Category: Pandemic

MIL-OSI Security: Mt. Pleasant Business Owner Sentenced to 1.5 Years in Federal Prison

Source: Office of United States Attorneys

CHARLESTON, S.C. — Jonathan Ramaci, 60, of Mt. Pleasant, was sentenced to one and a half years in federal prison after pleading guilty to wire fraud and filing a false income tax return.

Evidence presented to the court showed that Ramaci defrauded the Small Business Association in his application and receipt of approximately $214,000 of fraudulent Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL) loans that were authorized pursuant to the CARES Act. Evidence showed that Ramaci submitted fraudulent tax documentation to the SBA and its approved third-party lenders, that were relied on to fund a PPP loan Ramaci received. For the fraudulent EIDL loans, Ramaci falsely represented to the SBA revenue and costs of goods sold for the businesses he was applying for.

As for Ramaci’s tax offense, evidence submitted to the court showed that from 2017 to 2021, Ramaci either failed to file and/or filed false income tax returns and owes the IRS $289,531. Specifically, Ramaci was paying for personal expenses from a business he owned and operated, Elements of Genius, headquartered in Charleston. He was also not reporting his income.

“This defendant’s actions revealed corrupt business practices that cost the taxpayer and the government hundreds of thousands of dollars,” said U.S. Attorney Adair Ford Boroughs for the District of South Carolina. “His deceptive financial scheme warrants this prison sentence and sends the message that such practices will not be tolerated.”

“IRS Criminal Investigation, along with our law enforcement partners, will vigorously pursue business owners who victimize their investors and violate the public trust,” said Special Agent in Charge Donald “Trey” Eakins, Charlotte Field Office, IRS-CI. “The defendant used his position of power to defraud not just his own company, but the honest, hardworking Americans who pay their tax obligations.”

United States District Judge Richard M. Gergel sentenced Ramaci to 18 months imprisonment, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system. As part of the judgement, the court ordered Ramaci to pay $538,178.88 in restitution for the offenses of conviction. The court also ordered Ramaci to pay restitution in the amount of $1,009,684.00 to victims of offenses that the defendant did not plead guilty to, which was agreed to by the parties in the plea agreement.

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, among other methods, 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. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

This case was investigated by the FBI Columbia Field Office and IRS Criminal Investigation. Assistant U.S. Attorney Amy Bower is prosecuting the case.

###

MIL Security OSI –

February 6, 2025

MIL-OSI: FormFactor, Inc. Reports 2024 Fourth Quarter Results

Source: GlobeNewswire (MIL-OSI)

FY24 revenue of $764 million, up 15.2% from $663 million in FY23, driven by growth in HBM revenue;
Announces acquisition of minority interest in FICT Limited, a key supplier of industry-leading, high-performance advanced probe card components

LIVERMORE, Calif., Feb. 05, 2025 (GLOBE NEWSWIRE) — FormFactor, Inc. (Nasdaq: FORM) today announced its financial results for the fourth quarter of fiscal 2024 ended December 28, 2024. Quarterly revenues were $189.5 million, a decrease of 8.9% compared to $207.9 million in the third quarter of fiscal 2024, and an increase of 12.7% from $168.2 million in the fourth quarter of fiscal 2023. For fiscal 2024, FormFactor recorded revenues of $764 million, up 15.2% from $663 million in fiscal 2023.

High Bandwidth Memory grew fourfold in fiscal 2024 compared to the prior year, driven by adoption of Generative AI, overcoming persistent lackluster demand in important high-unit-volume markets like PCs and mobile handsets.
DRAM probe-card revenue during the fourth quarter set third consecutive quarterly record.
Continued focus on expanding and diversifying FormFactor’s market position in enabling advanced packaging, through new customer qualifications in client PCs and server applications and new high-performance-compute applications.
FICT acquisition with MBK Partners solidifies FormFactor’s access to FICT’s technologies and products, which are an important component of advanced probe cards.

“As expected, FormFactor reported sequentially lower fourth-quarter revenue, gross margin, and non-GAAP earnings per share, driven by the forecasted reduction in Foundry & Logic probe-card revenue,” said Mike Slessor, CEO of FormFactor, Inc. “This was partially offset by growth in DRAM probe-card revenue, with HBM increasing to approximately half of DRAM revenue.”

FormFactor also announced today that together with MBK Partners (“MBKP”), the largest private equity firm in North Asia, it is acquiring FICT Limited (“FICT”) from Advantage Partners Inc. FICT, headquartered in Nagano, Japan, has been providing the semiconductor test and high-performance computing industries with complex multi-layer organic substrates, printed circuit boards, and related leading-edge technologies and services since its inception as a Fujitsu business unit in 1967. This acquisition is designed to strengthen and grow FICT’s business, and the FormFactor+MBKP consortium is committed to advancing FICT’s mission to serve its entire customer base.

With this transaction, FormFactor invests approximately US$60M into the consortium. FormFactor will hold a minority, non-controlling stake of 20% and will be granted a seat on the company’s board of directors. All required regulatory and third-party approvals and conditions have been satisfied and the transaction is expected to close within the current quarter. The transaction is not expected to have a material impact on FormFactor’s results of operations.

“The semiconductor industry’s rapidly accelerating adoption of advanced packaging requires increased investment and stronger collaboration across the test and assembly supply chain,” said Mike Slessor, FormFactor’s CEO. “FormFactor’s investment in FICT builds on our long-term collaboration with them as a supplier of the industry-leading, high-performance components we use in our advanced probe cards, and provides a platform for accelerated development of tomorrow’s test and packaging consumables.”

“We’ve built a partnership with MBKP, North Asia’s leading private equity firm, with a shared vision to enhance FICT’s long-term value by fully serving all of FICT’s existing and potential customers,” Slessor concluded.

Fourth Quarter and Fiscal 2024 Highlights

On a GAAP basis, net income for the fourth quarter of fiscal 2024 was $9.7 million, or $0.12 per fully-diluted share, compared to net income for the third quarter of fiscal 2024 of $18.7 million, or $0.24 per fully-diluted share, and net income for the fourth quarter of fiscal 2023 of $75.8 million, or $0.97 per fully-diluted share. Net income for fiscal 2024 was $69.6 million, or $0.89 per fully-diluted share, compared to net income for fiscal 2023 of $82.4 million, or $1.05, per fully-diluted share. Gross margin for the fourth quarter of 2024 was 38.8%, compared with 40.7% in the third quarter of 2024, and 40.4% in the fourth quarter of 2023. Gross margin for fiscal 2024 was 40.3%, compared to 39.0% for fiscal 2023. The GAAP financial results for the fourth quarter of 2023 and fiscal 2023 include a $73.0 million gain from the sale of FRT that has been excluded from FormFactor’s fourth quarter and fiscal 2023 non-GAAP results. The GAAP financial results for fiscal 2024 include a $20.3 million gain from the sale of our China operations that has been excluded from FormFactor’s fiscal 2024 non-GAAP results.

On a non-GAAP basis, net income for the fourth quarter of fiscal 2024 was $21.3 million, or $0.27 per fully-diluted share, compared to net income for the third quarter of fiscal 2024 of $27.2 million, or $0.35 per fully-diluted share, and net income for the fourth quarter of fiscal 2023 of $15.7 million, or $0.20 per fully-diluted share. Non-GAAP net income for fiscal 2024 was $90.2 million, or $1.15 per fully-diluted share, compared to net income of $56.8 million, or $0.73 per fully-diluted share for fiscal 2023. On a non-GAAP basis, gross margin for the fourth quarter of 2024 was 40.2%, compared with 42.2% in the third quarter of 2024, and 42.1% in the fourth quarter of 2023. Non-GAAP gross margin for fiscal 2024 was 41.7%, compared to 40.7% for fiscal 2023.

A reconciliation of GAAP to non-GAAP measures is provided in the schedules included below.

GAAP net cash provided by operating activities for the fourth quarter of fiscal 2024 was $35.9 million, compared to $26.7 million for the third quarter of fiscal 2024, and $9.3 million for the fourth quarter of fiscal 2023. Free cash flow for the fourth quarter of fiscal 2024 was $28.8 million, compared to free cash flow for the third quarter of fiscal 2024 of $20.0 million, and free cash flow for the fourth quarter of 2023 of negative $0.3 million. GAAP net cash provided by operating activities for fiscal 2024 was $117.5 million, compared to $64.6 million for fiscal 2023. Free cash flow for fiscal 2024 and fiscal 2023 was $82.8 million and $11.4 million, respectively. A reconciliation of net cash provided by operating activities to non-GAAP free cash flow is provided in the schedules included below.

Outlook

Dr. Slessor added, “We continue to see slow demand in important high-unit-volume markets, like client PCs and mobile handsets, through the first quarter, with anticipated sequential reductions in demand for both non-HBM DRAM probe cards and Systems. That notwithstanding, as we move through 2025, we expect an overall increase in demand for FormFactor’s products.”

For the first quarter ending March 29, 2025, FormFactor is providing the following outlook*:

	GAAP	Reconciling Items**	Non-GAAP
Revenue	$170 million +/- $5 million	—	$170 million +/- $5 million
Gross Margin	36.5% +/- 1.5%	$3 million	38% +/- 1.5%
Net income per diluted share	$0.07 +/- $0.04	$0.12	$0.19 +/- $0.04

*This outlook assumes consistent foreign currency rates.
**Reconciling items are stock-based compensation, amortization of intangible assets and fixed asset fair value adjustments due to acquisitions, and restructuring charges, net of applicable income tax impacts.

We posted our revenue breakdown by geographic region, by market segment and with customers with greater than 10% of total revenue on the Investor Relations section of our website at www.formfactor.com. We will conduct a conference call at 1:25 p.m. PT, or 4:25 p.m. ET, today.

The public is invited to listen to a live webcast of FormFactor’s conference call on the Investor Relations section of our website at www.formfactor.com. A telephone replay of the conference call will be available approximately two hours after the conclusion of the call. The replay will be available on the Investor Relations section of our website, www.formfactor.com.

Use of Non-GAAP Financial Information:

To supplement our condensed consolidated financial results prepared under generally accepted accounting principles, or GAAP, we disclose certain non-GAAP measures of non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income and free cash flow, that are adjusted from the nearest GAAP financial measure to exclude certain costs, expenses, gains and losses. Reconciliations of the adjustments to GAAP results for the three and twelve months ended months ended December 28, 2024, and for outlook provided before, as well as for the comparable periods of fiscal 2023, are provided below, and on the Investor Relations section of our website at www.formfactor.com. Information regarding the ways in which management uses non-GAAP financial information to evaluate its business, management’s reasons for using this non-GAAP financial information, and limitations associated with the use of non-GAAP financial information, is included under “About our Non-GAAP Financial Measures” following the tables below.

About FormFactor:

FormFactor, Inc. (NASDAQ: FORM), is a leading provider of essential test and measurement technologies along the full semiconductor product life cycle – from characterization, modeling, reliability, and design de-bug, to qualification and production test. Semiconductor companies rely upon FormFactor’s products and services to accelerate profitability by optimizing device performance and advancing yield knowledge. The Company serves customers through its network of facilities in Asia, Europe, and North America. For more information, visit the Company’s website at www.formfactor.com.

Forward-looking Statements:

This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the federal securities laws, including with respect to the Company’s future financial and operating results, and the Company’s plans, strategies and objectives for future operations. These statements are based on management’s current expectations and beliefs as of the date of this release, and are subject to a number of risks and uncertainties, many of which are beyond the Company’s control, that could cause actual results to differ materially from those described in the forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding future financial and operating results, including under the heading “Outlook” above, customer demand, conditions in the semiconductor industry, the timing of completion of the FICT acquisition, the expected benefit thereof and other statements regarding the Company’s business. Forward-looking statements may contain words such as “may,” “might,” “will,” “expect,” “plan,” “anticipate,” “forecast,” and “continue,” the negative or plural of these words and similar expressions, and include the assumptions that underlie such statements. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: changes in demand for the Company’s products; customer-specific demand; market opportunity; anticipated industry trends; delays in the consummation of the FICT acquisition; the potential impact on the business of FormFactor and FICT due to uncertainties in connection with the acquisition; the retention of employees of FICT following acquisition; the ability of FormFactor to achieve expected benefits from the FICT acquisition; the availability, benefits, and speed of customer acceptance or implementation of new products and technologies; manufacturing, processing, and design capacity, goals, expansion, volumes, and progress; difficulties or delays in research and development; industry seasonality; risks to the Company’s realization of benefits from acquisitions, investments in capacity and investments in new electronic data systems and information technology; reliance on customers or third parties (including suppliers); changes in macro-economic environments; events affecting global and regional economic and market conditions and stability such as military conflicts, political volatility, infectious diseases and pandemics, and similar factors, operating separately or in combination; and other factors, including those set forth in the Company’s most current annual report on Form 10-K, quarterly reports on Form 10-Q and other filings by the Company with the U.S. Securities and Exchange Commission. In addition, there are varying barriers to international trade, including restrictive trade and export regulations such as the US-China restrictions, dynamic tariffs, trade disputes between the U.S. and other countries, and national security developments or tensions, that may substantially restrict or condition our sales to or in certain countries, increase the cost of doing business internationally, and disrupt our supply chain. No assurances can be given that any of the events anticipated by the forward-looking statements within this press release will transpire or occur, or if any of them do so, what impact they will have on the results of operations or financial condition of the Company. Unless required by law, the Company is under no obligation (and expressly disclaims any such obligation) to update or revise its forward-looking statements whether as a result of new information, future events, or otherwise.


FORMFACTOR, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share amounts) (Unaudited)

	Three Months Ended								Twelve Months Ended
	December 28, 2024		September 28, 2024			December 30, 2023			December 28, 2024		December 30, 2023
Revenues	$	189,483	$	207,917		$	168,163		$	763,599	$	663,102
Cost of revenues		115,903		123,212			100,229			455,676		404,522
Gross profit		73,580		84,705			67,934			307,923		258,580
Operating expenses:
Research and development		30,504		31,243			28,166			121,938		115,765
Selling, general and administrative		35,226		35,607			31,451			141,786		133,012
Total operating expenses		65,730		66,850			59,617			263,724		248,777
Gain on sale of business		—		—			72,953			20,581		72,953
Operating income		7,850		17,855			81,270			64,780		82,756
Interest income, net		3,472		3,650			2,376			13,693		6,796
Other income (expense), net		617		(558	)		(1,546	)		939		(285	)
Income before income taxes		11,939		20,947			82,100			79,412		89,267
Provision for income taxes		2,234		2,211			6,254			9,798		6,880
Net income	$	9,705	$	18,736		$	75,846		$	69,614	$	82,387
Net income per share:
Basic	$	0.13	$	0.24		$	0.98		$	0.90	$	1.06
Diluted	$	0.12	$	0.24		$	0.97		$	0.89	$	1.05
Weighted-average number of shares used in per share calculations:
Basic		77,267		77,406			77,684			77,340		77,370
Diluted		77,982		78,439			78,410			78,437		78,159


FORMFACTOR, INC. NON-GAAP FINANCIAL MEASURE RECONCILIATIONS (In thousands, except per share amounts) (Unaudited)

	Three Months Ended									Twelve Months Ended
	December 28, 2024			September 28, 2024			December 30, 2023			December 28, 2024			December 30, 2023
GAAP Gross Profit	$	73,580		$	84,705		$	67,934		$	307,923		$	258,580
Adjustments:
Amortization of intangibles, inventory and fixed asset fair value adjustments due to acquisitions		555			530			756			2,216			4,336
Stock-based compensation		1,944			1,934			2,053			7,738			6,854
Restructuring charges		32			524			—			639			357
Non-GAAP Gross Profit	$	76,111		$	87,693		$	70,743		$	318,516		$	270,127

GAAP Gross Margin		38.8	%		40.7	%		40.4	%		40.3	%		39.0	%
Adjustments:
Amortization of intangibles, inventory and fixed asset fair value adjustments due to acquisitions		0.4	%		0.3	%		0.5	%		0.3	%		0.6	%
Stock-based compensation		1.0	%		0.9	%		1.2	%		1.0	%		1.0	%
Restructuring charges		—	%		0.3	%		—	%		0.1	%		0.1	%
Non-GAAP Gross Margin		40.2	%		42.2	%		42.1	%		41.7	%		40.7	%

GAAP operating expenses	$	65,730		$	66,850		$	59,617		$	263,724		$	248,777
Adjustments:
Amortization of intangibles and other		(191	)		(191	)		(518	)		(764	)		(4,081	)
Stock-based compensation		(8,269	)		(7,002	)		(7,230	)		(32,025	)		(31,762	)
Restructuring charges		(371	)		(298	)		—			(767	)		(1,183	)
Costs related to sale and acquisition of businesses		(1,689	)		(13	)		(268	)		(2,391	)		(2,407	)
Non-GAAP operating expenses	$	55,210		$	59,346		$	51,601		$	227,777		$	209,344

GAAP operating income	$	7,850		$	17,855		$	81,270		$	64,780		$	82,756
Adjustments:
Amortization of intangibles, inventory and fixed asset fair value adjustments due to acquisitions, and other		746			721			1,274			2,980			8,417
Stock-based compensation		10,213			8,936			9,283			39,763			38,616
Restructuring charges		403			822			—			1,406			1,540
Gain on sale of business, net of cost related to sale and acquisition of businesses		1,689			13			(72,685	)		(18,190	)		(70,546	)
Non-GAAP operating income	$	20,901		$	28,347		$	19,142		$	90,739		$	60,783


FORMFACTOR, INC. NON-GAAP FINANCIAL MEASURE RECONCILIATIONS (In thousands, except per share amounts) (Unaudited)

	Three Months Ended									Twelve Months Ended
	December 28, 2024			September 28, 2024			December 30, 2023			December 28, 2024			December 30, 2023
GAAP net income	$	9,705		$	18,736		$	75,846		$	69,614		$	82,387
Adjustments:
Amortization of intangibles, inventory and fixed asset fair value adjustments due to acquisitions, and other		746			721			1,274			2,980			8,417
Stock-based compensation		10,213			8,936			9,283			39,763			38,616
Restructuring charges		415			822			—			1,418			1,540
Gain on sale of business, net of cost related to sale and acquisition of businesses		1,689			13			(72,685	)		(18,190	)		(70,546	)
Income tax effect of non-GAAP adjustments		(1,445	)		(2,002	)		2,026			(5,368	)		(3,624	)
Non-GAAP net income	$	21,323		$	27,226		$	15,744		$	90,217		$	56,790

GAAP net income per share:
Basic	$	0.13		$	0.24		$	0.98		$	0.90		$	1.06
Diluted	$	0.12		$	0.24		$	0.97		$	0.89		$	1.05

Non-GAAP net income per share:
Basic	$	0.28		$	0.35		$	0.20		$	1.17		$	0.73
Diluted	$	0.27		$	0.35		$	0.20		$	1.15		$	0.73


FORMFACTOR, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)

	Twelve Months Ended
	December 28, 2024			December 30, 2023
Cash flows from operating activities:
Net income	$	69,614		$	82,387
Selected adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		30,321			30,603
Amortization		2,582			6,850
Stock-based compensation expense		39,763			38,616
Provision for excess and obsolete inventories		12,342			15,003
Gain on sale of business		(20,581	)		(72,953	)
Non-cash restructuring charges		428			—
Other activity impacting operating cash flows		(16,507	)		(35,904	)
Net cash provided by operating activities		117,534			64,602
Cash flows from investing activities:
Acquisition of property, plant and equipment		(38,436	)		(56,027	)
Proceeds from sale of business		21,585			101,785
Purchases of marketable securities, net		(15,129	)		(16,709	)
Purchase of promissory note receivable		(1,500	)		—
Net cash provided by (used in) investing activities		(33,480	)		29,049
Cash flows from financing activities:
Purchase of common stock through stock repurchase program		(53,302	)		(19,801	)
Proceeds from issuances of common stock		9,748			8,822
Principal repayments on term loans		(1,075	)		(1,045	)
Tax withholdings related to net share settlements of equity awards		(19,983	)		(10,687	)
Net cash used in financing activities		(64,612	)		(22,711	)
Effect of exchange rate changes on cash, cash equivalents and restricted cash		(3,509	)		(2,649	)
Net increase in cash, cash equivalents and restricted cash		15,933			68,291
Cash, cash equivalents and restricted cash, beginning of period		181,273			112,982
Cash, cash equivalents and restricted cash, end of period	$	197,206		$	181,273


FORMFACTOR, INC. RECONCILIATION OF CASH PROVIDED BY OPERATING ACTIVITIES TO NON-GAAP FREE CASH FLOW (In thousands) (Unaudited)

	Three Months Ended									Twelve Months Ended
	December 28, 2024			September 28, 2024			December 30, 2023			December 28, 2024			December 30, 2023
Net cash provided by operating activities	$	35,913		$	26,731		$	9,250		$	117,534		$	64,602
Adjustments:
Sale of business and acquisition related payments in working capital		506			2,134			268			3,317			2,407
Cash paid for interest		93			97			105			391			422
Capital expenditures		(7,663	)		(8,939	)		(9,933	)		(38,436	)		(56,027	)
Free cash flow	$	28,849		$	20,023		$	(310	)	$	82,806		$	11,404


FORMFACTOR, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited)

	December 28, 2024			September 28, 2024			December 30, 2023
ASSETS
Current assets:
Cash and cash equivalents	$	190,728		$	184,506		$	177,812
Marketable securities		169,295			169,961			150,507
Accounts receivable, net of allowance for credit losses		104,294			116,866			102,957
Inventories, net		101,676			105,374			111,685
Restricted cash		3,746			3,773			1,152
Prepaid expenses and other current assets		35,389			34,302			29,667
Total current assets		605,128			614,782			573,780
Restricted cash		2,732			2,210			2,309
Operating lease, right-of-use-assets		22,579			25,034			30,519
Property, plant and equipment, net of accumulated depreciation		210,230			204,108			204,399
Goodwill		199,171			200,137			201,090
Intangibles, net		10,355			11,017			12,938
Deferred tax assets		92,012			92,826			78,964
Other assets		4,008			3,669			2,795
Total assets	$	1,146,215		$	1,153,783		$	1,106,794

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	62,287		$	52,086		$	63,857
Accrued liabilities		43,742			46,508			41,037
Current portion of term loan, net of unamortized issuance costs		1,106			1,098			1,075
Deferred revenue		15,847			20,972			16,704
Operating lease liabilities		8,363			8,512			8,422
Total current liabilities		131,345			129,176			131,095
Term loan, less current portion, net of unamortized issuance costs		12,208			12,488			13,314
Long-term operating lease liabilities		17,550			19,731			25,334
Deferred grant		18,000			18,000			18,000
Other liabilities		19,344			19,378			10,247
Total liabilities		198,447			198,773			197,990

Stockholders’ equity:
Common stock		77			77			77
Additional paid-in capital		837,586			845,466			861,448
Accumulated other comprehensive loss		(10,840	)		(1,773	)		(4,052	)
Accumulated income		120,945			111,240			51,331
Total stockholders’ equity		947,768			955,010			908,804
Total liabilities and stockholders’ equity	$	1,146,215		$	1,153,783		$	1,106,794

About our Non-GAAP Financial Measures:

We believe that the presentation of non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income and free cash flow provides supplemental information that is important to understanding financial and business trends and other factors relating to our financial condition and results of operations. Non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, and non-GAAP operating income are among the primary indicators used by management as a basis for planning and forecasting future periods, and by management and our board of directors to determine whether our operating performance has met certain targets and thresholds. Management uses non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, and non-GAAP operating income when evaluating operating performance because it believes that the exclusion of the items indicated herein, for which the amounts or timing may vary significantly depending upon our activities and other factors, facilitates comparability of our operating performance from period to period. We use free cash flow to conduct and evaluate our business as an additional way of viewing our liquidity that, when viewed with our GAAP results, provides a more complete understanding of factors and trends affecting our cash flows. Many investors also prefer to track free cash flow, as opposed to only GAAP earnings. Free cash flow has limitations due to the fact that it does not represent the residual cash flow available for discretionary expenditures, and therefore it is important to view free cash flow as a complement to our entire consolidated statements of cash flows. We have chosen to provide this non-GAAP information to investors so they can analyze our operating results closer to the way that management does, and use this information in their assessment of our business and the valuation of our Company. We compute non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, and non-GAAP operating income, by adjusting GAAP net income, GAAP net income per basic and diluted share, GAAP gross profit, GAAP gross margin, GAAP operating expenses, and GAAP operating income to remove the impact of certain items and the tax effect, if applicable, of those adjustments. These non-GAAP measures are not in accordance with, or an alternative to, GAAP, and may be materially different from other non-GAAP measures, including similarly titled non-GAAP measures used by other companies. The presentation of this additional information should not be considered in isolation from, as a substitute for, or superior to, net income, net income per basic and diluted share, gross profit, gross margin, operating expenses, or operating income in accordance with GAAP. Non-GAAP financial measures have limitations in that they do not reflect certain items that may have a material impact upon our reported financial results. We may expect to continue to incur expenses of a nature similar to the non-GAAP adjustments described above, and exclusion of these items from our non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, and non-GAAP operating income should not be construed as an inference that these costs are unusual, infrequent or non-recurring. For more information on the non-GAAP adjustments, please see the table captioned “Non-GAAP Financial Measure Reconciliations” and “Reconciliation of Cash Provided by Operating Activities to non-GAAP Free Cash Flow” included in this press release.

