prospective performance and opportunities and competitors, revenues, products and services, pricing, operating expenses, market trends, liquidity, cash flows and uses of cash, capital expenditures, and Cyabra’s ability to invest in growth initiatives and pursue acquisition opportunities; the occurrence of any event, change or other circumstances that could give rise to the termination of the Business Combination Agreement; the outcome of any legal proceedings that may be instituted against Trailblazer or Cyabra following announcement of the Business Combination Agreement and the transactions contemplated therein; the inability to complete the proposed Business Combination due to, among other things, the failure to obtain Trailblazer stockholder approval; the risk that the announcement and consummation of the proposed Business Combination disrupts Cyabra’s current operations and future plans;  the ability to recognize the anticipated benefits of the proposed Business Combination; unexpected costs related to the proposed Business Combination; the amount of any redemptions by existing holders of Trailblazer’s common stock being greater than expected; limited liquidity and trading of Trailblazer’s securities; geopolitical risk and changes in applicable laws or regulations; the size of the addressable markets for Cyabra’s products and services; the possibility that Trailblazer and/or Cyabra may be adversely affected by other economic, business, and/or competitive factors; the ability to obtain and/or maintain the listing of Combined Company’s Common Stock on Nasdaq following the Business Combination; operational risk; and the risks that the consummation of the proposed Business Combination is substantially delayed or does not occur.

    Important Information for Investors and Stockholders
    Trailblazer will file a registration statement on Form S-4 with the SEC, which will include a proxy statement for Trailblazer’s stockholders and a prospectus related to the securities of the combined company. After the registration statement is declared effective, the proxy statement/prospectus will be sent to all Trailblazer stockholders.

    INVESTORS AND STOCKHOLDERS OF TRAILBLAZER ARE URGED TO READ THE REGISTRATION STATEMENT, PROXY STATEMENT/PROSPECTUS, AND OTHER RELEVANT DOCUMENTS FILED OR TO BE FILED WITH THE SEC CAREFULLY WHEN THEY BECOME AVAILABLE, AS THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE TRANSACTION AND THE PARTIES INVOLVED.

    Once filed, free copies of these documents can be obtained from the SEC’s website at  www.sec.gov. Additional information about Trailblazer can be found on its website at  www.trailblazermergercorp.com or by contacting info@trailblazermergercorp.com.

    Participants in the Solicitation
    Cyabra, Trailblazer, and their respective directors and executive officers may be deemed participants in the solicitation of proxies from Trailblazer stockholders regarding the transaction. Information about Trailblazer’s directors and executive officers and their ownership of Trailblazer’s securities is set forth in Trailblazer’s most recent Annual Report on Form 10-K filed with the SEC, as modified or supplemented by any Form 3 or Form 4 filed with the SEC since the date of such filing. Other information regarding the interests of the participants in the proxy solicitation will be included in the proxy statement/prospectus pertaining to the proposed Transactions when it becomes available.

    No Offer or Solicitation
    This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities, or a solicitation of any vote or approval. No sale of securities shall occur in any jurisdiction in which such offer, solicitation, or sale would be unlawful before registration or qualification under applicable laws.

    The MIL Network –

  • MIL-OSI Global: September 5: tense and taut drama vividly recreates the Munich massacre

    Source: The Conversation – UK – By Barry Langford, Professor of Film Studies, Royal Holloway University of London

    In the 21st-century, it’s become horrifyingly normal for terrorist atrocities to play out over live visual media. Countless millions watched the fall of the twin towers on television in September 2001. The 2019 Christchurch mass murderer live streamed his assault on Facebook Live. Hamas commandos on October 7 wore bodycams.

    Director Tim Fehlbaum’s new film September 5 vividly recreates the historical moment when this relationship arguably snapped into sharp focus for the first time. The US network ABC’s live coverage of the Black September attack on the Israeli team at the 1972 Munich Olympics introduced the term “terrorist” to many viewers for the first time.

    The Munich attack unfolded over a single day and culminated in the murder of all nine Israeli hostages. Two athletes were also killed during the initial attack on their residence, as were all of the Palestinian gunmen during a firefight with West German police.

    There have been numerous film and television treatments of the Munich attack. One of the best-known is Kevin Macdonald’s Oscar-winning 1999 documentary One Day in September, which prosecutes the negligence and incompetence of the German authorities. Another is Steven Spielberg’s drama Munich (2005). A heavily fictionalised account of the Mossad reprisals against Palestinians allegedly associated with the Munich attack, it includes a detailed and graphic flashback of the massacre itself.

    The trailer for September 5.

    Fehlbaum opts against providing another synoptic overview of this well-known sequence of events. Instead, September 5 focuses exclusively on the ABC Sports team whose assignment switched in an instant from broadcasting the achievements of record-breaking athletes to covering the unfolding crisis and its bloody denouement.

    Running a tense and taut 94 minutes, the drama unfolds almost entirely within the cramped, sweaty confines of the ABC control room. Located adjacent to the athletes’ village, the sports reporters must suddenly adapt to documenting actual, not sporting, disaster. We share their perspective on the unravelling catastrophe, from a distance, trying to cut through the chaotic and confused stream of conflicting information, all filtered through the cumbersome broadcast technologies of the time.

    Decades before smartphones and the internet, ABC Sports chief Roone Arledge (Peter Sarsgaard) and inexperienced director Geoffrey Mason (John Magaro) battle myriad challenges. They haggle with rival networks for scarce satellite time (live satellite transmission was used for the first time at the Munich Games). They struggle to manoeuvre a weighty studio camera rig outdoors to gain a precious live feed on the apartment where the athletes are being held hostage. They even have to turn around magazines of 16mm film (in 1972 still the standard format for TV news reporting) in just minutes from negative to broadcast-ready clips.

    The meticulous period recreation, low-light filming and handheld camerawork lend the film an immediacy and a grainy intensity. It recalls classic journalistic 1970s thrillers such as All the President’s Men (1976).

    The unit transforms from a hardworking but relaxed outfit choosing whether to cover water polo or “soccer” to a team covering a grimly determined band of brothers (and one crucial sister, German translator Marianne, played by Leonie Benesch). Overcoming the odds to pursue the story to its bitter end, the story takes on the quality of a classic platoon movie.

    The film’s real focus is not so much the technical, but rather the novel ethical challenges the team must confront and decide, live and on-air. The young Peter Jennings (an uncanny impersonation by Benjamin Walker) is their sole trained news correspondent. But the sports crew need to parse the complex contexts of the conflict for a home audience far less steeped than today’s in Middle Eastern geopolitics.

    At the same time, they must fend off the intrusions of West German authorities increasingly panicked by the unfolding PR catastrophe, as Jews once again fall victim on German soil, less than three decades after the Holocaust.

    Looking for something good? Cut through the noise with a carefully curated selection of the latest releases, live events and exhibitions, straight to your inbox every fortnight, on Fridays. Sign up here.

    Meanwhile, it becomes increasingly clear that the Palestinian guerrillas have chosen the Olympics precisely because of the opportunity to stage their cause to a global audience. Hence, the broadcasters are inescapably complicit in the crisis. They’re not simply reporters, but participants.

    In the film’s highest stakes sequence – and a moment of head-spinning reflexivity – the team become aware the terrorists are watching their live broadcast. It means they are able to see the German police manoeuvring into place as they ineptly prepare a rescue.

    Predictably, the pressure to nail the story in an era of scarce information collides with the ethical imperative to get the story right. This leads to the film’s grim climax, where Arledge initially directs anchor Jim McKay (seen only in archive broadcast footage) to repeat the German authorities’ claim that the hostages have been successfully rescued. Only to have to go back on his words when the awful truth emerges and McKay is forced into his famous declaration: “They’re all gone.”

    In the aftermath, the reporters must prepare for another day’s work, while wondering to what degree they may have contributed to the disaster. September 5 is all the more powerful for leaving us, like its protagonists, without ready answers to the weighty questions it so deftly raises, and which have become only more pressing over half a century later.

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

    – ref. September 5: tense and taut drama vividly recreates the Munich massacre – https://theconversation.com/september-5-tense-and-taut-drama-vividly-recreates-the-munich-massacre-248725

    MIL OSI – Global Reports –

  • MIL-OSI Global: Trump’s administration seems chaotic, but he’s drawing directly from Project 2025 playbook

    Source: The Conversation – USA – By Zachary Albert, Assistant Professor of Politics, Brandeis University

    The Heritage Foundation flag flies over its building in July 2024 in Washington. Andrew Harnik/Getty Images

    In his first few days back in office, President Donald Trump engaged in a whirlwind of executive actions, from exiting the World Health Organization, to deploying military personnel and National Guard troop to the U.S.-Mexico border.

    Many of these actions are unprecedented. Some appear to be illegal and unconstitutional, according to legal experts and judges. But none of them should come as a surprise – nearly all of them were outlined in 2022 in a plan called Project 2025.

    A Heritage Foundation representative attends a Moms for Liberty National Summit in Washington on Aug. 30, 2024.
    Dominic Gwinn/Middle East Images/AFP via Getty Images

    Project 2025 is top of Trump’s to-do list

    Project 2025 is a multifaceted strategy to advance conservative policies in the federal government. Part of this effort revolves around the “Mandate for Leadership,” a 922-page document published in April 2023 that outlines a slew of proposed governmental policy changes.

    The Heritage Foundation, a conservative think tank and advocacy group, organized the collaborative effort. A long list of other right-leaning research organizations and interest groups, like Moms for Liberty and Turning Point USA, also participated in Project 2025.

    In the lead-up to the 2024 presidential election, Project 2025 participants wrote on the plan’s website that “to rescue the country from the grip of the radical Left,” they would “need both a governing agenda and the right people in place, ready to carry this agenda out on day one of the next conservative administration.”

    In my research on think tanks, I’ve investigated how these research organizations can influence public policymaking. The most potent strategy is to ally with a political party and support its objectives through research and advocacy. This is exactly what the Heritage Foundation has done via Project 2025.

    Even though Trump said during his 2024 campaign that he was not affiliated with the project, evidence of Project 2025’s agenda can be seen throughout the beginning of his second term – as well as in his first administration.

    For example, on Jan. 20, 2025, Trump echoed the plan’s statement that “men and women are biological realities” when he signed an executive order that, in part, recognizes “two sexes, male and female” that are “not changeable and are grounded in fundamental and incontrovertible reality.” This order led to the removal of transgender references from government websites.

    Other orders are similarly aligned with Project 2025. Take Trump’s executive order that, in part, eliminated the Office of Federal Contract Compliance Programs, or OFCCP, a government office previously charged with ensuring companies working with the government did not discriminate against any employees. Project 2025 recommended, quite simply, to “eliminate OFCCP.”

    Some news reports have found that there are already many other examples of Trump policy decisions and executive orders that appear to mirror Project 2025 recommendations.

    One CNN analysis from Jan. 31 found that more than two-thirds of the 53 executive orders Trump issued during his first week in office “evoked proposals outlined in [the] ‘Mandate for Leadership.‘”

    Heritage Foundation’s decades of activism

    Project 2025’s influence on Trump reflects the Heritage Foundation’s growing importance to the Republican Party.

    In my forthcoming book about the polarization and politicization of policy research organizations, I show the many ways that think tanks like the Heritage Foundation have become embedded within partisan networks and intimately connected to politicians. Increasingly, Heritage and other partisan-aligned think tanks, including progressive groups like the Center for American Progress, use their research to consistently support partisan agendas that align with their policy goals.

    The relationship between the Heritage Foundation and the GOP represents the most extreme version of this dynamic. The think tank has supported Republican presidents as far back as Ronald Reagan, using another policy document – also called the “Mandate for Leadership” – to secure significant policy gains through his administration. But the symbiosis between the Heritage Foundation and the GOP has been particularly notable since Trump gained more influence in the party.

    At the start of Trump’s first term, as one Heritage Foundation researcher told me in 2017, the think tank recognized that the “administration didn’t have much policy depth, so when they won the election they were sort of like, ‘Now what do we do?’ And that’s where Heritage comes in. … We work on these issues year-round, so we’ll stand by your side.”

    The Heritage Foundation also vetted potential staffers for federal government positions. This led to more than 66 Heritage employees or former employees working for the Trump administration by the middle of 2018.

    But Heritage has not entirely dictated Trump’s agenda. While the group did say that Trump “embraced 64 percent of our 321 recommendations” by the end of 2017, the think tank has also revamped its agenda to align with Trump on the issues he cared most about, like trade and culture wars.

    As the think tank’s president, Kevin Roberts, said in 2024, Heritage views its job as “institutionalizing Trumpism.”

    The people connecting Trump to Project 2025

    Many of the contributors to the “Mandate for Leadership” had been Trump administration officials, like Russ Vought, the former director of the Office of Management and Budget and current nominee for the same position.

    This list also includes John Ratcliffe, the former director of National Intelligence and incoming CIA director, and Tom Homan, former acting director of Immigration and Customs Enforcement and current border czar.

    In all, more than half of the plan’s 312 authors, editors and contributors previously worked in the first Trump administration.

    An incredibly important but often underappreciated part of Project 2025 was its staffing effort: The coalition worked to identify, vet and train potential staffers and appointees who are now making their way into the Trump administration and executive agencies.

    Senate Majority Leader Chuck Schumer gestures toward a visual aid about Project 2025 during a news conference in September 2024 in Washington.
    Kent Nishimura/Getty Images

    What people – and the law – say about Project 2025

    Polling from January 2025 shows that a majority of Americans oppose many of Trump’s actions since retaking office, sometimes by large margins.

    Even during the presidential campaign, both Project 2025 itself and the policy ideas it advocated were broadly unpopular. Democrats consistently warned about the plan in their attacks against Republicans.

    The lack of popular approval for Project 2025 and its proposals is notable because the Heritage Foundation has historically invested time and money into gaining public support for its work. It even operates an initiative that polls citizens on how they “interpret arguments for and against our policy recommendations and how we can best gain their understanding and support.”

    There are also legal considerations.

    Many of Trump’s actions – like saying the government will deny citizenship to children born to some immigrants in the U.S. – rest on potentially unconstitutional interpretations and expansions of presidential power.

    This represents another about-face for the think tank, which has historically opposed efforts to empower the president at the expense of congressional authority. Indeed, the Heritage Foundation was founded to work through Congress to accomplish its goals. But with Project 2025, it seems it is pursuing a new strategy.

    How successful the Heritage Foundation is in helping Trump implement Project 2025 proposals will partially depend on how the public reacts. Whether Congress asserts its control over budgetary matters and exercises general oversight of the executive branch will also matter, as will the decisions made by the American judicial system.

    These checks and balances have helped sustain American democracy for nearly 250 years – whether they will continue to do so remains to be seen.

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

    – ref. Trump’s administration seems chaotic, but he’s drawing directly from Project 2025 playbook – https://theconversation.com/trumps-administration-seems-chaotic-but-hes-drawing-directly-from-project-2025-playbook-248821

    MIL OSI – Global Reports –

  • MIL-OSI Economics: Investors, Trump and the Illuminati: What the “Nigerian prince” scams became in 2024

    Source: Securelist – Kaspersky

    Headline: Investors, Trump and the Illuminati: What the “Nigerian prince” scams became in 2024

    “Nigerian” spam is a collective term for messages designed to entice victims with alluring offers and draw them into an email exchange with scammers, who will try to defraud them of their money. The original “Nigerian” spam emails were sent in the name of influential and wealthy individuals from Nigeria, hence the name of the scam.

    The themes of these phishing emails evolved over time, with cybercriminals leveraging contemporary events and popular trends to pique the interest of their targets. However, the distinctive characteristics of the messages that placed them in the “Nigerian” scam category remained unchanged:

    • The user is encouraged to reply to an email. It is usually enough for the attackers to receive a reply in any format, but sometimes they ask the victim to provide additional information, such as contact details or an address.
    • Typically, scammers mention a large amount of money that they claim the recipient is entitled to, either due to sheer luck or because of their special status. However, some emails use other types of bait: investment opportunities, generous gifts, invitations to an exclusive community, and so on.
    • The body of most “Nigerian” scam emails includes the email address – often registered with a free email service – of the alleged benefactor or an agent, which may be different from the sender’s address. Sometimes the return address is given in the Reply-To field rather than the message itself, and the address also differs from the one in the From field. Alternatively, the message body might contain a phone number in place of an email address.
    • The messages are often poorly written, with a large number of mistakes and typos. The text may well be the product of low-quality machine translation or generated by a large language model poorly trained on that language.

    Types of “Nigerian” email messages

    Email from wealthy benefactors

    A fairly common tactic that has superseded the original “Nigerian” scam involves messages purportedly from wealthy individuals suffering from a terminal illness and facing imminent death. They claim to have no heirs, and therefore wish to bequeath their vast fortune to the recipient, whom they deem worthy.

    The narrative may change slightly from one email to the next. For example, a “wealthy benefactor” might ask the recipient to act as a go-between for a monetary transfer to a third party in exchange for a reward, as described in the email above, or simply offer a valuable gift. The message can claim to be written by either a dying millionaire or, as in the example below, a legal representative of the deceased.

    Alternatively, the “millionaires” may be in good health and supposedly donating their money purely out of the goodness of their hearts. To enhance credibility, attackers can embed links to publicly available data about the individual they’re posing as.

    Compensation scams

    Beyond the “millionaire giveaway” scam, fraudsters frequently use the lure of compensations from governments, banks and other trusted entities. By doing so, they exploit the victim’s vulnerability rather than their greed. Scammers sometimes take their victims on an emotional rollercoaster ride. They start by frightening people with bad news, then calm them down by saying the problem has been fixed, and finally surprise them with a generous offer of compensation.

    For example, in the email screenshot below, the attackers, posing as high-ranking officials at a major bank, claim that “corrupt employees” were attempting to steal the recipient’s money. The bank claims to have taken action and is offering an exorbitant amount as damage compensation. To get it, the recipient is urged to contact a correspondent bank as soon as possible at an email address, which is, unsurprisingly, registered with a free email service.

    Scammers have another trick up their sleeve when it comes to compensations: they pretend to be from the police or some international organization and promise to give victims of “Nigerian” scams or other rip-offs their money back. In the example below, scammers, posing as the Financial Stability Council and the United Bank for Africa (UBA), promise the victim a payout from a so-called “fraud victims compensation fund”.

    Sometimes scammers pretend to be “victims of fraud” themselves. The screenshot below shows a common example: scammers masquerade as victims of cryptocurrency fraud, offering help from “noble hackers” who they claim helped them recover their losses.

    Lottery scams

    Lottery win notification scams share many similarities with “Nigerian” scams. Fraudsters promise recipients large sums of money and provide their contact details for further communication. It’s likely that the victim has never heard of the lottery they’ve supposedly won.

    In some cases, scammers employ unusual tactics. For example, in a message claiming to be from a European lottery director, the email body is all but empty. All the “win” details and next steps are in a PDF attachment. The file includes a free email address, which is typical of “Nigerian” scams, and asks you to send fairly detailed personal information, such as your full name, address, and both your mobile and landline phone numbers. They even ask for your job position.

    In other similar emails, we noticed image attachments that included all the details about the supposed “win” and contact information.

    Another lottery scam tactic combines two types of bait: a lottery win (fraudsters pretend to be someone else who has won and is now offering you money) and offering a donation from a wealthy elderly person.

    In some cases, to make their scams more convincing, scammers attach photos of documents to their emails that supposedly confirm the sender’s identity or their winnings.

    Online dating scams

    Some “Nigerian” scams are so sophisticated that they can be hard to spot right away. These include offers of friendship that often develop into romantic conversations, which can be almost indistinguishable from real-life interactions. We’ve seen examples of really long email exchanges where a whole drama played out. A man and a woman met online and hit it off, chatting for hours about everything under the sun. Now, one of them is finally ready to meet the other in person. However, they can’t afford the ticket or visa, and they’re pleading with their partner for financial help so they can meet.

    In a different scenario, the scammer pretends to send an expensive gift to their partner. Eventually, they claim they can’t afford the postage and ask the victim to cover the costs. If the victim agrees, they’ll be hit with a series of additional fees, and the package will never materialize.

    “Nigerian” spam for businesses

    While “Nigerian” scams are often targeted at individual users, similar spam can also be found in the B2B sector. Cybercriminals claim to be seeking businesses to invest in, and the recipient’s company may be their target. To arrange a “partnership”, they ask the recipient to reply to the email.

    Current “Nigerian” spam themes

    Some of the spam samples above reference recent or current real-world events, such as the COVID-19 pandemic or Saudi Arabia’s possible BRICS membership. This is typical of “Nigerian” scams. There are countless ways scammers exploit various global or local, significant or ordinary, positive or negative events, news, incidents, and activities to pursue their selfish goals.

    The most talked-about event of 2024, the US presidential election, significantly influenced the types of scams we saw. Emails that took advantage of this topic were sent to users around the globe. For instance, in the following message, the scammers claimed that the recipient, who uses a German email address, was lucky enough to win millions of dollars from the Donald J. Trump Foundation.

    Creativity unbound

    While most spam fits into well-known categories, scammers can come up with some very surprising offers. We’ve seen quite a few messages from people claiming they’re giving away a piano because they’re moving or because the previous owner has passed away, as is often the case.

    Sometimes you find some really unusual specimens. For example, in the screenshot below, there’s an email allegedly sent from a secret society of Illuminati who claim to be ready to share their wealth and power, as well as make the lucky recipient famous if they agree to become part of their grand brotherhood.

    Conclusion

    “Nigerian” spam has existed for a long time and is characterized by its diversity. Fraudsters can pose as both real and fictitious individuals: bank employees, lawyers, businesspeople, magnates, bankers, ambassadors, company executives, law enforcement officers, presidents or even members of secret societies. They use a variety of stories to hook the user: compensations and reimbursements, donations and charity, winnings, inheritances, investments, and much more. Messages can be anything from short and captivating to long and persuasive, filled with numerous convincing claims designed to lull the victim into a false sense of security. The main danger of such emails lies in the fact that at first glance, there is nothing harmful in them: no links to phishing sites and no suspicious attachments. Scammers exclusively rely on social engineering and are willing to correspond with the victim for an extended period, increasing the credibility of their fabricated story.

    To avoid falling victim to such scams, it’s important to understand the dangers of tempting offers and to be critical of emails allegedly sent from influential individuals. If possible, it’s best to avoid responding to messages from unverified senders altogether. If for some reason you can’t avoid corresponding with a stranger, before responding to even an innocent message about finding a new owner for a piano, it’s worth double-checking the information in it, paying attention to inconsistencies, grammatical errors, etc. If the reply-to address is different from the sender’s address, or if you see a different address in the email body, this may be a sign of fraud.

    MIL OSI Economics –

  • MIL-OSI: Aerospike 8 Delivers The First Real-Time Distributed ACID Transaction Database With High Performance at Scale

    Source: GlobeNewswire (MIL-OSI)

    MOUNTAIN VIEW, Calif., Feb. 05, 2025 (GLOBE NEWSWIRE) — Aerospike, Inc. (“Aerospike”), today unveiled Database 8, a major upgrade of its flagship multi-model distributed database. Version 8 adds distributed ACID transactions to support large-scale online transaction processing (OLTP) applications. Building on its enterprise-grade operations and best-in-class efficiency, Aerospike 8 is the first real-time distributed database to guarantee strict serializability of ACID transactions with industry-leading performance and efficiency at a fraction of the cost of other systems.

    For industries and applications like banking, e-commerce, inventory management, healthcare, order processing and telecom — or any digital business requiring mission-critical transactional workloads — reliable, consistent, and scalable distributed OLTP systems are non-negotiable. Yet, legacy databases have struggled to deliver.

    For nearly a decade, Aerospike has set the standard in strong consistency for single-record requests, achieving millions of transactions per second (TPS) with sub-millisecond latency, whether at gigabytes or petabytes of data. Aerospike Database 8 expands data consistency guarantees with strict serializability (the highest-level guarantee) to distributed multi-object transactions with low latency, even while serving massive concurrent connections.

    Now, businesses can achieve the most stringent level of guarantees, eliminating inconsistencies that can lead to costly errors while benefitting from real-time performance. Since Aerospike requires a fraction of the hardware resources of other databases, enterprises benefit from both substantial operational cost savings and the opportunity to embrace new environmental sustainability goals.

    “Aerospike has always been a transaction powerhouse, with customers scaling to hundreds of millions of TPS on massive amounts of data,” said Subbu Iyer, CEO of Aerospike. “With 8.0, Aerospike has solved one of the most challenging problems in distributed systems so that enterprises can break free from the decades-old trade-off between transactional consistency and high performance — and scale mission-critical applications without compromise.”

    Building Powerful, Scalable OLTP Applications Has Never Been Easier

    Aerospike’s distributed transaction support simplifies OLTP development by moving the burden of building and maintaining transaction management logic from the application to the database. Developers get Aerospike’s intuitive transaction APIs to speed and simplify development. Spring developers can immediately write to the same Spring Data transaction APIs they are used to, and Java developers can code to the standard Spring Framework transaction management APIs without any knowledge of Aerospike internal processes.

    The Aerospike Multi-model Database Advantage

    Aerospike’s multi-model database engine (supporting document, key-value, graph, and vector data types) also significantly reduces development and operational complexity. Developers can choose the best data model for each specific use case, reducing overhead and enhancing agility.

    The Aerospike multi-model database can be deployed on premises and on all major public clouds, giving developers and operators the flexibility needed to deploy real-time applications wherever and however they like, including in hybrid environments.

    Try Aerospike Database 8. For a full technical overview and list of new and notable features, please visit our technical blog and register to attend our webinar on understanding high-throughput transactions at scale.

    About Aerospike

    Aerospike is the real-time database built for infinite scale, speed, and savings. Our customers are ready for what’s next with the lowest latency and the highest throughput data platform. Cloud- and AI-forward, we empower leading organizations like Adobe, Airtel, Criteo, DBS Bank, Experian, Flipkart, PayPal, Snap, and Sony Interactive Entertainment. Headquartered in Mountain View, California, our offices include London, Bangalore, and Tel Aviv.

    Aerospike® is a registered trademark of Aerospike, Inc.

    Contact:
    John Moran
    Look Left Marketing
    aerospike@lookleftmarketing.com

    The MIL Network –

  • MIL-OSI: Credit Agricole SA : CONTINUED STRONG EARNINGS MOMENTUM IN 2024

    Source: GlobeNewswire (MIL-OSI)

    CONTINUED STRONG EARNINGS MOMENTUM IN 2024
    CASA AND CAG STATED AND UNDERLYING DATA Q4-2024
               
      CRÉDIT AGRICOLE S.A.   CRÉDIT AGRICOLE GROUP
        Stated   Underlying     Stated   Underlying
    Revenues   €7,092m
    +17.4% Q4/Q4    		   €7,116m
    +18.2% Q4/Q4    		     €9,817m
    +11.9% Q4/Q4    		   €9,840m
    +13.4% Q4/Q4
    Expenses   -€3,917m
    +5.6% Q4/Q4    		   -€3,878m
    +4.4% Q4/Q4    		     -€5,863m
    +3.2% Q4/Q4    		   -€5,824m
    +2.4% Q4/Q4
    Gross Operating Income   €3,175m
    +36.2% Q4/Q4    		   €3,238m
    +40.4% Q4/Q4    		     €3,954m
    +28.0% Q4/Q4    		   €4,017m
    +34.3% Q4/Q4
    Cost of risk   -€594m
    +35.0% Q4/Q4    		   -€594m
    +35.0% Q4/Q4    		     -€867m
    +13.9% Q4/Q4    		   -€867m
    +13.9% Q4/Q4
    Net income group share   €1,689m
    +26.6% Q4/Q4    		   €1,730m
    +32.8% Q4/Q4    		     €2,149m
    +24.6% Q4/Q4    		   €2,190m
    +33.7% Q4/Q4
    C/I ratio   55.2%
    -6.2 pp Q4/Q4    		   54.5%
    -7.2 pp Q4/Q4    		     59.7%
    -5.1 pp Q4/Q4    		   59.2%
    -6.4 pp Q4/Q4
    ALL OF THE FINANCIAL TARGETS OF THE 2025 AMBITIONS PLAN EXCEEDED AS OF 2024

    STRONG INCREASE IN QUARTERLY AND FULL-YEAR EARNINGS

    • Record quarterly and full-year revenues, fuelled by the excellent performance by Asset Gathering and Large Customers
    • High profitability: low cost/income ratio (increase in recurring expenses contained at +3.0% Q4/Q4) and 14.0% return on tangible equity in 2024
    • Cost of risk rose in Q4-24, driven by provisions for performing loans related to model effects at Crédit Agricole CIB and Crédit Agricole Personal Finance & Mobility (CAPFM)

    PROPOSED 2024 DIVIDEND INCREASE TO €1.10 PER SHARE (+5% VS. 2023)

    STRONG ACTIVITY IN ALL BUSINESS LINES

    • Robust growth in retail banking and consumer finance driven by multiple factors: continued upturn in the home loan business in France (up +18%), higher corporate loan production, thriving international lending business, consumer finance stability at a high level and confirmed stabilisation of the deposit mix in France
    • Record CIB, asset management and insurance business, reflected in the record level in insurance revenues with contributions from all activities, high net inflows and record level of assets under management, as well as a new quarterly and full-year record reached by CIB

    CAPITAL OPERATIONS AND STRATEGIC PROJECTS

    • Instruments finalised to acquire an additional 5.2% in Banco BPM
    • Signing of an agreement for the acquisition of Santander’s 30.5% stake in CACEIS
      • Acquisition of aixigo, European leader in Wealth Tech
      • Finalization of the acquisition of 50% of GAC Leasing in China by CAPFM

    SOLID CAPITAL AND LIQUIDITY POSITIONS

    • Crédit Agricole S.A.’s phased-in CET1 at 11.7% and Group phased-in CET1 at 17.2%

    CONTINUED SUPPORT FOR THE ENERGY TRANSITION

    • Phased withdrawal from fossil energies and reallocation of investments to renewable energy
    • Decarbonisation pathways in line with targets (oil & gas, power and automotive)

    At the meeting of the Board of Directors of Crédit Agricole S.A. on 4 february 2025, SAS Rue La Boétie informed the company of its intention to purchase Crédit Agricole S.A. shares on the market for a maximum amount of 500 million euros in line with the operations announced in August 2023 and in November 2022. Details of the transaction are provided in a press release issued today by SAS Rue La Boétie.

     

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

    « The Group’s excellent results illustrate our overall capacity to support all our customers in a global and loyal relationship over the long term. Three-quarters of these results are retained to serve the development of the economy. I would like to thank all of our employees who work every day with professionalism and commitment. »
     
     

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

    « Driven by its unique Group model based on utility and universality, the Crédit Agricole Group reports excellent results in 2024. Crédit Agricole S.A. has once again exceeded all the financial objectives of its strategic plan, one year ahead of schedule. »

    		  

    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 2024, the Group added +1 900,000 new customers in Retail Banking and grew its customer base by +214,000 customers. More specifically, over the year, the Group gained +1 500,000 new customers for Retail Banking in France and +400,000 new International Retail Banking customers (Italy and Poland). The customer base also grew (+126,000 and +88,000 customers, respectively).

    At 31 December 2024, retail banking on-balance sheet deposits totalled €837 billion, up +1.8% year-on-year in France and Italy (+0.5% for Regional Banks and LCL and +1.7% in Italy). Outstanding loans totalled €880 billion, up +0.4% year-on-year in France and Italy (+0.3% for Regional Banks and LCL and +1.7% in Italy). Home loan production picked up gradually in France during this quarter, recording an increase of +1% for the Regional Banks and +11% for LCL compared to the third quarter of 2024, and +7.8% and +59% respectively compared to the fourth quarter of 2023. Although high, home loan production by CA Italia was down -6.3% compared with an already high Q4 2023. The property and casualty insurance equipment rate1 rose to 43.9% for the Regional Banks (+0.8 percentage points compared with the third quarter of 2023), 27.9% for LCL (+0.4 percentage point) and 20.0% for CA Italia (+1.2 percentage point).

    In asset management, inflows remained strong at +€20.5 billion, fuelled by strong medium/long-term assets, excluding JVs (+€17.9 billion) and at the JVs. In insurance, savings/retirement gross inflows rose to a record €8.3 billion over the quarter (+17% year-on-year), with the unit-linked rate in production staying at a high 37.4%. Net inflows were positive at +€2.4 billion, growing for both euro-denominated and unit-linked contracts. The strong performance in property and casualty insurance was driven by price changes and portfolio growth (16.7 million contracts at end-December 2024, +5.3% year-on-year). Assets under management totalled €2,867 billion, up +12.1% in the year for all three segments: asset management rose 10% over the year to €2,240 billion; life insurance was up +5.1% to €347.3 billion; and wealth management (Indosuez Wealth Management and LCL Private Banking) increased 46.9% year-on-year to €279 billion, notably with the positive impact of the consolidation of Degroof Petercam (€69 billion in assets under management consolidated in the second quarter of 2024).

    Business in the SFS division was stable. At CAPFM, consumer finance outstandings increased to €119.3 billion, up +5.6% compared with the end of December 2023, buoyed by car loans, which accounted for 53%2 of total outstandings. New loan production decreased slightly, by -2.9% compared with the same period in 2023, mainly due to the Chinese market. Regarding Crédit Agricole Leasing & Factoring (CAL&F), production of lease financing outstandings was up +7.2% vs. December 2023 to 20.3%, with a particularly strong contribution from property leasing and renewable energy financing.

    Large Customers again posted record results for both the quarter and the full year in Corporate and Investment Banking. Capital Markets and Investment Banking held up well with a strong performance by the repo and securitisation businesses, while Financing activities reaped the benefits of growth in commercial activities. Asset Servicing recorded a high level of assets under custody of €5,291 billion and assets under administration of €3,397 billion (+12.1% and +3%, respectively, compared with the end of December 2023), with good sales momentum and positive market effects over the quarter.

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

    Roll-out of strategic plan

    Crédit Agricole S.A.’s model offers constantly renewed potential for organic growth. This model is based on three pillars: customer acquisition, customer equipment and the development of new offers. Gross customer capture amounts to 1.9 million new customers on average since 2022, which marked the roll-out of the Horizon 2025 plan. Customer equipment is growing steadily across our various offers. The bank’s market share in household loans stood structurally at 30%3 helping to drive the market shares for our other offerings. These currently stand at 28% in asset management,3 27% in payment services,3 23% in individual death and disability insurance,4 19% in creditor insurance,4 15% in life insurance,4 7% in property and casualty insurance,4 and 4% in property services.4 Lastly, in line with our universal banking model, we are steadily expanding our customer offers: the new CA Transitions et Energies (CATE) and CA Santé et Territoires (CAST) business lines have been rolled out for the large-scale financing of renewable energy projects as well as the production and supply of electricity, and to offer solutions to improve access to healthcare and support for the elderly.

    This model is complemented by a steady stream of self-financed acquisitions and partnerships, through the consolidation of Crédit Agricole S.A.’s business lines in their markets to build the universal bank. Following on from acquisitions in the period 2019 to 2021 for a total of €3.3 billion, all of which were successful with some €1.3 billion5 in revenues generated, and a cost/income ratio of 52%, acquisitions and partnerships during the period covered by the Medium-Term Plan were in five main areas of development. The total investment was €7.2 billion6 (against €1.4 billion in disposals),7 generating around €3 billion in revenues.

    First of all, transactions to consolidate our business lines and strengthen our expertise were carried out in France and Europe, in particular: Private Banking through the transaction under way with Degroof Petercam, and a 70% stake in the capital of Wealth Dynamix8; Asset Servicing with the creation of Uptevia9, a common company with BNP Paribas, the acquisition of RBC Investor Services’ European businesses and the purchase of Santander’s minority interest in CACEIS; and Asset Management with the acquisitions of Alpha Associates10 and aixigo11; and finally, Leasing and factoring activity accelerate its development in Germany with the acquisition of Merca Leasing12. Crédit Agricole S.A. is also structuring its property services through the acquisition of property management business of Casino (Sudeco), and more recently the ones of Nexity.

    At the same time, the bank has expanded its distribution networks through new partnerships, notably by taking a stake in Banco BPM; signing a new distribution agreement between Crédit Agricole Assurances and Banco BPM for non-life and creditor insurance in Italy; partnership in automobile insurance with Mobilize Financial Services, subsidiary of Renault13; and entering into a distribution agreement between Amundi US and Victory Capital14.

    In addition, Specialised Financial Services division developed a comprehensive mobility with: the joint venture Leasys, created with Stellantis to become the European leader in long-term car rental; 100% of CA Auto Bank was acquired, in order to develop partnerships with smaller manufacturers and with independent distributors; six European subsidiaries of ALD and LeasePlan were acquired; and lastly, CA Mobility Services was formed, to create 20 service offers by 2026, mainly through the acquisition of a minority stake in WATEA15, the creation of a joint venture with Opteven16, the acquisition of a stake in HiFlow17, and the commercial partnership with FATEC18. More recently, Credit Agricole Personal Finance & Mobility strengthens its partnership with the car manufacturer GAC with, on the one hand a financial partnership aimed at entrusting CA Auto Bank the financing of vehicules from the Chinese manufacturer in Europe, and on the other end, the acquisition of 50% of the capital of GAC Leasing in order to offer from 2025 financial and operational leasing on the Chinese market.

    In addition, Crédit Agricole S.A. has acquired a stake in Worklife19 and formed a partnership with Wordline20 as part of its drive to accelerate digitisation and innovation. In January 2024, Crédit Agricole S.A. announced its acquisition of a 7% non-controlling interest in Worldline.

    Lastly, to support the transitions in the new CATE and CAST business lines, Crédit Agricole S.A. acquired minority stakes of 40% in R3 (energy transition consultancy) and 43% in Selfee (energy production and supply), and become a reference shareholder in the capital of Office Santé21 and Cette Famille22. In addition, Crédit Agricole Assurances acquired majority stakes of 93% in Omedys23 and 86% in Medicalib23.

    These two pillars of Crédit Agricole S.A.’s universal banking model ensure steady, high growth in revenues and high profitability. Revenues have grown every year between 2015 and 2024 regardless of the environment at an average annual rate of +5.6%. Operational efficiency has also steadily improved with the cost/income ratio falling -15 percentage points in the period 2015 to 2024. Profitability has also risen significantly over the past 10 years. ROTE was 14% at the end of 2024, the highest since 2015, offering even more attractive shareholder remuneration: the dividend per share has tripled in the 10-year period.

    Continued support for the energy transition

    The Group is continuing the mass roll-out of financing and investment to promote the transition. The Crédit Agricole Group increased its exposure to low-carbon energy financing24 by +141% between the end of 2020 and the end of 2024, with €26.3 billion in financing at 31 December 2024.

    Investments by Crédit Agricole Assurances25 and Amundi Transition Energétique in low-carbon energy totalled €6 billion at 31 December 2024. What is more, Crédit Agricole Assurances hit its target of 14 GW of renewable energy production capacity financed one year ahead of schedule.

    At the same time, as a universal bank, Crédit Agricole is supporting the transition of all its customers. Crédit Agricole CIB’s green loan portfolio26 grew by +75% between the end of 2022 and December 2024, and represented €21.7 billion at 31 December 2024. The Group also continues to encourage low-carbon mobility. 37% of new vehicles financed by CAPFM in 2024 were electric or hybrid vehicles. The target for the end of 2025 is 50%.

    In addition, the Group is continuing on its pathway to exit the financing of carbon-based energies and is disclosing progress at end 2024 in three sectors, in line with their 2030 targets (vs. a 2020 baseline). Financed emissions in the oil and gas sector were reduced by -70% at end 2024 working towards a target of -75% by the end of 2030. The intensity of financed emissions in the power sector27 was down by -29% at end 2024, for a target of -58% by the end of 2030, and by -21% in the automotive sector, for a target of -50% by 2030.

    The Group’s phased withdrawal from financing fossil fuel extraction resulted in a -40% decrease in outstandings in the period 2020 to 2024, equating to €5.6 billion at 31 December 2024. At the same time, large-scale financing of low-carbon energies, with outstandings of €26.3 billion, will increase their relative share of the energy mix financed from 54% in 2020 to 82% by the end of 2024.

    Group results

    In the fourth quarter of 2024, Crédit Agricole Group’s stated net income Group share came to €2,149 million, up +24.6% compared with the fourth quarter of 2023.

    Specific items in the fourth quarter of 2024 had a negative net impact of -€42 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 -€19 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
    -€15 million in the net income Group share of Large Customers and the Degroof Petercam integration costs of
    -€9 million in the net income Group share of Asset Gathering.

    Specific items for the fourth quarter of 2023 had a combined impact of +€86 million on net income Group share and included +€69 million in recurring accounting items and +€17 million in non-recurring items. The recurring items mainly corresponded to the reversal of the Home Purchase Saving Plans provision of +€64 million (+€5 million for LCL, +€4 million for the Corporate Centre and +€55 million for the Regional Banks); the other recurring items (+€5 million) are split between the issuer spread portion of the FVA28 and secured lending (+€4 million) and loan book hedging (+€1 million). The non-recurring items related to the ongoing reorganisation of the Mobility activities29 in the SFS division (+€18 million).

    Excluding these specific items, Crédit Agricole Group’s underlying net income Group share30 amounted to €2,190 million, up +33.7% compared to fourth quarter 2023.

    Crédit Agricole Group – Stated and underlying results, Q4-24 and Q4-23

    €m Q4-24
    stated    		 Specific items Q4-24
    underlying    		 Q4-23
    stated    		 Specific items Q4-23
    underlying    		 ∆ Q4/Q4
    stated    		 ∆ Q4/Q4
    underlying
                     
    Revenues 9,817 (24) 9,840 8,769 93 8,677 +11.9% +13.4%
    Operating expenses excl.SRF (5,863) (39) (5,824) (5,682) 4 (5,686) +3.2% +2.4%
    SRF – – – – – – n.m. n.m.
    Gross operating income 3,954 (63) 4,017 3,088 97 2,991 +28.0% +34.3%
    Cost of risk (867) 0 (867) (762) – (762) +13.9% +13.9%
    Equity-accounted entities 80 – 80 73 – 73 +9.9% +9.9%
    Net income on other assets (20) (1) (19) (19) – (19) +7.5% +2.2%
    Change in value of goodwill 4 – 4 2 12 (9) +60.4% n.m.
    Income before tax 3,150 (64) 3,214 2,382 109 2,274 +32.2% +41.4%
    Tax (784) 16 (799) (455) (23) (432) +72.4% +85.1%
    Net income from discont’d or held-for-sale ope. – – – (10) – (10) (100.0%) (100.0%)
    Net income 2,366 (48) 2,414 1,918 86 1,832 +23.4% +31.8%
    Non controlling interests (217) 7 (224) (194) – (194) +12.2% +15.6%
    Net income Group Share 2,149 (42) 2,190 1,724 86 1,638 +24.6% +33.7%
    Cost/Income ratio excl.SRF (%) 59.7%   59.2% 64.8%   65.5% -5.1 pp -6.4 pp

    In the fourth quarter of 2024, underlying revenues amounted to €9,840 million, up +13.4% compared to the fourth quarter of 2023, driven by favourable results from most of the business lines. Underlying revenues were up in French Retail Banking, while the Asset Gathering division benefited from good business momentum and the integration of Degroof Petercam, the Large Customers division enjoyed a high level of revenues across all of its business lines and the Specialised Financial Services division benefited from a positive price effect. In addition, International Retail Banking revenues were stable. Underlying operating expenses were up +2.4% in fourth quarter 2024, totalling €5,824 million. Overall, the Group saw its underlying cost/income ratio reach 59.2% in the fourth quarter of 2024, a -6.4 percentage point improvement. As a result, the underlying gross operating income came to €4,017 million, up +34.3% compared to the fourth quarter 2023.

    The underlying cost of credit risk stood at -€867 million, an increase of +13.9% compared to fourth quarter 2023. This figure comprises an amount of -€363 million to prudential provisions on performing loans (stages 1 and 2) and an amount of -€489 million for the cost of proven risk (stage 3). There was also an addition of
    -€16 million for 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 fourth quarter were updated from the third quarter, with a favourable scenario (French GDP at +1.1% in 2024, +1.3% in 2025) and an unfavourable scenario (French GDP at +1.1% in 2024 and -0.1% in 2025). The cost of risk/outstandings31reached 27 basis points over a four rolling quarter period and 29 basis points on an annualised quarterly basis32.

    Underlying pre-tax income stood at €3,214 million, a year-on-year increase of +41.4% compared to fourth quarter 2023. This includes the contribution from equity-accounted entities for €80 million (up +9.9%) and net income on other assets, which came to -€19 million over this quarter. The underlying tax charge was up +85.1% over the period, with the tax rate this quarter rising by +6.0 percentage points to 25.5%. Underlying net income before non-controlling interests was up +31.8% to €2,414 million. Non-controlling interests rose +15.6%. Lastly, underlying net income Group share was €2,190 million, +33.7% higher than in the fourth quarter of 2023.

    Crédit Agricole Group – Stated and underlying results 2024 and 2023

    En m€ 2024
    stated    		 Specific items 2024
    underlying    		 2023
    stated    		 Specific items 2023
    underlying    		 ∆ 2024/2023
    stated    		 ∆ 2024/2023
    underlying
                     
    Revenues 38,060 93 37,967 36,492 851 35,641 +4.3% +6.5%
    Operating expenses excl.SRF (22,729) (123) (22,606) (21,464) (14) (21,450) +5.9% +5.4%
    SRF – – – (620) – (620) (100.0%) (100.0%)
    Gross operating income 15,332 (30) 15,362 14,408 837 13,572 +6.4% +13.2%
    Cost of risk (3,191) (20) (3,171) (2,941) (84) (2,856) +8.5% +11.0%
    Equity-accounted entities 283 (0) 283 263 (39) 302 +7.6% (6.1%)
    Net income on other assets (39) (24) (15) 88 89 (1) n.m. x 18.9
    Change in value of goodwill 4 – 4 2 12 (9) +60.4% n.m.
    Income before tax 12,388 (74) 12,462 11,821 814 11,007 +4.8% +13.2%
    Tax (2,888) 12 (2,900) (2,748) (203) (2,545) +5.1% +13.9%
    Net income from discont’d or held-for-sale ope. – – – (3) – (3) (100.0%) (100.0%)
    Net income 9,500 (62) 9,562 9,071 611 8,459 +4.7% +13.0%
    Non controlling interests (860) 23 (883) (813) (0) (813) +5.8% +8.7%
    Net income Group Share 8,640 (39) 8,679 8,258 611 7,647 +4.6% +13.5%
    Cost/Income ratio excl.SRF (%) 59.7%   59.5% 58.8%   60.2% +0.9 pp -0.6 pp

    For full-year 2024, stated net income Group share amounted to €8,640 million, compared with €8,258 million for full-year 2023, an increase of +4.6%.