Source: FormFactor, Inc.
FORM-F

Investor Contact:
Stan Finkelstein
Investor Relations
(925) 290-4273
ir@formfactor.com

The MIL Network –

February 6, 2025

MIL-OSI: ATIF Holdings Limited Announces Closing of $2.5 Million Registered Direct Offering and Private Placement

Source: GlobeNewswire (MIL-OSI)

LAKE FOREST, Calif., Feb. 05, 2025 (GLOBE NEWSWIRE) — ATIF Holdings Limited (Nasdaq: ZBAI) (the “Company”), a Lake Forest-based business consulting company that specializes in providing professional IPO, M&A advisory and post-IPO compliance services to small and medium-sized companies seeking to go public on a stock exchange in the United States, today announced the closing of its previously announced registered direct offering and concurrent private placement with an institutional investor. The Company issued ordinary shares and pre-funded warrants (“Pre-Funded Warrants”) in a registered direct offering. In a concurrent private placement, the Company also issued to the same investor warrants to purchase ordinary shares (the “Warrants”). Aggregate gross proceeds to the Company from both transactions were approximately $2.5 million. The transactions closed on February 5, 2025.

The transactions consisted of the sale of 1,580,000 ordinary shares (each a “Share”) Pre-Funded Warrants to purchase 887,553 Shares, each of which was sold together with one Warrant to purchase one Share at an exercise price of $1.20. The offering price per Share was $1.00 (or $0.99 for each Pre-Funded Warrant, which is equal to the offering price per Share minus an exercise price of $0.01 per Pre-Funded Warrant). The Pre-Funded Warrants are immediately exercisable and may be exercised at any time until exercised in full.

The Company expects to use the net proceeds from the offerings, together with its existing cash, for general corporate purposes and working capital.

R. F. Lafferty & Co., Inc. acted as exclusive placement agent for the offerings. Hunter Taubman Fischer & Li LLC acted as counsel to the Company. Lucosky Brookman LLP acted as counsel to R. F. Lafferty & Co., Inc.

The registered direct offering was made pursuant to an effective shelf registration statement on Form S-3 (No. 333-268927) previously filed with the U.S. Securities and Exchange Commission (the “SEC”) and declared effective by the SEC on March 21, 2023. A final prospectus supplement and accompanying prospectus describing the terms of the proposed offering was filed with the SEC and is available on the SEC’s website located at www.sec.gov. Electronic copies of the final prospectus supplement and the accompanying prospectus may be obtained, when available, by contacting R. F. Lafferty & Co., Inc by email at offerings@rflafferty.com or via standard mail to R. F. Lafferty & Co., Inc, 40 Wall Street, 27^th Floor, New York, NY10005.

The offer and sale of the securities in the private placement were made in a transaction not involving a public offering and have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or applicable state securities laws. Accordingly, the securities may not be reoffered or resold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and such applicable state securities laws. The securities were offered only to accredited investors. Pursuant to the securities purchase agreement with the investor, the Company has agreed to file one or more registration statements with the SEC covering the resale of the ordinary shares issuable upon exercise of the Warrants.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About ZBAI

ATIF Holdings Limited (NASDAQ: ZBAI) is a Lake Forest-based business consulting company that specializes in providing professional IPO, M&A advisory and post-IPO compliance services to small and medium-sized companies seeking to go public on a stock exchange in the United States. The company has a proven track record in successfully delivering comprehensive U.S. IPO consulting services to clients primarily in the United States but also internationally. The mission of ZBAI is to provide one-stop, comprehensive consulting services that guide clients through the complex and often challenging process of going public. ZBAI recognizes the complexity and challenges associated with the process of going public, and endeavors to simplify it while ensuring optimal outcomes for its clients through its comprehensive consulting services. ZBAI has been awarded the “Golden Bauhinia Award”, the highest award in the financial and securities industry in Hong Kong, for “Top 10 Best Listed Companies”.

Forward-Looking Statements

Certain statements in this press release are “forward-looking statements” within the meaning of the “safe Harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, “estimated,” “projected,” Words such as “expect”, “anticipate”, “predict”, “plan”, “intend”, “believe”, “seek”, “may”, “will”, “should”, “future”, “propose” and variations of these words or similar expressions (or the opposite of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements do not guarantee future performance, conditions or results and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company’s control and may cause actual results or achievements to differ materially from those discussed in the forward-looking statements. Important factors include future financial and operating results, including revenues, income, expenses, cash balances and other financial items; Ability to manage growth and expansion; Current and future economic and political conditions; The ability to compete in industries with low barriers to entry; The ability to obtain additional financing to fund capital expenditure in the future. Ability to attract new customers and further enhance brand awareness; Ability to hire and retain qualified management and key staff; Trends and competition in the financial advisory services industry; Pandemic or epidemic disease; Except as required by law, the Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, the Company cannot assure you that such expectations will turn out to be correct, and the Company cautions you that actual results may differ materially from the expected results expressed or implied by the forward-looking statements we make. You should not interpret forward-looking statements as predictions of future events. Forward-looking statements represent only the beliefs and assumptions of our management as of the date such statements are made. The above forward-looking statements are made as of the date of this press release.

Contact Information
kenny@atifchina.com

The MIL Network –

February 6, 2025

MIL-OSI: AMSC Reports Third Quarter Fiscal Year 2024 Financial Results and Provides Business Outlook

Source: GlobeNewswire (MIL-OSI)

	Third Quarter Financial Highlights:
	• Increased Revenue by 56% Year Over Year to Above $60 Million • Net Income of over $2 Million • Generated nearly $6 Million of Operating Cash Flow

Company to host conference call tomorrow, February 6, at 10:00 am ET

AYER, Mass., Feb. 05, 2025 (GLOBE NEWSWIRE) — AMSC (Nasdaq: AMSC), a leading system provider of megawatt-scale power resiliency solutions that orchestrate the rhythm and harmony of power on the grid™ and protect and expand the capability and resiliency of our Navy’s fleet, today reported financial results for its third quarter of fiscal year 2024 ended December 31, 2024.

Revenues for the third quarter of fiscal 2024 were $61.4 million compared with $39.4 million for the same period of fiscal 2023. The year-over-year increase was driven by organic growth and the acquisition of NWL, Inc.

AMSC’s net income for the third quarter of fiscal 2024 was $2.5 million, or $0.07 per share, compared to a net loss of $1.6 million, or $0.06 per share, for the same period of fiscal 2023. The Company’s non-GAAP net income for the third quarter of fiscal 2024 was $6.0 million, or $0.16 per share, compared with a non-GAAP net income of $0.9 million, or $0.03 per share, in the same period of fiscal 2023. Please refer to the financial table below for a reconciliation of GAAP to non-GAAP results.

Cash, cash equivalents, and restricted cash on December 31, 2024, totaled $80.0 million, compared with $74.8 million at September 30, 2024.

“AMSC delivered the best quarterly results in years. Fiscal third quarter revenue surpassed $60 million, that’s revenue growth of 56% when compared to the same period last year, and net income exceeded $2 million, making it our second consecutive quarter of reporting net income,” said Daniel P. McGahn, Chairman, President and CEO, AMSC. “Bookings and backlog during the quarter continued to be robust. We believe our company’s diverse bookings and strengthened balance sheet allow us to seize opportunities in new markets and extend our customer reach. We are proud of these results and remain focused on driving execution and strong performance as we move into the fourth fiscal quarter of the year.”

Business Outlook
For the fourth quarter ending March 31, 2025, AMSC expects that its revenues will be in the range of $59.0 million to $63.0 million. The Company’s net loss for the fourth quarter of fiscal 2024 is expected not to exceed $1.0 million, or $0.03 per share. The Company’s non-GAAP net income (as defined below) is expected to exceed $2.5 million, or $0.07 per share.

Conference Call Reminder
In conjunction with this announcement, AMSC management will participate in a conference call with investors beginning at 10:00 a.m. Eastern Time on Thursday, February 6, 2025, to discuss the Company’s financial results and business outlook. Those who wish to listen to the live or archived conference call webcast should visit the “Investors” section of the Company’s website at https://ir.amsc.com. The live call can be accessed by dialing 1-844-481-2802 or 1-412-317-0675 and asking to join the AMSC call. A replay of the call may be accessed 2 hours following the call by dialing 1-877-344-7529 and using conference passcode 9514460.

About AMSC (Nasdaq: AMSC)
AMSC generates the ideas, technologies and solutions that meet the world’s demand for smarter, cleaner … better energy™. Through its Gridtec™ Solutions, AMSC provides the engineering planning services and advanced grid systems that optimize network reliability, efficiency and performance. Through its Marinetec™ Solutions, AMSC provides ship protection systems and is developing propulsion and power management solutions designed to help fleets increase system efficiencies, enhance power quality and boost operational safety. Through its Windtec® Solutions, AMSC provides wind turbine electronic controls and systems, designs and engineering services that reduce the cost of wind energy. The Company’s solutions are enhancing the performance and reliability of power networks, increasing the operational safety of navy fleets, and powering gigawatts of renewable energy globally. Founded in 1987, AMSC is headquartered near Boston, Massachusetts with operations in Asia, Australia, Europe and North America. For more information, please visit www.amsc.com.

AMSC, American Superconductor, D-VAR, D-VAR VVO, Gridtec, Marinetec, Windtec, Neeltran, NEPSI, Smarter, Cleaner … Better Energy, and Orchestrate the Rhythm and Harmony of Power on the Grid are trademarks or registered trademarks of American Superconductor Corporation. All other brand names, product names, trademarks or service marks belong to their respective holders.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Any statements in this release regarding execution of our goals and strategies; backlog; expectations regarding the fourth quarter of fiscal 2024; our expected GAAP and non-GAAP financial results for the quarter ending March 31, 2025; and other statements containing the words “believes,” “anticipates,” “plans,” “expects,” “will” and similar expressions, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements represent management’s current expectations and are inherently uncertain. There are a number of important factors that could materially impact the value of our common stock or cause actual results to differ materially from those indicated by such forward-looking statements. These important factors include, but are not limited to: We have a history of operating losses, which may continue in the future. Our operating results may fluctuate significantly from quarter to quarter and may fall below expectations in any particular fiscal quarter; We have a history of negative operating cash flows, and we may require additional financing in the future, which may not be available to us; Our technology and products could infringe intellectual property rights of others, which may require costly litigation and, if we are not successful, could cause us to pay substantial damages and disrupt our business; Changes in exchange rates could adversely affect our results of operations; We may be required to issue performance bonds or provide letters of credit, which restricts our ability to access any cash used as collateral for the bonds or letters of credit; If we fail to maintain proper and effective internal control over financial reporting, our ability to produce accurate and timely financial statements could be impaired and may lead investors and other users to lose confidence in our financial data; We may not realize all of the sales expected from our backlog of orders and contracts; Our contracts with the U.S. government are subject to audit, modification or termination by the U.S. government and include certain other provisions in favor of the government. The continued funding of such contracts remains subject to annual congressional appropriation, which, if not approved, could reduce our revenue and lower or eliminate our profit; Changes in U.S. government defense spending could negatively impact our financial position, results of operations, liquidity and overall business; Pandemics, epidemics or other public health crises may adversely impact our business, financial condition and results of operations; We rely upon third-party suppliers for the components and subassemblies of many of our Grid and Wind products, making us vulnerable to supply shortages and price fluctuations, which could harm our business; Uncertainty surrounding our prospects and financial condition may have an adverse effect on our customer and supplier relationship; Our success is dependent upon attracting and retaining qualified personnel and our inability to do so could significantly damage our business and prospects; A significant portion of our Wind segment revenues are derived from a single customer. If this customer’s business is negatively affected, it could adversely impact our business; Our success in addressing the wind energy market is dependent on the manufacturers that license our designs; Our business and operations would be adversely impacted in the event of a failure or security breach of our or any critical third parties’ information technology infrastructure and networks; We may acquire additional complementary businesses or technologies, which may require us to incur substantial costs for which we may never realize the anticipated benefits; Failure to comply with evolving data privacy and data protection laws and regulations or to otherwise protect personal data, may adversely impact our business and financial results; Many of our revenue opportunities are dependent upon subcontractors and other business collaborators; If we fail to implement our business strategy successfully, our financial performance could be harmed; Problems with product quality or product performance may cause us to incur warranty expenses and may damage our market reputation and prevent us from achieving increased sales and market share; Many of our customers outside of the United States may be either directly or indirectly related to governmental entities, and we could be adversely affected by violations of the United States Foreign Corrupt Practices Act and similar worldwide anti-bribery laws outside the United States; We have had limited success marketing and selling our superconductor products and system-level solutions, and our failure to more broadly market and sell our products and solutions could lower our revenue and cash flow; We or third parties on whom we depend may be adversely affected by natural disasters, including events resulting from climate change, and our business continuity and disaster recovery plans may not adequately protect us or our value chain from such events; Adverse changes in domestic and global economic conditions could adversely affect our operating results; Our international operations are subject to risks that we do not face in the United States, which could have an adverse effect on our operating results; Our products face competition, which could limit our ability to acquire or retain customers; We have operations in, and depend on sales in, emerging markets, including India, and global conditions could negatively affect our operating results or limit our ability to expand our operations outside of these markets. Changes in India’s political, social, regulatory and economic environment may affect our financial performance; Our success depends upon the commercial adoption of the REG system, which is currently limited, and a widespread commercial market for our products may not develop; Industry consolidation could result in more powerful competitors and fewer customers; Increasing focus and scrutiny on environmental sustainability and social initiatives could increase our costs, and inaction could harm our reputation and adversely impact our financial results; Growth of the wind energy market depends largely on the availability and size of government subsidies, economic incentives and legislative programs designed to support the growth of wind energy: Lower prices for other energy sources may reduce the demand for wind energy development, which could have a material adverse effect on our ability to grow our Wind business; We may be unable to adequately prevent disclosure of trade secrets and other proprietary information; Our patents may not provide meaningful or long-term protection for our technology, which could result in us losing some or all of our market position; There are a number of technological challenges that must be successfully addressed before our superconductor products can gain widespread commercial acceptance, and our inability to address such technological challenges could adversely affect our ability to acquire customers for our products; Third parties have or may acquire patents that cover the materials, processes and technologies we use or may use in the future to manufacture our Amperium products, and our success depends on our ability to license such patents or other proprietary rights; Our common stock has experienced, and may continue to experience, market price and volume fluctuations, which may prevent our stockholders from selling our common stock at a profit and could lead to costly litigation against us that could divert our management’s attention; Unfavorable results of legal proceedings could have a material adverse effect on our business, operating results and financial condition; and the other important factors discussed under the caption “Risk Factors” in Part 1. Item 1A of our Form 10-K for the fiscal year ended March 31, 2024, and our other reports filed with the SEC. These important factors, among others, could cause actual results to differ materially from those indicated by forward-looking statements made herein and presented elsewhere by management from time to time. Any such forward-looking statements represent management’s estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data)

	Three Months Ended						Nine Months Ended
	December 31,						December 31,
	2024			2023			2024			2023
Revenues
Grid	$	52,306		$	33,603		$	131,578		$	87,854
Wind		9,097			5,750			24,585			15,757
Total revenues		61,403			39,353			156,163			103,611

Cost of revenues		45,077			29,369			112,000			78,759

Gross margin		16,326			9,984			44,163			24,852

Operating expenses:
Research and development		3,000			2,199			7,932			5,693
Selling, general and administrative		11,567			7,833			30,990			23,648
Amortization of acquisition-related intangibles		444			538			1,289			1,614
Change in fair value of contingent consideration		—			852			6,682			3,052
Restructuring		—			—			—			(14	)
Total operating expenses		15,011			11,422			46,893			33,993

Operating income (loss)		1,315			(1,438	)		(2,730	)		(9,141	)

Interest income, net		802			150			2,901			518
Other income (expense), net		272			(298	)		(214	)		(618	)
Income (loss) before income tax expense (benefit)		2,389			(1,586	)		(43	)		(9,241	)

Income tax (benefit) expense		(76	)		63			(4,871	)		291

Net income (loss)	$	2,465		$	(1,649	)	$	4,828		$	(9,532	)

Net income (loss) per common share
Basic	$	0.07		$	(0.06	)	$	0.13		$	(0.33	)
Diluted	$	0.06		$	(0.06	)	$	0.13		$	(0.33	)

Weighted average number of common shares outstanding
Basic		37,661			29,092			36,766			28,728
Diluted		38,463			29,092			37,457			28,728

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except per share data)

	December 31, 2024			March 31, 2024
ASSETS
Current assets:
Cash and cash equivalents	$	75,203		$	90,522
Accounts receivable, net		44,135			26,325
Inventory, net		74,588			41,857
Prepaid expenses and other current assets		10,194			7,295
Restricted cash		1,314			468
Total current assets		205,434			166,467

Property, plant and equipment, net		38,390			10,861
Intangibles, net		6,622			6,369
Right-of-use assets		4,050			2,557
Goodwill		48,950			43,471
Restricted cash		3,523			1,290
Deferred tax assets		1,155			1,119
Equity-method investments		1,397			—
Other assets		757			637
Total assets	$	310,278		$	232,771

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:
Accounts payable and accrued expenses	$	29,425		$	24,235
Lease liability, current portion		675			716
Debt, current portion		—			25
Contingent consideration		—			3,100
Deferred revenue, current portion		74,325			50,732
Total current liabilities		104,425			78,808

Deferred revenue, long term portion		9,003			7,097
Lease liability, long term portion		2,725			1,968
Deferred tax liabilities		1,423			300
Other liabilities		26			27
Total liabilities		117,602			88,200

Stockholders’ equity:
Common stock, $0.01 par value, 75,000,000 shares authorized; 39,863,084 and 37,343,812 shares issued and 39,459,733 and 36,946,181 shares outstanding at December 31, 2024 and March 31, 2024, respectively		399			373
Additional paid-in capital		1,256,210			1,212,913
Treasury stock, at cost, 403,351 and 397,631 at December 31, 2024 and March 31, 2024, respectively		(3,765	)		(3,639	)
Accumulated other comprehensive income		1,662			1,582
Accumulated deficit		(1,061,830	)		(1,066,658	)
Total stockholders’ equity		192,676			144,571
Total liabilities and stockholders’ equity	$	310,278		$	232,771

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)

	Nine Months Ended December 31,
	2024			2023
Cash flows from operating activities:

Net income (loss)	$	4,828		$	(9,532	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operations:
Depreciation and amortization		3,984			3,360
Stock-based compensation expense		4,933			3,608
Provision for excess and obsolete inventory		1,186			1,536
Amortization of operating lease right-of-use assets		753			457
Deferred income taxes		(5,171	)		3
Earnings from equity method investments		(152	)		—
Change in fair value of contingent consideration		6,682			3,052
Other non-cash items		(177	)		494
Changes in operating asset and liability accounts:
Accounts receivable		(1,650	)		5,945
Inventory		(10,836	)		(8,737	)
Prepaid expenses and other assets		(1,658	)		6,682
Operating leases		(1,531	)		(450	)
Accounts payable and accrued expenses		118			(15,409	)
Deferred revenue		20,686			8,894
Net cash provided by (used in) operating activities		21,995			(97	)

Cash flows from investing activities:
Purchases of property, plant and equipment		(1,376	)		(635	)
Cash paid to settle contingent consideration liabilities		(3,278	)		—
Cash paid for acquisition, net of cash acquired		(29,577	)		—
Change in other assets		167			(8	)
Net cash used in investing activities		(34,064	)		(643	)

Cash flows from financing activities:
Repurchase of treasury stock		(126	)		—
Repayment of debt		(25	)		(49	)
Cash paid related to registration of common stock shares		(148	)		—
Proceeds from exercise of employee stock options and ESPP		157			136
Net cash (used in) provided by financing activities		(142	)		87

Effect of exchange rate changes on cash		(29	)		3

Net decrease in cash, cash equivalents and restricted cash		(12,240	)		(650	)
Cash, cash equivalents and restricted cash at beginning of period		92,280			25,675
Cash, cash equivalents and restricted cash at end of period	$	80,040		$	25,025

RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP NET INCOME (LOSS) (In thousands, except per share data)

	Three Months Ended December 31,					Nine Months Ended December 31,
	2024		2023			2024		2023
Net income (loss)	$	2,465	$	(1,649	)	$	4,828	$	(9,532	)
Stock-based compensation		2,861		1,140			4,933		3,608
Acquisition costs		15		—			1,095		—
Amortization of acquisition-related intangibles		706		538			1,727		1,620
Change in fair value of contingent consideration		—		852			6,682		3,052
Non-GAAP net income (loss)	$	6,047	$	881		$	19,265	$	(1,252	)

Non-GAAP net income (loss) per share – basic	$	0.16	$	0.03		$	0.52	$	(0.04	)
Non-GAAP net income (loss) per share – diluted	$	0.16	$	0.03		$	0.51	$	(0.04	)
Weighted average shares outstanding – basic		37,661		29,092			36,766		28,728
Weighted average shares outstanding – diluted		38,463		29,428			37,457		28,728

Reconciliation of Forecast GAAP Net Loss to Non-GAAP Net Income (In millions, except per share data)

	Three Months Ending
	March 31, 2025
Net loss	$	(1.0	)
Stock-based compensation		2.8
Amortization of acquisition-related intangibles		0.7
Non-GAAP net income	$	2.5
Non-GAAP net income per share	$	0.07
Shares outstanding		37.9

Note: Non-GAAP net income (loss) is defined by the Company as net income (loss) before stock-based compensation; amortization of acquisition-related intangibles; acquisition costs; change in fair value of contingent consideration, other non-cash or unusual charges, and the tax effect of adjustments calculated at the relevant rate for our non-GAAP metric. The Company believes non-GAAP net income (loss) and non-GAAP net income (loss) per share assist management and investors in comparing the Company’s performance across reporting periods on a consistent basis by excluding these non-cash, non-recurring or other charges that it does not believe are indicative of its core operating performance. Actual GAAP and non-GAAP net loss for the fiscal quarter ending March 31, 2025, including the above adjustments, may differ materially from those forecasted in the table above. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position or cash flow that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. The non-GAAP measure included in this release, however, should be considered in addition to, and not as a substitute for or superior to, operating income or other measures of financial performance prepared in accordance with GAAP. A reconciliation of GAAP to non-GAAP net income (loss) is set forth in the table above.

AMSC Contacts
Investor Relations Contact:
LHA Investor Relations
Carolyn Capaccio
(212) 838-3777
amscIR@lhai.com

Public Relations Contact:
RooneyPartners
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The MIL Network –

February 6, 2025

MIL-OSI: LiveRamp Announces Results for Third Quarter FY25

Source: GlobeNewswire (MIL-OSI)

Revenue up 12% Year-Over-Year

Fourth Consecutive Quarter of Double-Digit Revenue Growth

Fiscal YTD Operating Cash Flow up 17% Year-Over-Year

SAN FRANCISCO, Feb. 05, 2025 (GLOBE NEWSWIRE) — LiveRamp ^® (NYSE: RAMP), the leading data collaboration platform, today announced its financial results for the fiscal 2025 third quarter ended December 31, 2024.

Q3 Financial Highlights¹

Total revenue was $195 million, up 12%.
Subscription revenue was $146 million, up 10%.
Marketplace & Other revenue was $50 million, up 20%.
GAAP gross profit was $140 million, up 9%. GAAP gross margin compressed by two percentage points to 72%. Non-GAAP gross profit was $146 million, up 11%. Non-GAAP gross margin compressed by one percentage point to 74%.
GAAP operating income was $15 million, in-line with the prior year. GAAP operating margin compressed by one percentage point to 8%. Non-GAAP operating income was $45 million, up 24%. Non-GAAP operating margin expanded by two percentage points to 23%.
GAAP and Non-GAAP diluted earnings per share were $0.17 and $0.55, respectively.
Net cash provided by operating activities was $45 million, up from $17 million.
Third quarter share repurchases totaled approximately 368,000 shares for $10 million. Fiscal year to date through December 31, 2024 share repurchases totaled approximately 2.8 million shares for $76 million.