    Specific items for full-year 2024 include the specific items of the Regional Banks (+€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 €8,679 million, up +13.5% compared with full-year 2023.

    Underlying revenues totalled €37,967 million, up +6.5% compared with full-year 2023, driven by all business lines (excluding Corporate Centre).

    Underlying operating expenses amounted to -€22,606 million, up +5.4% excluding SRF compared to full-year 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 full-year 2024 was 59.5%, a -0.6 percentage point improvement compared to full-year 2023 excluding SRF. The SRF stood at
    -€620 million in 2023.

    Underlying gross operating income totalled €15,362 million, up +13.2% compared to full-year 2023.

    The underlying cost of risk for full-year 2024 rose to -€3,171 million (of which -€540 million in cost of risk on performing loans (stages 1 and 2), -€2,637 million in cost of proven risk, and +€6 million in other risks corresponding mainly to reversals of legal provisions), i.e. an increase of +11.0% compared to full-year 2023.

    As at 31 December 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 December 2024 (€11.7 billion for Regional Banks), 42.2% of which represented provisioning of performing loans (47.3% 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 December 2024 was 84.9%.

    Underlying net income on other assets stood at -€15 million for full-year 2024 versus -€1 million for full-year 2023. Underlying pre-tax income before discontinued operations and non-controlling interests rose by +13.2% to €12,462 million. The tax charge was -€2,900 million, up +13.9%, with an underlying effective tax rate of 23.8%, stable compared to full-year 2023. Underlying net income before non-controlling interests was therefore up by +13.0%. Non-controlling interests amounted to -€883 million for full-year 2024, up +8.7%.

    Underlying net income Group share for full-year 2024 thus stood at €8,679 million, up 13.5% compared to full-year 2023.

    Regional banks

    Gross customer capture stands at +273,000 new customers and the customer base grew by +10,000 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. Credit market share (total credits) stands at 22.7% (at the end of September 2024, source Banque de France). Loan production was up +7.4% compared to the fourth quarter of 2023, reflecting the +7.8% rise in home loans and specialised markets. Home loan production has been gradually recovering since the beginning of the year. The average production rate for home loans stood at 3.35%33 over October and November 2024, -12 basis points lower than in the third quarter of 2024. By contrast, the global loan stock rate showed a gradual improvement (+16 basis points compared to the fourth quarter of 2023). Outstanding loans totalled €648 billion at the end of December 2024, stable year-on-year across all markets but up slightly by +0.2% over the quarter.
    Customer assets were up +2.6% year-on-year to reach €910.9 billion at the end of December 2024. This growth was driven both by on-balance sheet deposits, which reached €605.9 billion (+1.7% year-on-year), and off-balance sheet deposits, which reached €305 billion (+4.4% year-on-year) benefiting from strong inflows in life insurance. The mix of on-balance sheet deposits for the quarter remained almost unchanged, with demand deposits and term deposits fluctuating by -0.5% and +0.1%, respectively, from end-September 2024. The market share of balance sheet collection is up compared to last year and stands at 20.3% (Source Banque de France, data at the end of September 2024, i.e. +0.4 percentage points compared to September 2023). The equipment rate for property and casualty insurance34 was 43.9% at the end of December 2024 and continues to rise (up +0.8 percentage point compared to the end of December 2023). In terms of payment instruments, the number of cards rose by +1.6% year-on-year, as did the percentage of premium cards in the stock, which increased by 1.6 percentage points year-on-year to account for 16.4% of total cards.
    In the fourth quarter of 2024, the Regional Banks’ consolidated revenues including the SAS Rue La Boétie dividend35 stood at €3,247 million, up +0.7% compared to the fourth quarter of 2023, notably impacted by a base effect of +€73.6 million related to the reversal of the Home Purchase Savings Plan provision in the fourth quarter of 202336. Excluding this item, revenues were up +3.1% compared to the fourth quarter of 2023, the rise in the net interest margin (+9.8% excluding Home Purchase Savings36) and good momentum of fee and commission income (+1.6%) in insurance, account management and payment instruments offsetting the drop in portfolio revenues (-10.0%). Operating expenses were stable (+0.7%), below inflation. Gross operating income was up +0.8% year-on-year (+11.6% excluding the Home Purchase Savings Plan base effect36). The cost of risk was down -24.6% compared with the fourth quarter of 2023 to -€242 million. The cost of risk/outstandings (over four rolling quarters) remained under control at 20 basis points (a -1 basis point drop compared to third quarter 2024).
    The Regional Banks’ consolidated net income, including the SAS Rue La Boétie dividend35 amounted to €419 million, up +19.9% compared to the fourth quarter 2023 (+42.1% excluding the base effect36).
    The Regional Banks’ contribution to net income Group share was €403 million in the fourth quarter of 2024, up +20.3% compared to the fourth quarter of 2023.
    In full-year 2024, revenues including the SAS Rue La Boétie dividend were up +1.9% compared to the same period in 2023. Operating expenses rose by +1.4%, resulting in a rise in gross operating income of +2.7%. Finally, with a cost of risk up +14.0%, the Regional Banks’ net income Group share, including the SAS Rue La Boétie dividend, amounted to €3,470 million, up +2.5% compared to full-year 2023 (+5.5% excluding the Home Purchase Savings Plan base effect36).The Regional Banks’ contribution to the results of Crédit Agricole Group in full-year 2024 amounted to €1,423 million in stated net income Group share (-18.9% compared to the same period in 2023), with revenues of €13,110 million (-1.1%), expenses of -€9,956 (+2.6%) and a cost of risk of -€1,319 million (+14.5%).

    Crédit Agricole S.A.

    Results

    Crédit Agricole S.A.’s Board of Directors, chaired by Dominique Lefebvre, met on 4 February 2025 to examine the financial statements for the fourth quarter of 2024.

    Crédit Agricole S.A. – Stated and underlying results, Q4-24 and Q4-23

    €m Q4-24
    stated    		 Specific items Q4-24
    underlying    		 Q4-23
    stated    		 Specific items Q4-23
    underlying    		 ∆ Q4/Q4
    stated    		 ∆ Q4/Q4
    underlying
                     
    Revenues 7,092 (24) 7,116 6,040 19 6,021 +17.4% +18.2%
    Operating expenses excl.SRF (3,917) (39) (3,878) (3,710) 4 (3,714) +5.6% +4.4%
    SRF – – – – – – n.m. n.m.
    Gross operating income 3,175 (63) 3,238 2,330 24 2,307 +36.2% +40.4%
    Cost of risk (594) 0 (594) (440) – (440) +35.0% +35.0%
    Equity-accounted entities 62 – 62 61 – 61 +2.4% +2.4%
    Net income on other assets (9) (1) (8) (17) – (17) (45.9%) (51.9%)
    Change in value of goodwill – – – 2 12 (9) n.m. (100.0%)
    Income before tax 2,634 (64) 2,698 1,937 35 1,902 +36.0% +41.9%
    Tax (681) 16 (697) (369) (4) (365) +84.7% +91.0%
    Net income from discont’d or held-for-sale ope. – – – (10) – (10) n.m. n.m.
    Net income 1,953 (48) 2,001 1,558 32 1,527 +25.3% +31.1%
    Non controlling interests (264) 7 (271) (224) (0) (224) +17.8% +21.1%
    Net income Group Share 1,689 (41) 1,730 1,334 31 1,303 +26.6% +32.8%
    Earnings per share (€) 0.52 (0.01) 0.54 0.41 0.01 0.40 +26.8% +33.4%
    Cost/Income ratio excl. SRF (%) 55.2%   54.5% 61.4%   61.7% -6.2 pp -7.2 pp

    In the fourth quarter of 2024, Crédit Agricole S.A.’s stated net income Group share came to €1,689 million, up +26.6% compared to the fourth quarter of 2023, having benefited from non-recurring items related to reversals of Home Purchase Savings Plan and Cheque Image Exchange fine provisions and from the end of the reorganisation of the Mobility activities (see below). This was an excellent result for the fourth quarter of 2024, based on high revenues (exceeding €7 billion) and a cost/income ratio kept at a low level.

    Specific items for this quarter had a cumulative impact of -€41 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 -€19 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 -€8 million in the net income Group share in Asset Gathering; ISB integration costs for -€15 million in the net income Group share in Large Customers.

    Specific items for the fourth quarter 2023 had a cumulative impact of +€31 million on net income Group share, and included recurring accounting items for +€14 million and non-recurring items for +€17 million. The recurring items mainly corresponded to the reversal of the Home Purchase Savings Plans provision of +€8 million (+€4 million for LCL and +€4 million for the Corporate Centre); the other recurring items – the issuer spread portion of the FVA and secured lending (+€4 million) and loan book hedging (+€1 million) – offset each other. The non-recurring items related to the ongoing reorganisation of the Mobility activities in the SFS division (+€17 million).

    Excluding specific items, underlying net income Group share37 stood at €1,730 million in the fourth quarter of 2024, up +32.8% compared to the fourth quarter of 2023.

    In the fourth quarter of 2024, underlying revenues were at a high level, standing at €7,116 million. They were up sharply by +18.2% compared to the fourth quarter of 2023. This growth was driven by growth in the Asset Gathering division (+31.6%) which in turn was driven by the rise in outstandings across all business lines, including the integration of Degroof Petercam38. There was a positive base effect relating to very high weather-related claims in the fourth quarter of 2023. Large Customer division revenues (+10.6%) were driven by good results from all business lines with continued revenue growth in corporate and investment banking in the fourth quarter, in addition to an improvement in the net interest margin and fee and commission income within CACEIS. Specialised Financial Services division revenues (+4.0%) benefited mainly from positive price effects in the Personal Finance and Mobility business line. French Retail Banking growth (+0.8%) was driven by the rise in fee and commission income which offset the drop in NIM, and International Retail Banking revenues (-0.5%) were stable. Corporate Centre revenues were up +€362 million, positively impacted by the dividend and the revaluation of the equity interest in Banco BPM of +€294 million.

    Underlying operating expenses totalled -€3,878 million in the fourth quarter of 2024, an increase of +4.4% compared to the fourth quarter of 2023, reflecting the support given to business line development. The -€164 million year-on-year rise in expenses was mainly due to a -€132 million scope effect39.

    The underlying cost/income ratio in fourth quarter 2024 stood at 54.5%, a decrease of -7.2 percentage points compared to fourth quarter 2023.

    Underlying gross operating income in the fourth quarter of 2024 stood at €3,238 million, an increase of +40.4% compared to the fourth quarter of 2023.

    As at 31 December 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 (44% of Crédit Agricole S.A. gross outstandings). The Non-Performing Loans ratio was down
    -0.2 point from the previous quarter and remains low at 2.3%. The coverage ratio40 was high at 74.1%, up +2.7 percentage points over the quarter. Loan loss reserves amounted to €9.6 billion for Crédit Agricole S.A., relatively unchanged from end September 2024. Of those loan loss reserves, 35.8% were for performing loans (percentage up +1.5% from the previous quarter).

    The underlying cost of risk showed a net addition of -€594 million, up +35.0% from the fourth quarter of 2023, including a -€278 million addition for performing loans (stages 1 and 2) (versus a reversal of -€1 million in the fourth quarter of 2023) and -€297 million in provisioning for proven risks (stage 3) (versus -€373 million in the fourth quarter of 2023). Also note a provision of -€18 million for other items (legal provisions), primarily for the SFS business line (-€30 million in legal provisions). By business line, 52% of the net addition for the quarter came from Specialised Financial Services (an increase from end-December 2023, unchanged from September 2024), 13% from LCL (22% at end-September 2023), 17% from International Retail Banking (23% at end-December 2023), 16% from Large Customers (9% at end-December 2023) and 1% from the Corporate Centre (3% at end-December 2023). 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 fourth quarter were updated relative to the third quarter, with a favourable scenario (French GDP at +1.1% in 2024, +1.3% in 2025) and an unfavourable scenario (French GDP at +1.1% in 2024 and -0.1% in 2025). In the fourth quarter of 2024, the cost of risk/outstandings was 34 basis points over a rolling four-quarter period41 and 44 basis points on an annualised quarterly basis42 (a deterioration of 1 basis point and 10 basis points, respectively, versus the fourth quarter of 2023 for both bases).

    The underlying contribution from equity-accounted entities amounted to €62 million in the fourth quarter of 2024, up +2.4% compared to the fourth quarter of 2023, mainly due to the growth of equity-accounted entities in the personal finance and mobility business line.

    Underlying income43before tax, discontinued operations and non-controlling interests was up +41.9% to €2,698 million. The underlying effective tax rate stood at 26.4%, up +6.7 percentage points on fourth quarter 2023. The underlying tax charge was -€697 million, a +91% increase chiefly due to a positive base effect. Underlying net income before non-controlling interests was up +31.1% to €2,001 million. Non-controlling interests amounted to -€271 million in the fourth quarter of 2024, an increase of +21.1%.

    Underlying earnings per share in fourth quarter 2024 came to €0.54, up +33.4% compared to fourth quarter 2023.

    Crédit Agricole S.A. – Stated and underlying results, 2024 and 2023

    En m€ 2024
    stated    		 Specific items 2024
    underlying    		 2023
    stated    		 Specific items 2023
    underlying    		 ∆ 2024/2023
    stated    		 ∆ 2024/2023
    underlying
                     
    Revenues 27,181 30 27,151 25,180 617 24,563 +7.9% +10.5%
    Operating expenses excl.SRF (14,895) (123) (14,772) (13,632) (14) (13,618) +9.3% +8.5%
    SRF – – – (509) – (509) (100.0%) (100.0%)
    Gross operating income 12,286 (94) 12,379 11,039 603 10,436 +11.3% +18.6%
    Cost of risk (1,850) (20) (1,830) (1,777) (84) (1,693) +4.1% +8.1%
    Equity-accounted entities 194 (0) 194 197 (39) 235 (1.5%) (17.6%)
    Net income on other assets (4) (24) 20 85 89 (4) n.m. n.m.
    Change in value of goodwill – – – 2 12 (9) (100.0%) (100.0%)
    Income before tax 10,625 (138) 10,763 9,546 580 8,966 +11.3% +20.0%
    Tax (2,472) 28 (2,500) (2,201) (153) (2,047) +12.3% +22.1%
    Net income from discont’d or held-for-sale ope. – – – (3) – (3) n.m. n.m.
    Net income 8,153 (109) 8,263 7,343 427 6,916 +11.0% +19.5%
    Non controlling interests (1,067) 24 (1,090) (995) (2) (992) +7.3% +9.9%
    Net income Group Share 7,087 (86) 7,172 6,348 425 5,923 +11.6% +21.1%
    Earnings per share (€) 2.11 (0.03) 2.14 1.94 0.14 1.80 +8.5% +18.5%
    Cost/Income ratio excl.SRF (%) 54.8%   54.4% 54.1%   55.4% +0.7 pp -1.0 pp

    Over year 2024, stated net income Group share amounted to €7,087 million, versus €6,348 million for full-year 2023, an increase of +11.6%.

    Specific items for 2024 had a negative impact of -€86 million on stated net income Group share and comprise +€21 million in recurring accounting items and -€107 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 +€15 million and loan book hedging for +€6 million). Non-recurring items relate to the integration and acquisition costs of Degroof Petercam (-€35 million) within the Asset Gathering division, the costs of integrating ISB (-€52 million) 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 €7,172 million, up +21.1% compared to full-year 2023.

    Underlying revenues were up +10.5% year-on-year, driven by all business lines. Underlying operating expenses excluding SRF were +8.5% 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 SRF44 building-up period. The underlying cost/income ratio excluding SRF for the period was 54.4%, a decrease of 1 percentage point compared to the same period in 2023. Underlying gross operating income totalled €12,379 million, up +18.6% compared to full-year 2023. The underlying cost of risk increased by +8.1% over the period to
    -€1,830 million, versus -€1,693 million in 2023. Lastly, underlying contributions from equity-accounted entities amounted to €194 million, down -17.6% over the period.

    Underlying earnings per share stood at €2.14 per share for full-year 2024, up 18.5% from full-year 2023.

    Underlying RoTE45, which is calculated on the basis of an annualised Underlying Net Income Group Share46 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 14.0% in 2024, up +1.4 percentage point compared to 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 fourth quarter of 2024, assets under management in the Asset Gathering division (AG) stood at

    €2,867 billion, up +€58 billion over the quarter (or +2.1%), mainly due to a positive market effect and strong net inflows in the three business lines – Asset Management, Insurance and Wealth Management. Over the year, assets under management rose by +12.1%.

    Insurance activity (Crédit Agricole Assurances) was very dynamic with total premium income of €10.9 billion – a record level for a fourth quarter – up +14.2% compared to the fourth quarter of 2023, and up in all three segments: savings/retirement, property and casualty, and death & disability/creditor/group insurance. In total for the year, overall premium income also stood to a record €43.6 billion, up +17.2% vs. 2023.

    In Savings/Retirement, fourth-quarter premium income stood at €8.3 billion, up +17.3% compared to the fourth 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. Unit-linked contracts accounted for 37.4% of gross inflows47, down -12.8 percentage points over the year, reflecting the reduced appeal of unit-linked bond products. The quarter’s net inflows47 totalled +€2.4 billion (up +€0.8 billion compared to the third quarter of 2024), comprised of +€1.4 billion net inflows from unit-linked contracts and +€1.1 billion from euro funds. In total, Savings/Retirement premium income amounted to €32.1 billion, up +21.5% compared to the end of December 2023.

    Assets under management (savings, retirement and funeral insurance) continued to grow and came to €347.3 billion (up +€17.0 billion year-on-year, or +5.1%). The growth of assets under management was supported by positive market effects and positive net inflows. Unit-linked contracts accounted for 30.0% of outstandings, up +1.1 percentage point compared to the end of December 2023.

    The profit sharing rate on Predica’s euro-denominated life insurance policies in 2024 remained stable compared to 2023.48 The Policy Participation Reserve (PPE49) amounted to €7.5 billion at 31 December 2024, representing 3.3% of total euro outstandings.

    In property and casualty insurance, premium income rose to €1.2 billion in the fourth quarter of 2024, up +9.9%50 compared to the fourth quarter of 2023. Growth stemmed from a price effect, with the increase in the average premium benefiting from revised rates and changes in the product mix, and a volume effect, with a portfolio of close to €16.7 million51 policies at the end of December 2024 (an increase of +5.3% over the year). The combined ratio at end-December 2024 was 94.4%,52 an improvement of -2.7 percentage points year-on-year, related to a positive base effect due to lower claims in the fourth quarter of 2024 compared with the same period one year earlier, which was impacted by fierce storms. In total, at the end of December 2024, premium income stood at €6.2 billion, an increase of +8.2% compared to full-year 2023.

    In death & disability/creditor/group insurance, premium income for the fourth quarter of 2024 stood at €1.3 billion, up +1.4% compared to the fourth quarter of 2023. The strong performance in individual death and disability insurance and group insurance (+9.9% and +22.1%, respectively, compared to fourth quarter 2023) offset a decline in creditor insurance of -4.9% in both consumer finance and mortgage lending. In total, at the end of December 2024, premium income from personal protection insurance stood at €5.3 billion, an increase of +4.6% compared to 2023.

    In Asset Management (Amundi), assets under management by Amundi increased by +2.2% and +10.0% respectively over the quarter and the year, reaching a new record of €2,240 billion at the end of December 2024, benefiting from the positive market effect, but also from a high level of inflows over the quarter and year.

    Over the quarter, net inflows amounted to +€20.5 billion, the highest level since 2021, driven by medium-long-term assets 53 (+€17.9 billion) in active management and, as in previous quarters, in ETFs. Third-party distributors also posted record inflows in 2024, which were well diversified and positive in all asset classes.

    The Retail segment recorded record net inflows in 2024 from third-party distributors, well diversified across all asset classes, and positive inflows from partner networks in France. The institutional segment continued to record solid commercial momentum, with net inflows driven by medium/long-term assets in the institutional and sovereign segments, and by treasury products in the corporate segment. Finally, JVs continue to benefit from the dynamic inflows of SBI MF in India. Thus, the increase in assets under management of +€48.5 billion over the quarter is linked to a good level of activity (net inflows of +€20.5 billion) and a positive market and foreign exchange effect of +€28.1 billion. In 2024, the increase in assets under management of +€203 billion is linked to record net inflows of +€55.4 billion, doubling compared to 2023, a favorable market effect of +€140.1 billion and a scope effect of +€7.9 billion in connection with the integration of Alpha Associate since the second quarter of 2024.

    In Wealth Management, total assets under management (CA Indosuez Wealth Management and LCL Private Banking) amounted to €279 billion at the end of December 2024, and were up +1.9% compared to September 2024 and +46,9% compared to December 2023.

    For Indosuez Wealth Management assets under management at the end of December stood at €215 billion54, up +2.6% compared to the end of September 2024, thanks to a good level of activity with net inflows of +€1.9 billion and a favourable market effect of +€3.7 billion. Compared to the end of December 2023, assets under management were up by +€87 billion (or +68.2%), taking into account a scope effect of €69 billion (integration of Degroof Petercam in June 2024). Also of note over the quarter was the continued integration of Degroof Petercam with several capital reorganisations in France and in Luxembourg, and the effective mergers of legal entities planned for Q3 2025. In 2025, Wealth Management projects in the region of €70-80 million in additional integration costs for Degroof Petercam.

    Results of the Asset Gathering division

    In the fourth quarter of 2024, the Asset Gathering division generated €2,045 million in revenues, up +31.6% compared to the fourth quarter of 2023, driven by all the division’s business lines. Expenses increased +28% to -€930 million and gross operating income came to €1,116 million, +34.7% compared to fourth quarter of 2023. The cost/income ratio for the fourth quarter of 2024 stood at 45.5%, down -1.3 percentage points compared to the same period in 2023. Taxes amounted to -€315 million, up +82.3%, notably related to the scope of insurance activities. Net income Group share for Asset Gathering division was €695 million in the fourth quarter of 2024, up +27.4% compared to the same period in 2023.

    In full-year 2024, Asset Gathering generated €7,648 million in revenues, up +14.4% compared to the end of December 2023, driven by very high level of revenues in all three business lines – in Insurance, Asset Management and Wealth Management. Expenses excluding SRF increased +17.1%.to -€3,365 million, while gross operating income came to €4,284 million (up +12.5% compared to end-December 2023). As a result, the cost/income ratio excluding SRF stood at 44%, up +1.0 percentage points compared to the end of December 2023. The tax charge was -€973 million in 2024, up +11.7% on 2023. Finally, Asset Gathering net income Group share came to €2,875 million, up +13.1% compared to 2023, up in the three activities of the Asset Gathering division.

    At end-December 2024, the Asset Gathering, contributed 38% to the underlying net income Group share of the Crédit Agricole S.A. core businesses and 28% to underlying revenues (excluding the Corporate Centre division).

    As at 31 December 2024, equity allocated to the division amounted to €12.6 billion, including €10.4 billion for Insurance, €1.3 billion for Asset Management, and €0.9 billion for Wealth Management. The division’s risk-weighted assets amounted to €57.5 billion, including €34.5 billion for Insurance, €13.7 billion for Asset Management and €9.4 billion for Wealth Management.

    Underlying RoNE (return on normalised equity) stood at 26.9% at the end of December 2024.

    Insurance results

    In the fourth quarter of 2024, insurance revenues reached €715 million, up sharply by +37.1% compared to the fourth quarter of 2023, benefiting from a favorable base effect (fourth quarter 2023 having been impacted by the high claims rate related to storms Ciaran and Domingos), dynamic activity and growth in assets under management. Revenues for the quarter include €540 million from savings/retirement55, €93 million from personal protection56 and €141 million from property and casualty insurance57.

    The CSM (Contractual Service Margin) stood at €25.2 billion at 31 December 2024, up 5.8% year-on-year, benefiting from the positive impact of the revaluation of the stock and the contribution of new business exceeding the CSM allocation. The CSM allocation factor was 7.7% in 2024. Non-attributable expenses for the quarter amounted to -€77 million, up +2.7% vs. the fourth quarter of 2023. As a result, gross operating income reached €638 million, up +42.9% compared to the same period in 2023. Taxes amounted to -€218 million, compared with -€79 million in the fourth quarter of 2023, in connection with the increase in the tax rate to 34.5% (+16.7 percentage points compared to the fourth quarter of 2023). This change is linked in particular to an upward reassessment of the tax rate including a decrease in the valuation of assets at a reduced rate. Non-controlling interests amounted to €3 million compared to €-32 million in the fourth quarter of 2023, impacted by the inclusion of accounting items related to the redemption of RT1 instruments. Net income Group share was €418 million, up +24.5% compared to the fourth quarter of 2023.

    Full year 2024 insurance revenues reached €2,845 million, up +11.9% compared to 2023, in line with dynamic activity, the increase in outstandings, as well as the lower claims experience in 2024 compared to 2023. Non-attributable expenses amounted to -€341 million, up +9.3%. The cost/income ratio is thus 12%, below the target ceiling set by the Medium-Term Plan of 15%. Gross operating income was €2,504 million (+12.2% compared to 2023). The tax expense was -€572 million, up +16.6% compared to 2023, in line with the lower contribution of reduced tax rate operations to the overall tax rate. As a result, net income Group share reached €1,884 million, up +14% compared to 2023.

    Insurance contributed 25% to the underlying net income Group share of Crédit Agricole S.A.’s business lines (excluding AHM) at the end of December 2024 and 10% to their underlying revenues.

    Crédit Agricole Assurances remains solid with a prudential Solvency 2 ratio superior to 200% as of 31 December 2024.

    Asset Management results

    In the fourth quarter of 2024, revenues reached €901 million, up +14.5% compared to the fourth quarter of 2023, mainly driven by management and technology revenues. Net management fees posted sustained growth of +13.5% compared to the fourth quarter of 2023, linked to the good level of activity and the increase in average assets under management. Performance fees were also up +67.6% compared to the fourth quarter of 2023, benefiting from the good performance of active strategies, particularly rates and credit. Amundi Technology’s revenues continued their sustained growth and increased by +47,1% compared to the fourth quarter of 2023, amplified this quarter by the first consolidation of aixigo, a European leader in Wealth Tech, whose acquisition was finalized in November 2024. Operating expenses amounted to €-506 million, up +16.2% compared to the fourth quarter of 2024, mainly explained by the effect of the first consolidation of Alpha Associates and aixigo, the acceleration of strategic investments, the growth of variable compensation revenues related to operational performance and acquisition-related integration costs.58 Restated for integration costs, the increase in expenses remains lower than the increase in revenues, thus generating a positive jaws effect. Gross operating income was €395 million, up +12.5% compared to the fourth quarter of 2023, reflecting double-digit revenue growth. The contribution of associates, including the contribution of Amundi’s Asian joint ventures, amounted to €29 million, up +1.8% compared to the fourth quarter of 2023. The tax expense amounted to -€80 million (down -9.6%). Net income before deduction of minority interests amounted to €341 million, up +18% compared to the same period in 2023. As a result, net income Group share was €226 million, +16.2% compared to the fourth quarter of 2023.

    In 2024, net banking income reached €3,406 million, up +9.1% in asset management, reflecting growth in management revenues, linked to the growth in average assets under management and the very good performance of active and passive management. Amundi Technology’s revenues also grew strongly, amplified by the acquisition of aixigo in the fourth quarter of 2024. Operating expenses excluding SRF amounted to -€1,890 million, an increase of +8.8%, explained by the first consolidation of Alpha Associates and aixigo, investments in growth areas, the increase in provisions for variable compensation in line with operational performance and integration costs58.The cost/income ratio excluding SRF stood at 55.5%, stable compared to 2023 (-0.2 percentage points). Thus, gross operating income increased by +9.7% compared to 2023, reflecting the increase in revenues. Profit from associates increased by +20.9%, mainly driven by the JV in India, which contributed more than €100 million for the first time to this result. In the end, net income Group share was €849 million, up +11.7% compared to 2023.

    Wealth Management results59

    In the fourth quarter of 2024, net banking income from wealth management amounted to €430 million, up +73.9% compared to the fourth quarter of 2023, benefiting from the impact of the integration of Degroof Petercam in June 2024.60   Excluding this effect, revenues were supported by the good momentum of management fees in connection with the increase in outstandings, offsetting the anticipated decrease in the net interest margin on deposits. Expenses for the quarter amounted to -€347 million, up +60.4% compared to the fourth quarter of 2023, impacted by a Degroof Petercam60 and -€12.8 million in integration costs. Restated for these impacts, the evolution of expenses is slightly lower than in the fourth quarter of 2023. The cost/income ratio for the fourth quarter of 2024 stood at 80.8%, down -6.8 percentage points compared to the same period in 2023. Restated for integration and acquisition costs, the cost/income ratio was 77.8%. Gross operating income reached €82 million, up sharply (x 2.7) compared to the fourth quarter of 2023. The cost of risk for the quarter remained moderate at -€3 million, in line with the fourth quarter of 2023 (-€5 million). Net income Group share reached €51 million, up sharply (x 3.3) compared to the fourth quarter of 2023. Restated for integration and acquisition costs61, net income Group share for the fourth quarter of 2024 amounted to €60 million.

    For the full year 2024, net banking income from the wealth management business amounted to €1,397 million, up +36.6% compared to the end of December 2023, benefiting in particular from the integration of Degroof Petercam in June 202462. Expenses excluding SRF were up +37.5% due to a Degroof Petercam62 scope effect and -€26.4 million in integration costs. Restated for these impacts, 2024 expenses are up slightly by +2.8% compared to 2023. Gross operating income increased by +35.0% to €264 million. The cost of risk at the end of 2024 was -€15 million, up -€11 million compared to the end of December 2023, related to the consideration of litigation and the provisioning of various cases. Net income on other assets amounted to -€23 million, mainly corresponding to acquisition costs for Degroof Petercam63, restated for specific items. Net income Group share for 2024 was €142 million, up 11.1% compared to 2023. Restated for integration and acquisition costs63, 2024 net income Group share amounted to €177 million.

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

    As of 31 December 2024, the equity allocated to Wealth Management amounted to €0.9 billion; risk weighted assets are €9.4 billion.

    Activity of the Large Customers division

    Once again in Q4 2024, Corporate and Investment Banking (CIB) posted an excellent performance across all its businesses (best fourth quarter and best year in terms of revenues). Asset servicing also recorded strong business momentum during the period.

    Corporate and Investment Banking’s fourth-quarter underlying revenues rose sharply to €1,596 million, an increase of +9.9% compared with the fourth quarter of 2023, driven by growth in its two business lines. Revenues from Financing activities were up +4.4% year-on-year to €898 million. This was mainly due to the strong performance recorded by Commercial Banking (+4.0% versus the fourth quarter of 2023), driven by good momentum in Corporate activities, especially in the Telecom sector, and strong revenues from asset financing and project financing, especially in Green energy and Aerospace. Capital Markets and Investment Banking also grew its revenues to €699 million, an increase of +18.0% compared with the fourth quarter of 2023. Growth was fuelled by the high revenues maintained by Capital Markets (+17.0% versus the fourth quarter of 2023), driven by the Repo and Securitisation businesses, and the strong performance recorded by Investment Banking (with growth of +23.0% compared with the fourth quarter of 2023) thanks to the strong performance of Structured Equities.

    In total, Corporate and Investment Banking’s underlying revenue rose a steep +6.5% year-on-year to €6,540 million, driven by growth in its two business lines. Revenues from Financing activities were up +5.7% compared to the total for 2023, at €3,355 million. Capital Markets and Investment Banking also grew its revenues by +7.3% compared with the end of December 2023, to total €3,185 million.

    Financing activities consolidated its leading position in syndicated loans (#1 in France64 and #2 in EMEA64). Crédit Agricole CIB reaffirmed its strong position in bond issues (#4 All bonds in EUR Worldwide64) and was ranked #2 in Green, Social & Sustainable bonds in EUR.65 Average regulatory VaR stood at €9.5 million in the fourth quarter of 2024, down from the €10.1 million recorded in the third quarter of 2024, reflecting changes in positions and the financial markets. It remained at a level that reflected prudent risk management.

    In Asset Servicing, buoyant sales and favourable market conditions boosted growth in assets over the year, which offset the planned withdrawal of ISB customers. The fourth quarter of 2024 saw the continued migration of ISB (formerly RBC Investor Services in Europe) client portfolios to CACEIS platforms, following the effective merger of the legal entities with those of CACEIS on 31 May 2024. Client migration is now practically complete. On 19 December 2024, Crédit Agricole S.A. announced the signature of an agreement to acquire Santander’s 30.5% non-controlling stake in CACEIS, with the aim of full ownership.

    Assets under custody increased by +4.5% at end-December 2024 compared with end September 2024, and by +12.1% compared with end December 2023, to reach €5,291 billion. Assets under administration also increased by +0.3% this quarter and were up +3.0% year-on-year, totalling €3,397 billion at end December 2024.

    Results of the Large Customers division

    In the fourth quarter of 2024, stated revenues of the Large Customers division once again reached a record level, with €2,108 million, up +8.9% compared with the fourth quarter of 2023, buoyed by an excellent performance in the Corporate and Investment Banking and Asset Servicing business lines.

    Operating expenses increased (+7.4%) compared with the fourth quarter of 2023, due to IT investments and business development. As a result, the division’s gross operating income was up +11.6% compared with the fourth quarter of 2023 to €810 million. The division recorded an overall net provision for cost of risk of -€93 million in the fourth quarter of 2024, compared with additions of -€39 million in the fourth quarter of 2023. Stated pre-tax income totalled €723 million, an increase over the period (+4.7%). The tax charge was -€166 million. Lastly, stated Net income Group share came to €512 million in the fourth quarter of 2024, compared with stated income of €525 million in Q4 2023.

    Over full-year 2024, stated revenues of the Large Customers division was a record high of €8,651 million, up +11.2% compared with the 2023 total. At -€5,039 million, operating expenses excluding SRF rose +11.8% compared with the same period in 2023, due mainly to IT investments and business development. Expenses for the year include ISB integration costs of -€97 million. Gross operating income stood at €3,612 million for full-year 2024, representing an increase of +22.0% compared to 2023. Over the period, the cost of risk recorded a net addition of -€117 million, compared to an addition of -€120 million in the same period in 2023. The business line’s contribution to stated Net income Group share was €2,448 million, a strong increase of +21.7% compared to full-year 2023.

    The business line contributed 32% to the underlying net income Group share of Crédit Agricole S.A.’s core businesses (excluding the Corporate Centre division) at end-December 2024 and 31% to underlying revenues excluding the Corporate Centre.

    At 31 December 2024, the equity allocated to the division was €14 billion and its risk-weighted assets were €147.8 billion.

    Underlying RoNE (return on normalised equity) stood at 17.7% at the end of December 2024.

    Corporate and Investment Banking results

    In the fourth quarter of 2024, Corporate and Investment Banking stated revenues reached a record at €1,573 million, up +7.7% from the fourth quarter of 2023. This was a record fourth quarter for Corporate and Investment Banking. The specific items had an impact of -€23.7 million in the fourth quarter of 2024 (compared to +€7.8 million in the fourth quarter of 2023) and comprised the DVA, the issuer spread portion of the FVA, and secured lending for -€25.6 million (compared to +€6.0 million in the fourth quarter of 2023) and loan book hedging totalling +€1.9 million (compared to +€1.8 million in the fourth quarter of 2023).

    Operating expenses rose by +6.3% to -€902 million, mainly due to IT investments and the development of business line activities. Gross operating income rose sharply by +9.7% compared to the fourth quarter of 2023, taking it to a high level of +€671 million. The cost/income ratio was 57.4%, a slight change of -0.8 percentage point over the period. The cost of risk recorded a net addition of -€86 million, higher than the fourth quarter 2023 (-€32 million). This level of allocations is driven by model effects. The overall level remains low with a cost of risk/outstandings of 7 basis points66. Lastly, pre-tax income in the fourth quarter of 2024 stood at €586 million, versus €580 million in the fourth quarter of 2023 (up +1.0%). The tax charge stood at -€139 million. Lastly, stated net income Group share was down -7.1% at €437 million in the fourth quarter of 2024.

    In 2024, stated revenues were up +7.6% to a record level of €6,568 million for the year, with balanced growth between Corporate and Investment Banking and on a very good level recorded for full-year 2023. The specific items over the period had an impact of +€28.5 million (compared to -€38.9 million in 2023) and comprised the DVA, the issuer spread portion of the FVA, and secured lending for +€20.2 million (compared to -€14.6 million in 2023) and loan book hedging totalling +€8.2 million, (compared to -€24.3 million in 2023).

    Operating expenses excluding SRF rose +5.4%, mainly due to variable compensation and investments in IT and employees to support the development of the business lines. The cost/income ratio of 53.7% remained contained and below the MTP target. As a result, gross operating income of €3,040 million was up sharply (+22.3% compared with full-year 2023.) The cost of risk recorded a net addition of -€93 million for 2024, compared to a net addition of -€111 million for 2023. The income tax charge stood at -€748 million, up +29.4%. Lastly, stated net income Group share totalled €2,152 million for 2024, an increase of +22.7% over the period.

    Risk weighted assets at the end of December 2024 amounted to €136.9 billion, up by +€8.3 billion compared to the end of September 2024, notably due to an unfavourable foreign exchange impact and rating.

    Asset servicing results

    In the fourth quarter of 2024, the revenues of Asset Servicing were up +12.7% compared to the fourth quarter of 2023, totalling €535 million. This rise was driven by high fee and commission income, itself driven by the increase in assets and by the favourable trend in net interest margin. Operating expenses rose by +9.8% to -€396 million, including -€2.7 million in scope effects linked to the consolidation of the remaining ISB entities and -€26.6 million in ISB integration costs restated as specific items (-€24.9 million in integration costs in the fourth quarter of 2023). Excluding these effects, the increase in expenses was +9.3% compared to the third quarter of 2023, linked to IT expenses and business growth. As a result, gross operating income was up by +21.7% to €139 million in the fourth quarter of 2024. Thus, the cost/income ratio stood at 74%, down -1.9 percentage point. Excluding ISB integration costs, it stood at 69.0%. Net income thus totalled €110 million, up +36.9% compared with the fourth quarter of 2023. Adjusted for the €35 million share of non-controlling interests, the business line’s contribution to net income Group share totalled €75 million in the fourth quarter of 2024, up +36.4% compared with the fourth quarter of 2023.

    In 2024, revenues totalled €2,083 million, up +24.2% 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. Costs excluding SRF increased by +30.1% and stood at €1,511 million. They included a scope effect of -€207 million over the first six months of 2024 and -€97 million in ISB integration costs. Gross operating income was up +20.4% compared to full year 2023. The cost/income ratio stood at 72.6%, up 3.3 points compared to 2023. Excluding ISB integration costs, the cost/income ratio stood at 67.9%. Net income thus rose by +15.8%. The overall contribution of the business line to net income Group share at the end of December 2024 was €296 million, representing a +15.1% increase compared to full year 2023.

    Specialised financial services activity

    The commercial production of Crédit Agricole Personal Finance & Mobility (CAPFM) totalled €11.7 billion in the fourth quarter of 2024. This represents a decrease, mainly due to the Chinese market, of -2.9% compared to fourth quarter 2023. The share of automotive financing67 in quarterly new business production stood at 50.2% this quarter. The average customer rate for production was up +5 basis points from the third quarter of 2024. CAPFM’s assets under management stood at €119.3 billion at the end of December 2024, up +5.6% compared to the end of December 2023, driven by all activities (Automotive +8.2%68 with Crédit Agricole Auto Bank and Leasys, LCL and Regional Banks +5.3%; Other entities +3.2%). Lastly, consolidated outstandings totalled €69.1 billion at the end of December 2024, up +3.3% compared to the fourth quarter of 2023.

    In January 2025, CAPFM announced the finalisation of the acquisition of 50% of GAC Leasing.

    Crédit Agricole Leasing & Factoring (CAL&F) commercial production increased by +15.7% compared to the fourth quarter of 2023. It was driven by property leasing and renewable energy financing. Leasing outstandings rose +7.2% year-on-year, both in France (+5.9%) and internationally (+12.3%), to reach €20.3 billion at the end of December 2024 (of which €16.0 billion in France and €4.3 billion internationally). Commercial factoring production was up sharply, recording a twofold increase compared to the fourth quarter of 2023. It was driven by the signing of significant contracts both in France, where production increased by +32.5% in the fourth quarter of 2024 compared to the fourth quarter of 2023, and internationally, where production was multiplied by a factor of 3.5 in the fourth quarter of 2024 compared to the fourth quarter of 2023. Factoring outstandings at end-December 2024 were up +3.7% compared to end-December 2023, and factored revenues were up by +6.9% compared to the same period in 2023.

    Specialised financial services’ results

    The revenues of the Specialised Financial Services division were €915 million in the fourth quarter of 2024, up +4.0% compared to the fourth quarter of 2023. Expenses amounted to -€447 million, down -0.5% versus fourth quarter 2023 and down -1.4% excluding the base effect69 related to the reorganisation of the Mobility activities at CAPFM in the fourth quarter of 2023. The cost/income ratio stood at 48.8%, up -2.2 percentage points compared to the same period in 2023. Gross operating income thus came to €468 million, up +8.6% compared to the fourth quarter of 2023. Cost of risk amounted to -€306 million, up +66.2% compared to the fourth quarter of 2023, with this quarter including model revisions at CAPFM, essentially leading to a -€50 million deterioration in unproven risk, and a -€30 million provision for legal risk of which UK car loans. Net income from equity-accounted entities rose +8.4% compared to the fourth quarter of 2023 to €43 million, with this quarter including around €14 million in non-recurring items. The change in value of goodwill was €0 million vs. €12 million in the fourth quarter of 2023, and excluding the base effect69 related to the reorganisation of Mobility activities at CAPFM, there was no change. The division’s Net income Group share amounted to €124 million, down -43.1% compared to the same period in 2023, and down -8.4% excluding the base effect69 related to the reorganisation of Mobility activities at CAPFM and excluding provisions for legal risks and model revisions in Q4-24 at CAPFM.

    Over 2024, revenues for the Specialised Financial Services division fell by -2.2%, but rose by +6.8% excluding the base effect70 related to the reorganisation of the Mobility activities at CAPFM, compared to 2023. This favourable trend was driven by a good performance in CAL&F (+6.8%) and by higher revenues for CAPFM excluding the base effect70 (+6.8%), 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. Costs excluding SRF increased by +6.4% compared to 2023. Expenses excluding SRF, the base effect70 and scope effects rose by +2.3%. The cost/income ratio stood at 50.6%, or +4.1 percentage points versus the same period in 2023; excluding the base effect70, the change was +0.3 percentage points. Cost of risk increased by +10.1% compared to 2023, to -€958 million, and increased by +21.9% excluding the base effect70.This rise notably includes the impact of scope effects as well as -€50 million due to model revisions and a -€30 million provision for legal risk of which UK car loans in the fourth quarter of 2024 at CAPFM. The contribution from equity-accounted entities was down -3.3% versus the same period in 2023, and down -25.5% excluding the base effect70, 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 -€12 million at the end of December 2024, compared to €71 million at the end of December 2023 and -€18 million excluding the base effect70. The change in value of goodwill was €0 million for 2024 vs. €12 million for 2023, and excluding the base effect70 related to the reorganisation of the Mobility activities at CAPFM, there was no change. Net income Group share thus came to €625 million, down -26.6% compared to 2023, and down -7.5% excluding the base effect70 related to the reorganisation of the 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 end-December 2024 and 13% to underlying revenues excluding the Corporate Centre.

    At 31 December 2024, the equity allocated to the division was €7.2 billion and its risk-weighted assets were €76.2 billion.

    The underlying RoNE (return on normalised equity) stood at 8.1% for the 12 months of 2024.

    Personal Finance and Mobility results

    CAPFM revenues reached €722 million in the fourth quarter of 2024, up +4.5% compared to the fourth quarter of 2023, with a positive price effect thanks in particular to the production margin rate, which improved by +75 basis points in the fourth quarter of 2024 compared to the fourth quarter of 2023 (up +31 basis points compared to the third quarter of 2024), and with around €30 million in non-recurring items in the fourth quarter of 2024. Expenses were down by -0.7% and stood at -€347 million. They were down by -1.9% excluding the base effect71 related to the reorganisation of the Mobility activities compared to the same period in 2023. Gross operating income stood at €375 million, up +9.9%. The cost/income ratio stood at 48.1%, or -2.5 percentage points versus the same period in 2023 and -3.2 percentage points excluding the base effect71 related to the reorganisation of the Mobility activities. Cost of risk increased by +68.4% to -€286 million compared to the fourth quarter of 2023, with this quarter including model revisions leading essentially to a -€50 million deterioration in unproven risk, and a -€30 million provision for legal risk of which UK car loans. The cost of risk/outstandings thus stood at 127 basis points72, a deterioration of +6 basis points compared to the fourth quarter of 2023. The Non Performing Loans ratio was 4.7% at the end of December 2024, up +0.2 percentage point compared to the end of September 2024, while the coverage ratio reached 73.2%, down -1.0 percentage point compared to the end of September 2024. The contribution from equity-accounted entities rose by +9.7% compared to the same period in 2023. Excluding the base effect71 related to the reorganisation of the Mobility activities, the change in value of goodwill is zero, it stood at €12 million in the fourth quarter of 2023. As a result, net income Group share totalled €74 million in the fourth quarter of 2024, i.e. -56.2% compared to the same period the previous year. Excluding the base effect71 and excluding the legal provisions and model revisions, net income Group share was down -11.7%.

    In 2024, CAPFM’s revenues totalled €2,764 million, down -4.3% compared with 2023, but up +6.8% excluding the base effect related to the reorganisation of the Mobility activities73. Revenues benefited from scope effects related to the strategic pivot around Mobility that had resulted in the full consolidation of Crédit Agricole Auto Bank from the second quarter of 2023, the acquisition of ALD and LeasePlan activities in six European countries, and the acquisition of a majority stake in the capital of Hiflow in the third quarter of 2023. Expenses excluding SRF stood at -€1,382 million, an increase of +7.0% on 2023. Expenses excluding SRF, excluding the base effect73 and scope effects, were up +1.7%. Gross operating income therefore came in at €1,382 million, which was a drop of -12.8% but an increase of +6.4% excluding the base effect73. The cost/income ratio stood at 50.0%, or +5.3 percentage points versus the same period in 2023; excluding the base effect73, the change was +0.7 percentage points. Cost of risk increased by +8.6% compared with 2023, to -€877 million, and rose +21.3% when the base effect73 is excluded. This rise notably includes the impact of scope effects as well as a model revision leading essentially to a -€50 million deterioration in unproven risk, and a -€30 million provision for legal risk of which UK car loans. The contribution from equity-accounted entities was down -0.8% versus the same period in 2023, and down -22.9% excluding the base effect73 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. Net income on other assets was down -€82.1 million between 2024 and 2023. However, excluding the base effect73, it was up +€7 million. The change in value of goodwill was €0 million for 2024 against €12 million for 2023, and excluding the base effect73 related to the reorganisation of the Mobility activities, there was no change. As a result, net income Group share stood at €422 million for 2024, a decline of -37.5% from the same period one year earlier. Excluding the base effect73, net income Group share was down -15.4% from the same period in 2023.