A reconciliation between GAAP and non-GAAP results is provided in the schedules in this press release.

Commenting on the results, CEO Scott Howe said, “We posted a strong quarter, with revenue and operating income exceeding our expectations, and revenue growing at a double-digit rate for the fourth consecutive quarter. Our sales momentum improved appreciably in the third quarter as our Data Collaboration Platform and clean room solution are resonating with customers. This confirms the substantial market demand for our platform that helps customers efficiently use their first-party data to deliver, measure and optimize their digital advertising.”

GAAP and Non-GAAP Results
The following table summarizes the Company’s financial results for the fiscal 2025 third quarter ended December 31, 2024 ($ in millions, except per share amounts):

_________________________

¹ Unless otherwise indicated, all comparisons are to the prior year period.


	GAAP		Non-GAAP
	Q3 FY25	Q3 FY24	Q3 FY25	Q3 FY24
Subscription revenue	$146	$132	—	—
YoY change %	10%	5%	—	—
Marketplace & Other revenue	$50	$42	—	—
YoY change %	20%	29%	—	—
Total revenue	$195	$174	—	—
YoY change %	12%	10%	—	—

Gross profit	$140	$129	$146	$131
% Gross margin	72%	74%	74%	75%
YoY change, pts	(2 pts)	1 pt	(1 pt)	(1 pt)

Operating income	$15	$15	$45	$36
% Operating margin	8%	9%	23%	21%
YoY change, pts	(1 pt)	24 pts	2 pts	5 pts

Net earnings	$11	$14	$37	$32
Diluted earnings per share	$0.17	$0.21	$0.55	$0.47

Shares to calculate diluted EPS	66.7	67.9	66.7	67.9
YoY change %	(2%)	5%	(2%)	4%

Operating cash flow	$45	$17	—	—
Free cash flow	—	—	$45	$14

Totals and year-over-year changes may not reconcile due to rounding.

A detailed discussion of our non-GAAP financial measures and a reconciliation between GAAP and non-GAAP results is provided in the schedules in this press release.

Additional Business Highlights & Metrics

On February 25, 2025 we will host an investor day presentation in San Francisco (additional information). The event coincides with RampUp 2025, our annual customer and partner conference on February 25-27, 2025 (additional information).
In November 2024 we announced an expansion of the Quick Start Insights available on our Data Collaboration Platform to now offer media intelligence across a network of premium publishers. These standardized insights enable our customers to more quickly access and deploy media performance metrics — such as audience overlaps, optimal frequency, and last-touch attribution — from premium publisher and CTV data. As a result, LiveRamp customers now have a simplified way to enhance media buying and planning strategies and increase the time-to-value from clean room partnerships.
In January 2025 we announced in partnership with Mohegan, a leader in casino and entertainment destinations, the industry’s first casino media network. For the first time, brands can access Mohegan’s rich first-party insights to reach guests and players in addition to the ability to measure campaigns across the casino’s digital channels and on-premise experiences – such as in-app, loyalty programs, slot machines, and kiosks (additional information).
LiveRamp ended the quarter with 125 customers whose annualized subscription revenue exceeds $1 million, compared to 105 in the prior year period.
LiveRamp ended the quarter with 865 direct subscription customers, compared to 895 in the prior year period.
Subscription net retention was 108% and platform net retention was 111% for the quarter.
Annual recurring revenue (ARR), which is the last month of the quarter fixed subscription revenue annualized, was $491 million, up 10% compared to the prior year period.
Current remaining performance obligations (CRPO), which is contracted and committed revenue expected to be recognized over the next 12 months, was $434 million, up 13% compared to the prior year period.

Financial Outlook

LiveRamp’s non-GAAP operating income guidance excludes the impact of non-cash stock compensation, purchased intangible asset amortization, and restructuring and related charges.

For the fourth quarter of fiscal 2025, LiveRamp expects to report:

Revenue of between $184 million and $186 million, an increase of between 7% and 8%
GAAP operating loss of $8 million
Non-GAAP operating income of $22 million

For fiscal 2025, LiveRamp increases its guidance and expects to report:

Revenue of between $741 million and $743 million, an increase of between 12% and 13%
GAAP operating income of $10 million
Non-GAAP operating income of $135 million

Conference Call

LiveRamp will hold a conference call today at 1:30 p.m. PT (4:30 p.m. ET) to further discuss this information. Interested parties are invited to listen to a webcast of the conference, which can be accessed on LiveRamp’s investor site. A slide presentation will be referenced during the call and is available here.

About LiveRamp

LiveRamp is a global technology company that helps companies build enduring brand and business value by collaborating responsibly with data. A groundbreaking leader in foundational identity, LiveRamp offers a connected customer view with clarity and context while protecting brand and consumer trust. We offer flexibility to collaborate wherever data lives to support a wide range of data collaboration use cases—within organizations, between brands, and across our global network of premier partners. Global innovators, from iconic consumer brands and tech platforms to retailers, financial services, and healthcare leaders, turn to LiveRamp to deepen customer engagement and loyalty, activate new partnerships, and maximize the value of their first-party data while staying on the forefront of rapidly evolving compliance and privacy requirements. LiveRamp is based in San Francisco, California with offices worldwide. Learn more at LiveRamp.com.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended (the “PSLRA”). These statements, which are not statements of historical fact, may contain estimates, assumptions, projections and/or expectations regarding the Company’s financial position, results of operations for fiscal 2025 and beyond, market position, product development, growth opportunities, economic conditions, and other similar forecasts and statements of expectation. Forward-looking statements are often identified by words or phrases such as “anticipate,” “estimate,” “plan,” “expect,” “believe,” “intend,” “foresee,” or the negative of these terms or other similar variations thereof.

These forward-looking statements are not guarantees of future performance and are subject to a number of factors and uncertainties that could cause the Company’s actual results and experiences to differ materially from the anticipated results and expectations expressed in the forward-looking statements.

Among the factors that may cause actual results and expectations to differ from anticipated results and expectations expressed in forward-looking statements are uncertainties related to high interest rates, cost increases, the possibility of a recession, general inflationary pressure, geo-political circumstances that could result in increased economic uncertainties and the associated impacts of these potential events on our suppliers, customers and partners; the Company’s dependence upon customer renewals, new customer additions and upsell within our subscription business; our reliance upon partners, including data suppliers; competition; rapidly changing technology’s impact on our products and services; the risk that we fail to realize the potential benefits of or have difficulty integrating acquired businesses (including Habu); and attracting, motivating and retaining talent. Additional risks include maintaining our culture and our ability to innovate and evolve while operating in a hybrid work environment, with some employees working remotely at least some of the time within a rapidly changing industry, while also avoiding disruption from reductions in our current workforce as well as disruptions resulting from acquisition, divestiture and other activities affecting our workforce. Our global workforce strategy could possibly encounter difficulty and not be as beneficial as planned. Our international operations are also subject to risks, including the performance of third parties as well as impacts from war and civil unrest, that may harm the Company’s business. The risk of a significant breach of the confidentiality of the information or the security of our or our customers’, suppliers’, or other partners’ data and/or computer systems, or the risk that our current insurance coverage may not be adequate for such a breach, that an insurer might deny coverage for a claim or that such insurance will continue to be available to us on commercially reasonable terms, or at all, could be detrimental to our business, reputation and results of operations. Other business risks include unfavorable publicity and negative public perception about our industry; interruptions or delays in service from data center or cloud hosting vendors we rely upon; and our dependence on the continued availability of third-party data hosting and transmission services. Our clients’ ability to use data on our platform could be restricted if the industry’s use of third-party cookies and tracking technology declines due to technology platform changes, regulation or increased user controls. Continued changes in the judicial, legislative, regulatory, accounting, cultural and consumer environments affecting our business, including but not limited to litigation, investigations, legislation, regulations and customs at the state, federal and international levels relating to information collection and use represents a risk, as well as changes in tax laws and regulations that are applied to our customers which could cause enterprise software budget tightening. In addition, third parties may claim that we are infringing their intellectual property or may infringe our intellectual property which could result in competitive injury and / or the incurrence of significant costs and draining of our resources.

For a discussion of these and other risks and uncertainties that could affect LiveRamp’s business, reputation, results of operation, financial condition and stock price, please refer to LiveRamp’s filings with the U.S. Securities and Exchange Commission, including the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of LiveRamp’s most recently filed Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and subsequent filings.

The financial information set forth in this press release reflects estimates based on information available at this time.

LiveRamp assumes no obligation and does not currently intend to update these forward-looking statements.

To automatically receive LiveRamp financial news by email, please visit www.LiveRamp.com and subscribe to email alerts.

For more information, contact:

LiveRamp Investor Relations
Investor.Relations@LiveRamp.com

LiveRamp^®and RampID™ and all other LiveRamp marks contained herein are trademarks or service marks of LiveRamp, Inc. All other marks are the property of their respective owners.

LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except per share amounts)

	For the three months ended December 31,
			$		%
	2024	2023	Variance		Variance

Revenues	195,412	173,869	21,543		12.4	%
Cost of revenue	54,998	44,934	10,064		22.4	%
Gross profit	140,414	128,935	11,479		8.9	%
% Gross margin	71.9%	74.2%

Operating expenses
Research and development	42,735	37,788	4,947		13.1	%
Sales and marketing	50,863	46,203	4,660		10.1	%
General and administrative	31,994	27,241	4,753		17.4	%
Gains, losses and other items, net	149	2,502	(2,353	)	(94.0	)%
Total operating expenses	125,741	113,734	12,007		10.6	%

Income from operations	14,673	15,201	(528	)	(3.5	)%
% Margin	7.5%	8.7%

Total other income, net	4,033	6,607	(2,574	)	(39.0	)%

Income from continuing operations before income taxes	18,706	21,808	(3,102	)	(14.2	)%
Income tax expense	9,184	8,429	755		9.0	%
Net earnings from continuing operations	9,522	13,379	(3,857	)	(28.8	)%

Earnings from discontinued operations, net of tax	1,688	598	1,090		182.3	%

Net earnings	11,210	13,977	(2,767	)	(19.8	)%

Basic earnings per share:
Continuing operations	0.15	0.20	(0.06	)	(28.5	)%
Discontinued operations	0.03	0.01	0.02		183.6	%
Basic earnings per share	0.17	0.21	(0.04	)	(19.4	)%

Diluted earnings per share:
Continuing operations	0.14	0.20	(0.05	)	(27.5	)%
Discontinued operations	0.03	0.01	0.02		187.4	%
Diluted earnings per share	0.17	0.21	(0.04	)	(18.4	)%

Basic weighted average shares	65,631	65,961
Diluted weighted average shares	66,743	67,943


Some totals may not sum due to rounding.

LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except per share amounts)

	For the nine months ended December 31,
			$		%
	2024	2023	Variance		Variance

Revenues	556,856	487,809	69,047		14.2	%
Cost of revenue	157,981	131,767	26,214		19.9	%
Gross profit	398,875	356,042	42,833		12.0	%
% Gross margin	71.6 %	73.0 %

Operating expenses
Research and development	130,742	106,040	24,702		23.3	%
Sales and marketing	156,145	135,217	20,928		15.5	%
General and administrative	94,324	79,914	14,410		18.0	%
Gains, losses and other items, net	752	9,192	(8,440	)	(91.8	)%
Total operating expenses	381,963	330,363	51,600		15.6	%

Income from operations	16,912	25,679	(8,767	)	(34.1	)%
% Margin	3.0 %	5.3 %

Total other income, net	12,674	17,887	(5,213	)	(29.1	)%

Income from continuing operations before income taxes	29,586	43,566	(13,980	)	(32.1	)%
Income tax expense	25,821	27,297	(1,476	)	(5.4	)%
Net earnings from continuing operations	3,765	16,269	(12,504	)	(76.9	)%

Earnings from discontinued operations, net of tax	1,688	985	703		71.4	%

Net earnings	5,453	17,254	(11,801	)	(68.4	)%

Basic earnings per share:
Continuing operations	0.06	0.25	(0.19	)	(76.8	)%
Discontinued operations	0.03	0.01	0.01		71.5	%
Basic earnings per share	0.08	0.26	(0.18	)	(68.4	)%

Diluted earnings per share:
Continuing operations	0.06	0.24	(0.18	)	(76.8	)%
Discontinued operations	0.03	0.01	0.01		71.9	%
Diluted earnings per share	0.08	0.25	(0.17	)	(68.3	)%

Basic weighted average shares	66,182	66,247
Diluted weighted average shares	67,505	67,733


Some totals may not sum due to rounding.

LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP EPS (1)
(Unaudited)
(Dollars in thousands, except per share amounts)

	For the three months ended December 31,		For the nine months ended December 31,
	2024	2023	2024	2023

Income from continuing operations before income taxes	18,706	21,808	29,586	43,566
Income tax expense	9,184	8,429	25,821	27,297
Net earnings from continuing operations	9,522	13,379	3,765	16,269
Earnings from discontinued operations, net of tax	1,688	598	1,688	985
Net earnings	11,210	13,977	5,453	17,254

Basic earnings per share	0.17	0.21	0.08	0.26
Diluted earnings per share	0.17	0.21	0.08	0.25

Excluded items:
Purchased intangible asset amortization (cost of revenue)	3,686	1,181	11,280	5,688
Non-cash stock compensation (cost of revenue and operating expenses)	26,760	17,497	83,813	46,524
Restructuring and merger charges (gains, losses, and other)	149	2,502	752	9,192
Transformation costs (general and administrative)	—	—	—	1,875
Total excluded items from continuing operations	30,595	21,180	95,845	63,279

Income from continuing operations before income taxes and excluding items	49,301	42,988	125,431	106,845
Income tax expense (2)	12,421	10,732	30,537	25,935
Non-GAAP net earnings from continuing operations	36,880	32,256	94,894	80,910

Non-GAAP earnings per share from continuing operations
Basic	0.56	0.49	1.43	1.22
Diluted	0.55	0.47	1.41	1.19

Basic weighted average shares	65,631	65,961	66,182	66,247
Diluted weighted average shares	66,743	67,943	67,505	67,733


(1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures and the material limitations on the usefulness of these measures, please see Appendix A.

(2) Non-GAAP income taxes were calculated by applying the estimated annual effective tax rate to year-to-date pretax income or loss and adjusting for discrete tax items in the period. The differences between our GAAP and non-GAAP effective tax rates were primarily due to the net tax effects of the excluded items, coupled with the valuation allowance and smaller pre-tax income for GAAP purposes.

LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP INCOME FROM OPERATIONS (1)
(Unaudited)
(Dollars in thousands)

	For the three months ended December 31,		For the nine months ended December 31,
	2024	2023	2024	2023

Income from operations	14,673	15,201	16,912	25,679

Excluded items:
Purchased intangible asset amortization (cost of revenue)	3,686	1,181	11,280	5,688
Non-cash stock compensation (cost of revenue and operating expenses)	26,760	17,497	83,813	46,524
Restructuring and merger charges (gains, losses, and other)	149	2,502	752	9,192
Transformation costs (general and administrative)	–	–	–	1,875
Total excluded items	30,595	21,180	95,845	63,279

Income from operations before excluded items	45,268	36,381	112,757	88,958


(1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures and the material limitations on the usefulness of these measures, please see Appendix A.

LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
RECONCILIATION OF ADJUSTED EBITDA (1)
(Unaudited)
(Dollars in thousands)

	For the three months ended December 31,		For the nine months ended December 31,
	2024	2023	2024	2023

Net earnings from continuing operations	9,522	13,379	3,765	16,269
Income tax expense	9,184	8,429	25,821	27,297
Total other income, net	(4,033)	(6,607)	(12,674)	(17,887)

Income from operations	14,673	15,201	16,912	25,679
Depreciation and amortization	4,400	1,782	13,404	7,685

EBITDA	19,073	16,983	30,316	33,364

Other adjustments:
Non-cash stock compensation (cost of revenue and operating expenses)	26,760	17,497	83,813	46,524
Restructuring and merger charges (gains, losses, and other)	149	2,502	752	9,192
Transformation costs (general and administrative)	–	–	–	1,875

Other adjustments	26,909	19,999	84,565	57,591

Adjusted EBITDA	45,982	36,982	114,881	90,955


(1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures, the usefulness of these measures and the material limitations on the usefulness of these measures, please see Appendix A.

LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)

	December 31	March 31	$	%
	2024	2024	Variance	Variance
Assets
Current assets:
Cash and cash equivalents	376,772	336,867	39,905	11.8	%
Restricted cash	593	2,604	(2,011)	(77.2	)%
Short-term investments	7,500	32,045	(24,545)	(76.6	)%
Trade accounts receivable, net	210,565	190,313	20,252	10.6	%
Refundable income taxes, net	6,630	8,521	(1,891)	(22.2	)%
Other current assets	41,747	31,682	10,065	31.8	%
Total current assets	643,807	602,032	41,775	6.9	%

Property and equipment	24,099	25,394	(1,295)	(5.1	)%
Less – accumulated depreciation and amortization	17,440	17,213	227	1.3	%
Property and equipment, net	6,659	8,181	(1,522)	(18.6	)%

Intangible assets, net	23,302	34,583	(11,281)	(32.6	)%
Goodwill	501,559	501,756	(197)	(0.0	)%
Deferred commissions, net	44,497	48,143	(3,646)	(7.6	)%
Other assets, net	33,389	36,748	(3,359)	(9.1	)%
	1,253,213	1,231,443	21,770	1.8	%

Liabilities and Stockholders’ Equity
Current liabilities:
Trade accounts payable	105,334	81,202	24,132	29.7	%
Accrued payroll and related expenses	35,639	61,575	(25,936)	(42.1	)%
Other accrued expenses	45,856	42,857	2,999	7.0	%
Deferred revenue	44,795	30,942	13,853	44.8	%
Total current liabilities	231,624	216,576	15,048	6.9	%

Other liabilities	63,882	65,732	(1,850)	(2.8	)%

Stockholders’ equity:
Preferred stock	–	–	–	n/a
Common stock	15,853	15,594	259	1.7	%
Additional paid-in capital	2,022,227	1,933,776	88,451	4.6	%
Retained earnings	1,319,625	1,314,172	5,453	0.4	%
Accumulated other comprehensive income	3,493	3,964	(471)	(11.9	)%
Treasury stock, at cost	(2,403,491)	(2,318,371)	(85,120)	3.7	%
Total stockholders’ equity	957,707	949,135	8,572	0.9	%
	1,253,213	1,231,443	21,770	1.8	%

LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)
	For the three months ended December 31,
	2024	2023
Cash flows from operating activities:
Net earnings	11,210	13,977
Earnings from discontinued operations, net of tax	(1,688)	(598)
Non-cash operating activities:
Depreciation and amortization	4,400	1,782
Loss on disposal or impairment of assets	99	911
Provision for doubtful accounts	(97)	544
Deferred income taxes	11	(47)
Non-cash stock compensation expense	26,760	17,497
Changes in operating assets and liabilities:
Accounts receivable, net	(19,013)	(24,778)
Deferred commissions	(1,042)	(4,235)
Other assets	(6,596)	(4,831)
Accounts payable and other liabilities	23,829	21,639
Income taxes	(1,617)	(14,139)
Deferred revenue	8,861	8,834
Net cash provided by operating activities	45,117	16,556
Cash flows from investing activities:
Capital expenditures	(282)	(2,211)
Cash paid in acquisitions, net of cash received	(1,951)	—
Proceeds from sales of investments	1,994	—
Purchases of strategic investments	(1,000)	—
Net cash used in investing activities	(1,239)	(2,211)
Cash flows from financing activities:
Proceeds related to the issuance of common stock under stock and employee benefit plans	2,304	1,646
Shares repurchased for tax withholdings upon vesting of stock-based awards	(1,565)	(547)
Acquisition of treasury stock	(10,098)	(10,000)
Net cash used in financing activities	(9,359)	(8,901)
Cash flows from discontinued operations:
From operating activities	2,486	598
Effect of exchange rate changes on cash	(1,217)	735

Net change in cash, cash equivalents and restricted cash	35,788	6,777
Cash, cash equivalents and restricted cash at beginning of period	341,577	492,169
Cash, cash equivalents and restricted cash at end of period	377,365	498,946

Supplemental cash flow information:
Cash paid for income taxes, net from continuing operations	10,990	22,699
Cash received for income taxes, net from discontinued operations	(2,486)	(912)
Cash paid for operating lease liabilities	2,495	2,551

Non-cash investing and financing activities:
Operating lease assets obtained in exchange for operating lease liabilities	1,284	—
Purchases of property, plant and equipment remaining unpaid at period end	85	1,218
Excise tax payable on net stock repurchases	64	—

LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)
	For the nine months ended December 31,
	2024	2023
Cash flows from operating activities:
Net earnings	5,453	17,254
Earnings from discontinued operations, net of tax	(1,688)	(985)
Non-cash operating activities:
Depreciation and amortization	13,404	7,685
Loss on disposal or impairment of assets	119	1,213
Lease-related impairment and restructuring charges	(36)	2,315
Provision for doubtful accounts	1,148	307
Impairment of goodwill	—	2,875
Deferred income taxes	49	40
Non-cash stock compensation expense	83,813	46,524
Changes in operating assets and liabilities:
Accounts receivable, net	(21,640)	(41,036)
Deferred commissions	3,645	(7,142)
Other assets	(2,598)	912
Accounts payable and other liabilities	(8,165)	8,754
Income taxes	3,953	29,560
Deferred revenue	13,928	9,737
Net cash provided by operating activities	91,385	78,013
Cash flows from investing activities:
Capital expenditures	(749)	(2,464)
Cash paid in acquisitions, net of cash received	(1,951)	—
Purchases of investments	(1,967)	(24,385)
Proceeds from sales of investments	26,989	25,750
Purchases of strategic investments	(1,400)	(1,000)
Net cash provided by (used in) investing activities	20,922	(2,099)
Cash flows from financing activities:
Proceeds related to the issuance of common stock under stock and employee benefit plans	8,631	7,221
Shares repurchased for tax withholdings upon vesting of stock-based awards	(9,305)	(5,116)
Acquisition of treasury stock	(75,751)	(45,325)
Net cash used in financing activities	(76,425)	(43,220)
Cash flows from discontinued operations:
From operating activities	2,486	985
Effect of exchange rate changes on cash	(474)	819

Net change in cash, cash equivalents and restricted cash	37,894	34,498
Cash, cash equivalents and restricted cash at beginning of period	339,471	464,448
Cash, cash equivalents and restricted cash at end of period	377,365	498,946

Supplemental cash flow information:
Cash paid (received) for income taxes, net from continuing operations	21,990	(2,440)
Cash received for income taxes, net from discontinued operations	(2,486)	(1,507)
Cash received for tenant improvement allowances	(1,758)	—
Cash paid for operating lease liabilities	7,372	7,699

Non-cash investing and financing activities:
Operating lease assets obtained in exchange for operating lease liabilities	2,327	11,677
Operating lease assets, and related lease liabilities, relinquished in lease terminations	(555)	(4,486)
Purchases of property, plant and equipment remaining unpaid at period end	85	1,218
Excise tax payable on net stock repurchases	64	—

LIVERAMP HOLDINGS, INC AND SUBSIDIARIES
CALCULATION OF FREE CASH FLOW (1)
(Unaudited)
(Dollars in thousands)


		6/30/2023			9/30/2023			12/31/2023			3/31/2024			FY2024			6/30/2024			9/30/2024			12/31/2024			FY2025

Net cash provided by (used in) operating activities		$	25,693		$	35,764		$	16,556		$	27,643		$	105,656		$	(9,328	)	$	55,596		$	45,117		$	91,385

Less:
	Capital expenditures		(53	)		(200	)		(2,211	)		(1,791	)		(4,255	)		(226	)		(241	)		(282	)		(749	)

Free Cash Flow		$	25,640		$	35,564		$	14,345		$	25,852		$	101,401		$	(9,554	)	$	55,355		$	44,835		$	90,636


(1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures and the material limitations on the usefulness of these measures, please see Appendix A.

LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except per share amounts)
																			Qtr-to-Qtr
	FY2024										FY2025								FY2025 to FY2024
	6/30/2023		9/30/2023		12/31/2023		3/31/2024		FY2024		6/30/2024		9/30/2024		12/31/2024		FY2025		%	$

Revenues		154,069		159,871		173,869		171,852		659,661		175,961		185,483		195,412		556,856	12.4%	21,543
Cost of revenue		45,621		41,212		44,934		47,722		179,489		51,749		51,234		54,998		157,981	22.4%	10,064
Gross profit		108,448		118,659		128,935		124,130		480,172		124,212		134,249		140,414		398,875	8.9%	11,479
% Gross margin		70.4 %		74.2 %		74.2 %		72.2 %		72.8 %		70.6 %		72.4 %		71.9 %		71.6 %

Operating expenses
Research and development		34,519		33,733		37,788		45,161		151,201		44,118		43,889		42,735		130,742	13.1%	4,947
Sales and marketing		44,879		44,135		46,203		60,476		195,693		54,175		51,107		50,863		156,145	10.1%	4,660
General and administrative		26,664		26,009		27,241		30,252		110,166		30,961		31,369		31,994		94,324	17.4%	4,753
Gains, losses and other items, net		116		6,574		2,502		2,516		11,708		206		397		149		752	(94.0)%	(2,353)
Total operating expenses		106,178		110,451		113,734		138,405		468,768		129,460		126,762		125,741		381,963	10.6%	12,007

Income (loss) from operations		2,270		8,208		15,201		(14,275)		11,404		(5,248)		7,487		14,673		16,912	(3.5)%	(528)
% Margin		5.0 %		24.3 %		40.2 %		(31.6)%		1.7 %		(3.0)%		4.0 %		7.5 %		3.0 %

Total other income, net		4,849		6,431		6,607		5,070		22,957		4,444		4,197		4,033		12,674	(39.0)%	(2,574)

Income (loss) from continuing operations before income taxes		7,119		14,639		21,808		(9,205)		34,361		(804)		11,684		18,706		29,586	(14.2)%	(3,102)
Income tax expense (benefit)		8,705		10,163		8,429		(3,027)		24,270		6,685		9,952		9,184		25,821	9.0%	755
Net earnings (loss) from continuing operations		(1,586)		4,476		13,379		(6,178)		10,091		(7,489)		1,732		9,522		3,765	(28.8)%	(3,857)

Earnings from discontinued operations, net of tax		–		387		598		805		1,790		–		–		1,688		1,688	182.3%	1,090

Net earnings (loss)	$	(1,586)	$	4,863	$	13,977	$	(5,373)	$	11,881	$	(7,489)	$	1,732	$	11,210	$	5,453	(19.8)%	(2,767)

Basic earnings (loss) per share:
Continuing Operations		(0.02)		0.07		0.20		(0.09)		0.15		(0.11)		0.03		0.15		0.06	(28.5)%	(0.06)
Discontinued Operations		0.00		0.01		0.01		0.01		0.03		0.00		0.00		0.03		0.03	183.7%	0.02
Basic earnings (loss) per share		(0.02)		0.07		0.21		(0.08)		0.18		(0.11)		0.03		0.17		0.08	(19.4)%	(0.04)

Diluted earnings (loss) per share:
Continuing Operations		(0.02)		0.07		0.20		(0.09)		0.15		(0.11)		0.03		0.14		0.06	(27.5)%	(0.05)
Discontinued Operations		0.00		0.01		0.01		0.01		0.03		0.00		0.00		0.03		0.03	187.3%	0.02
Diluted earnings (loss) per share		(0.02)		0.07		0.21		(0.08)		0.17		(0.11)		0.03		0.17		0.08	(18.4)%	(0.04)


Basic weighted average shares		66,497		66,284		65,961		66,323		66,266		66,621		66,294		65,631		66,182
Diluted weighted average shares		66,497		67,868		67,943		66,323		67,918		66,621		67,309		66,743		67,505

Some earnings (loss) per share amounts may not add due to rounding.

LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP EXPENSES (1)
(Unaudited)
(Dollars in thousands)
	FY2024					FY2025
	6/30/2023	9/30/2023	12/31/2023	3/31/2024	FY2024	6/30/2024	9/30/2024	12/31/2024	FY2025
Expenses:
Cost of revenue	45,621	41,212	44,934	47,722	179,489	51,749	51,234	54,998	157,981
Research and development	34,519	33,733	37,788	45,161	151,201	44,118	43,889	42,735	130,742
Sales and marketing	44,879	44,135	46,203	60,476	195,693	54,175	51,107	50,863	156,145
General and administrative	26,664	26,009	27,241	30,252	110,166	30,961	31,369	31,994	94,324
Gains, losses and other items, net	116	6,574	2,502	2,516	11,708	206	397	149	752

Gross profit, continuing operations:	108,448	118,659	128,935	124,130	480,172	124,212	134,249	140,414	398,875
% Gross margin	70.4%	74.2%	74.2%	72.2%	72.8%	70.6%	72.4%	71.9%	71.6%

Excluded items:
Purchased intangible asset amortization (cost of revenue)	3,290	1,217	1,181	3,097	8,785	3,846	3,748	3,686	11,280
Non-cash stock compensation (cost of revenue)	629	629	817	1,478	3,553	1,596	1,499	1,455	4,550
Non-cash stock compensation (research and development)	5,077	5,293	6,960	9,859	27,189	10,205	10,920	10,085	31,210
Non-cash stock compensation (sales and marketing)	3,736	4,786	4,089	6,337	18,948	7,093	7,383	7,278	21,754
Non-cash stock compensation (general and administrative)	3,850	5,027	5,631	7,106	21,614	9,091	9,266	7,942	26,299
Restructuring charges (gains, losses, and other)	116	6,574	2,502	2,516	11,708	206	397	149	752
Transformation costs (general and administrative)	1,875	—	—	—	1,875	—		—	—
Total excluded items	18,573	23,526	21,180	30,393	93,672	32,037	33,213	30,595	95,845

Expenses, excluding items:
Cost of revenue	41,702	39,366	42,936	43,147	167,151	46,307	45,987	49,857	142,151
Research and development	29,442	28,440	30,828	35,302	124,012	33,913	32,969	32,650	99,532
Sales and marketing	41,143	39,349	42,114	54,139	176,745	47,082	43,724	43,585	134,391
General and administrative	20,939	20,982	21,610	23,146	86,677	21,870	22,103	24,052	68,025

Gross profit, excluding items:	112,367	120,505	130,933	128,705	492,510	129,654	139,496	145,555	414,705
% Gross margin	72.9%	75.4%	75.3%	74.9%	74.7%	73.7%	75.2%	74.5%	74.5%

(1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures, the usefulness of these measures and the material limitations on the usefulness of these measures, please see Appendix A.

LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP EPS (1)
(Unaudited)
(Dollars in thousands, except per share amounts)
	FY2024					FY2025
	6/30/2023	9/30/2023	12/31/2023	3/31/2024	FY2024	6/30/2024	9/30/2024	12/31/2024	FY2025

Income (loss) from continuing operations before income taxes	7,119	14,639	21,808	(9,205)	34,361	(804)	11,684	18,706	29,586
Income tax expense (benefit)	8,705	10,163	8,429	(3,027)	24,270	6,685	9,952	9,184	25,821
Net earnings (loss) from continuing operations	(1,586)	4,476	13,379	(6,178)	10,091	(7,489)	1,732	9,522	3,765

Earnings from discontinued operations, net of tax	–	387	598	805	1,790	–	–	1,688	1,688

Net earnings (loss)	(1,586)	4,863	13,977	(5,373)	11,881	(7,489)	1,732	11,210	5,453

Earnings (loss) per share:
Basic	(0.02)	0.07	0.21	(0.08)	0.18	(0.11)	0.03	0.17	0.08
Diluted	(0.02)	0.07	0.21	(0.08)	0.17	(0.11)	0.03	0.17	0.08

Excluded items:
Purchased intangible asset amortization (cost of revenue)	3,290	1,217	1,181	3,097	8,785	3,846	3,748	3,686	11,280
Non-cash stock compensation (cost of revenue and operating expenses)	13,292	15,735	17,497	24,780	71,304	27,985	29,068	26,760	83,813
Restructuring and merger charges (gains, losses, and other)	116	6,574	2,502	2,516	11,708	206	397	149	752
Transformation costs (general and administrative)	1,875	–	–	–	1,875	–	–	–	–
Total excluded items from continuing operations	18,573	23,526	21,180	30,393	93,672	32,037	33,213	30,595	95,845

Income from continuing operations before income taxes and excluding items	25,692	38,165	42,988	21,188	128,033	31,233	44,897	49,301	125,431
Income tax expense (2)	6,167	9,036	10,732	3,947	29,882	7,371	10,745	12,421	30,537
Non-GAAP net earnings from continuing operations	19,525	29,129	32,256	17,241	98,151	23,862	34,152	36,880	94,894

Non-GAAP earnings per share from continuing operations
Basic	0.29	0.44	0.49	0.26	1.48	0.36	0.52	0.56	1.43
Diluted	0.29	0.43	0.47	0.25	1.45	0.35	0.51	0.55	1.41

Basic weighted average shares	66,497	66,284	65,961	66,323	66,266	66,621	66,294	65,631	66,182
Diluted weighted average shares	67,388	67,868	67,943	68,471	67,918	68,463	67,309	66,743	67,505


Some totals may not add due to rounding

(1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures and the material limitations on the usefulness of these measures, please see Appendix A.

LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP OPERATING INCOME GUIDANCE (1)
(Unaudited)
(Dollars in thousands)
	For the		For the
	quarter ending		year ending
	March 31, 2025		March 31, 2025



GAAP income (loss) from operations	$	(8,000)	$	10,000

Excluded items:
Purchased intangible asset amortization		3,000		14,000
Non-cash stock compensation		26,000		110,000
Restructuring costs		1,000		1,000
Total excluded items		30,000		125,000

Non-GAAP income from operations	$	22,000	$	135,000


(1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures, the usefulness of these measures and the material limitations on the usefulness of these measures, please see Appendix A.

APPENDIX A

LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES

Q3 FISCAL 2025 FINANCIAL RESULTS

EXPLANATION OF NON-GAAP MEASURES AND OTHER KEY METRICS

To supplement our financial results, we use non-GAAP measures which exclude certain acquisition related expenses, non-cash stock compensation and restructuring charges. We believe these measures are helpful in understanding our past performance and our future results. Our non-GAAP financial measures and schedules are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated GAAP financial statements. Our management regularly uses these non-GAAP financial measures internally to understand, manage and evaluate our business and to make operating decisions. These measures are among the primary factors management uses in planning for and forecasting future periods. Compensation of our executives is also based in part on the performance of our business based on these non-GAAP measures.

Our non-GAAP financial measures, including non-GAAP earnings (loss) per share, non-GAAP income (loss) from operations and adjusted EBITDA reflect adjustments based on the following items, as well as the related income tax effects when applicable:

Purchased intangible asset amortization: We incur amortization of purchased intangibles in connection with our acquisitions. Purchased intangibles include (i) developed technology, (ii) customer and publisher relationships, and (iii) trade names. We expect to amortize for accounting purposes the fair value of the purchased intangibles based on the pattern in which the economic benefits of the intangible assets will be consumed as revenue is generated. Although the intangible assets generate revenue for us, we exclude this item because this expense is non-cash in nature and because we believe the non-GAAP financial measures excluding this item provide meaningful supplemental information regarding our operational performance.

Non-cash stock compensation: Non-cash stock compensation consists of charges for associate restricted stock units, performance shares and stock options in accordance with current GAAP related to stock-based compensation including expense associated with stock-based compensation related to unvested options assumed in connection with our acquisitions. As we apply stock-based compensation standards, we believe that it is useful to investors to understand the impact of the application of these standards to our operational performance. Although stock-based compensation expense is calculated in accordance with current GAAP and constitutes an ongoing and recurring expense, such expense is excluded from non-GAAP results because it is not an expense that typically requires or will require cash settlement by us and because such expense is not used by us to assess the core profitability of our business operations.

Restructuring charges: During the past several years, we have initiated certain restructuring activities in order to align our costs in connection with both our operating plans and our business strategies based on then-current economic conditions. As a result, we recognized costs related to termination benefits for employees whose positions were eliminated, lease and other contract termination charges, and asset impairments. These items, as well as third party expenses associated with business acquisitions in the current year, reported as gains, losses, and other items, net, are excluded from non-GAAP results because such amounts are not used by us to assess the core profitability of our business operations.

Transformation costs: In previous years, we incurred significant expenses to separate the financial statements of our operating segments, with particular focus on segment-level balance sheets, and to evaluate portfolio priorities. Our criteria for excluding transformation expenses from our non-GAAP measures is as follows: 1) projects are discrete in nature; 2) excluded expenses consist only of third-party consulting fees that we would not incur otherwise; and 3) we do not exclude employee related expenses or other costs associated with the ongoing operations of our business. We substantially completed those projects during the third quarter of fiscal year 2018. Beginning in the fourth quarter of fiscal 2018, and through most of fiscal 2019, we incurred transaction support expenses and system separation costs related to the Company’s announced evaluation of strategic options for its Marketing Solutions (AMS) business. In the first and second quarters of fiscal 2021 in response to the potential COVID-19 pandemic impact on our business and again during fiscal 2023 in response to macroeconomic conditions, we incurred significant costs associated with the assessment of strategic and operating plans, including our long-term location strategy, and assistance in implementing the restructuring activities as a result of this assessment. Our criteria for excluding these costs are the same. We believe excluding these items from our non-GAAP financial measures is useful for investors and provides meaningful supplemental information.

Our non-GAAP financial schedules are:

Non-GAAP EPS, Non-GAAP Income from Operations, and Non-GAAP expenses: Our Non-GAAP earnings per share, Non-GAAP income from operations, and Non-GAAP expenses reflect adjustments as described above, as well as the related tax effects where applicable.

Adjusted EBITDA: Adjusted EBITDA is defined as net income from continuing operations before income taxes, other expenses, depreciation and amortization, and including adjustments as described above. We use Adjusted EBITDA to measure our performance from period to period both at the consolidated level as well as within our operating segments and to compare our results to those of our competitors. We believe that the inclusion of Adjusted EBITDA provides useful supplementary information to and facilitates analysis by investors in evaluating the Company’s performance and trends. The presentation of Adjusted EBITDA is not meant to be considered in isolation or as an alternative to net earnings as an indicator of our performance.

Free Cash Flow: To supplement our statement of cash flows, we use a non-GAAP measure of cash flow to analyze cash flows generated from operations. Free cash flow is defined as operating cash flow less capital expenditures. Management believes that this measure of cash flow is meaningful since it represents the amount of money available from continuing operations for the Company’s discretionary spending. The presentation of non-GAAP free cash flow is not meant to be considered in isolation or as an alternative to cash flows from operating activities as a measure of liquidity.

PDF Available: http://ml.globenewswire.com/Resource/Download/cfac844b-6484-4164-92b1-a991aa0edb1a

The MIL Network –

February 6, 2025

MIL-OSI Economics: How real-world businesses are transforming with AI – with 50 new stories
Source: Microsoft

Headline: How real-world businesses are transforming with AI – with 50 new stories

Updated February 5, 2025: The post contains 50 new customer stories, which appear at the beginning of each section of customer lists. The post will be updated regularly with new stories.

One of the highlights of my career has always been connecting with customers and partners across industries to learn how they are using technology to drive their businesses forward. In the past 30 years, we’ve seen four major platform shifts, from client server to internet and the web to mobile and cloud to now — the next major platform shift to AI.

As today’s platform shift to AI continues to gain momentum, Microsoft is working to understand just how organizations can drive lasting business value. We recently commissioned a study with IDC, The Business Opportunity of AI, to uncover new insights around business value and help guide organizations on their journey of AI transformation. The study found that for every $1 organizations invest in generative AI, they’re realizing an average of $3.70 in return — and uncovered insights about the future potential of AI to reshape business processes and drive change across industries.

Check out the top 5 AI trends to watch from IDC and Microsoft

Today, more than 85% of the Fortune 500 are using Microsoft AI solutions to shape their future. In working with organizations large and small, across every industry and geography, we’ve seen that most transformation initiatives are designed to achieve one of four business outcomes:
1. Enriching employee experiences: Using AI to streamline or automate repetitive, mundane tasks can allow your employees to dive into more complex, creative and ultimately more valuable work.
2. Reinventing customer engagement: AI can create more personalized, tailored customer experiences, delighting your target audiences while lightening the load for employees.
3. Reshaping business processes: Virtually any business process can be reimagined with AI, from marketing to supply chain operations to finance, and AI is even allowing organizations to go beyond process optimization and discover exciting new growth opportunities.
4. Bending the curve on innovation: AI is revolutionizing innovation by speeding up creative processes and product development, reducing the time to market and allowing companies to differentiate in an often crowded field.
In this blog, we’ve collected more than 300 of our favorite real-life examples of how organizations are embracing Microsoft’s proven AI capabilities to drive impact and shape today’s platform shift to AI. Today, we’ve added new stories of customers using our AI capabilities at the beginning of each section. We’ll regularly update this story with more. We hope you find an example or two that can inspire your own transformation journey.

Enriching employee experiences

Generative AI is truly transforming employee productivity and wellbeing. Our customers tell us that by automating repetitive, mundane tasks, employees are freed up to dive into more complex and creative work. This shift not only makes the work environment more stimulating but also boosts job satisfaction. It sparks innovation, provides actionable insights for better decision-making and supports personalized training and development opportunities, all contributing to a better work-life balance. Customers around the world have reported significant improvements in employee productivity with these AI solutions:

New Stories:
1. Acentra Health created MedScribe using Azure OpenAI Service. The solution has saved 11,000 nursing hours and nearly $800,000. It also helped each nurse process 20 to 30 letters daily, while achieving a 99% approval rate for MedScribe-generated letters.
2. Brisbane Catholic Education provides Microsoft 365 Copilot to 12,500 educators, and uses Microsoft Copilot Studio to create a generative AI tool to help educators integrate Catholic traditions and values into the classroom.
3. Crediclub saves 96% per month in auditing expenses and analyzes 150 meetings per hour with Azure AI, freeing up time for 800 sales advisors and 150 branch managers to interact directly with customers.
4. eClinicalWorks developed a tool using Azure AI services and Azure AI Document Intelligence to help healthcare workers scan, sort and match thousands of faxes each year to match the faxed data with current patient files.
5. Education Authority of Northern Ireland (EANI) introduced Microsoft 365 Copilot to reduce admin work, allowing teachers to focus on students. The Microsoft partnership ensures secure and ethical AI use, while teacher training focuses on prompt writing and effective tool adoption.
6. Ma’aden uses Microsoft 365 Copilot to enhance productivity, saving up to 2,200 hours monthly. Tasks like drafting emails, creating documents and data analysis have become more efficient, helping Ma’aden achieve its growth goals.
7. Marketing org mci group uses Microsoft 365 Copilot to enhance the use of AI and other technological advances to boost employee efficiency.
8. Michelin deployed Microsoft 365 Copilot and a generative AI in-house chatbot based on Azure OpenAI Service called “Aurora” designed to help employees optimize work and team performance, boosting productivity tenfold.
9. Raiffeisen Bank International built its own ChatGPT using Azure OpenAI Service to automate repetitive tasks like documenting intelligence and more rapidly summarize legal, regulation and banking documents.
10. Sanabil Investments deployed Microsoft 365 Copilot to help employees reduce the time spent on manual everyday tasks that diverted focus from more strategic and valuable work. Within two months, approximately 70% of employees regularly used Copilot.
11. Sensei rolled out Microsoft 365 to reduce the number of internal apps and better connect systems for easier collaboration, and is using Microsoft 365 Copilot to increase efficiency.
12. Sikshana Foundation is working with Microsoft Research India to introduce an AI copilot for teachers that shortens preparation time for lessons from an hour or more to just minutes.
13. The University of Hong Kong adopted Microsoft 365 Copilot to enhance productivity by automating administrative tasks and providing intelligent assistance, allowing faculty to focus more on teaching.
1. Accenture and Avanade launched a Copilot business transformation practice, supported by Microsoft, and co-invested in new capabilities, solutions and training to help organizations securely and responsibly reinvent their business functions with generative and agentic AI and Copilot technologies.
2. Access Holdings Plc adopted Microsoft 365 Copilot, integrating generative AI into daily tools and, as a result, writing code now takes two hours instead of eight, chatbots launch in 10 days instead of three months and presentations are prepared in 45 minutes instead of six hours.
3. Adobe is connecting Adobe Experience Cloud workflows and insights with Microsoft 365 Copilot to deliver generative-AI powered capabilities that enable marketers to increase collaboration, efficiency and creativity.
4. Amadeus empowers its teams to focus their time and skills on value-added tasks with Microsoft 365 Copilot, by summarizing email threads, chat or transcripts and summing up information from diverse sources.
5. ANZ has invested in Microsoft 365 Copilot, GitHub Copilot and Copilot in Microsoft Edge to boost productivity and innovation across its workforce.
6. Asahi Europe & International (AEI) has adopted Microsoft 365 Copilot, saving employees potentially 15% of time previously spent on administrative tasks.
7. AXA developed AXA Secure GPT, a platform powered by Azure OpenAI Service that empowers employees to leverage the power of generative AI while targeting the highest level of data safety and responsible use of the tool.
8. Axon Enterprise developed a new AI tool with Azure OpenAI Service called Draft One, resulting in an 82% decrease in time spent on reports, which freed up officers to engage more with their community.
9. Aztec Group enhanced productivity and client experience by trialing Microsoft 365 Copilot with 300 staff, uncovering “unlimited” use cases and plans for a wider rollout.
10. Bader Sultan & Bros. Co. W.L.L. implemented Microsoft 365 Copilot to enhance employee productivity and speed up customer response times.
11. Bancolombia is using GitHub Copilot to empower its technical team, achieving a 30% increase in code generation, boosting automated application changes to an average of 18,000 per year, with a rate of 42 productive daily deployments.
12. Bank of Queensland Group is using Microsoft 365 Copilot, with 70% of users saving two-and-a-half to five hours per week.
13. BaptistCare Community Services is using Microsoft 365 Copilot to save employees time as they navigate workforce shortage challenges allowing them to focus more on the people they care for.
14. Barnsley Council was recognized as “Double Council of the Year in 2023” for its implementation of Microsoft 365 Copilot, which modernized operations and reduced administrative tasks, leading to improved job satisfaction and increased creativity.
15. BlackRock purchased more than 24,000 Microsoft 365 Copilot licenses spanning all employees, functions and locations, helping improve the Copilot experience, including codeveloping new features and functions.
16. British Heart Foundation is testing Microsoft 365 Copilot and in its initial test, users estimate that Microsoft 365 Copilot could save them up to 30 minutes per day.
17. Buckinghamshire Council deployed Microsoft 365 Copilot with staff reporting productivity improvements, quality enhancements and time savings which are enabling the different teams to do more with less.
18. Campari Group adopted Microsoft 365 Copilot to help employees integrate it into their workflow, resulting in time savings of about two hours a week from the support of routine activities such as email management, meeting preparation, content creation and skill acquisition.
19. Canadian Tire Corporation moved its data from on-premises systems to Microsoft Azure and built digital assistants using Azure OpenAI Service, and now more than 3,000 corporate employees save 30 to 60 minutes a day using its ChatCTC digital assistant.
20. Capita is using GitHub Copilot for productivity improvements as well as improvements in developer satisfaction, recruitment and retention.
21. Cathay leverages Microsoft 365 Copilot to streamline meetings and manage information more effectively, reducing time-consuming tasks and fostering creativity.
22. CDW used Microsoft 365 Copilot to improve work quality for 88% of users, enabling 77% to complete tasks faster, and increasing productivity for 85% of users.
23. Chi Mei Medical Center is lightening workloads for doctors, nurses and pharmacists with a generative AI assistant built on Azure OpenAI Service.
24. Clifford Chance adopted Microsoft 365 Copilot to streamline tasks, automate processes and enhance collaboration. Lawyers use it to draft and manage emails and ensure compliance, allowing them to focus on complex legal work and improve productivity.
25. DLA Piper chose Microsoft 365 Copilot to boost productivity for operational and administrative teams, saving up to 36 hours weekly on content generation and data analysis.
26. Eaton adopted Microsoft 365 Copilot to automate the creation of 1,000 standard operating procedures to streamline customer service operations and improve data access across teams, cutting creation time from one hour to 10 minutes.
27. E.ON is focused on Germany’s energy transition, leveraging Microsoft 365 Copilot to manage the complex grid in real-time, increasing productivity and efficiency for its workforce.
28. Enerijisa Uretim has adopted Microsoft 365 Copilot to streamline meeting summaries, reformat documents and compile reports, enabling employees to concentrate on more strategic and fulfilling activities instead of spending six hours in meetings.
29. EPAM is deploying Microsoft 365 Copilot to consolidate information and generate content and documents.
30. Farm Credit Canada implemented Microsoft 365 Copilot which resulted in time savings on routine tasks for 78% of users, with 30% saving 30 to 60 minutes per week and 35% saving over an hour per week, allowing employees to focus on more value-added tasks.
31. Finastra used Microsoft 365 Copilot to automate tasks, enhance content creation, improve analytics and personalize customer interactions, with employees citing a 20%-50% time savings.
32. Four Agency Worldwide increased employee productivity using Microsoft 365 Copilot to generate ideas for creative work and support administrative-heavy processes, data analysis and report generation, allowing staff to focus on outreach and less time doing paperwork.
33. Goodwill of Orange County developed an AI-powered app using Azure AI capabilities to help more people, including those with developmental, intellectual and physical disabilities, work in unfilled e-commerce positions.
34. Harvey uses Azure OpenAI to simplify routine tasks across hundreds of law firms and legal teams, with one corporate lawyer saying he saved 10 hours of work per week.
35. Honeywell employees are saving 92 minutes per week — that’s 74 hours a year! Disclaimer: Statistics are from an internal Honeywell survey of 5,000 employees where 611 employees responded.
36. Insight employees using Copilot are seeing four hours of productivity gained per week from data summarization and content creation.
37. Joos uses Microsoft 365 Copilot to grow its brand with worldwide collaboration by streamlining meetings, optimizing presentations and improving communications.
38. Kantar is harnessing the power of Microsoft 365 Copilot by reducing costly, time-consuming IT processes and boosting productivity for employees.
39. KMS Lighthouse enhanced its knowledge management platform with Microsoft Teams and Dynamics 365 integration, enabling users to leverage KMS Lighthouse without having to switch applications. And with Azure OpenAI Service, companies can create relevant content more quickly within the KMS Lighthouse application.
40. KPMG Australia is using Microsoft Azure OpenAI Service, Azure AI Search and Microsoft Copilot 365 to perform advanced text analysis of dozens of client source documents to identify full or partial compliance, or noncompliance, in a fraction of the time required for manual assessments.
41. LGT is launching Microsoft Copilot LGT to improve efficiency, showing users save an average of an hour a week even in the pilot phase.
42. Localiza&Co, a leader in the mobility industry in Latin America, implemented Microsoft 365 Copilot to automate processes and improve efficiency, and reduced 8.3 working hours per employee per month.
43. Lotte Hotels & Resorts has been creating a new work culture that allows employees to work more efficiently and focus on the nature of the work by adopting Microsoft Power Platform for automation.
44. MAIRE is leveraging Microsoft 365 Copilot to automate routine tasks, saving over 800 working hours per month, freeing up engineers and professionals for strategic activities while supporting MAIRE’s green energy transition by reducing their carbon footprint.
45. McDonald’s China chose Microsoft Azure AI, GitHub Copilot and Azure AI Search to transform its operations, resulting in a significant increase in AI adoption, consumption and retention from 2,000 to 30,000 employee transactions monthly.
46. McKnight Foundation adopted Microsoft 365 Copilot for all staff, saving time, increasing productivity and freeing space to focus on strategic priorities.
47. Medigold Health uses Azure OpenAI Service to significantly reduce the time that clinicians spend writing reports during their consultation and administrative time.
48. Morula Health is using Microsoft 365 Copilot to enhance productivity, streamline medical writing tasks and ensure data security, ultimately improving efficiency and client satisfaction.
49. Motor Oil Group is achieving remarkable efficiency gains by integrating Microsoft 365 Copilot into its workflows, with staff spending minutes on tasks that used to take weeks.
50. Nagel-Group uses Azure OpenAI Service to help employees quickly access information which saves time, creates efficiency and transparency and leads to higher-quality answers overall.
51. National Australia Bank is leveraging Microsoft 365 Copilot for daily productivity and data analysis and insights and Microsoft Copilot for Security to quickly analyze millions of security event logs and allow engineers to focus on more important areas.
52. NFL Players Association integrated Azure AI Services and Azure App Service into their video review process, reducing review time by up to 73%, significantly increasing efficiency and enhancing player safety through consistent rule enforcement.
53. O2 Czech Republic boosts productivity and streamlines meetings with Microsoft 365 Copilot, revolutionizing how information is shared and making automation a part of daily work.
54. Onepoint developed a secure conversational agent based on Azure OpenAI which delivers productivity gains of between 10% and 15% across all business lines.
55. Orange Group has over 40 use cases with Azure OpenAI Service and GitHub Copilot across business functions to support employees in their day-to-day tasks, enabling them to concentrate on higher value-added activities.
56. Oxford University Hospitals NHS Foundation Trust implemented Microsoft 365 Copilot to improve staff report productivity by saving one to two hours a week, or simple formatting tasks down to a matter of seconds, enabling more resources to deliver frontline services.
57. PA Consulting transformed its sales operations with Microsoft 365 Copilot, so its people can invest more time on the activities that have the biggest impact for clients and maximize the strategic value they provide.
58. Petrobras used Azure OpenAI Service to create ChatPetrobras, which is streamlining workflows, reducing manual tasks and summarizing reports for its 110,000 employees.
59. Petrochemical Industries Company automates work processes to save time with Microsoft 365 Copilot from weeks to days, hours to seconds.
60. PIMCO built ChatGWM with Azure AI Studio, a comprehensive platform that provides the ability to ask questions, receive responses and verify answers all in one place, so teams can spend more time engaging clients and having deeper conversations.
61. PKSHA Technology is optimizing their time on critical work by increasing efficiency in meeting preparations, data analytics and ideation with the help of Microsoft 365 Copilot.
62. Providence has collaborated with Nuance and Microsoft to accelerate development and adoption of generative AI-powered applications, helping improve care quality and access, and reduce physician’s administrative workloads.
63. RTI International adopted Microsoft 365 Copilot to gain productivity wherever possible, allowing staff to focus on their areas of expertise, delivering even better science-backed solutions for clients.
64. SACE, an Italian finance and insurance firm, is using Microsoft 365 Copilot and Viva to boost productivity and unlock employee potential while enhancing overall well-being — and productivity improvement data from the first nine months of implementation shows a 23% increase.
65. Sandvik Coromant is using Microsoft Copilot for Sales to drive efficiency and accuracy, shaving at least one minute off each transaction, allowing sellers and account managers to focus their expertise on responding to customers’ needs with analysis, creativity and adaptability.
66. Sasfin Bank built a solution on Microsoft Azure that centralized 20,000 documents to analyze contract clauses and provide real-time snapshots, moving guesswork into data-driven decision-making.
67. Scottish Water implemented Microsoft 365 Copilot reducing mundane tasks to a minimum, and thus freeing up time for employees to work on the more meaningful tasks.
68. Shriners Children’s developed an AI platform allowing clinicians to easily and securely navigate patient data in a singular location, enhancing patient care, and improving the efficiency of their healthcare services.
69. Siemens is leveraging Azure OpenAI Service to improve efficiency, cut downtime and address labor shortages.
70. Softchoice employees are experiencing firsthand how Microsoft 365 Copilot can transform daily workflows, realizing productivity gains of 97% reduction in time spent summarizing technical meetings and up to 70% less time spent on content creation.
71. Syensqo utilized Microsoft’s Azure OpenAI Service to develop a custom AI chatbot in three months, which improved their internal data management, decision-making and overall efficiency.
72. Teladoc Health uses Microsoft 365 Copilot to revolutionize its telehealth operations, automating routine tasks, boosting efficiency and increasing productivity.
73. Telstra developed two cutting-edge generative AI tools based on Microsoft Azure OpenAI Service: 90% of employees are using the One Sentence Summary tool which resulted in 20% less follow-up customer contact and 84% of customer service agents using the Ask Telstra solution.
74. Topsoe achieved 85% AI adoption among office employees in seven months, significantly enhancing productivity and business processes.
75. Torfaen County Borough Council utilized Microsoft 365 Copilot to streamline back-office processes, resulting in significant time savings and enhanced productivity for both business and children’s services teams, with further rollouts planned.
76. Trace3 leveraged Microsoft 365 Copilot to streamline and enhance processes across the business and with clients, such as reducing the time it takes HR recruiting managers to respond to applicants within a couple of days instead of several weeks.
77. Unilever is reinventing their marketing process with Copilot, saving time on briefing tasks, automatically pulling in relevant market data, content and insights to accelerate campaign launches.
78. Uniper SE implemented Microsoft 365 Copilot to reduce time spent on manual and repetitive tasks, and help workers focus on more pressing work, such as developing enhanced solutions to speed up the energy transition.
79. Unum Group built a custom AI application to search 1.3 terabytes of data with 95% accuracy using Azure OpenAI Service.
80. Virgin Atlantic adopted Microsoft 365 Copilot and GitHub Copilot and is seeing real business benefits, including productivity improvements, enabling new ways of working.
81. Visier built a generative AI assistant that leverages Azure AI and Azure OpenAI Services to deliver workforce analytics and actionable insights for more than 50,000 customers.
82. Virtual Dental Care developed an AI application Smart Scan that leverages Microsoft Azure to reduce paperwork for mobile dental clinics in schools by 75% and frees dentists to devote more time to patient care.
83. Zakladni Skola As Hlavkova adopted Microsoft 365 Copilot and saw a 60% improvement in handling administrative documents, decreased lesson preparation from hours to few minutes, increased inclusivity and enhanced communication with students and parents.
Reinventing customer engagement

We’ve seen great examples of how generative AI can automate content creation, ensuring there’s fresh and engaging materials ready to go. It personalizes customer experiences by crunching the numbers, boosting conversion rates. It makes operations smoother, helping teams launch campaigns faster. Plus, it drives innovation, crafting experiences that delight customers while lightening the load for staff. Embracing generative AI is key for organizations wanting to reinvent customer engagements, stay ahead of the game and drive both innovation and efficiency.

New Stories:
1. Aditya Birla Capital built the SimpliFi chatbot on Microsoft Azure to simplify financial services information and offers through intelligent search and proactive nudging with minimum latency and high scalability.
2. AIA is using Copilot in Dynamics 365 Customer Service to allow customer service representatives to handle more cases in less time by automating time-consuming tasks like drafting customer emails and summarizing lengthy chats and case histories.
3. Aydem Energy and Microsoft partner Softtech used Azure OpenAI Service to create an AI assistant for WhatsApp, providing customers with real-time updates and handling meter readings, bill checks and claims.
4. The City of Buenos Aires developed Boti with ChatGPT using Azure OpenAI Service to manage multiple service channels and personalize key services for residents and tourists. The chatbot centralizes data, enables natural language interactions and scales to handle high demands, managing 2 million queries per month without human intervention, alleviating the operational burden by 50%, improving the citizen experience and increasing efficiency.
5. de Alliantie built a generative AI chatbot using Azure OpenAI to digest information in their online knowledge base so staff can get accurate answers in seconds. Another Azure AI-based solution transcribes and summarizes calls, then categorizes them by theme.
6. Haceb created a virtual technical support assistant with generative AI, helping on-the-ground technicians troubleshoot, diagnose and resolve product issues faster and more efficiently.
7. Lloyds Banking Group developed the Branch Translation App using Microsoft Power Apps and Azure AI services with a goal to improve communication with non-English speaking customers and the innovation enhanced service delivery, receiving positive feedback from employees and customers alike.
8. Staffbase provides its clients with Staffbase Companion, which helps it enhance internal communication with quick content generation, summarization, translation and future capabilities — and remain confident in data protection.
9. Tekion built Automative Retail Cloud, a unified, cloud-native platform that uses generative AI to analyze communications, extract insights and provide customer-specific recommendations for sales agents.
10. Welcome Account created a banking application with a conversational agent based on Azure OpenAI Service, in order to help people manage their finances and administrative procedures. This multilingual agent already assists no less than a thousand refugees on a daily basis.
11. UBS is using Azure AI solutions, including Azure AI Search and Azure OpenAI Service, to power “Smart Assistants” that streamline content access and provide real-time information to Client Advisors, boosting efficiency and client engagement.
12. Virbe enables businesses to interact with customers through AI-powered avatars, and with Azure AI services like Azure OpenAI Service and Azure AI Search, Virbe enhanced its AI avatars and simplified engagement with enterprise customers — and customers are seeing up to a 10x increase in leads.
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1. Absa has adopted Microsoft Copilot to streamline various business processes, saving several hours on administrative tasks each day.
2. Adobe leverages Microsoft Azure to streamline the customer experience, harnessing the power of the connected cloud services and creating a synergy that drives AI transformation across industries.
3. Acentra Health developed Medscribe, a web application that uses Azure OpenAI Service to generate draft letters in a secure, HIPPA-compliant enclave that responds to customer appeals for healthcare services within 24 hours, reducing the time spent on each appeal letter by 50%.
4. Air India leveraged Azure OpenAI Service to develop a virtual assistant that has handled nearly 4 million customer queries with full automation, significantly enhancing customer experience and avoiding millions of dollars in customer support costs.
5. Alaska Airlines is using Microsoft Azure, Microsoft Defender, and GitHub to ensure its passengers have a seamless journey from ticket purchase to baggage pickup and started leveraging Azure OpenAI Service to unlock more business value for its customer care and contact centers.
6. Ally Financial is using Azure OpenAI Service to reduce manual tasks for its customer service associates, freeing up time for them to engage with customers.
7. BMW Group optimizes the customer experience connecting 13 million active users to their vehicles with the MyBMW app on Azure, which supports 450 million daily requests and 3.2TB data processing.
8. Boyner has tripled its e-commerce performance using Microsoft Azure, seeing a rise in customer satisfaction, engagement, conversion rate and revenue.
9. Bradesco Bank integrated Microsoft Azure to its virtual assistant, BIA, resulting in reduced response time from days to hours, improving operational efficiency and client satisfaction.
10. Capgemini Mexico integrated GitHub Copilot to support scalable AI implementations which has led to improved customer experiences and increased efficiency.
11. Capitec Bank uses Azure OpenAI Service and Microsoft 365 Copilot, enabling their AI-powered chatbot to assist customer service consultants in accessing product information more efficiently, saving significant time for employees each week.
12. Cdiscount is leveraging GitHub Copilot and Azure OpenAI Service to enhance developer efficiency, optimize product sheet categorization and improve customer satisfaction.
13. Cemex used Azure OpenAI Service to launch Technical Xpert, an AI tool used by sales agents to provide instant access to comprehensive product and customer solution information, significantly reducing search time by 80%.
14. Chanel elevated their client experience and improved employee efficiency by leveraging Microsoft Fabric and Azure OpenAI Service for real-time translations and quality monitoring.
15. City of Burlington created two AI-powered solutions: MyFiles system using Microsoft Power Platform for building permits, and CoBy, a 24/7 customer support assistant using Microsoft Copilot Studio.
16. City of Madrid created an AI virtual assistant with Microsoft Azure OpenAI Service offering tourists accurate, real-time information and personalized responses in 95-plus languages.
17. Cognizant is making performance management more effective and meaningful with Microsoft Azure Machine Learning to help clients across industries envision, build, and run innovative digital enterprises.
18. Coles Group has leveraged Microsoft Azure to enhance its digital presence and improve customer engagement, rolling out new applications to its stores six times faster without disrupting workloads.
19. Commercial Bank of Dubai used Microsoft Azure to upgrade its application infrastructure, improving transaction security and speed so individual customers can now open an account and start banking in about two minutes.
20. Cradle Fund, dedicated to nurturing startups in Malaysia, introduced an AI-driven chatbot to boost user interaction and increase public engagement. User engagement quadrupled while resolution time was reduced from two days to a few clicks. Cradle also decreased customer service costs by 35%, increased international interactions by 40% and increased daily average visits 10-fold.
21. Doctolib, a leading eHealth company in France, leverages Microsoft technology to develop an AI-powered medical assistant, integrating both Azure OpenAI Service and Mistral Large on Azure.
22. Docusign used Azure AI to develop its Intelligent Agreement Management (IAM) platform, which supports millions of workflows, reducing contract processing times and enhancing customer satisfaction with advanced AI-powered analytics.
23. Dubai Electricity and Water Authority has significantly improved productivity and customer satisfaction by integrating multiple Microsoft AI solutions, reducing task completion time from days to hours and achieving a 98% customer happiness rate.
24. Elcome uses Microsoft 365 Copilot to improve the customer experience, reducing response times from 24 hours to eight hours.
25. elunic developed shopfloor.GPT based on Azure OpenAI leading to increased productivity for customers saving 15 minutes per request.
26. Estée Lauder Companies is leveraging Azure OpenAI Service to create closer consumer connections and increase speed to market with local relevancy.
27. First National Bank (FNB) is using Microsoft Copilot for Sales to help bankers create professional, thoughtful emails in 13 native South African languages, to enhance customer interactions, streamline communications and reinforce its commitment to innovation and customer service.
28. Flora Food Group migrated to Microsoft Fabric to offer more detailed and timely insights to its customers, enhancing service delivery and customer satisfaction.
29. Groupama deployed a virtual assistant using Azure OpenAI Service that delivers reliable, verified and verifiable information, and boasts an 80% success rate.
30. Holland America Line developed a virtual agent using Microsoft Copilot Studio that acts as a digital concierge on their website to support new and existing customers and travel advisors, which has achieved a strong resolution rate and is currently handling thousands of conversations per week.
31. International University of Applied Sciences (IU) adopted Azure OpenAI Service to revolutionize learning with a personalized study assistant that can interact with each student just like a human would.
32. Investec is using Microsoft 365 Copilot for Sales to enhance the bank’s client relationships, estimating saving approximately 200 hours annually ultimately boosting sales productivity and delivering personalized, seamless customer experience.
33. Jato Dynamics used Azure OpenAI Service to automate content generation, helping dealerships save approximately 32 hours each month.
34. Kenya Red Cross worked with Pathways Technologies to develop a mental health chatbot in Azure AI.
35. LALIGA is delivering a seamless fan experience and AI insights with Azure Arc, using AI in Azure for optimizing match scheduling and other key operations.
36. Legrand used Azure OpenAI Service to reduce the time to generate product data by 60% and improve customer support interactions with fast, accurate information.
37. Linum is using Microsoft Azure to train their text-to-video models faster and more efficiently without losing performance or wasting resources.
38. Lumen Technologies is redefining customer success and sales processes through the strategic use of Microsoft 365 Copilot, enhancing productivity, sales and customer service in the global communications sector.
39. Mars Science & Diagnostics used the Azure AI catalog to build generative AI apps to enhance accuracy and extract data insights quickly, helping pets with critical, undiagnosed conditions receive the care they require faster.
40. McKinsey & Company is creating an agent to reduce client onboarding process by reducing lead time by 90% and administrative work by 30%.
41. Meesho leveraged Microsoft’s Azure OpenAI Service and GitHub Copilot to enhance customer service and software development, resulting in a 25% increase in customer satisfaction scores and 40% more traffic on customer service queries.
42. Milpark Education integrated Microsoft Copilot and Copilot Studio and in just four months, improved efficiency and accuracy of student support, decreasing the average resolution time by 50% and escalation time by more than 30%.
43. National Basketball Association is using Azure OpenAI Service to speed up the time to market, helping fans connect with the league with personalized, localized insights to enhance the fan experience.
44. NC Fusion chose a comprehensive Microsoft solution to make marketing engagement activities easier and accurately target the best audience segments.
45. Medgate, a telehealth subsidiary of Otto Group developed a medical Copilot powered by Azure OpenAI which summarizes consultations, supports triage and provides real-time translations.
46. Orbital Witness embraced the use of large language models (LLMs) in Azure OpenAI to build its innovative AI Agent application, Orbital Copilot, which can save legal teams 70 percent of the time it takes to conduct property diligence work.
47. Pacific Gas & Electric built a chatbot using Microsoft Copilot Studio that saves $1.1 million annually on helpdesk support.
48. Parloa took a “voice-first” approach and created an enterprise-grade AI Agent Management platform to automate customer interactions across phone, chat and messaging apps.
49. Pockyt is using GitHub Copilot and anticipates a 500% increase in productivity in the medium to long term as they continue adapting AI and fine-tuning their software development life cycle.
50. South Australia Department for Education launched an AI-powered educational chatbot to help safeguard students from harmful content while introducing responsible AI to the classrooms.
51. Sync Labs is using Microsoft Azure to create AI-driven solutions that have led to a remarkable 30x increase in revenue and a 100x expansion of their customer base.
52. Syndigo is using Azure to accelerate digital commerce for its customers by more than 40% and expand its customer base.
53. Telkomsel created a virtual assistant with Azure OpenAI Service, resulting in a leap in customer self-service interactions from 19% to 45%, and call volume dropped from 8,000 calls to 1,000 calls a day.
54. Torrens University chose to use Azure OpenAI to uplift its online learning experience, saving 20,000 hours and $2.4 million in time and resources.
55. Trusting Social integrated Microsoft Azure services to launch AI-driven agents that are changing how banks function and transforming their customer’s banking experience.
56. University of California, Berkeley used Azure OpenAI Service to deploy a custom AI chatbot that supports student learning and helps students with complex coursework.
57. University of Sydney created a self-serve AI platform powered by Azure OpenAI Service, to enable faculty to build custom chatbots for enhancing student onboarding, feedback, career simulation and more.
58. Van Lanschot Kempen is using Microsoft 365 Copilot to reduce the time needed for daily tasks, freeing up time to invest in that crucial personal connection.
59. Virgin Money built an award-winning virtual assistant using Copilot Studio to help build customers’ confidence in their digital products and services.
60. VOCALLS automates over 50 million interactions per year, resulting in a 78% reduction in average handling time aside from a 120% increase in answered calls.
61. Vodafone Group is leveraging Microsoft’s AI solutions, including Azure AI Studio, OpenAI Service, Copilot and AI Search, to achieve a 70% resolution rate for customer inquiries through digital channels and reduce call times by at least one minute.
62. Walmart is using Azure OpenAI Service to deliver a helpful and intuitive browsing experience for customers designed to serve up a curated list of the personalized items a shopper is looking for.
63. Weights & Biases created a platform which runs on Microsoft Azure that allows developers to keep records, log successes and failures and automate manual tasks.
64. World2Meet is providing better customer service and operations with a new virtual assistant powered by Microsoft Azure.
65. Xavier College is modernizing its student information systems on Microsoft Dynamics 365 and Microsoft Azure to unlock powerful insights, fostering innovation and data-driven decision making.
66. Zavarovalnica Triglav implemented Microsoft Dynamics 365 and Azure OpenAI Service to streamline its operations with automated responses and smart rerouting of customer enquiries.
67. Zurich Insurance Group used Azure OpenAI Service to develop advanced AI applications that led to more accurate and efficient risk assessment evaluations, accelerating the underwriting process, reducing turnaround times and increasing customer satisfaction.
Reshaping business process

Transforming operations is another way generative AI is encouraging innovation and improving efficiency across various business functions. In marketing, it can create personalized content to truly engage different audiences. For supply chain management, it can predict market trends so companies can optimize their inventory levels. Human resources departments can speed up the hiring process, while financial services can use it for fraud detection and risk assessments. With generative AI, companies are not just refining their current processes, they’re also discovering exciting new growth opportunities.