    Leasing & Factoring results

    CAL&F’s revenues totalled €193 million, up +1.9% compared with the fourth quarter of 2023. This increase was driven by factoring, which benefited from positive volume effects (increase in factored revenues). Expenses remained stable with an increase of +0.4%, while the cost/income ratio stood at 51.7%, an improvement of -0.8 percentage points from the fourth quarter of 2023. Gross operating income rose +3.5% to €93 million, with a positive jaws effect of +1.5 percentage points. Cost of risk totalled -€20 million, up +40.1% compared to the same period in 2023. This rise was mainly due to the small business and SME markets. Cost of risk/outstandings stood at 24 basis points72, up +4 basis points compared to fourth quarter 2023. As a result, net income Group share was €50 million, up +1.7% compared with the fourth quarter of 2023.

    In 2024, revenues totalled €756 million, an increase of +6.8% compared to 2023. Costs excluding SRF increased by +4.3% to €398 million. Gross operating income rose significantly, +15.1% compared to 2023, to €358 million. The underlying cost/income ratio excluding SRF amounted to 52.6%, an improvement of -1.2 percentage points compared to 2023. The cost of risk increased by +29.7%, compared to the same period in 2023, to -€81 million. Net income Group share was €203 million, up +15.0% compared to the year 2023.

    Crédit Agricole S.A. Retail Banking activity

    Activity in Crédit Agricole S.A.’s Retail Banking business was solid during the quarter, with 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 fourth quarter of 2024, activity remained strong with the upturn in mortgage lending and non-remunerated demand deposits which rose over the quarter. Customer acquisition is dynamic, with 60,000 new customers this quarter.

    The equipment rate for car, multi-risk home, health, legal, all mobile devices or personal accident insurance rose by +0.4 percentage points to stand at 27.9% at end-December 2024.

    Loan production totalled €8.5 billion, representing a year-on-year increase of +34.2%. The fourth quarter of 2024 confirmed the recovery in home loan production (+59.3% compared to the fourth quarter of 2023 and +10.6% compared to the third quarter of 2023), boosted by the proactive pricing policy. The average production rate for home loans came to 3.24%, down -14 basis points from the third quarter of 2024 and -92 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 strong momentum continued in the corporate market (+28.9% year on year) and the small business market (+19.3% year on year) but slowed for the consumer segment (-8.2%), in a challenging economic environment.

    Outstanding loans stood at €171 billion at end-December 2024, representing a +1.1% increase quarter-on-quarter and year-on-year (of which +1.3% for home loans, +0.8% for loans to professionals, +0.7% for loans to corporate). Customer assets totalled €255.0 billion at end-December 2024, up +3.0% year on year, driven by non-remunerated deposits and off-balance sheet funds. Customer assets also rose +0.7% during the quarter, thanks to the increase in demand deposit volumes (+1.1% compared with end-September 2024) in a still-uncertain environment, as well as term deposits (+1.2% compared with end-September 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 fourth quarter of 2024, CA Italia posted gross customer capture of 45,000.

    Loan outstandings at CA Italia stood at €62.1 billion at end-December 202474, up +1.7% compared with end-December 2023. This was despite the downturn in the Italian market75, driven by the retail segment, which posted an increase in outstandings of 3.2%, and the corporate segment, which recorded an increase in outstandings of 3.6%. Loan production, buoyed by the solid momentum in all markets, rose +4.5% compared with the fourth quarter of 2023. Home loan production was good but nevertheless recorded a decline compared to a very high fourth quarter in 2023 (-6.3%). The loan stock rate fell by -20 bp on the third quarter of 2024, but was down less sharply than market rates.

    Customer assets at end-December 2024 totalled €120 billion, up +3.6% compared with end-December 2023; on-balance sheet deposits were relatively unchanged from the previous year at +0.5%, while the cost of ressources decreased. Lastly, off-balance sheet deposits rose +7.7%, benefiting from a market effect and positive net inflows.

    CA Italia’s equipment rate in car, multi-risk home, health, legal, all mobile devices or personal accident insurance increased to 20.0%, up 1.2 percentage points compared with the fourth quarter of 2023.

    Crédit Agricole Group activity in Italy76

    The Group’s business lines in Italy continued to grow throughout 2024. They served 6.1 million customers at end-December 2024, and the Group’s market share stood at 5%77 in Italy at end-2024.

    Crédit Agricole Italia has the best NPS among commercial banks.78 The Group’s business lines were ranked 2nd in consumer finance79, 3rd in asset management80, and 4th in life bancassurance81.

    Loans outstanding stood at €102 billion at end-December 2024 (+2% versus end-December 2023). Total customer assets stood at €340 billion at end-December 2024 (+2.7% compared to end-December 2023).

    International Retail Banking activity excluding Italy

    For International Retail Banking excluding Italy, loan outstandings were stable at -0.2% at current exchange rates at end-December 2024 compared with end-December 2023 (+5.2% at constant exchange rates). Customer assets rose by +1.2% over the same period at current exchange rates (+8,9% at constant exchange rates).

    In Poland in particular, loan outstandings increased by +3.8% versus December 2023 (+2.1% at constant exchange rates) and customer assets by +7.5% (+9.3% at constant exchange rates), against a backdrop of fierce competition for deposits. Loan production in Poland also remained strong, rising +9% compared with the fourth quarter of 2023 at current exchange rates (+6.3% at constant exchange rates).

    In Egypt, loan outstandings fell -16.4% between end-December 2024 and end-December 2023 (+29.3% at constant exchange rates). Over the same period, inflows fell by -26.8% but were still up +13.2% at constant exchange rates.

    The surplus of deposits over loans in Poland and Egypt amounted to €2.4 billion at 31 December 2024, and totalled €4.1 billion including Ukraine.

    French retail banking results

    In the fourth quarter of 2024, LCL’s revenues stood at €960 million, stable (+0.1%) compared with the fourth quarter of 2023 (+0.8% excluding the reversal of the provision for Home Purchase Saving Plans in the fourth quarter of 202382). The increase in fee and commission income (+8.4% Q4/Q4) was driven by all activities (excluding securities management), but mainly by strong momentum in cash flow and card premiums. NIM was down -7.7% Q4/Q4 (-6.6% excluding the reversal of the provision for Home Purchase Saving Plans in the fourth quarter of 202382). This quarter, the net interest margin was boosted by higher lending yields (stock repricing +18 bp Q4/Q4 and +5 bp Q4/Q3) making it possible to offset the increased cost of resources and a lower contribution from macro-hedging.

    Expenses were down by -1.1% and stood at -€647 million, benefiting in particular from a positive base effect (non-recurring items recorded in Q4 2023 including provisions on HR, property and IT components) making it possible to offset continued investments linked to IT and external expenditure (marketing, communication). The cost/income ratio stood at 67.4%, down 0.8 percentage point compared to fourth quarter 2023. Gross operating income rose by +2.7% to €313 million.

    The cost of risk was down -19.3% compared with the fourth quarter of 2023 to -€78 million (including -€42 million in cost of risk on performing loans, -€36 million in proven risk), cost of risk/outstandings remained stable at 22 basis points, in a context of a deterioration for SMEs and small businesses. The coverage ratio stood at 62.6% at end-December 2024 (+2.8 percentage point compared with end-September 2024). The non-performing loans ratio was 2.0% at end December 2024, -0.1 percentage point compared to end September 2024. As a result, net income Group share increased by +13.1% compared with the fourth quarter of 2024 (+16.3% excluding the Home Purchase Saving Plan base effect82).

    For the year 2024, LCL revenues were up +0.6% compared to 2023, totalling €3,872 million (+2.6% excluding the Home Purchase Saving Plan base effect83). The net interest margin was down -1.6% (+1.3% excluding the Home Purchase Saving Plan base effect83), benefiting from gradual loan repricing, making it possible to offset the increased cost of resources. Fee and commission income was up +2.7% compared to 2024 (+3.9% excluding the Cheque Image base effect84 in 2023), particularly on life insurance segments supported by the increase in assets in a positive market context, on non-life insurance linked to property and casualty insurance, and on payment instruments and account management. Costs excluding SRF were up +2.2% due to continued investments linked to IT and external expenditure (marketing, communication). The cost/income ratio excluding SRF stood at 63.2% (+1.0 percentage point compared with 2023). Gross operating income grew by +1.0% year on year. Cost of risk increased by +24.0%, impacted by the rise in proven risk on the corporate market, including corporate-specific files and on the retail market (small businesses and consumer finance). All in all, the business line’s contribution to net income Group share stood at €790 million, down -5.4% (+1.8% excluding the Home Purchase Saving Plan base effect and Cheque Image fine reversal)

    In all, 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 2024 and 14% to underlying revenues excluding the Corporate Centre.

    At 31 December 2024, the equity allocated to the business line stood at €5.4 billion and risk-weighted assets amounted to €56.8 billion. LCL’s underlying return on normalised equity (RoNE) stood at 13.7% in 2024.

    International Retail Banking results85

    In the fourth quarter of 2024, revenues for International Retail Banking totalled
    €969 million, stable (-0.5% at current exchange rates, +2.8% at constant exchange rates) compared with the fourth quarter of 2023. Operating expenses were under control at €568 million, down -9.5% (-8.3% at constant exchange rates). Gross operating income consequently totalled €401 million, up +15.7% (+24.6% at constant exchange rates) for the period. Cost of risk amounted to -€100 million, down -2.5% compared with the fourth quarter of 2023 (-0.5% at constant exchange rates).

    All in all, net income Group share for CA Italia, CA Egypt, CA Poland and CA Ukraine amounted to €158 million in the fourth quarter of 2024, up +54% (+68.6% at constant exchange rates).

    For full-year 2024, International Retail Banking revenues rose by +2.8% to €4,059 million (+1.0% at constant exchange rates). Expenses excluding SRF were under control at -€2,148 million, an increase of +1.4% on 2023. Gross operating income totalled €1,911 million, up +6.7% (+5.3% at constant exchange rates). The cost of risk fell by -32.5% (-21.2% at constant exchange rates) -€313 million compared to 2023. All in all, net income Group share of International Retail Banking was €836 million, compared with €703 million in 2023.

    In full-year 2024 the International Retail Banking business line contributed 11% 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 31 December 2024, the capital allocated to International Retail Banking was €4.5 billion and risk-weighted assets totalled €46.9 billion.

    Results in Italy

    In fourth quarter 2024, Crédit Agricole Italia’s revenues stood at €733 million, up +2.7% from fourth quarter 2023. The net interest margin was relatively stable from fourth quarter 2023 (-0.2% compared to fourth quarter 2023) and fee and commission income (-0.1%) benefited from the strong momentum of fee and commission income on assets under management (+18.8% compared to fourth quarter 2023). Operating expenses, excluding DGS, were stable at +0.8% compared to the fourth quarter of 2023.

    Cost of risk amounted to -€76 million in the fourth quarter of 2024, down -21.2% from the fourth quarter of 2023, and corresponded almost entirely to provisions for proven risk. Cost of risk/outstandings86 stood at 40 basis points, an improvement of four basis points compared with the third quarter of 2024. The Non Performing Loans ratio improved compared with the third quarter of 2024 to stand at 2.9%, while the coverage ratio was 75.1% (+1.5 percentage points compared with the third quarter of 2024). Net income Group share for CA Italia was €112 million, up +74.3% compared to the fourth quarter of 2023.

    In full-year 2024, revenues for Crédit Agricole Italia rose by +1.3% to €3,056 million. Expenses excluding SRF and DGS (deposit guarantee fund in Italy) were under control at €1,602 million, up +0.1% compared with full-year 2023. Gross operating income stood at €1,396 million, a slight increase of +6.1% compared to 2023. The cost of risk amounted to -€246 million, down -25.5% compared to 2023. As a result, the net income Group share of CA Italia totalled €608 million, an increase of +12.7% compared to 2023.

    CA Italy’s underlying RoNE (return on normalised equity) was 20,8% at 31 December 2024.

    Results for Crédit Agricole Group in Italy87

    For full-year 2024, the underlying net income Group share of entities in Italy was €1,254 million, up 20% compared to 2023. This reflects the ongoing momentum of the various business lines, particularly Retail Banking, Asset Gathering, and Large Customers. The breakdown by business line is as follows: Retail Banking 49%; Specialised Financial Services 18%; Asset Gathering and Insurance 21%; and Large Customers 12%. Lastly, Italy’s contribution to the net income Group share of Crédit Agricole S.A. in full-year 2024 was 16%.

    International Retail Banking results – excluding Italy

    In the fourth quarter of 2024, revenues for International Retail Banking excluding Italy totalled €236 million, up -9.3% (+3.3% at constant exchange rates) compared to the fourth quarter of 2023. Revenues in Poland were up +2.5% on the fourth quarter of 2023 (+0.1% at constant exchange rates), boosted by a higher net interest margin. Revenues in Egypt fell (-21.5% compared with the fourth quarter of 2023) due to foreign exchange rate movements (depreciation of the Egyptian pound) but were particularly buoyant at constant exchange rates (+25%), benefiting from a sharp increase in the interest margin. Operating expenses for International Retail Banking excluding Italy amounted to €126 million, down -1.3% compared with the fourth quarter of 2023 (+5.1% at constant exchange rates). Gross operating income amounted to €110 million, a decrease of -17.1% (+1.9% at constant exchange rates) compared with the fourth quarter of 2023. The cost of risk was stable at -€24 million, versus -€6 million in fourth quarter 2023. Furthermore, at end December 2024, the coverage ratio for loan outstandings remained high in Poland and Egypt, at 124% and 151% respectively. In Ukraine, the local coverage ratio remains prudent (409%). All in all, the contribution of International Retail Banking excluding Italy to net income Group share was €46 million, up 20.2% compared with the fourth quarter of 2023 at current exchange rates (+56.4% at constant exchange rates).

    In full-year 2024, revenues for International Retail Banking excluding Italy totalled €1,003 million, up +7.7% (+19.0% at constant exchange rates) compared to 2023, driven by the increase in the net interest margin. Revenues in Poland increased dynamically by +21% compared to 2023 (+15% at constant exchange rates) driven by net interest margin and commissions. Revenues in Egypt decreased slightly by -3% at current exchange rates compared to 2023, taking into account the evolution of exchange rates (in a context of devaluation of the EGP currency) but remain very well oriented at constant exchange rates (+43% compared to 2023), benefiting from a strong increase in the interest margin. Operating expenses amounted to -€488 million, up +6.9% compared with 2023 (+10.6% at constant exchange rates). The cost/income ratio at end-December 2024 was 48.6% (an improvement of 0.4 points on the cost/income ratio at end-December 2023). Thanks to strong growth in revenues, gross operating income came to €515 million, up 8.5% (+28.1% at constant exchange rates) from 2023. Cost of risk amounted to -€67 million, down -50.0% (-49.1% at constant exchange rates) compared to 2023. All in all, International Retail Banking excluding Italy contributed €228 million to net income Group share.

    The underlying RoNE (return on normalised equity) of Other IRB (excluding CA Italy) stood at 29.5% at 31 December 2024.

    At 31 December 2024, the entire Retail Banking business line contributed 21% 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 31 December 2024, the division’s equity amounted to €9.9 billion. Its risk-weighted assets totalled €103.7 billion.

    Corporate Centre results

    The net income Group share of the Corporate Centre was +€18 million in the fourth quarter of 2024, up +€236 million compared with the fourth quarter of 2023. The positive contribution of the Corporate Centre division can be analysed by distinguishing between the “structural” contribution (-€26 million) and other items (+€44 million).
    The contribution of the “structural” component (-€26 million) was up by +€193 million compared with the fourth 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 -€354 million in the fourth quarter of 2024, down -€116 million, mainly due to a negative corporate income tax catch-up effect of -€91 million.
    • 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 +€315 million in the fourth quarter 2024, up +€297 million from the fourth quarter of 2023. This was due to the negative impact of the revaluation of Banco BPM shares for +234 million in revenues (+€271m in the fourth quarter of 2024 compared to +€37m in the fourth quarter of 2023), as well as an interim dividend of +€60 in revenues.
    • Group support functions. Their contribution amounted to +€12 million this quarter (+€12 million compared with the fourth quarter of 2023).

    The contribution of “other items” was up +€43 million compared with the fourth 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 -€198 million in revenues and +€198 million in expenses.

    Over 2024, the underlying net income Group share of the Corporate Centre division was -€488 million, up +€105 million compared with 2023. The structural component contributed -€539 million, and other items of the division recorded a positive contribution of +€51 million over the year.
    The “structural” component contribution was up €160 million compared with 2023 and 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 -€1,120 million in 2024, down -€202 million compared to 2023, including a base effect of -€171 million related the reversal of the provision for Home Purchase Saving Plans recognised in the third quarter of 2023 as well as -€42 million relating to the reversal of the Cheque Image Exchange fine in the second quarter of 2023;
    • Business lines not attached to the core businesses, such as CACIF (private equity) and CA Immobilier and BforBank: their contribution, which stood at +€549 million in 2024, was up +€343 on 2023. This increase was primarily due to the end of the SRF building-up period (+€77 million) and the impact of the valuation and dividend of Banco BPM shares for +€387 million;
    • The Group’s support functions: their contribution for 2024 was +€32 million, up +€19 million compared to 2023.

    The contribution of “other items” was down -€55 million compared to 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 year, the impact of internal margins was -€832 million in revenues and +€832 million in expenses.

    At 31 December 2024, risk-weighted assets stood at €30.0 billion.

    Financial strength

    Crédit Agricole Group

    At 31 December 2024, the phased-in Common Equity Tier 1 (CET1) ratio of Crédit Agricole Group was 17.2%, a decrease of -0.2 percentage point compared to end-September 2024. Therefore, the Crédit Agricole Group posted a substantial buffer of 7.4 percentage points between the level of its CET1 ratio and the 9.8% SREP requirement. The fully loaded CET1 ratio was 17.1%.
    During the fourth 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 line organic growth impacted the Group’s CET1 ratio by -28 basis points (see below), mainly due to a rating effect of -15 basis points.
    • Methodology, M&A and other effects had a negative impact of -14 basis points and included, in particular, the -12 basis point Basel 4 impact relating to the consolidation of leasing activities.

    The phased-in Tier 1 ratio stood at 18.3%, while the phased-in total ratio was 20.9% at end-December 2024.
    The phased-in leverage ratio stood at 5.5%, remaining stable compared with end-September 2024, well above the regulatory requirement of 3.5%.
    Risk-weighted assets for the Crédit Agricole Group amounted to €653 billion, up +€17.5 billion compared with 30 September 2024. The change can be broken down by business line as follows: Retail Banking +6.9 billion (including +4.1 billion in negative rating effects on LCL and the Regional Banks, Asset Gathering -1.3 billion, Specialised Financial Services +4.3 billion, Large Customers +7.3 billion (impacted by foreign exchange and negative rating effects) and Corporate Centre +0.3 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 equity.

    At 31 December 2024, Crédit Agricole Group posted a buffer of 666 basis points above the MDA trigger, i.e. €44 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 31 December 2024, Crédit Agricole Group posted a buffer of 197 basis points above the L-MDA trigger, i.e. €43 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 31 December 2024, Crédit Agricole S.A. posted a buffer of 296 basis points above the MDA trigger, i.e. 12 billion in CET1 capital. Crédit Agricole S.A. is not subject to the L-MDA requirement.

    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 0.05% systemic risk buffer for CA Group at 31 December 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 31 December 2024, Crédit Agricole Group’s TLAC ratio stood at 26.9% of RWA and 8.0% of leverage ratio exposure, excluding eligible senior preferred debt88, which is well above the requirements. The TLAC ratio, expressed as a percentage of risk-weighted assets, decreased by 40 basis points over the quarter, due to risk-weighted assets increasing more rapidly than equity and eligible items over the period. Expressed as a percentage of leverage exposure (LRE), the TLAC ratio was down 20 basis points compared with September 2024.

    The Group thus has a TLAC ratio excluding eligible senior preferred debt that is 460 basis points higher, i.e. €30 billion, than the current requirement of 22.3% of RWA.

    At end-December 2024, €10.4 billion equivalent had been issued in the market (senior non-preferred and Tier 2 debt) as well as €2.5 billion of AT1. The amount of Crédit Agricole Group senior non-preferred securities taken into account in the calculation of the TLAC ratio was €34.5 billion.

    MREL

    The required minimum levels are set by decisions of resolution authorities and then communicated to each institution, then revised periodically. At 31 December 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 0.05% systemic risk buffer for CA Group at 31 December 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 31 December 2024, the Crédit Agricole Group had a total MREL ratio of 32.4% of RWA and 9.7% 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 31 December 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 22.6%;
    • 6.25% of leverage exposure.

    At 31 December 2024, Crédit Agricole Group had a subordinated MREL ratio of 26.9% of RWA and 8.0% 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 31 December 2024, Crédit Agricole Group had a buffer of 430 basis points above the M-MDA trigger, i.e. €28 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 31 December 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%, stable compared to end-September 2024. Crédit Agricole S.A. therefore had a comfortable buffer of 3.0 percentage points between the level of its CET1 ratio and the 8.6% SREP requirement. The fully loaded CET1 ratio was 11.6%.
    During the fourth 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 27 euro cents per share in third quarter 2024 (-20 basis points).
    • Changes in risk-weighted assets related to business line organic growth impacted the CET1 ratio by -12 basis points, of which a rating effect of -10 basis points in Corporate and Investment Banking and French Retail Banking.
      • Methodology, M&A and other effects had a negative impact of -13 basis points and included, in particular, the -12 basis point Basel 4 impact relating to the consolidation of leasing activities.
    • The phased-in leverage ratio was 3.9% at end-December 2024, up +0.1 percentage point compared to end-September 2024 and above the 3% requirement.

    The phased-in Tier 1 ratio stood at 13.4% and the phased-in total ratio at 17.4% this quarter.
    Risk weighted assets for Crédit Agricole S.A. amounted to 415 billion at end of December 2024, up by +€12.9 billion compared to 30 September 2024. The change can be broken down by core business line as follows:

    • The Retail Banking divisions showed an increase of +€2.1 billion, particularly in France, with a rating effect at LCL of +€1.9 billion.
    • Asset Gathering posted a decrease of -€1.2 billion essentially for Insurance due to the impact of the interim dividend.
    • Specialised Financial Services increased by +€4.3 billion, due to the Basel 4 impact of consolidation of leasing activities
    • Large Customers recorded an increase in risk-weighted assets of +€7.4 billion over the quarter, mainly as a result of the growth of the Corporate and Investment Banking business lines, and negative foreign exchange effects (+€2.7 billion) and ratings (+€1.5 billion).
    • 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.

    Preliminary presentation information:

    At 31 December 2024, changes have been made to the liquidity balance sheet:

    • In assets, the section “Cash and Central Bank deposits (including mandatory reserves)”, eligible to LCR, was reduced to “Central Bank deposits (without Cash and mandatory reserves)”, for consistency with the presentation of Liquidity reserves, which exclude Cash and mandatory reserves. The latter have been reclassified under stable application of funds for the surplus of stable funding resources over stable application of funds, in the section “Net working capital” (see Infra). This methodological change had a negative impact on the indicator of €16 billion;
    • In assets, the sections “Interbank assets” and “Reverse repos (net) and other ST” in the banking book have been merged into a single section called “Treasury assets”;
    • In liabilities, the “Customer-related funds” section now only contains customer deposits eligible for the Stable Resources Position indicator89, and bonds issued by Group entities through its retail networks as well as national or supranational borrowings are now listed in the “LT debt” section (formerly called “MLT market funds”);
    • The sections “Tangible and intangible assets” previously in assets and “Equity and similar” previously in liabilities are netted in a single section called “Net working capital” in liabilities. The later now also includes the difference between accrued liabilities and accrued interests, which were historically included in the section “Reverse repos and other ST”. This reclassification had a positive impact on the surplus of stable funding resources over stable application of funds of €3 billion.

    In addition, the following changes have been made to the breakdown of long-term debt (considered within the meaning of banking activities) from the 31 December 2024:

    • Senior Preferred bonds issued by Group entities through its retail networks are classified within other debt with the same ranking issued on the market;
    • National or supranational borrowings are classified as senior secured debt.

    Comments on the liquidity position:

    Diversified and granular customer deposits has increased by +2% over the quarter (€1,152 billion at 31 December 2024). The stabilisation of the breakdown in deposits continues this quarter in France.

    The Group’s liquidity reserves, at market value and after haircuts90, amounted to €473 billion at 31 December 2024, up +€7 billion compared to 30 September 2024.

    Liquidity reserves (without Cash and Central Bank deposits) covered more than twice the short term debt net of treasury assets.

    This increase in liquidity reserves is notably explained by:

    • The increase in the securities portfolio (HQLA and non-HQLA) for +€24 billion, due to the subscription of additional securities (instead of Central Banks deposits, Cf. Infra) and to the change in haircuts to better reflect the economic reality of central bank value;
    • The decrease of collateral already pledged to Central Banks and unencumbered for -€12 billion since additional private non-financial corporate claims (ACC Corpo) are no longer eligible to ECB funding from Q4.

    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 €139 billion.

    Standing at €1,685 billion at 31 December 2024, the Group’s liquidity balance sheet shows a surplus of stable funding resources over stable application of funds of €177 billion, down -€12 billion compared with end-September 2024. This surplus remains well above the Medium-Term Plan target of €110bn-€130bn.

    Long term debt was €305 billion at 31 December 2024, up from pro-forma end-September 2024.

    This included:

    • Senior secured debt of €84 billion;
    • Senior preferred debt of €159 billion, up +€10 billion, of which €7.5 billion due to the consolidation of CAPFM’s car lease subsidiaries in compliance with CRR3 regulation;
    • Senior non-preferred debt of €37 billion;
    • And Tier 2 securities of €25 billion.

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

    At 31 December 2024, the end of month LCR ratios were 127% for Crédit Agricole Group (representing a surplus of €66 billion) and 131% for Crédit Agricole S.A. (representing a surplus of €64 billion). They were higher than the Medium-Term Plan target (around 110%). The LCR ratio was lower in December given higher one-month net outflows weighing on the denominator of the ratio.

    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 31 December 2024, the Group’s main issuers raised the equivalent of €32.7 billion91in medium-to-long-term debt on the market, 81% of which was issued by Crédit Agricole S.A.

    In particular, the following amounts are noted for the Group excluding Crédit Agricole S.A.:  

    • Crédit Agricole Assurances issued €750 million in Tier 2 10-year bullet subordinated and made a tender offer on two subordinated perpetual issuances (FR0012444750 & FR0012222297) for €788.5 million in September;
    • Crédit Agricole Personal Finance & Mobility issued:
      • €2 billion equivalent in EMTN issuances and €0.9 billion in securitisations through Crédit Agricole Auto Bank (CAAB);
      • €0.7 billion in securitisations through Agos;
    • Crédit Agricole Italia 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 three tranches in senior secured format for a total of 300 million Swiss francs, of which 100 million Swiss francs in Green Bond format

    At 31 December 2024, Crédit Agricole S.A. raised the equivalent of €24.1 billion through the market92,93.

    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-December. The financing comprised a variety of formats and currencies, including:

    • €6.3 billion94,95;
    • 6.35 billion96 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-December, Crédit Agricole S.A. had issued 64%97,98 of its funding plan in currencies other than the euro.

    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%.

    The 2025 MLT market funding programme was set at €20 billion, with equilibrium between senior preferred or senior secured debt and senior non-preferred or Tier 2 debt.

    The programme was 30% completed at 31 January 2025, with:

    • €0.5 billion in senior secured debt;
    • €0.3 billion equivalent in senior preferred debt;
    • €4.6 billion equivalent in senior non-preferred debt;
    • €0.7 billion equivalent in Tier 2 debt.

    Economic and financial environment

    2024 retrospective

    Continuing trend of disinflation and monetary easing

    The global context remained contentious and eruptive, marked by significant geopolitical tensions and ongoing open conflicts such as the wars in Ukraine and the Middle East, which began in February 2022 and October 2023, respectively. On their emergence, these conflicts had caused tensions for upstream prices, particularly for grain, gas and maritime transport. These sharp price increases combined with sources of inflation arising from the post-Covid recovery: pressure on demand (recovering strongly) and supply (tight), problems or disruptions in supply, slow return of the participation rate on the labour market to its pre-pandemic level (labour shortage, wage pressures).
    This combination of shocks resulted in a sudden upturn in global inflation, which peaked at 10.3% in October 2022 (an annual average of 8.7% in 2022 after 3.8% in 2021). This high inflation and the need to anchor inflation expectations quickly, to avoid price-wage spirals and persisting very high levels of inflation, resulted in sharp monetary tightening. The Federal Reserve and the ECB also began, in March and July 2022, respectively, a powerful rate hike cycle (increases of 525 and 450 base points (bp), respectively, in around 15 months). Thanks to the resorption of shocks upstream, the normalisation of the labour markets and the effects of monetary tightening, disinflation occurred from 2023 (average global inflation at 6.9%); global growth held up well overall.
    2024 was marked by widespread continued disinflation (average global inflation at 5%, 4.5% year-on-year in December), despite the resilience of services prices being almost as widespread. After having kept their policy rates at high levels for some time, the major central banks started to make cuts in the summer. While the ECB reduced its deposit rate by 150 bp (to 3% for a refinancing rate of 3.15% in December 2024), the Fed reduced the federal funds target rate by 100 bp (upper bound at 4.50% in December 2024). Widely anticipated, this monetary easing provided support to still robust global growth (recession was avoided despite the high inflation followed by much stricter financial conditions) but for which the overall resilience still masks very mixed performances.
    Overall resilient growth masking mixed performances

    In the US, the economy once again demonstrated its robustness in 2024, with growth that continued to exceed expectations, coming in at an annual average of 2.8% (after 2.9% in 2023). Despite some pockets of weakness (households with low incomes, negative net equity, small businesses, vulnerable workers more exposed to high interest rates), the monetary and financial tightening did not have a widespread depressive effect thanks to an overall strengthening of balance sheets (corporate and household) after the financial crisis. While the employment market showed signs of a slowdown, this was more of a normalisation following a period of overheating rather than a deep deterioration. The unemployment rate rose only slightly, (4.1% at end-December 2024 vs 3.8% one year earlier). Lastly, confirming that the last mile of disinflation is the hardest, year-on-year inflation climbed very slowly from September to reach 2.9% in December.
    In China, the property market has not yet stabilised and support measures (lowering mortgage rates, lowering reserve requirement rates to free up liquidity, creating support funds to buy back certain vacant properties or properties under construction) have not generated the confidence boost expected. Households have preferred to maintain their precautionary savings, to the detriment of consumption, and weak domestic demand has continued to feed strong deflationary pressure. Thanks to better-than-expected growth in the last quarter (5.4% year-on-year), average annual growth reached the government target of “around 5%”. However, inflation (0.2% in 2024) remained far below the Central Bank’s 3% target.
    In France, growth came in at 1.1% in 2024, as in 2023. However, inflation dropped sharply, with an annual average of 2%, after 4.9% in 2023. This disinflation led to increased purchasing power for households, although this did not translate into a sharp rise in consumption. The savings rate for households therefore increased to 18%, as an annual average, compared to below 17% in 2023 and 14% before the health crisis (2015-2019). Employment proved very resilient in 2024 and the unemployment rate showed only a slight increase (7.4%). As the previous tightening of financial terms continued to weigh heavily on private investment, domestic demand decelerated and growth was driven by foreign trade and the public sector. While public consumer spending drove growth, on the other side of the coin, the public deficit significantly increased and should reach around 6.2% of GDP (after 5.5% in 2023).

    In Italy, the slowdown in activity continued in 2024, with growth limited to 0.5%. The disinflation process that began at the end of 2023 continued (average annual inflation of 1.1%) but was not enough to significantly boost the economy. A buoyant employment market (with an unemployment rate of 6.7%, down one point on 2023), low inflation and slight wage increases enabled an upturn in purchasing power after two years of decline. Despite this support, growth in household consumption remained moderate and the savings rate stabilised after its drop in 2023. Investment growth stagnated, driven solely by projects linked to the stimulus package, while productive investment declined sharply, particularly in the third quarter. Continued restrictive financing terms and insufficient demand, both domestically and internationally, have hampered supply, particularly in industry, which saw a marked drop. The construction sector, supported in the first six months by the delayed effect of the Super Bonus, then slowed.

    Financial markets

    Disinflation did not drive inflation rates to the targets set by the major central banks, but within their “comfort zones” and enabled them, during the summer, to ease their monetary policy. However, firstly, the “last mile” of disinflation has proved harder than the markets had anticipated and, secondly, the US election revived hopes of stronger growth but fears of higher inflation in the US. Consequently, investors have had to temper their hopes for monetary easing and bond rate cuts, particularly in the US.

    On the other side of the Atlantic, while two-year US Treasury yields fell back very slightly during the year (around 4.25% in December 2024), longer-term rates (US 10-year Treasuries) picked up by almost 65 bp (to almost 4.60%). In the eurozone, with a fairly depressed growth outlook and modest inflation, 2-year and 10-year swap rates fell by around 65 bp and 15 bp, respectively, over the year (to 2.20% and 2.35%). The trend in sovereign spreads reflected the relative economic, as well as political, performance of the economies. Whilst difficulties piled up in Germany, the European periphery enjoyed political stability and/or better economic growth. While the Bund rate (German 10-year rate) gained 30 bp over the year (to 2.35%, i.e. the 10-year swap rate level, having been nearly 50 bp below this level at the end of December 2023), peripheral spreads tightened. In France, political instability and concerns about the trajectory of French debt prompted the spread to widen. At the end of 2024, the Spanish, Italian and French 10-year yield spreads against the Bund were around 120, 70 and 80 bp, respectively, (i.e. variations of -25 bp, -50 bp and +30 bp over the year). France’s spread is now higher than Spain’s.

    In 2024, US economic performance far outstripped that of other major regions, notably Europe. Whilst US equity markets were again buoyed by the performance of the “Magnificent Seven” and the expected benefits of the US election, Europe suffered for a variety of reasons (depressed manufacturing sector, high energy costs, excessive regulation, Chinese competition, technology gap, political concerns in France and Germany etc.). Between the start and end of 2024, the S&P index rose by 24%, the Eurostoxx 50 was up 8% and the CAC was down 2%. Lastly, although stable on average over the year (at US$1.08), the euro fell against the dollar by 5.5% between January and December 2024.

    2025 Outlook

    A highly conditional scenario

    More than ever, the outlook is dependent on the future course of US geopolitics and economic policy. The assumptions made about the scale and timing of the measures to be taken by the new administration suggest that, in the US, the economy is likely to remain resilient, but also that inflation will pick up, monetary easing will be modest and long-term interest rates will come under upwards pressure. Moreover, these measures are only one explanation for the eurozone’s expected sluggish recovery, below potential.
    Outlining the US (and, by extension, global) scenario obviously involves making assumptions about both the scale of the measures likely to be implemented and their timing, depending on whether they fall under the purview of the President or require the approval of Congress. As far as tariffs are concerned, the US President’s threats seem to be tantamount to extreme pressure tactics. They call for an intermediate scenario consisting of substantial increases, but not as high as campaign proposals. Trade tariffs would likely rise to an average of 40% for China, from the second quarter of 2025, and to an average of 6% for the rest of the world, phased in over the second half of 2025. An aggressive fiscal policy, favouring tax cuts and maintaining extremely high deficits, would be implemented later. Its effects could be seen from 2026 onwards. In terms of immigration, restrictions could be applied from the start of the presidential term. They would be followed by a very sharp slowdown in immigration flows and, while deportations are to be expected, they would be selective as opposed to a massive and indiscriminate deportation of millions of people. Lastly, deregulation, from which the energy and finance sectors are likely to benefit the most, would have rather positive effects throughout the presidential term of office.

    In the US, these policy guidelines should, on the whole, favour growth. If the expected positive effect of an aggressive fiscal policy and deregulation exceeds the negative impact of tariffs and immigration restrictions, growth will follow. Given the resilience of the US economy, whose growth is still expected to outperform forecasts to settle at around 2.8% in 2024, this suggests that growth will remain strong, albeit slightly weaker. Due to a number of vulnerabilities (low-income households and small businesses are more exposed to high interest rates), our scenario assumes a slowdown to 1.9% in 2025, before a recovery to 2.2% in 2026, a trend that is likely to be accompanied by an upturn in inflation. The end of the disinflationary path to the 2% target is, in fact, the most arduous, and tariffs could result in price pressure ranging between 25 to 30 basis points. Headline inflation could therefore fall back to around 2% next spring, before rising to around 2.5% by the end of 2025 and then remain stable in 2026. The potential for monetary policy easing will be very limited.

    In the eurozone, growth is likely to be sluggish, with the economy still not meeting its growth potential and below the pace enjoyed by the US. Although the upturn in household consumption points to slightly stronger growth, the latest data regarding investment does not augur well for a marked acceleration. Falling inflation boosts purchasing power, as well as a rebuilding of real wealth, implying less saving, and lower interest rates help to restore property purchasing power. The ingredients are there for a continued recovery in household spending, albeit only at a very moderate pace, however, as fiscal consolidation and global uncertainty are likely to encourage a continued high savings rate. Our scenario therefore assumes a modest acceleration in consumption to 1.1% in 2025 and 1.2% in 2026, after 0.7% in 2024. After a sharp fall in 2024, investment in 2025 is likely to continue to be penalised by the delay in passing on the interest rate cuts and, above all, by weak domestic demand and growing uncertainty about foreign demand. Investment is expected to grow by just 1.5%, before firming slightly in 2026 (2%). The Trump administration’s policies are likely to have a moderately negative impact on growth in the eurozone, in the short term primarily due to uncertainty. Les politiques de l’administration Trump auraient un impact modérément négatif sur la croissance de la zone euro, dont le canal le plus important à court terme serait l’incertitude. In addition, the monetary and fiscal policy mix remains unfavourable to growth, with the central bank policy rate returning to neutral by mid-2025, while the reduction in the ECB’s balance sheet continues to reflect a restrictive stance. Our forecasts therefore place growth on a relatively soft acceleration trend, rising from 0.7% in 2024 to 1% in 2025, then 1.2% in 2026: growth potential would be attained, but the output gap, which is slightly negative, would not yet be closed, as the growth gap with the US economy would widen.
    In France, in 2025, assuming that a 2025 finance act is adopted at the beginning of the year (probably at the end of the first quarter) and that the recovery in public finances is weaker than forecast by the former Barnier government’s draft bill, growth would fall to 0.8%. Economic activity would be curbed, especially at the start of the year, by the uncertainty surrounding national politics and international trade policies. Households and businesses are likely to adopt a more wait-and-see attitude to consumption, investment and hiring. Household consumption is nevertheless set to rise as a result of the ongoing disinflation process, with inflation easing to 2.1% on an annual average basis (CPI), but only slightly. The household savings rate is not expected to fall until the second half of the year and will remain very high, while the unemployment rate is set to rise moderately. Private investment, meanwhile, is expected to remain stable, with an upturn postponed until 2026. Foreign trade is no longer expected to contribute to growth, as imports and exports are expected to grow at more or less the same rate. A slight re-stocking phenomenon is set to support growth, but budgetary efforts are likely to weaken. The public deficit is, however, only expected to fall slightly, to 6% of GDP. In Italy, a slight improvement is expected in 2025, with GDP growth forecast at 0.6%. Although a weakening labour market and slightly higher inflation are expected, consumption should become the main driver of the economy. Productive investment could benefit from a more favourable monetary environment. The construction sector will continue to be weakened by the after-effects of the boom of previous years, despite partial support from projects under the stimulus package.

    Regarding emerging countries, were it not for the difficulties associated with “Trump 2.0”, the situation would be improving, with lower US central bank policy rates conducive to global monetary easing, easing of downwards pressure on emerging currencies and, more generally, on external financing for emerging countries, with domestic growth buoyed by falling inflation and interest rate cuts and exports to developed countries (primarily the US) still buoyant. However, the effects of these supporting factors are at risk of being undermined by the probable repercussions of the measures taken by the new US administration. In addition to trade tariffs that are likely to make emerging country exports more expensive and more limited, there will be less monetary accommodation in the US and a probable reduction in US military and financial support for Ukraine, fuelling geopolitical uncertainty in Europe. It will therefore be preferable to be a large country with a low level of openness, such as India, Indonesia or Brazil, a commodity-exporting country or an economy that is well integrated with China, which is preparing for the Trump storm.

    In China, the last Politburo meeting concluded in December with a commitment by the authorities to implement a “more proactive” fiscal policy and a “sufficiently accommodating” monetary policy, in order to boost domestic demand and stabilise the property and equity markets. A period of trade tensions is looming and, apart from restrictions on exports of critical products (including rare earths), the means of retaliation are limited. It is difficult to respond by boosting the competitiveness of exports (the yuan is already historically low) or by reciprocally raising tariffs, which would risk penalising already very fragile domestic consumption. The authorities’ plans to provide more vocal support for domestic demand are commendable, but the effectiveness of this strategy will depend on household confidence. The upturn cannot be ordered by decree, and our scenario continues to predict a slowdown in growth in 2025.

    The market’s hopes of a sharp monetary easing have been refuted and are absolutely no longer on the agenda, especially in the US.

    In an economy that is expected to remain robust, with inflation holding above 2% and which could pick up again, the easing would be modest. After a total reduction of 100 basis points in 2024 (bp), the Fed could ease by a further 50 bp in total, taking the Fed funds rate (upper limit of the target range) to 4.00% in the first half of 2025, before pausing for a prolonged period. With inflation on target and no recession in sight, the ECB is likely to continue moderate easing via its central bank policy rates, while extending its quantitative tightening. After its four 25 bp cuts in 2024, the ECB is expected to cut rates by 25 bp at its meetings in January, March and April, then maintain its deposit rate at 2.25%, i.e. very slightly below the neutral rate estimate (2.50%).
    Everything points to a scenario of rising long-term interest rates. In the US, given the economic scenario (limited slowdown in growth and moderation in inflation concentrated at the beginning of the period) and modest monetary easing followed by an earlier pause, interest rates could fall slightly in the first half of 2025 before picking up. The new forecasts look to a ten-year Treasury rate nearing 4.50% at the end of 2025, then rising to around 5.00% at the end of 2026.

    In the eurozone, a number of factors lead to a scenario of rising sovereign interest rates: excessive monetary easing expectations by the markets, the correction of which could lead to a rise in swap rates, an increase in the volume of government securities linked to the ECB’s balance sheet reduction (Quantitative Tightening) as well as still-high net national issuance and the extension of the rise in US bond yields to their European equivalents. Whilst the German economy (where early elections will be held in February) continues to suffer, and the political situation in France is not any clearer, “peripheral” countries have seen their sound economic results (notably Spain) and their political stability (this applies to Italy and Spain) rewarded by a significant tightening of their spreads against the German 10-year rate in 2024. They should benefit from the same supportive factors in 2025. Our scenario therefore assumes German, French and Italian ten-year interest rates of 2.55%, 3.15% and 3.55%, respectively, at the end of 2025.

    Lastly, on the dollar front, a number of positive factors, including the increased attractiveness of the dollar in terms of yield, seem to have already been largely incorporated into its price. As a result, our scenario assumes that the greenback will remain close to its recent highs throughout 2025, without exceeding them for any long period.