New Stories:
1. Bank of Queensland is modernizing its operations with Azure, Microsoft 365 and Microsoft 365 Copilot, using AI to optimize business processes such as creating marketing content, building reports and plans and drafting HR content.
2. Document360 created an AI-powered knowledge base and service platform for companies to create, manage and publish online documentation, including product manuals, SOPs and wikis.
3. Eduvos is simplifying the student enrollment experience with Microsoft Azure and Dynamics 365, reducing the time from 90 days to nearly instantaneous and associated costs by 90%.
4. Emirates Global Aluminum (EGA) uses Azure Local to support its digital manufacturing platform, including support for safety-critical applications that use AI. Through its hybrid Azure environment, EGA has achieved 10 to 13 times faster AI response time and 86% cost savings for AI image and video use cases.
5. Hellenic Cadastre built a system that reads and categorizes property contracts, applies legal rules and provides assessments for approval using Azure OpenAI Service. Today, property transaction assessments take less than 10 minutes instead of hours, reducing costs from 15 euros to 0.11 euros per assessment. The system also enhanced property owners’ legal security and boosted the Greek economy by enabling transactions to be completed sooner.
6. Startup legal-i is using AI to analyze unstructured data and help expensive insurance specialists make better decisions faster — speeding up healthcare and insurance processes and improving the accuracy of outcomes.
7. Publishing company SHUEISHA Inc. is using Microsoft Security Copilot to enable faster incident response, boosting the confidence and effectiveness of cybersecurity personnel.
8. thyssencrupp is using the Siemens Industrial Copilot, built on Azure OpenAI Service, to address a skilled labor gap while revolutionizing how it programs and operates machinery.
9. U.S. AutoForce implemented Dynamics 365 Supply Chain Management to centralize warehouse data, connect processes and improve operational efficiency while using Microsoft Copilot for Finance to automate monthly reconciliations.
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1. ABB Group integrated Azure OpenAI Service into their Genix Copilot platform enabling customers to achieve up to 30% savings in operations and maintenance, 20% improvement in energy and emission optimization and an 80% reduction in service calls.
2. Accelleron used Microsoft Power Platform to support numerous business applications and simplify processes for service agents and employees, resulting in the onboard of new agents in 30 minutes, compared to two days for other solutions.
3. Accenture developed an AI-powered financial advisor that leverages RISE with SAP on Microsoft Azure to enhance their infrastructure and integrate financial data.
4. Atomicwork leverages Azure OpenAI to bring together three power capabilities: a conversational assistant, a modern service management system and a workflow automation platform.
5. Blink Ops fully embraced generative AI to build the world’s first Security Automation Copilot with more than 8,000 automated workflows to help any Security/IT task through prompts.
6. Chalhoub Group is using Microsoft Fabric to modernize its data analytics and streamline its data sources into one platform, increasing agility, enhancing analytics and accelerating processes.
7. Cineplex is developing innovative automation solutions for finance, guest services and other departments, saving the company over 30,000 hours a year in manual processing time.
8. ClearBank moved its services to Microsoft Azure to gain scalability and efficiency, pushing out 183% more monthly system releases, gaining both scalability and efficiency.
9. Danske Statsbaner increases productivity up to 30% with help from Microsoft AI solutions.
10. Dentsu implemented Microsoft Azure AI Foundry and Azure OpenAI Service to build a predictive analytics copilot that supports media insights, cutting analysis time by 80% and overall time to insight by 90%, reducing analysis costs.
11. Dow implemented Microsoft 365 Copilot to empower teams with AI-driven insights and streamline essential workflows by automating tasks across departments, saving millions of dollars on shipping operations in the first year.
12. Eastman implemented Microsoft Copilot for Security realizing the benefits of accelerated upskilling, step-by-step guidance for response and faster threat remediation.
13. Fast Shop migrated to Microsoft Azure creating a self-service culture of access to data, eliminating delays, reducing costs and increasing leadership satisfaction with data while providing more agility in reporting.
14. Florida Crystals adopted a value-added solution across Microsoft products including Microsoft 365 Copilot to reduce telecom expenses and automate industrial process controls.
15. GHD is reinventing the RFP process in construction and engineering with Microsoft 365 Copilot.
16. GovDash is a SaaS platform that leverages artificial intelligence to streamline the entire business development life cycle for government contracting companies using Azure OpenAI.
17. Grupo Bimbo is deploying Microsoft’s industrial AI technologies to modernize its manufacturing processes, optimizing production and reducing downtime, driving significant cost savings, and empowering global innovation.
18. Insight Canada implemented Microsoft 365 Copilot to streamline business operations, with 93% of users realizing productivity gains in functions including sales, finance and human resources.
19. Intesa Sanpaolo Group enhanced its cybersecurity with AI-enabled Microsoft Sentinel and Microsoft Copilot for Security, resulting in faster threat detection, increased productivity and reduced storage costs.
20. Kaya deployed a custom implementation of Microsoft Dynamics 365 and Power BI to modernize its supply chain, leading to enhanced visibility, improved planning and streamlined inter-department operations.
21. Lenovo leveraged Dynamics 365 Customer Service to rapidly manage customer inquiries by streamlining repetitive tasks, boosted agent productivity by 15%, reduced handling time by 20% and reached record-high customer satisfaction.
22. Lionbridge Technologies, LLC is using Microsoft Azure and Azure OpenAI Service to accelerate its delivery times and improve quality, reducing project turnaround times by up to 30%.
23. LTIMindtree integrated Microsoft Copilot for Security, offering automated incident response, integrated threat intelligence and advanced threat analysis.
24. Mania de Churrasco used Microsoft Azure, Power Platform and Microsoft 365 to achieve high efficiency, security and scalability in its operations, in addition to improving its data intelligence, which indirectly participated in a 20% increase in sales year on year.
25. National Bank of Greece built an Azure-powered Document AI solution to transform its document processing, improving the bank’s accuracy to 90%.
26. Nest Bank has revolutionized its operations by integrating Microsoft 365 Copilot and Azure OpenAI Service, resulting in doubled sales and increased daily transactions from 60,000 to 80,000, showcasing the transformative impact of generative AI in the financial sector.
27. Network Rail modernized their data analytics solution with Microsoft Azure, helping engineers understand data 50% faster than before and improve efficiency, passenger experiences and safety — all while saving costs.
28. Nsure developed an AI-powered agent that uses Copilot Studio and Power Automate to reduce manual processing time by 60% while also reducing associated costs by 50%.
29. Oncoclínicas implemented Microsoft Azure to transform its entire data ecosystem with a web portal and mobile application that performs all image processing and storage.
30. Operation Smile used Azure OpenAI Service, Fabric and Power Apps to eliminate manual data entry, resulting in reduced translation errors by about 90% and the time required for completing reports from four to five hours to just 15 to 20 minutes.
31. Pacifico Seguros has adopted Microsoft Copilot for Security to optimize its security operations and anticipate and neutralize threats more efficiently and effectively.
32. Parexel adopted Azure Databricks and Microsoft Power BI, achieving an 85% reduction in data engineering tooling costs, a 30% increase in staff efficiency and a 70% reduction in time to market for data product delivery.
33. Paysafe used Microsoft 365 Copilot to streamline meetings, information management and document creation, addressing language barriers, eliminating time-consuming tasks and boosting creativity along the way.
34. Planted is integrating Azure OpenAI to manage everyday tasks more efficiently and facilitate the search for information for innovative process development.
35. Presidio realized dramatic productivity gains saving 1,200 hours per month on average for the employees using Microsoft 365 Copilot and created 70 new business opportunities.
36. Qatar Charity used Copilot Studio to increase its call center efficiency, reducing average handle time by 30%, increased customer satisfaction by 25%, and achieved a 40% reduction in IT maintenance costs.
37. Saphyre uses Microsoft Azure and AI to provide an intelligent cloud-based solution that automates and streamlines financial trading workflows around client and counterparty life cycle management, reducing manual efforts by 75%.
38. StarKist Foods used Azure to effectively unite production and demand processes with finance, reducing the planning cycle from 16 hours to less than one.
39. Swiss International Air Lines migrated and modernized with Microsoft Azure, achieving up to 30% cost savings, a remarkable boost in platform stability along with enhanced security visibility.
40. ZEISS Group uses Microsoft Fabric to create a secure and trusted data supply chain that can be shared effortlessly across a range of business units.
41. ZF Group builds manufacturing efficiency with over 25,000 apps and 37,000 unique active users on Power Platform.
Bending the curve on innovation

Generative AI is revolutionizing innovation by speeding up creative processes and product development. It’s helping companies come up with new ideas, design prototypes, and iterate quickly, cutting down the time it takes to get to market. In the automotive industry, it’s designing more efficient vehicles, while in pharmaceuticals, it’s crafting new drug molecules, slashing years off R&D times. In education, it transforms how students learn and achieve their goals. Here are more examples of how companies are embracing generative AI to shape the future of innovation.

New Stories:
1. Agricultural Development Trust (ADT) of Baramati is analyzing water, weather, nutrient, pH data and more with AI to increase crop yields in India.
2. DrumBeat.AI is using Microsoft AI services to predict, identify and treat ear diseases in communities that are both rural and remote, helping to prevent hearing loss among Indigenous communities in Australia.
3. Dynamic Health Systems created its VitruCare365® platform on the Microsoft Cloud for healthcare technologies to enable motivational care planning. Built on Microsoft Azure, FHIR (Fast Healthcare Interoperability Resources) and Dynamics 365, it provides personalized apps powered by Azure OpenAI Service to each patient and is deployed as an extension to the Microsoft 365 tools clinicians use every day.
4. Cities can use Esri’s ArcGIS geospatial platform to create environmental digital twins that simulate heavy rainfall and apply hot spot analysis to highlight flooding. Adding Azure AI to the geospatial digital twin will reveal insights in impossible amounts of data.
5. Digital employment agency Gojob developed Aglae, a virtual assistant based on Azure OpenAI Service, to pre-qualify candidates within 15 minutes, enabling recruiters to achieve record employment placement rates.
6. Institut Curie and Microsoft partner Witivio developed Copilot for Researcher, an agent that can help researchers with some of the administrative tasks in their jobs so they have more time to spend on actual new ideas in the fight against cancer.
7. NASA created Earth Copilot to transform how people interact with Earth’s data.
8. Parity is helping women athletes use data and AI to help improve their well-being, performance and careers.
9. Petbarn created “PetAI” using Azure OpenAI Service, Azure AI Search and Azure App Service to provide Australian pet owners highly personalized advice and product recommendations.
10. Project Guacamaya is using daily satellite images and various AI models tailored to the Amazon ecosystem to help prevent its deforestation, allowing for quicker action to be taken in at-risk areas.
11. Properstar developed a solution to simplify the analysis of unstructured real estate data and create a dynamic, AI-powered filtering system that provides more nuanced search results.
12. RadarFit is using generative AI and a unique gamification strategy to encourage healthy habits in Brazil, with a comprehensive health and wellness program aimed at helping companies reduce chronic disease rates.
13. SEDUC is using Microsoft 365 Copilot for administrative tasks — such as generating legal documents and handling administrative inquiries — and has expanded to include AI usage with students and teachers, including personalized learning to cater to individual student needs and help them recover from learning losses during the pandemic.
14. Indonesia’s Universitas Terbuka used Microsoft Azure OpenAI services and Azure AI Foundry to build an AI tutor that delivers accurate, curriculum-aligned responses and streamlines student assessment. The tutor currently supports 500 classes and some 100,000 students.
15. World Traveler is using AI including Microsoft Reading Progress and Microsoft Immersive Reader to help teachers reach its globally and educationally diverse students with personalized learning experiences.
16. South Korean startup Wrtn Technologies brings ATI close to people, with a “superapp” that compiles an array of AI use cases and services, but localized for Korean users to integrate AI into their everyday lives.
————————————————————————————————————————–
1. Air India has incorporated Microsoft 365 Copilot into multiple departments, unlocking a new realm of operational insights that not only provides critical data on flight punctuality and operational hurdles, but also empowers proactive, collaborative decision making.
2. Agnostic Intelligencedeployed Azure OpenAI Service to eliminate time-consuming tasks, saving users up to 80% of their time, and enabling IT managers to focus on innovation and quality assurance.
3. Albert Heijn is using Azure OpenAI for everything from customer personalization to demand forecast and food waste projects, making it easier for its customers to change their lifestyle.
4. Amgen is using Microsoft 365 Copilot to boost productivity and has the potential to speed up drug development and support advancements in their business processes.
5. APEC leverages Microsoft Azure and deep neural network algorithms to develop an app that enables healthcare providers to capture retinal images, increasing the accuracy to identify Retinopathy of Prematurity (RoP) to 90%.
6. ASOS is using Azure AI Studio to help customers discover new looks with genuine shopping insights, personalized conversations, naturalism and even humor to enliven the shopping journey.
7. Auburn University is incorporating Microsoft Copilot to promote AI literacy, accessibility and collaboration, with the aim to expand educational and economic opportunities for its entire academic community with AI-centric tools.
8. B3 launched an AI assistant using Azure OpenAI Service that aids 10,000 users a day to answer Brazilians’ questions about how to start investing.
9. Basecamp Research aims to build the world’s largest database of national biodiversity and apply AI and machine learning to advance bioscience.
10. Bayer is using Microsoft Copilot to contribute to feeding a growing global population and helping people lead healthier, disease-free lives.
11. BMW AG implemented Azure AI to develop a mobile data recorder copilot for faster data management helping engineers reduce the lead time for insights from days to hours or sometimes minutes.
12. Brembo leveraged Azure OpenAI to develop ALCHEMIX, a solution to generate innovative compounds for its brake pads, drastically reducing the development time of new compounds from days to mere minutes.
13. Canary Speech can now train new vocal models in as little as two months and handle millions of transactions per month with Microsoft Azure.
14. CapitaLand simplified internal processes increasing efficiency to more than 10,000 man-days saved per year and deployed Azure OpenAI Service to build the first AI hospitality chatbot for its lodging business.
15. Cassidy is using Azure OpenAI Service to enhance efficiency across various industries, supporting over 10,000 companies.
16. Coca-Cola is implementing Azure OpenAI Service to develop innovative generative AI use cases across various business functions, including testing how Microsoft 365 Copilot could help improve workplace productivity.
17. Denso is developing “human-like” robots using Azure OpenAI Service as the brain to help robots and humans work together through dialogue.
18. eFishery is using Azure OpenAI for farmers to get the data and insights on fish and shrimp farming, including more precise feeding and water quality monitoring.
19. EY developed an application that automatically matches and clears incoming payments in SAP, resulting in an increase from 30% to 80% in automatically cleared payments and 95% matched payments, with estimated annual time savings of 230,000 hours globally.
20. EY worked with Microsoft to make Azure AI Foundry more inclusive for all, serving the 20% of the global workforce identifying as neurodivergent.
21. FIDO is using Azure OpenAI Service to develop an AI tool that uses sound to pinpoint leaky pipes, saving precious drinking water.
22. Georgia Tech is using Azure OpenAI Service to enhance the electric vehicle (EV) charging infrastructure, achieving rapid data classification and predictive modeling, highlighting the reliability of networked chargers over non-networked ones.
23. GigXR developed a solution to create the intelligence for specific AI patients using Microsoft Azure OpenAI Service and other Azure services.
24. GoTo Group is significantly enhancing productivity and code quality across its engineering teams by adopting GitHub Copilot, saving over seven hours per week and achieved a 30% code acceptance rate.
25. GovTech used Microsoft Azure OpenAI Service to create LaunchPad, sparking more than 400 ideas and 20 prototypes, laying the foundation for the government to harness the power of generative AI.
26. H&R Block is using Azure AI Studio and Azure OpenAI Service to build a new solution that provides real-time, reliable tax filing assistance.
27. Haut.AI provides skin care companies and retailers with customizable, AI-based skin diagnostic tools developed with the help of Microsoft AI.
28. Helfie is building a solution that caters to healthcare providers who can arm their patients with an application to more quickly and accurately access the care they need.
29. Hitachi will implement Azure Open AI Service, Microsoft 365 Copilot and GitHub Copilot to create innovative solutions for the energy, mobility and other industries.
30. Icertis is providing AI-based tools that will recognize contract language and then build algorithms to automatically choose the right approach based on the content of the contract.
31. Iconem leveraged AI-generated imagery to process and analyze a vast amount of photogrammetry data used to create the 3D digital twin of St. Peter’s Basilica, allowing visitors to explore every intricate detail from anywhere in the world.
32. ITOCHU is using Azure OpenAI Service and Azure AI Studio to evolve its data analytics dashboard into a service that provides immediate recommendations by automatically creating evidence-based product proposals.
33. IU International University of Applied Sciences (IU) is using the power of Azure OpenAI Service to develop Syntea, an AI avatar integrated into Microsoft Teams and Microsoft 365 Copilot, making learning more personalized, autonomous and flexible.
34. Khan Academy has partnered with Microsoft to bring time-saving and lesson-enhancing AI tools to millions of educators.
35. Lufthansa Group developed an animated 3D avatar called Digital Hangar to help guide passengers from initial travel inspiration to flight booking through an exchange with an Avatar in natural language.
36. Mia Labs implemented Azure OpenAI to produce and protect its conversational AI virtual assistant Mia that provides fast support from investors, along with the sophisticated security posture and threat protection capabilities for AI workloads.
37. Mitsubishi Heavy Industries is using Azure OpenAI Service to help accelerate digital innovation in power plants.
38. Molslinjen has created an AI analytics toolbox that has reduced fuel emissions, improved customer satisfaction and brought in millions of additional revenue.
39. New Sun Road implemented AI into a local controller for energy systems to balance the supply, storage and use requirements. This optimized loads to accelerate the deployment of renewable energy for local clean power for communities.
40. Novo Nordisk recently published initial results with predictive AI models for advanced risk detection in cardiovascular diseases, including an algorithm that can predict patients’ cardiovascular risk better than the best clinical standards.
41. Ontada implemented Azure AI and Azure OpenAI Service to target nearly 100 critical oncology data elements across 39 cancer types and now accesses an estimated 70% of previously unanalyzed or unused information, accelerating its life science product development, speeding up time to market from months to just one week.
42. Paige.AI is using AI and Microsoft Azure to accelerate cancer diagnoses with data from millions of images.
43. Pets at Home created an agent to help its retail fraud detection team investigate suspicious transactions.
44. Plan Heal is using Microsoft AI to create solutions that enable patients to monitor and report health metrics so care providers can better serve them.
45. Pacific Northwest National Laboratory (PNNL) is testing a new battery material that was found in a matter of weeks, not years, as part of a collaboration with Microsoft.
46. Rijksmuseum is harnessing the power of Copilot to make art accessible at scale by joining forces with Microsoft to improve and expand the art experience for blind and low-vision community members.
47. Royal National Institute of Blind People is using Azure AI services to develop an AI-based solution that quickly and accurately converts letters to braille, audio, and large print formats.
48. Schneider Electric provides productivity-enhancing and energy efficiency solutions and is using a whole suite of AI tools to hasten its own innovation and that of its customers.
49. SPAR ICS created an award-winning, AI-enabled demand forecasting system achieving 90% inventory prediction accuracy.
50. SustainCERT deployed GenAI and machine learning for automated data verification, extraction from documents and to accelerate auditing processes to enable verifying the impacts and credibility of carbon credits.
51. Suzuki Motor Corporation is adopting Azure OpenAI Service for data security, driving company-wide use with five multipurpose apps.
52. Tecnológico de Monterrey created a generative AI-powered ecosystem built on Azure OpenAI Service with the goal to personalize education based on the students’ needs, improve the learning process, boost teachers’ creativity and save time on tedious tasks.
53. TomTom is using Azure OpenAI Service, Azure Cosmos DB and Azure Kubernetes Service to revolutionize the driver experience.
54. Toyota is deploying AI agents to harness the collective wisdom of engineers and innovate faster in a system named “O-Beya,” or “big room” in Japanese. The “O-Beya” system currently has nine AI agents — from a Vibration Agent to a Fuel Consumption Agent.
55. Unilever is partnering with Microsoft to identify new digital capabilities to drive product innovation forward, from unlocking the secrets of our skin’s microbiome to reducing the carbon footprint of a multibillion-dollar business.
56. Unity used Microsoft Azure OpenAI Service to build Muse Chat, an AI assistant that can guide creators through common questions and help troubleshoot issues to make game development easier.
57. University of South Florida is using Microsoft 365 Copilot to alleviate the burden of repetitive, time-consuming tasks so faculty and staff can spend this time creatively solving problems, conducting critical research, establishing stronger relationships with peers and students and using their expertise to forge new, innovative paths.
58. Utilidata built the first distributive AI and accelerated computing platform for the electric grid allowing flexible transformation and dynamic infrastructure to increase electrification and decarbonization.
59. Visma has developed new code with GitHub Copilot, Microsoft Azure DevOps and Microsoft Visual Studio as much as 50 percent faster, contributing to increased customer retention, faster time to market and increased revenue.
60. Wallenius Wilhelmsen is implementing Microsoft 365 Copilot and using Microsoft Viva to drive sustainable adoption, streamlining processes, empowering better decision making and cultivating a culture of innovation and inclusion.
61. Wipro is committed to delivering value to customers faster and improving the outcomes across the business by investing $1 billion in AI and training 200,000 employees on generative AI principles with Microsoft Copilot.
Read more:

IDC InfoBrief: sponsored by Microsoft, 2024 Business Opportunity of AI, IDC# US52699124, November 2024

Tags: AI, AI Azure, Azure OpenAI Service, Copilot, Copilot Studio, Microsoft 365 Copilot
MIL OSI Economics –
February 6, 2025
MIL-Evening Report: Elections mean more misinformation. Here’s what we know about how it spreads in migrant communities

Source: The Conversation (Au and NZ) – By Fan Yang, Research fellow at Melbourne Law School, the University of Melbourne and the ARC Centre of Excellence for Automated Decision-Making and Society., The University of Melbourne

Shutterstock

Migrants in Australia often encounter disinformation targeting their communities. However, disinformation circulated in non-English languages and within private chat groups often falls beyond the reach of Australian public agencies, national media and platform algorithms.

This regulatory gap means migrant communities are disproportionately targeted during crises, elections and referendums when misinformation and disinformation are amplified.

With a federal election just around the corner, we wanted to understand how migrants come across disinformation, how they respond to it, and importantly, what can be done to help.

Read more:
Misinformation, disinformation and hoaxes: What’s the difference?

Our research

Our research finds political disinformation circulates both online and in person among friends and family.

Between 2023 and 2024, we carried out a survey with 192 respondents. We then conducted seven focus groups with 14 participants who identify as having Chinese or South Asian cultural heritage.

We wanted to understand their experiences of political engagement and media consumption in Australia.

An important challenge faced by research participants is online disinformation. This issue was already long-standing and inadequately addressed by Australian public agencies and technology companies, even before Meta ended its fact-checking program.

Lack of diversity in news

Our study finds participants read news and information from a diverse array of traditional and digital media services with heightened sense of caution.

They encounter disinformation in two ways.

The first is information misrepresenting their identity, culture, and countries of origin, particularly found in English-language Australian national media.

The second is targeted disinformation distributed across non-English social media services, including in private social media channels.

Misinformation is often spread on Chinese social media platforms to target their users.
Shutterstock

From zero (no trust) to five (most trusted), we asked our survey participants to rank their trust towards Australian national media sources. This included the ABC, SBS, The Age, Sydney Morning Herald, 9 News and the 7 Network.

Participants reported a medium level of trust (three).

Our focus groups explained the mistrust participants have towards both traditional and social media news sources. Their thoughts echoed other research with migrants. For instance, a second-generation South Asian migrant said:

it feels like a lot of marketing with traditional media […] they use marketing language to persuade people in a certain way.

Several participants of Chinese and South Asian cultural backgrounds reported that Australian national media misrepresent their culture and identity due to a lack of genuine diversity within news organisations. One said:

the moment you’re a person of colour, everyone thinks that you’re Chinese. And we do get painted with the same paintbrush. It is very frustrating […]

Another added:

Sri Lanka usually gets in the media for cricket mainly, travel and tourism. So apart from that, there’s not a lot of deep insight.

For migrants, the lack of genuine engagement with their communities and countries of origin distorts public understanding, reducing migrants to a one-dimensional, often stereotypical, portrayal. This oversimplification undermines migrants’ trust in Australian national media.

Participants also expressed minimal trust in news and information on social media. They often avoid clicking on headline links, including those shared by Australian national media outlets. According to a politically active male participant of Chinese-Malaysian origin:

I don’t really like reading Chinese social media even though I’m very active on WeChat and subscribe to some news just to see what’s going on. I don’t rely on them because I usually don’t trust them and can often spot mistakes and opinionated editorials rather than actual news.

Consuming news from multiple sources to understand a range of political leanings is a strategy many participants employed to counteract biased or partial news coverage. This was particularly the case on issues of personal interest, such as human rights and climate change.

Read more:
About half the Asian migrants we surveyed said they didn’t fully understand how our voting systems work. It’s bad for our democracy

What can be done?

Currently, Australia lacks effective mechanisms to combat online disinformation targeting migrant communities, especially those whose first language is not English.

Generalised counter-disinformation approaches (such as awareness camapaigns) fail to be effective even when translated into multiple languages.

This is because the disinformation circulating in these communities is often highly targeted and tailored. Scaremongering around geopolitical, economic and immigration policies is a common theme. These narratives are too specific for a population-level approach to work.

Our focus groups revealed that the burden of addressing disinformation often falls on family members or close friends. This responsibility is particularly carried by community-minded individuals with higher levels of media and digital knowledge. Women and younger family members play a key role.

Women and younger family members play a key role in debunking misinformation in migrant families.
Shutterstock

Focus group members told us how they explained Australian political events to their families in terms they were more familiar with.

During the Voice to Parliament referendum, one participant referenced China’s history of resistance against Japanese Imperialism to help a Chinese-Australian friend better understand the consequences of colonialism and its impacts on Australia’s First Nations communities.

Younger women participants shared that combating online disinformation is an emotionally taxing process. This is especially so when it occurs within the family, often leading to conflicts. One said:

I’m so tired of intervening to be honest, and mostly it’s family […] my parents and close friends and alike. There is so much misinformation passed around on WhatsApp or socials. When I do see someone take a very strong stand, usually my father or my mother, I step in.

Intervening in an informal way doesn’t always work. Family dynamics, gender hierarchies and generational differences can impede these efforts.

Countering disinformation requires us to confront deeper societal issues related to race, ethnicity, gender, power and the environment.

International research suggests community-based approaches work better for combating misinformation in specific cohorts, like migrants. This sort of work could take place in settings people trust, be that community centres or public libraries.

This means not relying exclusively on changes in the law or the practices of online platforms.

Instead, the evidence suggests developing community-based interventions that are culturally resonant and attuned to historical disadvantage would help.

Our recently-released toolkit makes a suite of recommendations for Australian public services and institutions, including the national media, to avoid alienating and inadvertently misinforming Asian-Australians as we approach a crucial election campaign.

Sukhmani Khorana receives funding from the Australia Research Council and has previously conducted commissioned research for migrant and refugee-focused organisations.

Fan Yang 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. Elections mean more misinformation. Here’s what we know about how it spreads in migrant communities – https://theconversation.com/elections-mean-more-misinformation-heres-what-we-know-about-how-it-spreads-in-migrant-communities-247685

MIL OSI Analysis – EveningReport.nz –

February 6, 2025
MIL-OSI USA: Cantwell Takes to Senate Floor to Oppose Trump’s Trade Philosophy: No to Tariffs, Yes to Innovation, Collaboration & Growth

US Senate News:

Source: United States Senator for Washington Maria Cantwell

02.05.25

Cantwell Takes to Senate Floor to Oppose Trump’s Trade Philosophy: No to Tariffs, Yes to Innovation, Collaboration & Growth

In speech on Senate floor, Cantwell advocates for new U.S. trade agreements with Southeast Asia, the Middle East, & the Americas to strengthen ties with allies & grow the economy at home; Cantwell slams proposed Trump tariffs: “The payers in this dispute are never the government leaders … it’s the workers who lose their job.”

WASHINGTON, D.C. – Today, U.S. Senator Maria Cantwell (D-WA), the ranking member of the Senate Committee on Commerce, Science, and Transportation, delivered a speech on the Senate floor calling for the United States to establish new trade agreements with Southeast Asia, the Middle East, and Latin America – and to repudiate the trade philosophy of President Donald Trump, whose proposed tariffs on goods from Canada, Mexico, and China would spark a trade war, drive up costs for American consumers, harm domestic businesses across hundreds of industries, and compromise the United States’ global leadership in the free trade ecosystem.

“It’s better to have a job than be attracted to join a terrorist organization. It’s better to create economic stability than fueling poverty and migration […] Last week, I spoke about additional investments the United States needs to make in Panama, Latin America, and others, to link and modernize bilateral agreements that help us counter China,” Sen. Cantwell said. “Free trade agreements are a way for us — not tariffs — to gain the leverage we want. South Asia could play an important role in this coalition building, particularly in the Indo-Pacific region. But I want us to go further. I want us to understand that U.S.-led negotiations in a Middle East free trade agreement to build on the momentum of a ceasefire in Gaza could further stabilize that region.”

In her speech, Sen. Cantwell railed against President Donald Trump’s tariff’s proposal, likening his isolationist trade policies to an attempt to make time stand still – a futile goal at any point, but especially during the modern information age, when countries are more interconnected than ever and the United States is locked in an innovation race in artificial intelligence and quantum technology. She also called on the United States to invest in its workforce, research & development, science, and capital investment to modernize its manufacturing and stay competitive.

“To outcompete our adversaries, we need coalitions, not go-it-alone strategies. Why do we fear this if we think our principles are correct? But somehow the current administration thinks that we’ve been hurt more than we’ve been helped in this global equation, and they want us to believe that somehow there is a win-win situation on tariffs that they can deliver on,” Sen. Cantwell said.

“Tariffs are a distortion of markets. Tariffs mean we disagree. It very rarely means the disagreement will be resolved quickly. It usually means people will retaliate, and the escalation of that retaliation will hurt consumers so much so that eventually someone will blink,” she continued. “The payers in this dispute, though, are never the government leaders. No, it’s the workers who lose their job. It’s the family that pays higher cost. It’s the community that loses their economic activity and tax revenue.”

In Washington state: Two out of every five jobs are tied to trade and related industries. In 2023, the state imported $19.9 billion of goods from Canada – primarily oil, gas, lumber, and electrical power — making our northern neighbors Washington state’s largest trade partner. Also in 2023, the state imported $1.7 billion in goods from Mexico, including motor vehicles, vehicle parts, and household appliances. More information about how President Trump’s proposed tariffs will impact businesses and consumers in the State of Washington is HERE.

Sen. Cantwell has remained a steadfast supporter of free trade to grow the economy in the State of Washington and nationwide. Sen. Cantwell was the leading voice in negotiations to end India’s 20% retaliatory tariff on American apples, which devastated Washington state’s apple exports. India had once been the second-largest export market for American apples, but after then-President Trump imposed tariffs on steel and aluminum in his first term, India imposed retaliatory tariffs in response and U.S. apple exports plummeted. The impact on Washington apple growers was severe: apple exports from the state dropped from $120 million in 2017 to less than $1 million by 2023. In September 2023, India ended its retaliatory tariffs on apples and pulse crops following several years of Sen. Cantwell’s advocacy, which was welcome news to the state’s more than 1,400 apple growers and the 68,000-plus workers they support.

In May 2023, Sen. Cantwell sent a letter urging the Biden Administration to help U.S. potato growers finally get approval to sell fresh potatoes in Japan. In June 2023, Sen. Cantwell hosted U.S. Sen. Debbie Stabenow (D-MI), then-chair of the Committee on Agriculture, Nutrition, and Forestry, in Washington state for a forum with 30 local agricultural leaders in Wenatchee to discuss the Farm Bill.

In 2022, Sen. Cantwell spearheaded passage of the Ocean Shipping Reform Act, a law to crack down on skyrocketing international ocean shipping costs and ease supply chain backlogs that raise prices for consumers and make it harder for U.S. farmers and exporters to get their goods to the global market.

In August 2020, during the height of the COVID-19 pandemic, Sen. Cantwell sent a letter to then-Secretary of Agriculture Sonny Perdue requesting aid funds be distributed to wheat growers. In December 2018, Sen. Cantwell celebrated the passage of the Farm Bill, which included $500 million of assistance for farmers, including those who grow wheat.

In 2019, Sen. Cantwell helped secure a provision in the $16 billion USDA relief package, ensuring sweet cherry growers could access emergency funding to offset the impacts of tariffs and other market disruptions.

Video of today’s speech is available HERE; and a transcript of Sen. Cantwell’s remarks is available HERE.

MIL OSI USA News –

February 6, 2025
MIL-OSI: PawnTrust celebrates the start of Black History Month and launches its weekly “CEO Corner”

Source: GlobeNewswire (MIL-OSI)

ATLANTA, GA, Feb. 05, 2025 (GLOBE NEWSWIRE) — Dinewise, Inc (OTC PINK-DWIS) (referred to as “Dinewise”, “we”, “us”, “our” or the “Company”) a fintech company operating as PawnTrust Inc., providing solutions to the pawn shop industry celebrates the start of Black History Month and launches its weekly “CEO Corner” on its You Tube Channel.

As America commemorates Black History Month, PawnTrust honors the invaluable contributions of African American pioneers who have shaped this nation and upon whose shoulders we stand today. The company recognizes the sacrifices and resilience of its forebears and remains committed to preserving their legacy. “When I was young, I was fortunate to accompany my father to meetings with African American disruptors of change. At the time, I didn’t understand the significance of those gatherings, but now realize I am a direct beneficiary of their efforts,” Michael Farr, CEO.

As previously announced in shareholder updates, Dinewise, Inc. will officially change its name to PawnTrust, Inc. in Q1 2025. Along with this rebranding, the company will undergo a ticker symbol change and file a new registration statement. Additionally, the final agreement for the acquisition of TitlePal, a fintech title loan company, is progressing ahead of schedule. The transaction is expected to close within the same timeframe as the registration statement, further strengthening PawnTrust’s strategic growth initiatives. Furthermore, PawnTrust is in talks regarding a major acquisition and expects to announce it in early Q2 2025.

PawnTrust’s commitment to perseverance and integrity is ingrained in its corporate culture. The company stands on three fundamental pillars: transparency, timeliness, and trust. The upcoming name change to PawnTrust amplifies the critical pillar of trust. To reinforce these values and foster direct engagement with shareholders and the investment community, CEO Michael Farr will host a weekly “CEO Corner” on YouTube. This series will provide an in-depth look into the business, its strategies, and its leadership vision. The first episode of “CEO Corner” will premiere on Friday, February 7, 2025, at 2 PM Eastern Time. Tune in on http://www.youtube.com/@pawntrust

About PawnTrust

PawnTrust is an exclusively tailored marketplace for the estimated 11,000 pawn shops nationwide. The online marketplace (www.pawntrust.com) digitizes the inventory using advanced image recognition algorithms to automate item descriptions of the participating pawn shops and markets them on a national scale. The marketplace contains cutting-edge technology that streamlines the borrowing, buying, and bartering transactions typically found at a pawn shop. The platform plans to leverage Artificial Intelligence (AI) to optimize pricing, reduce fraud, and create personalized search recommendations to enhance the customer’s experience. These enhancements let consumers experience a frictionless shopping experience on their mobile app that gives them instant access to this nationwide inventory of pawn shops. Not only does this provide a more efficient way for consumers to shop, eliminating the need to visit multiple stores, but it also amplifies the reach of individual pawn shop owners. By joining the PawnTrust- ‘Pawn Partners’ network, shop owners gain access to a broader audience, enhancing their visibility and sales opportunities. This innovative approach aligns customer convenience with business growth, reshaping how people interact with the pawn industry. Consumers that purchase items outside of their local area will have their items conveniently shipped to them. As the intermediary in each transaction, PawnTrust earns a fee on every item sold in the marketplace. Many of these local pawn shops lack an online presence or the capital to market their inventory on a national scale. By bridging this gap, PawnTrust opens up opportunities for incremental sales from a wider buying base, effectively transforming the pawn shop and micro-lending industries. This model not only supports local businesses but also extends their reach, driving growth and innovation within the market.”

Forward-Looking Information

This release includes statements that may constitute ”forward-looking” statements, usually containing the words ”believe,” ”estimate,” ”project,” ”expect” or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. While the Company believes the expectations reflected in forward-looking statements are reasonable, there can be no assurances such expectations will prove to be accurate. Security holders are cautioned such forward-looking statements involve risks and uncertainties. Certain factors may cause results to differ materially from those anticipated by the forward-looking statements made in this release. Factors that would cause or contribute to such differences include, but are not limited to, acceptance of the Company’s current and future products and services in the marketplace, the ability of the Company to develop effective new products and receive regulatory approvals of such products, competitive factors, dependence upon third-party vendors, risks and uncertainties related to the current unknown duration and severity of the COVID-19 pandemic and other risks detailed in the Company’s periodic report filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.

Investor Relations:
Resources Unlimited
718-269-3366
mike@resourcesunlimitedllc.com

The MIL Network –

February 6, 2025
MIL-OSI Security: Fresno Man with Prior Fraud Conviction Pleads Guilty to Running a $4.2 Million Fraud Scheme Through His Technology Startup

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

FRESNO, Calif. — Royce Newcomb, 62, of Fresno, pleaded guilty today to wire fraud and money laundering charges today for a long-running fraud scheme where he stole $4.2 million from investors, lenders, and the federal government, Acting U.S. Attorney Michele Beckwith announced.

According to court documents, from 2017 through 2022, Newcomb owned Strategic Innovations, which was a technology startup company that purported to make smart home and business products meant to stop package theft, prevent weather damage to packages, and make it easier for emergency responders and delivery services to find homes and businesses. Newcomb developed prototypes of his products and received local and national media attention for them. For example, Time Magazine included his eLiT Address Box & Security System, which used mobile networks to pinpoint home and business locations, on its Best Inventions of 2021 list.

Newcomb made several false representations to his investors to deceive and cheat them out of their money. The false representations included that he had been awarded a grant by the National Science Foundation and that he would use the investors’ money to further develop and bring his products to market. That was not true. Instead, Newcomb used the money to pay for gambling, a Mercedes and Jaguar, and a mansion. He also used the money to pay for refunds to other investors who wanted out, and to pay for new, unrelated projects without the investors’ authorization.

During this period, Newcomb also received a fraudulent COVID-19 loan for more than $70,000 from the Small Business Administration and fraudulent loans for more than $190,000 from private lenders. He lied about Strategic Innovations having hundreds of thousands and even millions in revenue to get these loans.

Newcomb was previously convicted federally in 2011 for running a real estate fraud scheme in Sacramento. He was sentenced to more than five years in prison for that offense, and he was on federal supervised release for that offense when he committed the offenses charged in this case.

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Joseph Barton and Jeffrey Spivak are prosecuting the case.

Newcomb is scheduled to be sentenced on May 5, 2025. Newcomb faces maximum statutory penalties of 20 years in prison and a $250,000 fine for the wire fraud charge, and 10 years in prison and a $250,000 fine for the money laundering charge. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

This effort is part of a California COVID-19 Fraud Enforcement Strike Force operation, one of five interagency COVID-19 fraud strike force teams established by the U.S. Department of Justice. The California Strike Force combines law enforcement and prosecutorial resources in the Eastern and Central Districts of California and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces use prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds.

MIL Security OSI –

February 6, 2025
MIL-OSI United Kingdom: London Assembly Member Mahfouz urges transports chiefs to create bus stop outside West Drayton Cemetery entrance

Source: Mayor of London

London Assembly Member Mahfouz urges transports chiefs to create bus stop outside West Drayton Cemetery entrance

Bassam Mahfouz, London Assembly Member for Ealing and Hillingdon, has written to Seb Dance, Deputy Mayor of Transport, to present the case for a new bus stop outside West Drayton Cemetery to serve mourners and visitors.

The letter is in response to a petition started by members of the Hayes Muslim Centre which has gained 350 signatures so far.

West Drayton cemetery is located within a residential neighbourhood on Harmondsworth road. Local people travelling to West Drayton currently take the 350 bus to the closest bus stop located outside Tesco’s on Station Road before walking around 15-minutes to the cemetery.

Transport for London (TfL) aims for local people within the capital to live within 400 meters of a bus stop, however at more than twice the distance residents, mourners and staff are often forced to drag gardening tools, flowers and incense from the nearest bus stop on Station Road to the graveside. This presents significant difficulties for many visitors, especially those with mobility issues and respiratory health conditions.

Local resident, Imran Bhani, who lost his wife and child three years ago said:

“The events which took place in January 2021 will haunt me for the rest of my life. In just seven short hours I lost my wife to a long-term illness and my son to Covid-19.

“Nobody should ever have to bury their 26 – year- old child but due to the global pandemic I was one of many people that have. They say that time can be a great healer but for me visiting them and honouring them with prayers and fresh flowers each day makes my grieving process a little easier.

“I would urge TFL and the Mayor of London to make life easier for fellow mourners at West Drayton Cemetery, every day I see older and disabled people dragging watering cans, spades and gardening forks from the nearest bus stop which is about 15 minutes away on Station Road.

“We are all getting older and whilst I am just about managing the journey each day there will come a time when I will no longer be able to cope.

Bassam Mahfouz, London Assembly Member for Ealing and Hillingdon said:

“Losing a lost one is always traumatic. Family and friends want to be able to pay their respects to family and friends who are no longer with them. It is quite unbelievable that this large cemetery has a bus drive straight past the entrance, but not stop at the front gates. I am convinced that many local people would benefit from this proposal and make it easier for mourners, especially those who are older, or with mobility issues.

Ends

MIL OSI United Kingdom –

February 6, 2025
MIL-OSI United Kingdom: Works to create step-free access restart following four-year delay

Source: Mayor of London

Construction work has resumed at Northolt Tube station to make it step-free, after being paused four years ago due to the global pandemic.

Commuters with mobility issues and residents with young children living in Northolt can finally look forward to the station improvements as work resumed on Monday, 3 February.

Transport for London (TfL) will carry out cable diversions at Northolt Underground station which are part of the preparatory works needed to make the station step-free.

The main construction works to make the station step-free are expected to start this spring and are expected to be completed by summer 2026.

Accessibility champion, Assembly Member Bassam Mahfouz, has long been campaigning to create step-free access at Northolt, having successfully campaigned to get lifts installed in neighbouring Greenford and Hanwell underground stations.

Bassam Mahfouz, London Assembly Member for Ealing and Hillingdon, said:

“Northolt is an incredibly busy station and local residents deserve the right to have an accessible platform to connect them into central London and beyond. I was delighted to gain the commitment to make it step free in 2019. Now with COVID out of the way, it’s full steam ahead to open up the station to parents with buggies, shoppers, the elderly and disabled, really putting Northolt on the map.”

John McGeachy, Campaigns Manager, Age UK London said: “It is very good news to hear that work is restarting to make Northolt Station step-free. This will make a huge difference to the many older and disabled people who will be able to use services from the station. Any efforts to make transport more accessible for everyone is very welcome.”

Cyreeta Donaldson, Regional Campaigns Officer for London at the Royal National Institute of Blind People (RNIB), said: “We’ve been advising TfL to help ensure step-free access is prioritised at Northolt Station and across the Tube network where appropriate. We’re pleased work is now set to progress and we look forward to continuing to work with them on further station upgrades including improved signage and tactile markings which have huge benefits for blind and partially sighted people.”

MIL OSI United Kingdom –

February 6, 2025
MIL-OSI Security: Rochester Woman Pleads Guilty to Wire Fraud, Money Laundering in Feeding Our Future Scheme

Source: Federal Bureau of Investigation (FBI) State Crime Alerts (b)

MINNEAPOLIS – A Rochester woman pleaded guilty for her role in the $250 million fraud scheme that exploited a federally funded child nutrition program during the COVID-19 pandemic, announced Acting U.S. Attorney Lisa D. Kirkpatrick.

According to court documents, from approximately December 2020 through January 2022, Ayan Jama, 45, knowingly participated in a scheme to defraud a federal child nutrition program designed to provide free meals to children in need. Rather than feed children, the defendants took advantage of the COVID-19 pandemic—and the resulting program changes—to enrich themselves by fraudulently misappropriating millions of dollars in federal child nutrition program funds.

According to court documents, Jama was one of the principals of Brava Rochester in Rochester, Minnesota. In September 2020, Jama’s Brava Restaurant and Aimee Bock applied for enrollment in the Federal Child Nutrition Program under the sponsorship of Bock’s non-profit, Feeding Our Future. A co-conspirator enrolled Brava Restaurant in the Federal Child Nutrition Program after the co-conspirator first prepared application paperwork at the direction of Salim Said, the co-owner of Safari Restaurant in Minneapolis, which was another business involved in the scheme to defraud the food program.

From late 2020 through 2021, Jama and other conspirators claimed Brava Restaurant was serving approximately 2,000 to 3,000 daily breakfasts and lunches to children, for which they fraudulently claimed and received millions of dollars in federal child nutrition program funds. To accomplish his scheme, Jama and her co-conspirators submitted fake attendance rosters purporting to list the names of children who purportedly received their food at sites. These rosters were fraudulent in that the names on them were fake or did not correctly reflect the number of children that were fed.

According to her plea agreement entered today, Jama claimed Brava Restaurant had served more than 1.7 million meals in Rochester as part of the Federal Child Nutrition Program in a little over one year, a number substantially higher than the actual number of meals served. Based on these fraudulent claims, Feeding Our Future paid out over $5.3 million in federal child nutrition program reimbursements for meals purportedly served to children by the defendant and her co-conspirators. Jama knew her receipt of such funds was fraudulent because she and other conspirators intentionally submitted inflated meal counts. Jama’s Brava Restaurant ultimately received $4.3 million directly from Feeding Our Future and over $900,000 from Safari Restaurant, co-owned by Salim Said.

As part of their scheme, Jama and her conspirators coordinated the establishment of shell companies through which they received and dispersed funds from the federal child nutrition program. Specifically, on January 7, 2021, Salim Said paid to register six different shell companies with the state of Minnesota for Jama and others. For Jama, Salim Said paid to register East Africa LLC. In 2021, Jama deposited at least $407,070 in misappropriated Federal Child Nutrition Program funds into her East Africa LLC bank accounts.

Jama used the federal child nutrition funds to pay for personal expenditures unrelated to feeding children, including $254,041 to purchase a home located in Rochester, Minnesota, $168,000 to purchase a home located in Columbus, Ohio, and $356,795 to purchase property on the Mediterranean Coast in Alanya, Turkey.

Jama pleaded guilty last Friday in U.S. District Court before Chief Judge Patrick J. Schiltz to one count of wire fraud and one count of money laundering. Her sentencing hearing will be scheduled at a later date.

The case is the result of an investigation by the FBI, IRS – Criminal Investigations, and the U.S. Postal Inspection Service.

Assistant U.S. Attorneys Matthew S. Ebert, Joseph H. Thompson, and Harry M. Jacobs are prosecuting the case. Assistant U.S. Attorney Craig Baune is handling the seizure and forfeiture of assets.

MIL Security OSI –

February 6, 2025
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

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MIL Security OSI –

February 6, 2025
MIL-OSI USA: Air Pollution Worsened COVID-19 Mortality, Especially in Vulnerable Communities

Source: US State of Connecticut

In the early stages of the COVID-19 pandemic, statistics emerged showing significant discrepancies in mortality by county.

Shinsuke Tanaka, assistant professor and director of graduate studies in the Department of Agricultural and Resource Economics, wanted to use his expertise in environmental and health economics to help understand what was at the root of this puzzle.

“I wanted to understand what could explain that spatial heterogeneity of Covid’s impacts,” Tanaka says.

Tanaka published a paper in the Journal of Environmental Economics and Management showing that counties with more days of downwind pollution from power plants had higher COVID-19 mortality rates. This impact was more pronounced in under-resourced communities.

When Tanaka began his research during the 2020 lockdown, there had been a few studies looking at the links between short-term (daily or monthly) exposure to air pollution and COVID-19 mortality. But very few had considered the impacts of long-term air pollution exposure.

Tanaka looked at the impacts of air pollution on counties within 20 miles of fossil-fueled power plants. He determined this was an appropriate radius based on readings from EPA air pollution monitors showing that air pollutants travelled downwind about that far before dissipating.

Then, Tanaka calculated what percentage of days in a 10-year period before the pandemic a given county in the contiguous U.S. was downwind of power plant pollution.

“That gives me a measure of long-term exposure to pollution for each county before Covid started,” Tanaka says.

Tanaka found that counties with an average downwind frequency of 13.5% had 28% more COVID-19 deaths within the first week of April 2020 compared to upwind counties the same distance from a plant.

Tanaka extended his research until the third mortality peak in January 2021. He found the cumulative mortality rate was 45% higher for communities that were more frequently downwind.

Tanaka’s findings also demonstrated that these impacts were greater in counties with higher poverty rates, lower health insurance coverage, and lower education levels.

“That indicates that disadvantaged communities and counties faced even greater burdens of pollution from these power plants during the pandemic,” Tanaka says.

Such underlying disparities mean people in these communities are more likely to have underlying health conditions and less access to health care when they get sick.

Other studies on links between air pollution and health have struggled to separate air pollution from other potentially confounding variables. By focusing on downwind patterns, an essentially random natural event, Tanaka was able to isolate air pollution as a variable.

“This method allowed me to isolate the impact of pollution exposure more effectively,” Tanaka says.

By demonstrating a method that can successfully isolate long-term air pollution exposure from confounding variables, Tanaka’s study paves the way for more research on other health outcomes.

“COVID-19 is, of course, a very specific mortality, and I expect to see more studies on the impact of long-term air pollution exposure on various other health outcomes.”

Research such as Tanaka’s demonstrates that the significant public health costs of fossil fuels will remain critical to public policy discussions.

“It will be very important to understand which power plants are having greater impacts, and what plants should be closed,” Tanaka says. “Those discussions should continue.”

This work relates to CAHNR’s Strategic Vision area focused on Enhancing Health and Well-Being Locally, Nationally, and Globally.