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

    Crédit Agricole Group – Specific items

      Q4-24 Q4-23 2024 2023
    €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) (26) (19) 6 4 20 15 (15) (11)
    Loan portfolio hedges (LC) 2 1 2 1 8 6 (24) (18)
    Home Purchase Savings Plans (LCL) – – 6 5 1 1 58 43
    Home Purchase Savings Plans (CC) – – 5 4 (0) (0) 236 175
    Home Purchase Savings Plans (RB) – – 74 55 63 47 192 142
    Mobility activities reorganisation (SFS) – – – – – – 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 (24) (18) 93 69 93 69 851 650
    Degroof Petercam integration costs (AG) (13) (10) – – (26) (19) – –
    ISB integration costs (LC) (27) (15) – – (97) (52) – –
    Mobility activitiesreorganisation (SFS) – – 4 3 – – (14) (10)
    Total impact on operating expenses (39) (25) 4 3 (123) (72) (14) (10)
    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) – – – – – – (39) (39)
    Total impact equity-accounted entities – – – – –   (39) (39)
    ISB integration costs (LC) (2) – – – (2) – – –
    Degroof Petercam acquisition costs (AG) 1 1 – – (22) (16) – –
    Mobility activities reorganisation (SFS) – – – – – – 89 57
    Total impact Net income on other assets (1) 1 – – (24) (16) 89 57
    Mobility activities reorganisation (SFS) – – 12 12 – – 12 12
    Total impact on change of value of goodwill – – 12 12 – – 12 12
    Mobility activities reorganisation (SFS) – – – 3 – – – 3
    Total impact on tax – – – 3 – – – 3
                     
    Total impact of specific items (64) (42) 109 86 (74) (39) 814 611
    Asset gathering (12) (9) – – (49) (36) – –
    French Retail banking – – 80 59 65 48 312 248
    International Retail banking – – – – (20) (20) – –
    Specialised financial services – – 16 17 – – 263 176
    Large customers (52) (33) 8 6 (70) (31) (39) (29)
    Corporate centre – – 5 4 (0) (0) 277 216

    * Impact before tax and before minority interests

    Crédit Agricole S.A. – Specific items

      Q4-24 Q4-23 2024 2023
    €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) (26) (19) 6 4 20 15 (15) (11)  
    Loan portfolio hedges (LC) 2 1 2 1 8 6 (24) (18)  
    Home Purchase Savings Plans (LCL) – – 6 4 3 2 58 41  
    Home Purchase Savings Plans (CC) – – 5 4 (2) (1) 236 175  
    Mobility activities reorganisation (SFS) – – – – – – 300 214
    Check Image Exchange penalty (CC) – – – – – – 42 42
    Check Image Exchange penalty (LCL) – – – – – – 21 20
    Total impact on revenues (24)            (17) 19 14 30 21 617 464
    Degroof Petercam integration costs (AG) (13) (9)    –    – (26) (19) – –  
    ISB integration costs (LC) (27) (15)    –     – (97) (52) – –  
    Mobility activities reorganisation (SFS)      –     –      4     3    –      – (14) (10)  
    Total impact on expenses               (39)              (25)             4        3 (123)               (71)       (14) (10)
    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) – – – – – – (39) (39)  
    Total impact equity-accounted entities – – – – –   (39) (39)  
    ISB integration costs (LC) (2) – – – (2) – – –  
    Degroof Petercam acquisition costs (AG) 1 1 – – (22) (16) – –  
    Mobility activities reorganisation (SFS) – – – – – – 89 57  
    Total impact Net income on other assets (1) 1 – – (24) (16) 89 57  
    Mobility activities reorganisation (SFS) – – 12 12 – – 12 12  
    Total impact on change of value of goodwill – – 12 12 – – 12 12  
    Mobility activities reorganisation (SFS) – – – 3 – – – 3  
    Total impact on tax – – – 3 – – – 3  
                     
    Total impact of specific items (64) (41) 35 31 (138) (86) 580 425  
    Asset gathering (12) (9) – – (49) (35) – –  
    French Retail banking – – 6 4 3 2 79 61  
    International Retail banking – – – – (20) (20) – –  
    Specialised financial services – – 16 17 – – 263 176  
    Large customers (52) (32) 8 6 (70) (32) (39) (28)  
    Corporate centre – – 5 4 (2) (1) 277 216  

    * Impact before tax and before minority interests

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

    Crédit Agricole Group – Results by business line, Q4-23 and Q4-24

      Q4-24 (stated)
    €m RB LCL IRB AG SFS LC CC Total
                     
    Revenues 3,276 960 993 2,037 915 2,108 (472) 9,817
    Operating expenses excl. SRF (2,503) (647) (588) (930) (447) (1,298) 549 (5,863)
    SRF – – – – – – – –
    Gross operating income 773 313 405 1,107 468 810 77 3,954
    Cost of risk (263) (78) (97) (11) (306) (93) (19) (867)
    Equity-accounted entities 1 – – 29 43 7 – 80
    Net income on other assets (2) 1 0 (0) (9) (1) (10) (20)
    Income before tax 513 236 308 1,125 196 724 48 3,150
    Tax (110) (44) (100) (313) (49) (166) (2) (784)
    Net income from discont’d or held-for-sale ope. – – – – – – – –
    Net income 404 192 207 813 147 557 46 2,366
    Non controlling interests (1) (0) (31) (117) (24) (34) (11) (217)
    Net income Group Share 403 192 177 696 124 523 35 2,149
      Q4-23 (stated)
    €m RB LCL IRB AG SFS LC CC Total
                     
    Revenues 3,227 959 1,000 1,550 880 1,936 (782) 8,769
    Operating expenses excl. SRF (2,485) (654) (646) (726) (449) (1,209) 488 (5,682)
    SRF – – – – – – – –
    Gross operating income 742 305 353 824 431 727 (294) 3,088
    Cost of risk (321) (96) (98) (4) (184) (39) (20) (762)
    Equity-accounted entities (0) – (0) 29 40 5 – 73
    Net income on other assets (1) 0 2 (5) (11) (1) (4) (19)
    Income before tax 420 209 258 843 288 692 (328) 2,382
    Tax (85) (39) (104) (172) (53) (130) 128 (455)
    Net income from discont’d or held-for-sale ope. (0) – (10) – – – – (10)
    Net income 336 170 144 671 235 562 (200) 1,918
    Non controlling interests 0 0 (24) (123) (18) (25) (4) (194)
    Net income Group Share 336 170 120 548 217 537 (204) 1,724

    Crédit Agricole Group – Results by business line, 2024 et 2023

      2024 (stated)
    €m RB LCL IRB AG SFS LC CC Total
                     
    Revenues 13,110 3,872 4,153 7,633 3,520 8,652 (2,879) 38,060
    Operating expenses excl. SRF (9,956) (2,448) (2,225) (3,365) (1,780) (5,039) 2,084 (22,729)
    SRF – – – – – – – –
    Gross operating income 3,155 1,424 1,928 4,268 1,740 3,613 (795) 15,332
    Cost of risk (1,319) (373) (316) (29) (958) (117) (79) (3,191)
    Equity-accounted entities 8 – – 123 125 27 – 283
    Net income on other assets 1 5 0 (23) (12) 1 (13) (39)
    Income before tax 1,849 1,056 1,612 4,339 895 3,523 (887) 12,388
    Tax (423) (229) (536) (970) (187) (883) 341 (2,888)
    Net income from discont’d or held-for-sale ope. – – – – – – – –
    Net income 1,425 827 1,076 3,369 708 2,641 (546) 9,500
    Non controlling interests (2) (0) (160) (481) (82) (139) 4 (860)
    Net income Group Share 1,423 827 916 2,889 625 2,502 (542) 8,640
      2023 (stated)
    €m RB LCL IRB AG SFS LC CC Total
                     
    Revenues 13,259 3,850 4,040 6,693 3,597 7,780 (2,728) 36,492
    Operating expenses excl. SRF (9,702) (2,396) (2,189) (2,874) (1,673) (4,507) 1,877 (21,464)
    SRF (111) (44) (40) (6) (29) (312) (77) (620)
    Gross operating income 3,446 1,410 1,811 3,813 1,896 2,961 (928) 14,408
    Cost of risk (1,152) (301) (463) (5) (871) (120) (28) (2,941)
    Equity-accounted entities 9 – 1 102 130 21 – 263
    Net income on other assets 5 21 3 (10) 71 2 (5) 88
    Income before tax 2,308 1,130 1,353 3,900 1,237 2,865 (971) 11,821
    Tax (551) (256) (425) (868) (306) (691) 350 (2,748)
    Net income from discont’d or held-for-sale ope. (0) – (3) 1 (0) – – (3)
    Net income 1,756 874 924 3,033 931 2,174 (621) 9,071
    Non controlling interests (0) (0) (145) (466) (79) (118) (4) (813)
    Net income Group Share 1,756 874 780 2,566 851 2,056 (625) 8,258

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

    Crédit Agricole S.A. – Results by business line, Q4-24 et Q4-23

      Q4-24 (stated)
    €m AG LC SFS FRB (LCL) IRB CC Total
                   
    Revenues 2,045 2,108 915 960 969 95 7,092
    Operating expenses excl. SRF (930) (1,298) (447) (647) (568) (28) (3,917)
    SRF – – – – – – –
    Gross operating income 1,116 810 468 313 401 67 3,175
    Cost of risk (11) (93) (306) (78) (100) (6) (594)
    Equity-accounted entities 29 7 43 – – (17) 62
    Net income on other assets (0) (1) (9) 1 0 (0) (9)
    Income before tax 1,133 723 196 236 302 44 2,634
    Tax (315) (166) (49) (44) (101) (7) (681)
    Net income from discont’d or held-for-sale ope. – – – – – – –
    Net income 819 557 147 192 201 37 1,953
    Non controlling interests (124) (45) (24) (9) (43) (19) (264)
    Net income Group Share 695 512 124 183 158 18 1,689
      Q4-23 (stated)  
    €m AG LC SFS FRB (LCL) IRB CC Total  
                   
    Revenues 1,555 1,935 880 959 974 (262) 6,040
    Operating expenses excl. SRF (726) (1,209) (449) (654) (627) (44) (3,710)
    SRF – – – – – – –
    Gross operating income 828 726 431 305 347 (306) 2,330
    Cost of risk (4) (39) (184) (96) (102) (14) (440)
    Equity-accounted entities 29 5 40 – (0) (12) 61
    Net income on other assets (5) (1) (11) 0 2 (3) (17)
    Income before tax 848 691 288 209 246 (345) 1,937
    Tax (173) (129) (53) (39) (103) 128 (369)
    Net income from discont’d or held-for-sale ope. – – – – (10) – (10)
    Net income 675 562 235 170 134 (217) 1,558
    Non controlling interests (130) (37) (18) (8) (31) (1) (224)
    Net income Group Share 546 525 217 162 103 (218) 1,334

    Crédit Agricole S.A. – Results by business line, 2024 et 2023

      2024 (stated)
    €m AG LC SFS FRB (LCL) IRB CC Total
                   
    Revenues 7,648 8,651 3,520 3,872 4,059 (570) 27,181
    Operating expenses excl. SRF (3,365) (5,039) (1,780) (2,448) (2,148) (116) (14,895)
    SRF – – – – – – –
    Gross operating income 4,284 3,612 1,740 1,424 1,911 (685) 12,286
    Cost of risk (29) (117) (958) (373) (313) (59) (1,850)
    Equity-accounted entities 123 27 125 – – (82) 194
    Net income on other assets (23) 1 (12) 5 0 23 (4)
    Income before tax – – – – – – –
    Tax 4,355 3,523 895 1,056 1,599 (803) 10,625
    Net income from discont’d or held-for-sale ope. (973) (883) (187) (229) (535) 336 (2,472)
    Net income – – – – – – –
    Non controlling interests 3,381 2,640 708 827 1,063 (466) 8,153
    Net income Group Share (506) (192) (82) (37) (227) (22) (1,067)
    Revenues 2,875 2,448 625 790 836 (488) 7,087
      2023 (stated)  
    €m AG LC SFS FRB (LCL) IRB CC Total  
                   
    Revenues 6,688 7,779 3,597 3,850 3,949 (683) 25,180
    Operating expenses excl. SRF (2,874) (4,507) (1,673) (2,396) (2,118) (64) (13,632)
    SRF (6) (312) (29) (44) (40) (77) (509)
    Gross operating income 3,808 2,960 1,896 1,410 1,791 (825) 11,039
    Cost of risk (5) (120) (870) (301) (464) (17) (1,777)
    Equity-accounted entities 102 21 130 – 1 (58) 197
    Net income on other assets (10) 2 71 21 3 (3) 85
    Income before tax – – 12 – – (9) 2
    Tax 3,894 2,864 1,237 1,130 1,332 (911) 9,546
    Net income from discont’d or held-for-sale ope. (872) (690) (306) (256) (422) 346 (2,201)
    Net income 1 – (0) – (3) – (3)
    Non controlling interests 3,024 2,174 931 874 906 (565) 7,343
    Net income Group Share (483) (162) (79) (39) (204) (28) (995)
    Revenues 2,541 2,011 852 835 703 (593) 6,348

    Appendix 4 – Data per share

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

    (€m)

    Q4-2024
    Q4-2023

    2024
    2023

    Net income Group share – stated

    1,689
    1,334

    7,087
    6,348
    – Interests on AT1, including issuance costs, before tax

    (112)
    (87)

    (463)
    (458)
    – Foreign exchange impact on reimbursed AT1

    –
    –

    (266)
    –
    NIGS attributable to ordinary shares – stated

    [A]
    1,577
    1,247

    6,358
    5,890
    Average number shares in issue, excluding treasury shares (m)

    [B]
    3,025
    3,032

    3,015
    3,031
    Net earnings per share – stated

    [A]/[B]
    0.52 €
    0.41 €

    2.11 €
    1.94 €
    Underlying net income Group share (NIGS)

    1,730
    1,303

    7,172
    5,923
    Underlying NIGS attributable to ordinary shares

    [C]
    1,618
    1,216

    6,443
    5,465
    Net earnings per share – underlying

    [C]/[B]
    0.54 €
    0.40 €

    2.14 €
    1.80 €

    (€m)

    31/12/2024
    31/12/2023
    Shareholder’s equity Group share

    74,710
    71,086
    – AT1 issuances

    (7,218)
    (7,220)
    – Unrealised gains and losses on OCI – Group share

    1,256
    1,074
    – Payout assumption on annual results*

    (3,327)
    (3,181)
    Net book value (NBV), not revaluated, attributable to ordin. sh.

    [D]

    65,421
    61,760
    – Goodwill & intangibles** – Group share

    (17,851)
    (17,347)
    Tangible NBV (TNBV), not revaluated attrib. to ordinary sh.

    [E]

    47,569
    44,413
    Total shares in issue, excluding treasury shares (period end, m)

    [F]

    3,025
    3,029

    NBV per share, after deduction of dividend to pay (€)
    Dividend to pay (€)
    TNBV per share, after deduction of dividend to pay (€)

    TNBV per sh., before deduct. of divid. to pay (€)

    €21.6 20,4 €
    €1.10 1,05 €
    €15.7 14,7 €
    €16.8 15,7 €
    20,4 €
    1,05 €
    14,7 €
    15,7 €
    €20.4
    €1.05
    €14.7
    €15.7

    * dividend proposed to the Board meeting to be paid
    ** including goodwill in the equity-accounted entities

    (€m)

    2024
    2023
    Net income Group share – stated

    [K]

    7,087
    6,348
    Impairment of intangible assets

    [L]

    0
    0
    Stated NIGS annualised

    [N] = ([K]-[L]-[M])*4/4+[M]

    7,087
    6,348
    Interests on AT1, including issuance costs, before tax, foreign exchange impact, annualised

    [O]

    -729
    -458
    Stated result adjusted

    [P] = [N]+[O]

    6,358
    5,890
    Tangible NBV (TNBV), not revaluated attrib. to ord. sh. – avg *** (3)

    [J]

    46,125
    43,281
    Stated ROTE adjusted (%)

    = [P] / [J]

    13.8%
    13.6%
    Underlying Net income Group share

    [Q]

    7,172
    5,923
    Underlying NIGS annualised

    [R] = ([Q]-[M])*4/4+[M]

    7,172
    5,923
    Underlying NIGS adjusted

    [S] = [R]+[O]

    6,443
    5,465
    Underlying ROTE adjusted(%)

    = [S] / [J]

    14.0%
    12.6%
    *** 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 31/12/2024 (line [E]), restated with an assumption of dividend for current exercises

    Alternative Performance Indicators99

    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 equity and eligible liabilities buffer required to absorb losses in the event of resolution. Under BRRD2, the MREL ratio is calculated as the amount of equity and eligible 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 equity, 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 equity 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 fourth quarter and the full year 2024 comprises this press release and the presentation and the attached appendices which are available on the website: https://www.credit-agricole.com/en/finance/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 twelve-month period ending 31 December 2024 have been prepared in accordance with IFRS as adopted in the European Union and applicable at that date, and with regulations currently in force.

    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.

    As of December 31, 2024, Amundi finalized the acquisition of aixigo, a European Wealth Tech player, to complete the ALTO platform’s offering.

    As of December 31, 2024, Crédit Agricole S.A. has entered into financial instruments for 5.2% of Banco BPM’s share capital.

    Financial Agenda

    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 – www.creditagricole.info

             

    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 2024 market shares: CRCA and LCL household loans (source: Banque de France and internal); French UCITS (all customer segments); payments (in No. of transactions; source: Banque de France and internal)
    4 2023 market shares: insurance (Argus de l’Assurance and France Assureurs); property services
    5 Economic outlook to 2025
    6 Purchase price of transactions carried out since 2022. Includes shares acquired in Banco BPM and Worldline
    7 Disposal of Crédit du Maroc, La Médicale, Crédit Agricole Serbia and others
    8 Indosuez Wealth management acquires a 70% stake in Wealth Dynamix, a fintech specialising in client relationship management for private banks, wealth management and asset management actors across the world.
    9 Creation of Uptevia, held in equal shares by CACEIS and BNPP, wich brings together the activities for the issuers of the two banks.
    10 Independent asset manager offering private markets multi-manager investment solutions.
    11 Technology company of high value-added modular service for distributors of savings solutions.
    12 Acquisition of Merca Leasing, independent leasing company in Germany
    13 Commercial partnership for automobile insurance between Mobilize Financial Services, subsidiary of Renault Group, specialised in services facilitating access to automobiles, and Pacifica, Property and Casualty subsidiary of Credit Agricole Assurances
    14 Merge between Amundi and Victory Capital, acquisition of a participation of 26.1% in Victory Capital, and signature of distribution and services agreement lasting 15 years.
    15 Digital fleet management tool on monthly subscription
    16 Extended warranty
    17 Delivery of single vehicule
    18 Agreement allowing CA Autobank, Drivalia, Agilauto and Leasys to offer fatec fllet management services to their customers in France
    19 Employee benefits management tool
    20 Creation of a joint venture to develop innovative commercial offers.
    21 Leader in design, construction, and daily support for multidisciplinary collective primary care structures
    22 Credit Agricole Santé et Territoires and 10 regional banks enter the capital of Cette Famille, major player in inclusive housing for seniors in France.
    23         Omedys, specialist in assisted telemedicine, Medicalib, home care expert
    24 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.
    25 Listed investments managed directly, listed investments managed under mandate and unlisted investments managed directly
    26 Crédit Agricole CIB green asset portfolio, in line with the eligibility criteria of the Group Green Bond Framework published in November 2023.
    27 Scope of power sector: CACIB and Unifergie (Crédit Agricole Transitions & Energies)
    28 DVA (Debt Valuation Adjustment)
    29Specific (one-off) items had impacted the fourth quarter of 2023 for the SFS division and for CACF as follows: +€17m in net income Group share, of which +€4m on operating expenses, +€12m on badwill and +€1m on tax.
    30 See Appendixes for more details on specific items.
    31 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
    32 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
    33 Average rate of loans to monthly production for October and November 2024.
    34 Equipment rate – Home-Car-Health policies, Legal, All Mobile/Portable or personal accident insurance
    35 SAS Rue La Boétie dividend paid annually in Q2
    36 Home Purchase Savings Plan base effect (reversal of the Home Purchase Savings Plan provision) in Q4-23 totalling +€73.6m in revenues and +€54.6m in net income Group share. 

    37 Underlying, excluding specific items.
    38 Scope effect of Degroof Petercam revenues: +€158 million in the fourth quarter of 2024.
    39 Scope effect in expenses in the fourth quarter of 2024: Degroof Petercam for -€120 million and miscellaneous others.

    40 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.
    41 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
    42 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
    43         See Appendixes for more details on specific items.
    44 SRF costs amounted to -€509 million over full-year 2023

    45 See Appendixes for details on the calculation of the RoTE (return on tangible equity)
    46 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
    47 In local standards
    48 Can reach up to 3.85% for the Anaé policy with a UL rate > 50% and benefiting from management fees of 0.5% 
    49 Scope “Life France”
    50 Property and casualty insurance premium income includes a scope: effect linked to the initial consolidation of CATU in Q2-24 (a property and casualty insurance entity in Poland): 9.4% Q4/Q4 increase in premium income at constant scope

    51 Scope: property and casualty in France and abroad
    52 Combined property & casualty ratio in France (Pacifica) including discounting and excluding undiscounting, net of reinsurance: (claims + operating expenses + fee and commission income)/gross premiums earned. Undiscounted ratio: 96.4% (-4.3 pp over the year)
    53 Excl. JVs
    54 Excluding assets under custody for institutional clients
    55 Amount of allocation of Contractual Service Margin (CSM) and Risk Adjustment (RA) including funeral guarantees
    56 Amount of allocation of CSM and RA
    57 Net of cost of reinsurance, excluding financial results
    58 Integration costs related to the acquisition of aixigo and the partnership with Victory Capital, which are expected to be completed towards the end of Q1 25, were recorded as operating expenses in the fourth quarter of 2024 for a total of -€14 million.
    59 Indosuez Wealth Management scope
    60 Degroof Petercam data for the quarter included in Wealth Management results: Revenues of €158m and expenses of -€120m (excluding integration costs partly borne by Degroof Petercam)
    61 In Q4 24: -€12.8 million of integration costs (impacting the operating expenses line); and +€0.8 million in acquisition costs (impacting the line gains and losses on other assets)
    62 2024 Degroof Petercam data included in the results of the Wealth Management business: NBI of €347 million and expenses of -€259 million (excluding integration costs partially borne by Degroof Petercam)
    63 In 2024: -€26.4 million in integration costs (impacting the operating expenses line); and -€22.2 million in acquisition costs (impacting the line gains and losses on other assets)
    64 Refinitiv LSEG
    65 Bloomberg in EUR
    66 Cost of risk for the last four quarters divided by the average of the outstandings at the start of all four quarters of the year
    67 CA Auto Bank, automotive JVs and auto activities of other entities
    68 CA Auto Bank and automotive JVs
    69 Q4-23 base effects related to the reorganisation of the Mobility activities (Expenses +€4m, Changes in value of goodwill +€12m, Corporate income tax +€1m and Net income Group share +€17m)
    70 12M-23 base effect linked to the reorganisation of Mobility activities (revenues €300m, expenses -€14m, cost of risk -€85m, equity-accounted entities -€39m, income on other assets €89m, Change in the value of goodwill +€12m, corporate tax €87m, net income Group share €176m)
    71 Q4-23 base effects related to the reorganisation of the Mobility activities (Expenses +€4m, Changes in value of goodwill +€12m, Corporate income tax +€1m and Net income Group share +€17m)
    72 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.
    7312M-23 base effect related to the reorganisation of the Mobility activities (Revenues €300m, Expenses -€14m, Cost of risk -€85m, Equity-accounted entities -€39m, GPAI €89m, Changes in value of goodwill +€12m, Corporate income tax €87m and Net income Group share €176m)
    74 Net of POCI outstandings
    75 Source: Abi Monthly Outlook, January 2024: -1.0% Dec./Dec. for all loans
    76 At 31 December 2024, this scope corresponds to the aggregation of all Group entities present in Italy: CA Italy, CAPFM (Agos, Leasys, CA Auto Bank), CAA (CA Vita, CACI, CA Assicurazioni), Amundi, Crédit Agricole CIB, CAIWM, CACEIS, CALEF.
    77 In number of branches
    78 Net Promoter Score; source: Doxa survey, October 2023.
    79 Assofin publication, 30/04/2024 (excluding credit cards).
    80 Assets under management Source: Assogestioni, 31/05/2024
    81 Production. Source: IAMA, 30/04/2024
    82 Home Purchase Saving Plan base effect (reversal of the provision for Home Purchase Saving Plans) in Q4-23 of +€6.1 million in revenues and +€4.5 million in net income Group share versus 0 in Q4 2024.
    83 Home Purchase Saving Plan base effect (reversal of the provision for Home Purchase Saving Plans) in 2023 of +€57.9 million in revenues and +€41.2 million in net income Group share versus €3.1 million in revenues and +€2.2 million in net income Group share in 2024.
    84 Reversal of provision for Cheque Image Exchange Provision of + €21m in Q2-23
    85 At 31 December 2024 this scope includes the entities CA Italy, CA Polska, CA Egypt and CA Ukraine.

    86 Over a rolling four quarter period.
    87 At 31 December 2024, this scope corresponds to the aggregation of all Group entities present in Italy: CA Italy, CAPFM (Agos, Leasys, CA Auto Bank), CAA (CA Vita, CACI, CA Assicurazioni), Amundi, Crédit Agricole CIB, CAIWM, CACEIS, CALEF.
    88 As part of its annual resolvability assessment, Crédit Agricole Group has chosen in 2024 to continue waiving the possibility offered by Article 72ter(3) of the Capital Requirements Regulation (CRR) to use senior preferred debt for compliance with its TLAC requirements over the resolvability period that will begin during 2025.
    89 Which excludes some client deposits from the asset custody business in coherence with the internal management.
    90Securities within liquidity reserves are valued after discounting idiosyncratic stress (previously systemic stress) to better reflect the economic reality of central bank value.
    91 Gross amount before buy-backs and amortisations
    92 Gross amount before buy-backs and amortisations
    93 Excl. AT1 issuances
    94 Gross amount before buy-backs and amortisations
    95 Excl. senior secured debt
    96 Gross amount before buy-backs and amortisations
    97 Gross amount before buy-backs and amortisations
    98 Excl. AT1 issuances
    99 APMs are financial indicators not presented in the financial statements or defined in accounting standards but used in the context of financial communications, such as underlying net income Group share or RoTE. They are used to facilitate the understanding of the company’s actual performance. Each APM indicator is matched in its definition to accounting data.

    Attachment

    The MIL Network –

  • MIL-OSI USA: PSI Chairman Johnson, House Judiciary Chairman Jordan, and Rep. Loudermilk Sent Letters to AT&T, T-Mobile, Verizon, and the FBI About the Unsolved January 6, 2021 Pipe Bomb Investigation

    US Senate News:

    Source: United States Senator for Wisconsin Ron Johnson

    WASHINGTON – Yesterday, Permanent Subcommittee on Investigations Chairman Ron Johnson (R-Wis.), House Judiciary Committee Chairman Jim Jordan (R-Ohio), and Representative Barry Loudermilk (R-Ga.) sent letters to AT&T Inc., T-Mobile USA, Inc., Verizon Communications Inc., and the Federal Bureau of Investigation (FBI) seeking answers about the FBI’s use of cellular data in the investigation into the pipe bombs that were discovered on Jan. 6, 2021 in Washington, D.C.

    The letter noted that according to a former FBI official who led the investigation, some of the cellular data that the FBI relied on during its investigation was corrupted, potentially frustrating law enforcement’s efforts to locate the individual(s) responsible for planting the pipe bombs.

    However, according to a Jan. 2, 2025 House Subcommittee report, the major cellular carriers stated that they neither provided “corrupted” data to the FBI nor received any notification from the FBI of any issues accessing the cellular data.

    The bicameral letters requested the cellular carriers and the FBI provide the actual data that was analyzed for the Senate Subcommittee and House Committee to review and all communications between the FBI and the cellular carriers regarding the FBI’s request and analysis of the data.

    Read more about the lawmakers’ oversight letters in the New York Post.

    Chairman Johnson, Chairman Jordan, and Representative Loudermilk’s letters are linked below:

    MIL OSI USA News –

  • MIL-OSI USA: Grassley: The Senate Judiciary Committee is Moving Forward with Kash Patel’s Nomination

    US Senate News:

    Source: United States Senator for Iowa Chuck Grassley

    WASHINGTON – Senate Judiciary Committee Chairman Chuck Grassley (R-Iowa) released the following statement regarding the Minority’s request to hold a second hearing on Kash Patel’s nomination to be FBI Director:

    “Kash Patel testified before the Committee for more than five hours, disclosed thousands of pages of records and media appearances, and provided 147 pages of responses to written questions. Further hearings on his nomination are unnecessary. 

    “No one was convinced by the Minority’s baseless efforts to mischaracterize and malign Kash Patel. It’s additionally outrageous to assert that a nominee should come before the Senate to answer for government actions that occurred prior to their time at an agency.

    “The Senate Judiciary Committee will not fall for Democrats’ delay tactics. I intend to hold a final committee vote on Patel’s nomination as soon as next week.”

    -30-

    MIL OSI USA News –

  • MIL-OSI USA: As FBI Purges Reportedly Continue, Booker Urges Chairman Grassley to Schedule New Judiciary Hearing to Hear Further Testimony from Kash Patel

    US Senate News:

    Source: United States Senator for New Jersey Cory Booker

    WASHINGTON, D.C. – Today, U.S. Senator Cory Booker (D-NJ), a member of the Senate Judiciary Committee, issued the following statement:

    “On Thursday of last week, FBI director nominee Kash Patel appeared before the Senate Judiciary Committee. Throughout the hearing, Mr. Patel downplayed and minimized his well-documented record of calling for retribution against members of the media and government officials and glorifying insurrectionists who attacked the U.S. Capitol on January 6, 2021, including those who violently assaulted law enforcement officers. Although there is no legal prohibition barring Mr. Patel from doing so, he refused to answer questions posed by Committee members relating to his grand jury testimony and the circumstances that led him to assert his Fifth Amendment right against self-incrimination in connection with the federal investigation of President Trump’s mishandling of classified national security documents.

    “Based on reports of imminent mass firings, I directly asked Mr. Patel whether he was aware of plans to punish FBI agents or personnel who worked on investigations of President Trump. Despite claiming, under oath, not to know anything about planned retribution against FBI employees, and only minutes after Mr. Patel’s hearing concluded, political appointees at the Department of Justice ousted several members of FBI leadership and demanded a list of thousands of employees who worked on investigations relating to the January 6th insurrection. These employees worked to keep us safe from counterterrorism, cybercrimes, transnational organized crime, and countless other threats that pose a danger to our nation. Their abrupt terminations and the threat of more firings create chaos within the FBI and jeopardize our domestic and national security. Mr. Patel claimed during his hearing that all FBI employees would be protected against political retribution, but these actions are plainly retributive against law enforcement officials who have dedicated their lives to protecting this country. 

    “The Committee must call Mr. Patel back to answer for these acts. Chairman Grassley must schedule an additional hearing for Mr. Patel to truthfully answer questions about the ongoing purge at the FBI and retaliation against FBI employees and about his involvement in the retention of classified documents at Mar-a-Lago. Anyone who misleads Congress is unfit to serve as the director of the nation’s preeminent law enforcement agency with control over and access to our county’s most sensitive classified information.

    “The Senate Judiciary Committee simply cannot discharge its constitutional duty to advise and consent on nominees unless we have a full and accurate understanding of Mr. Patel’s record and participation in gutting the FBI. The Committee must fulfill its responsibility to the American people and the 38,000 employees of the FBI nationwide to ensure that a director confirmed by the Senate can be trusted to run the Bureau.”

    MIL OSI USA News –

  • MIL-OSI Security: Chilean National Charged With Conspiracy And Possessing Property Stolen From Burglary Of Jewelry Store

    Source: Office of United States Attorneys

    NEWARK, N.J. – A Chilean man, believed to be part of a South American theft group, is charged for his involvement in a conspiracy to break into a jewelry store in New Jersey and possess the stolen property in other states, Acting U.S. Attorney Vikas Khanna announced.

    Gustavo Ignacio Salas Ortega, 33, of Chile, is charged by complaint with one count of conspiracy to receive stolen property that had crossed state lines and one count of receiving stolen property that had crossed state lines.  ICE ERO Newark arrested Salas Ortega on October 14, 2024, in Rochelle Park, New Jersey.

    Acting U.S. Attorney Vikas Khanna stated, “Sophisticated and highly organized burglars that allegedly target businesses do great damage and put the public at risk. The defendant is charged with conspiring to break into a jewelry store in New Jersey to steal expensive wristwatches and jewelry and then taking the valuables to other states.  This office is committed to finding the perpetrators of these crimes and preventing them from continuing to harm our businesses.”

    “The Joint Organized Crime Task Force has been working tirelessly to apprehend these alleged criminals, following a labyrinth of conspirators that span multiple states.” FBI-Newark Acting Special Agent in Charge Terence G. Reilly said. “These alleged criminals are part of South American theft groups who have been targeting stores throughout the United States for months. These alleged thieves have worked equally hard to evade law enforcement as they have to infiltrate the very businesses they have ripped off. This charge marks a positive step forward towards dismantling this group.”

    “As alleged, the illegal alien offender threatened the public safety of our community by participating in an organized theft group,” said ICE ERO Newark Field Office Director John Tsoukaris.  “These charges against Salas Ortega demonstrate ICE ERO Newark’s commitment to uphold the integrity of our immigration system while promoting the security of New Jersey’s residents.”

    “We are incredibly proud of the tireless efforts of our detectives and the collaborative work with federal agencies that led to the identification of these suspects. This case underscores the importance of community and inter-agency cooperation in solving complex crimes,” said Millburn Police Chief Gilfedder. “Our department remains committed to bringing those responsible to justice and ensuring the safety of our residents and businesses.”

    Salas Ortega appeared on February 4, 2025, before U.S. Magistrate Judge Jessica S. Allen in Newark federal court and was detained.

    According to documents filed in this case and statements made in court:

    The defendant was part of a group that scouted a jewelry store in a New Jersey mall before committing the burglary.  The defendant and his co-conspirators then entered the jewelry store through the ceiling and a hole they cut through an adjacent wall.  Law enforcement later found the defendant wearing an expensive wristwatch that had been in the jewelry store at the time of the burglary. Further investigation showed that the defendant had possessed the stolen wristwatch in New York on multiple days after the burglary.

    The charge of conspiracy to sell or receive stolen property carries a maximum penalty of five years in prison; and the charge of receipt of stolen property carries a maximum potential penalty of ten years in prison. Both charges also carry a maximum potential penalty of up to a $250,000 fine, or twice the amount of money involved in the offense, whichever is greater.

    Acting U.S. Attorney Khanna credited the FBI Newark’s Joint Organized Crime Task Force (JOCTF), under the direction of Acting Special Agent in Charge Terence G. Reilly in Newark; Immigration and Customs Enforcement – Enforcement and Removal Operations, under the direction of Field Office Director John Tsoukaris; the Millburn Police Department under the direction of Chief Brian Gilfedder; and the Port Authority of New York and New Jersey Police Department, under the direction of Superintendent of Police Edward T. Cetnar, with the investigation leading to the charges. He also thanked the Denver Police Department, Paramus Police Department, Fair Lawn Police Department, Edison Police Department, Northbrook (IL) Police Department, Vacaville (CA) Police Department, Nassau County (NY) Police Department, Woodbury (NY) Town Police Department, Town of Greenburgh (NY) Police Department, New York Police Department, New Jersey State Police, Essex County Prosecutor’s Office, U.S. Customs and Border Protection, FBI Denver, FBI New York, and the FBI Legal Attaché Santiago, Chile.

    The government is represented by Assistant U.S. Attorney Trevor A. Chenoweth of the Narcotics/OCDETF Unit in Newark.

    The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

                                                                ###

    Defense counsel:

    Mary Toscano, Esq., Roseland, New Jersey

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  • MIL-OSI Security: Illegal alien gets life sentence for ongoing sexual abuse of minor child

    Source: Office of United States Attorneys

    McALLEN, Texas – A 35-year-old Mexican citizen who illegally resided in Palmview has been sentenced for producing child sexual abuse material (CSAM) of a family member and coercing the production of CSAM using various chat platforms, announced U.S. Attorney Nicholas J. Ganjei.

    Jesus Adrian Barraza-Vega pleaded guilty Oct. 9, 2024.

    U.S. District Judge Drew Tipton has now sentenced Barraza-Vega to serve the rest of his life in prison. The court further ordered him to pay $3,0o0 in restitution to a known victim and a total of $60,000 in fines.

    At the hearing, the minor victim was present with family and provided a victim letter addressed to Barraza-Vega describing the harm he had caused her. In addition, the court heard that Barraza-Vega’s ongoing abuse of a minor family member continued until just days before his encounter with law enforcement.

    “Our sincere hope is that the children who Barraza-Vega victimized can now have some measure of peace,” said Ganjei. “Crimes against children committed in the Southern District of Texas will be prosecuted to the fullest extent possible. The life sentence handed down today against Mr. Barraza-Vega should be a warning to other would-be abusers.”

    “Children deserve to be safe. Whether online or in their own homes, we all have a duty to protect those most vulnerable to exploitation,” said Special Agent in Charge Aaron Tapp for the FBI’s San Antonio Field Office. “The FBI works day and night to ensure predators like this are brought to justice. We hope this sentence might bring some sense of closure and healing for the victims and their families.”

    On July 3, 2023, New York authorities discovered inappropriate images were being sent to an eight-year-old minor. A review of the conversation revealed the minor victim had sent sexually explicit videos of herself to an unknown individual using TextNow and WhatsApp. During the course of the conversation, the individual pretended to be a 13-year-old male. He sent images depicting a male’s genitalia and messages that were sexually explicit in nature, including requests for the minor victim to engage in sexual acts.

    Law enforcement conducted a search and determined the subscriber information for the IP address information returned to addresses where Barraza-Vega had previously resided including his current location in Palmview.

    During an interview with Barraza-Vega, he confirmed his prior residences, email addresses and phone number, and that he used TextNow and WhatsApp. All matched the information linked to the accounts used to coerce and entice the production of CSAM from the minor victim in New York.

    In February 2024, law enforcement executed a federal search warrant for a cellphone identified as belonging to Barraza-Vega. The forensic extraction revealed CSAM including videos and images of a minor relative. The material included images and videos of Barraza-Vega engaging in various sexual acts with this victim. The videos and images dated from on or about Nov. 11, 2020, to on or about Jan. 18, 2024.

    FBI conducted the investigation with the assistance of Border Patrol and police departments in Mission and Palmview.

    Assistant U.S. Attorney Alexa D. Parcell is prosecuting the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.

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  • MIL-OSI Security: Former Employee Charged With Defrauding Mt. Diablo Unified School District In Fake Invoices Scheme

    Source: Office of United States Attorneys

    OAKLAND – A federal grand jury has charged Eric Rego with three counts of mail fraud in connection with a multi-million-dollar scheme to defraud his former employer, the Mt. Diablo Unified School District (MDUSD), through fake invoices for electronic devices that Rego kept and resold.  

    According to an indictment unsealed today, Rego, 39, a resident of El Dorado Hills, Calif., committed fraud by using MDUSD funds earmarked for an after-school program to purchase tablet computers and other electronic devices that he then sold for his own profit.  Rego was an employee of MDUSD, a public school district in Contra Costa County.  The school district had an after-school program that offered to students in transitional kindergarten through twelfth grade academic, recreational, and environmental programming.  The after-school program was free to students and funded primarily through state grants designed to benefit high-need population areas.  Rego was MDUSD’s after-school program coordinator.

    The school district had a contract with a nonprofit (referred to as Nonprofit 1) to run its after-school program.  As the program coordinator, Rego worked closely with Nonprofit 1.  Beginning around July 2020 and continuing through around May 2024, Rego purchased or caused to be purchased iPads, MacBooks, GoPro cameras, and other electronic devices through Nonprofit 1.  Rego allegedly falsely claimed to a Nonprofit 1 employee that the iPads and other devices were needed for students in the after-school program, but instead kept the devices and resold them at a fraction of their cost.  

    To carry out his scheme, Rego directed a Nonprofit 1 employee to submit monthly invoices containing a line-item expense for subcontracts and supplies and to include the cost of the iPads and other devices in this line-item.  Rego reviewed and approved these monthly invoices and caused their submission to MDUSD for processing and payment.  In so doing, Rego falsely represented to MDUSD that the invoices were for Nonprofit 1’s expenses incurred from operating the after-school program.  In all, the indictment alleges that Rego fraudulently obtained iPads, MacBooks, GoPro cameras, and other devices at a cost of not less than approximately $3.3 million.

    The defendant was arrested today and will appear in federal district court in Sacramento on Feb. 5, 2025.  

    An indictment merely alleges that crimes have been committed and the defendant is presumed innocent unless and until proven guilty.  If convicted, defendant faces a maximum sentence of 20 years in prison and a fine of $250,000 for each count of mail fraud.  Any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.  

    United States Attorney Ismail J. Ramsey and FBI Acting Special Agent in Charge Dan Costin made the announcement.  

    Assistant U.S. Attorney Ryan Rezaei is prosecuting the case with the assistance of Linda Love.  The prosecution is the result of an investigation by the FBI and the Concord Police Department.  The U.S. Attorney’s Office and the FBI thank the Mt. Diablo Unified School District and Superintendent Adam Clark, Ed.D. for their cooperation with the investigation.

    Rego Indictment
     

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  • MIL-OSI USA: Booker Statement on Vote Against Pam Bondi as Attorney General

    US Senate News:

    Source: United States Senator for New Jersey Cory Booker

    WASHINGTON, D.C. – Today, U.S. Senator Cory Booker (D-NJ), a member of the Senate Judiciary Committee, issued the following statement:

    “I’ve known Pam Bondi for years and have had the opportunity to work with Ms. Bondi on various issues in the past, including advancing the First Step Act and police accountability and reform efforts during the first Trump administration. My experiences with her have been very positive and constructive. She became someone I could trust and rely upon. I was grateful to work with her in efforts to reform our broken criminal justice system and improve public safety.

    “Should Pam Bondi be confirmed, I am committed to working with her on issues where we can find common ground and that advance the ideals of justice and create safer and stronger communities in New Jersey and our country.

    “Unfortunately, President Trump’s unacceptable, unprecedented, and dangerous attacks on the independence of the Department of Justice since taking office are antithetical to democratic values and cause grave concern for anyone who believes in a justice system free from politics. By purging prosecutors who worked on Jan. 6 cases, firing top level FBI officials, and demanding a list of thousands of agents who investigated him, Donald Trump is attempting to dismantle entire systems of accountability and oversight, and extract payback against those who he feels have wronged him.

    “Given Trump’s actions and the clear attacks on the independence, transparency, and accountability of the Justice Department, I cannot support his nominees for key leadership positions at the Justice Department. I will vote against Ms. Bondi for attorney general as an express condemnation of Trump’s larger actions against the important norms and traditions of the Justice Department.”

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  • MIL-OSI USA: White Supremacist Leader Found Guilty of Conspiring to Destroy Regional Power Grid

    Source: US State of Vermont

    After a six-day trial, a jury found Brandon Russell, 29, of Orlando, Florida, guilty of conspiracy to damage an energy facility.

    According to evidence presented at trial, from at least November 2022 to Feb. 3, 2023, Russell conspired to carry out attacks against critical infrastructure, specifically transformers located within electrical substations, in furtherance of his racially or ethnically motivated violent extremist beliefs. Russell posted links to open-source maps of infrastructure, which included the locations of electrical substations, and he described how a small number of attacks on substations could cause a “cascading failure.” Russell also discussed maximizing the impact of the planned attack by hitting multiple substations at one time.

    Russell recruited a Maryland-based woman, Sarah Beth Clendaniel, to carry out the attacks in Baltimore and elsewhere. They planned to damage energy facilities involved in the transmission and distribution of electricity and to cause a significant interruption and impairment of the Baltimore regional power grid. The intended monetary loss associated with the planned attacks would have exceeded $75 million. Clendaniel identified five substations to target, and Russell attempted to secure a weapon for Clendaniel. Clendaniel stated that if they hit a number of substations all in the same day, they “would completely destroy this whole city,” and that a “good four or five shots through the center of them . . . should make that happen.” She further added, “[i]t would probably permanently completely lay this city to waste if we could do that successfully.”

    Russell faces a maximum penalty of 20 years in prison for conspiracy to damage an energy facility and is scheduled to be sentenced on June 17.

    On Sept. 25, 2024, Clendaniel was sentenced to 18 years in prison, followed by a lifetime of supervised release, for conspiring with Russell to damage or destroy an energy facility. Clendaniel was also sentenced to 15 years in prison for being a felon in possession of a firearm and 3 years of supervised release.

    The FBI investigated the case.

    The Justice Department’s National Security Division and the U.S. Attorney’s Office for the Middle District of Florida prosecuted the case.

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  • MIL-OSI Security: Owner of District Real Estate Company Sentenced for Defrauding Paycheck Protection Program

    Source: Office of United States Attorneys

                WASHINGTON – Patrick Strauss, 54, of Washington D.C., was sentenced today in U.S. District Court to 48 months of probation – including six months of home confinement to be followed by a period of intermittent incarceration, that is, 26 weekends in jail – and ordered to pay restitution in the amount of $304,900 and fined $8,784, all for participating in a conspiracy that fraudulently obtained more than $304,000 in Paycheck Protection Program loans.

               The sentence was announced by U.S. Attorney Edward R. Martin Jr., FBI Special Agent in Charge Sean Ryan of the Washington Field Office Criminal and Cyber Division, D.C. Inspector General Daniel Lucas, and Executive Special Agent in Charge Kareem A. Carter of the Internal Revenue Service – Criminal Investigation (IRS-CI) Washington, D.C., Field Office. 

               Strauss pleaded guilty on September 12, 2024, to one count of conspiracy to commit bank fraud. According to court documents, Strauss was owner of Powergrid Real Estate LLC. In 2020, he was approached by someone who asked him if he wanted to file an application for a PPP loan. Strauss was aware that Powergrid did not qualify for a PPP loan because it had no employees and no payroll.

               A co-conspirator prepared the PPP loan application for Powergrid, that falsely claimed that the company had 16 employees and an average monthly payroll of $132,547.17. The co-conspirator also prepared phony federal tax forms and payroll records to support the fraudulent PPP loan applications.

              In July 2020, Strauss submitted the PPP loan application to Capital Bank. On July 29, 2020, Capital Bank wired $304,900 into Powergrid’s bank account. In July 2021, a co-conspirator prepared false and fraudulent federal tax returns. Strauss submitted the faked papers to Capital Bank in support of loan forgiveness for Powergrid. 

               The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP.  In April 2020, Congress authorized over $300 billion in additional PPP funding. 

               The PPP allowed qualifying small-businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. PPP loan proceeds were required be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allowed the interest and principal on the PPP loan to be forgiven if the business spent the loan proceeds on these expense items within a designated time after receiving the proceeds and used at least a certain percentage of the PPP loan proceeds on payroll expenses. 

               The case was investigated jointly by U.S. Attorney’s Office for the District of Columbia, the FBI’s Washington Field Office, and the Internal Revenue Service – Criminal Investigation (IRS-CI) Washington, D.C., Field Office. In announcing the sentence, U.S. Attorney Martin commended the work of those who investigated the case.

               This matter was prosecuted by Assistant U.S. Attorney John Crabb, Jr. 

               Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

    24cr374

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  • MIL-OSI Security: Oglala Man Found Guilty in Federal Trial of Involuntary Manslaughter

    Source: Office of United States Attorneys

    RAPID CITY – United States Attorney Alison J. Ramsdell announced that a jury has convicted Clayton Fire Thunder, age 40, of Oglala, South Dakota, of Involuntary Manslaughter and two counts of False Statement following a two-day jury trial in federal district court in Rapid City, South Dakota. The verdict was returned on January 30, 2025.

    The charges carry a maximum penalty of eight years in custody and/or a $250,000 fine, three years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.

    Fire Thunder was indicted by a federal grand jury in May 2024.

    The conviction relates to the following facts presented at trial. At approximately 4:00 A.M. on September 15, 2022, Fire Thunder caught a ride to a man’s residence just a few miles east of Pine Ridge, South Dakota. Fire Thunder was intoxicated. The individual Fire Thunder was seeking to contact was a methamphetamine dealer. Fire Thunder had acquired a firearm and intended to exchange the firearm with the methamphetamine dealer. As Fire Thunder approached the front door of the residence, he heard noises coming from inside the residence. At some point while on the exterior of the residence, Fire Thunder mishandled the firearm, causing a bullet to discharge into the house. Fire Thunder heard a female screaming, and he left the residence. A later investigation revealed that the bullet had traveled through the siding of the residence and into the adjacent bedroom where the methamphetamine dealer and a female were present. The female was struck by the bullet on her left side slightly below her arm. She later succumbed to her injuries. During two separate interviews with FBI agents in October 2023 and May 2024, Fire Thunder made false statements about the firearm and his involvement in the killing.

    This case was investigated by the Oglala Sioux Tribe Department of Public Safety and the FBI. Assistant U.S. Attorney Megan Poppen prosecuted the case.

    A presentence investigation was ordered and a sentencing date has been set for April 25, 2025. The defendant was remanded to the custody of the U.S. Marshals Service. 

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