Follow UConn CAHNR on social media

MIL OSI USA News –

February 6, 2025
MIL-OSI Europe: AFRICA/SOUTH SUDAN – Local health authorities forced to suspend HIV & AIDS program in Yambio: thousands of lives at risk

Source: Agenzia Fides – MIL OSI

Wednesday, 5 February 2025

Yambio (Agenzia Fides) – The suspension of the HIV & AIDS program in Yambio has placed thousands of lives at risk. Healthcare workers, patients, and local authorities are now calling for urgent intervention to restore funding and ensure continued access to life-saving treatment.Following the decision to halt the activities of the United States Agency for International Development (USAID) for 90 days, which makes the United States the main country for providing humanitarian aid, the Western Equatoria State Ministry of Health has confirmed the suspension of the HIV & AIDS program in Yambio due to funding cuts from the United States, leaving thousands of vulnerable individuals uncertain about their future.“The program was halted following decisions from the United States. I spoke with the program director of CMMB Yambio, and they assured me that discussions are ongoing. We expect to receive further updates soon,” said Health Minister James Abdallah Arona to the local press.The Minister expressed concern about the impact of the decision, emphasizing that the program was heavily reliant on international donors, including USAID and Sweden. “If funding stops, people will suffer. I urge the national government and our partners to engage donors to ensure continued support for our vulnerable population,” said Arona.According to reports, the HIV/AIDS prevalence in Western Equatoria is 6.8%. This is higher than the prevalence in the other states of the greater Equatoria region, which are Central Equatoria (3.1%) and Eastern Equatoria (4.0%).“We were instructed to halt all ongoing services. Before closing, we informed all county health departments about the development,” said the Prevention of Mother-to-Child Transmission (PMTCT) clinician from CMMB Yambio, Henry Biata Nzari. “The government must act swiftly to prevent further suffering. The community is highly vulnerable, and the impact of this suspension could be devastating,” he stressed.USAID was founded in 1961 with the aim of fighting global poverty, providing humanitarian assistance to countries affected by conflict or health emergencies, and supporting the development of democratic societies by improving their potential. Since the 1980s, USAID has worked in the areas of food security, the right to education and humanitarian assistance, focusing on combating the spread of pandemic threats and diseases such as HIV and malaria, as well as supporting maternal and child health. (AP) (Agenzia Fides, 5/2/2025)
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MIL OSI Europe News –

February 6, 2025
MIL-OSI: Recent Draganfly Sales and Activities with Policing Agencies Signals Growing Focus on Northern (Canada) Border Security

Source: GlobeNewswire (MIL-OSI)

Draganfly Confirms Its Strategic & Tactical Positioning and Preparedness for Growing Border Security Demand Amid Global Trade and Security Initiatives

Saskatoon, SK., Feb. 05, 2025 (GLOBE NEWSWIRE) — Draganfly Inc. (NASDAQ: DPRO) (CSE: DPRO) (FSE: 3U8) (“Draganfly” or the “Company”), an award‑winning leader in drone solutions and systems development, today confirms through recent sales activities its positioning and preparedness to support the enhancement of border security amid evolving global trade and security uncertainties and shifting geopolitical dynamics. Highlighting recent sales activities with policing agencies, Draganfly continues to strengthen its position to support border security with advanced drone technology solutions.

“Recent global trade challenges, tariff uncertainties, and security concerns underscore the critical importance of secure borders and resilient supply chains,” said Cameron Chell, CEO of Draganfly Inc. “Our recent sales activities with policing agencies is a testament to our ability and readiness to provide drone technology and services in support of border security solutions.”

Draganfly’s comprehensive product portfolio—featuring high‑resolution, electro-optical/infra-red and low-light sensors with real‑time data processing capabilities available in multiple tactical communication and control configurations—is designed to deliver multi-mission capabilities for challenging mission profiles. With an emphasis on North American‑made innovation, the Company is committed to supporting the security needs of government agencies and border authorities, ensuring that technology remains at the forefront of national security and economic stability.

“As we continue to navigate an era of rapid geopolitical change, it is essential that both the public and private sectors collaborate to safeguard borders,” added Chell. “Draganfly is proud to be at the leading edge of this effort, leveraging our technological expertise to help create a more secure and resilient border.”

About Draganfly

Draganfly Inc. is the creator of quality, cutting-edge drone solutions, software, and AI systems that revolutionize how organizations operate and serve their stakeholders. With over 24 years of innovation, Draganfly is recognized as a leader in the public safety, agriculture, industrial inspections, security, mapping, and surveying markets. The Company’s commitment to ingenuity and first-class services drives its goal to save time, money, and lives across the globe.

For more information on Draganfly, please visit Draganfly’s website. For additional investor information, visit:

The CSE Listing
NASDAQ Listing
Frankfurt Listing

Media Contact Erika Racicot Email: media@draganfly.com

Company Contact Email: info@draganfly.com

Forward-Looking Statements

This release contains certain “forward looking statements” and certain “forward-looking ‎‎‎‎information” as ‎‎‎‎defined under applicable securities laws. Forward-looking statements ‎‎‎‎and information can ‎‎‎‎generally be identified by the use of forward-looking terminology such as ‎‎‎‎‎“may”, “will”, “expect”, “intend”, ‎‎‎‎‎“estimate”, “anticipate”, “believe”, “continue”, “plans” or similar ‎‎‎‎terminology. Forward-looking statements ‎‎‎‎and information are based on forecasts of future ‎‎‎‎results, estimates of amounts not yet determinable and ‎‎‎‎assumptions that, while believed by ‎‎‎‎management to be reasonable, are inherently subject to significant ‎‎‎‎business, economic and ‎‎‎‎competitive uncertainties and contingencies. Forward-looking statements ‎‎‎‎include, but are not ‎‎‎‎limited to, statements with respect to Draganfly’s comprehensive product portfolio’s ability to deliver multi-mission capabilities for challenging mission profiles. Forward-‎‎‎‎looking statements and information are subject to various ‎known ‎‎and unknown risks and ‎‎‎‎‎uncertainties, many of which are beyond the ability of the Company to ‎control or ‎‎predict, that ‎‎‎‎may cause ‎the Company’s actual results, performance or achievements to be ‎materially ‎‎different ‎‎‎‎from those ‎expressed or implied thereby, and are developed based on assumptions ‎about ‎‎such ‎‎‎‎risks, uncertainties ‎and other factors set out here in, including but not limited to: the potential ‎‎‎‎‎‎‎impact of epidemics, ‎pandemics or other public health crises, including the ‎COVID-19 pandemic, on the Company’s business, operations and financial ‎‎‎‎condition; the ‎‎‎successful integration of ‎technology; the inherent risks involved in the general ‎‎‎‎securities markets; ‎‎‎uncertainties relating to the ‎availability and costs of financing needed in the ‎‎‎‎future; the inherent ‎‎‎uncertainty of cost estimates; the ‎potential for unexpected costs and ‎‎‎‎expenses, currency ‎‎‎fluctuations; regulatory restrictions; and liability, ‎competition, loss of key ‎‎‎‎employees and other related risks ‎‎‎and uncertainties disclosed under the ‎heading “Risk Factors“ ‎‎‎‎in the Company’s most recent filings filed ‎‎‎with securities regulators in Canada on ‎the SEDAR ‎‎‎‎website at www.sedar.com and with the United States Securities and Exchange Commission (the “SEC”) on EDGAR through the SEC’s website at www.sec.gov. The Company undertakes ‎‎‎no obligation to update forward-‎looking ‎‎‎‎information except as required by applicable law. Such forward-‎‎‎looking information represents ‎‎‎‎‎managements’ best judgment based on information currently available. ‎‎‎No forward-looking ‎‎‎‎statement ‎can be guaranteed and actual future results may vary materially. ‎‎‎Accordingly, readers ‎‎‎‎are advised not to ‎place undue reliance on forward-looking statements or ‎‎‎information.‎

The MIL Network –

February 6, 2025
MIL-OSI Economics: Luis de Guindos: Interview with Hospodárske Noviny

Source: European Central Bank

Interview with Luis de Guindos, Vice-President of the ECB, conducted by Mário Blaščák

5 February 2025

The ECB lowered its interest rates by 25 basis points last week. How low can rates go given the current inflation and growth outlook?

We have been very clear that we are not following any predetermined path and will decide meeting by meeting, based on the incoming economic data. This is because the level of uncertainty is huge. Now that we see inflation approaching our 2% target, we have been reducing the restriction of our monetary policy. How much lower rates will go depends on the data confirming that inflation is converging towards our target in a sustainable manner. We are confident that this will happen this year, but there are still a number of uncertainties, particularly surrounding the geopolitical situation, that we need to take into account. So, even if our current trajectory under the current circumstances is clear, nobody knows the level at which interest rates will end up.

At the press conference, ECB President Christine Lagarde described the current level of interest rates as being in restrictive territory. Národná banka Slovenska Governor Peter Kažimír recently suggested that rates would decline to a neutral level close to 2%. Do you agree?

I usually agree with my friend Peter Kažimír on a lot of things [laughs]. The neutral rate is an interesting concept from an academic standpoint. However, using it as a reference for monetary policy decisions is not the right approach, in my view. The range of the neutral rate, based on different models, can be very ample. Our bank lending surveys provide a much better indicator of the restrictiveness of our monetary policy, by showing how banks are easing or tightening financing conditions. For policy decisions we need to consider all relevant incoming data and a vast range of indicators to form our assessment of the inflation outlook, underlying inflation and the strength of monetary policy transmission. So while the neutral rate makes for an interesting academic concept, it is not very useful from a policymaking standpoint.

Why don’t academic concepts hold up? Are we living through unusual times?

Academic research is crucial for the conceptual framework of the things we do. But the high level of uncertainty we are now dealing with potentially calls for a more pragmatic approach, placing less weight on unobservable variables or model-based estimates with shortcomings and results expressed in wide ranges.

Services inflation is double the target level and wage growth is near 5%. How confident are you that the projected moderation in inflation will actually materialise?

As we can clearly see at the moment, not all the components of inflation evolve in parallel. You are right that while goods inflation stands at 0.5%, services inflation is at 4%. It is important that services inflation starts to decelerate. We believe this will happen because services are very wage-sensitive, and we expect wage growth to start to decelerate. We also see our corporate surveys confirming our belief that wage dynamics will start to slow down, so we expect this to help bring down services inflation.

How is inflation expected to evolve over the next few months?

On average, we may see an increase in headline inflation over the next couple of months because of base effects, mostly due to energy prices. Nevertheless, we are convinced that headline inflation will start to decelerate later on in the spring and converge towards our 2% target on a sustainable basis.

Is there any time lag between the projected moderation in wage growth and services inflation?

There is always a certain delay in that respect. But looking only at wage growth data is like looking into a rear-view mirror. Looking ahead, we pay attention to expectations about inflation, which are firmly anchored. At the same time, there is the crucial “catch-up” process, which is almost complete. While the purchasing power of workers’ wages in the euro area fell during the period of high inflation, it has now recovered. These two elements lead us to believe that wage increases will start to decelerate.

Eurostat released data on GDP growth in the euro area, which has been stagnating. Forward-looking indicators point to an economic slowdown, affecting wages and, in turn, consumer demand. Is that the reason why you are expecting weak growth in household consumption?

You raised a very important issue. In order to understand what will happen to the economy, consumer behaviour is key. Right now, we don’t see consumption picking up even though the moderation in inflation has restored households’ purchasing power. It is likely that this is related to consumer confidence. The impact of past shocks like the pandemic, the post-pandemic period and the energy shock, as well as the current geopolitical situation and the general level of uncertainty worldwide, is moderating consumption. But we believe that confidence will be restored over time, as real wages recover.

A recovery in consumption will be key for a rebound of euro area economic growth. The lack of consumer confidence is one of the reasons why this has not been the case yet.

What would happen if the war in Ukraine were to end tomorrow? Would it change everything we think about the economy and the course of monetary policy?

From a human standpoint, a peace agreement would obviously be very positive. And generally speaking, an end to the war would also benefit the economy. But this would depend on how the war is resolved and whether the terms of the settlement are good for Ukraine and for the rest of Europe.

In its pursuit of price stability, the ECB targets inflation, but what role did weak economic growth play in your decision to lower interest rates?

Even though we target inflation, our decision-making of course involves a broader perspective. We consider a wide range of indicators, such as consumer demand, investment, energy prices and exchange rate developments, as well as actual and potential economic growth. We calibrate all of these components on an ongoing basis to produce the most accurate projection of inflation over time in order to support our decisions.

Slovakia is an automotive power. However, the car sector has been struggling in the wake of the green transition. After your dinner with European Commission President Ursula von der Leyen last week, how do you see the green transition evolving?

This question would be better put to the European Commission. Ms von der Leyen explained the main features of the Competitiveness Compass, with simplification and flexibility being major drivers. This means looking at decarbonisation targets also through the lens of the competitiveness of European industries.

Slovakia is one of Europe’s fiscal sinners, but it has implemented consolidation measures, including income tax and VAT hikes and the introduction of a transaction tax. Do you think it will be enough if small euro area countries take action while large countries do not?

Every country needs to do their part to comply with the new fiscal framework. The new rules need to be implemented fully, faithfully and by all countries, because the credibility of fiscal policy is crucial. This does not apply to Europe alone, but to other countries in the world too. Markets are monitoring each country’s fiscal position very closely, and any doubts about the sustainability of public finances are quickly reflected in increased government bond yields, as we have seen in the United States and the United Kingdom. An increase in government bond yields is detrimental to growth and financial stability. That is why we must maintain the credibility of the new fiscal framework, as this a prerequsite for keeping long-term yields at a low level, which is vital for the economic recovery. The new fiscal rules are flexible to allow sustainable deficit cuts and they will not jeopardise efforts to invest in areas such as climate change or defence.

Global debt is on track to hit 100% of world GDP this year. Is this alarming? And who is the biggest debt sinner?

I won’t name any countries, because the figures are already out there. In general, the policy response to the pandemic played a big part in increasing sovereign debt, as there was a combination of very loose fiscal and monetary policy. But this was an exceptional situation – extraordinary times require extraordinary measures.

That being said, many countries have seen their fiscal positions deteriorate. Public debt ratios are now high, and a number of countries have increased their structural deficits. This is why it is so important to implement the new fiscal governance framework in its entirety. This means not only reducing the fiscal deficit and the public debt-to-GDP ratio, but also implementing structural reforms.

Do you view the consolidation measures adopted by the Slovak Government as positive?

It is not for us to assess the fiscal measures of individual countries. Looking at Slovakia’s fiscal profile, we see that its debt is below the euro area average, at around 60% of GDP. The budget deficit is higher, which means that Slovakia is subject to an excessive deficit procedure. In general, it’s important to reduce the deficit in a way that ensures the sustainability of public finances. This can be done through a combination of cutting expenditure and increasing tax revenue. But how to do that, and by how much, is for each country to decide.

12 years ago, Italy’s fiscal sustainability triggered a crisis. Today, France is under the spotlight of the markets and its government bond yields are on the rise. Does this pose a threat to the stability of the euro area?

We have seen an increase in yields in several countries. In the case of France, this may have been somewhat stronger, mainly because of the political situation. But the plans submitted to the European Commission are fully compliant with the new fiscal framework. So what I hope for France, and for other euro area countries, is political stability, and for them to be able to implement the plans approved by the European Commission.

Mortgages are very important for people in Slovakia, as Slovaks prefer to live in their own homes. But interest rates went from levels below 1% all the way up to 5.3% in November 2023. In view of the monetary policy easing cycle, is the ECB a messenger of good news for Slovaks?

We are trying to do our job. When inflation was high, we increased interest rates, and now that it is falling, we are reducing them. On average, inflation peaked at above 10% in October 2022 and it now stands at 2.5%, which is why we have cut interest rates by 125 basis points since June last year. This has an impact on financing conditions and on mortgage rates, but the structure of the mortgage market is also important in determining how quickly our monetary policy is transmitted. In countries where most of the mortgage market is at variable rates, interest rate cuts are rapidly reflected in household mortgage payments. In countries where there are more fixed-rate mortgages, this process is slower. But the transmission of monetary policy easing will eventually be reflected in mortgages across the board, and people will feel that they are less costly than before we started to reduce rates.

So monetary policy is a bit of a bittersweet symphony? Bitter in bad times and sweet in good times?

Yes, bitter when inflation is high and we need to tighten financing conditions, and sweet when it is low. Now that inflation is declining, and if it continues to do so, we will adjust our monetary policy accordingly. If inflation had not declined, we would not have cut rates.

How big a threat are Donald Trump’s economic policies to the ECB’s inflation target?

With regard to tariffs, our analyses suggest that the main impact will be on growth. If the world embarks on the path towards a trade war, this will have an extremely negative impact on the growth prospects of the global economy. Increases in tariffs and quotas are a negative supply shock, especially if accompanied by retaliation. This vicious circle should be avoided. Estimating the impact on inflation is more difficult owing to the dampening effect of tariffs on demand and growth, as well as the fact that selective tariffs can lead to trade being redirected and diverted.

Are you concerned about stagflation, i.e. a stagnation in growth accompanied by rising prices, which the ECB’s monetary policy cannot reach? Could it lead to a reversal of the monetary policy stance?

If inflation moves according to our projections, the path of our monetary policy is clear. Although there are always some external factors affecting the economy, and potentially shocks, our baseline scenario sees inflation on track to converge towards our target this year, with a slight recovery in economic growth. We expect euro area GDP growth to reach 1.1% this year, following 0.7% last year.

To support the economic recovery, we will need a growth-oriented fiscal policy that also guarantees the fiscal sustainability of public finances, as well as structural reforms. This is where the European Commission’s Competitiveness Compass will play a key role. To achieve real unity, we need to simplify processes and integrate markets in Europe. That means the Single Market, the capital markets union and the banking union. These will be key elements in improving the growth prospects and growth potential of the euro area.

MIL OSI Economics –

February 6, 2025
MIL-OSI Economics: Belgium: Staff Concluding Statement of the 2025 Article IV Mission
Source: International Monetary Fund

February 5, 2025

A Concluding Statement describes the preliminary findings of IMF staff at the end of an official staff visit (or ‘mission’), in most cases to a member country. Missions are undertaken as part of regular (usually annual) consultations under Article IV of the IMF’s Articles of Agreement, in the context of a request to use IMF resources (borrow from the IMF), as part of discussions of staff monitored programs, or as part of other staff monitoring of economic developments.

The authorities have consented to the publication of this statement. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF Executive Board for discussion and decision.

An IMF team led by Jean-François Dauphin visited Brussels to conduct the 2025 Article IV consultation with Belgium. The mission’s discussions (January 22-February 3) took place before the formation of the new government and the present statement, which summarizes the mission’s findings and recommendations, does not reflect the new government’s policy intentions.

The IMF team thanks the Belgium authorities andother counterpartsfor the constructive dialogue and productive collaboration. It congratulates the new government on its nomination and looks forward to future engagement.

******

The Belgian economy has been resilient to a series of shocks, but growth has slowed, and disinflation has faced headwinds. The labor market has been strong but shows signs of cooling. Labor-cost competitiveness has declined with wage growth outpacing sluggish productivity growth. Absent policy change, pressures from an aging population will weigh on Belgium’s social model and further increase the fiscal deficit and public debt, heightening vulnerability to changes in market sentiment. The outlook is subject to high uncertainty, amid risks that could push growth down and inflation up, including deepening geoeconomic and trade fragmentation, and adverse energy price developments.
- Sustained fiscal consolidation is needed to support disinflation, rebuild buffers, lower market vulnerabilities, and address spending pressures from aging and the green transition. All federal and federated entities need to contribute to the adjustment. Rationalizing current spending while preserving (or increasing) public investment in infrastructure, healthcare, and education and enhancing its efficiency is a priority.
- To preserve macrofinancial stability, current capital buffer requirements and prudential limits on mortgage loans should be maintained. Recent progress in strengthening systemic risk assessment, supervision, the macroprudential framework, and crisis management and resolution preparedness is welcome and should be sustained.
- Reforms are needed to enhance growth potential through higher labor force participation, increased productivity, and a more efficient resource allocation. Priorities include increasing the income gap between work and nonwork through tax and social benefits reforms, reforming the wage-setting mechanism, and upgrading labor skills. Together with efforts with EU partners to deepen the single market, further product market reforms to reduce barriers to entry, foster greater competition, and improve the insolvency regime will improve firm dynamics and the diffusion of innovation. Sustaining the green transition requires strong commitment and enhanced coordination among the federal and regional governments.
Economic outlook and risks

Growth is expected to be stable in 2025 and inflation to slowly return to target. Output is expected to grow by 1.1 percent in 2025 and slightly increase by 2027 supported by monetary policy easing and a higher contribution from net exports. Inflation is projected to gradually decline as wage growth moderates and the projected drop in international energy prices passes through to retail prices. The external current account is expected to return to small surpluses over the medium term as energy prices ease and external demand increases. Under unchanged policies, pressures from the aging population would further increase the fiscal deficit to about 7 percent and public debt about 125 percent of GDP in 2030, heightening vulnerabilities.

The baseline outlook is subject to sizeable risks, tilted down for growth and up for inflation. Growth could be weaker if the expected recovery in external demand falters amid escalating geoeconomic tensions and trade fragmentation. Inflation could be higher than projected due to adverse energy price developments, or if persistently-high core inflation affects expectations. Fiscal sustainability concerns could arise and lead to a sharp increase in borrowing costs—especially if global risk aversion increases—, necessitating abrupt fiscal consolidation with negative consequences for growth and potentially financial stability.

Rebuilding Fiscal Buffers Despite Pressures

Significant fiscal consolidation is needed to address large structural deficits and rising public debt that were exacerbated by the pandemic and energy crisis. In the short term, consolidation will help further reduce inflation, notwithstanding still-high wage growth and looser monetary policy. This would also help address significant upside risks to inflation. Critically, a sustained reduction in fiscal deficits is needed to reduce vulnerability to changes in market sentiment, rebuild space to address potential future shocks, address long-term spending pressures, and ultimately, preserve the core of Belgium’s social model, which places a high premium on solidarity and equity.

Consolidation under the new EU economic governance framework (EGF) would significantly improve fiscal sustainability. Given the magnitude of the needed adjustment, the medium-term fiscal structural plan (MTFSP) under the EGF would benefit from a seven-year rather than a four-year adjustment path, accompanied by credible and front-loaded growth-enhancing reforms. Under such an adjustment, an annual reduction in the structural primary balance of about 0.5 percentage points of GDP until 2031 will be necessary to reach an overall deficit below 3 percent of GDP by 2031 and maintain it until 2041, per the EGF.

Fiscal adjustment should center on rationalizing current spending, while making room for public investment. Rationalizing social benefits and the public wage bill is crucial for achieving budgetary savings. Public investment should be preserved, or ideally, increased to mitigate the growth impact of fiscal consolidation, support green transition, and bolster the economy’s productive capacity.

Improving the efficiency of public investment is critical amid competing demands for resources. This includes laying out clear infrastructure investment strategies, strengthening project appraisal, selection, and governance, and improving coordination within and among the federal and federated entities. In healthcare, increasing the focus on preventive care and reforming the organization and role of hospitals would help absorb part of the projected increase in spending due to aging and better prepare the system to the evolving need of an older population. Education reforms can help achieve the same education outcomes at lower costs or improve outcomes without increasing spending.

Pension reforms are essential to address cost pressures from aging. The focus should be on raising the effective retirement age in line with healthy-life expectancy and facilitating longer employment through life-long learning and upskilling. Additionally, reviewing eligibility criteria for specific pension regimes (e.g., disability pensions) and limiting increases in pension benefits by reviewing automatic indexation are necessary steps. A review of special provisions (e.g., arduous jobs) could inform reforms to balance fairness and costs.

Tax reforms should aim to shift part of the tax burden from labor to capital, without revenue loss, and to reduce tax exemptions. Belgium has the highest labor-tax wedge in the OECD. Reducing labor taxation will help increase the employment rate. All revenue from capital (e.g., interests, dividends, and capital gains) should be taxed in the same way to ensure neutrality in investment decisions, ideally by incorporating these revenues into the overall taxable income subject to personal income tax. Reducing preferential regimes and treatments in the tax system, a significant source of foregone revenue, also needs to be part of the reform package. Tax reforms should be coordinated among the federal and federated entities for their revenue and distributional impacts.

The new EGF provides an opportunity to strengthen Belgian’s fiscal framework through a revitalized fiscal council and greater accountability among federated entities. The implementation of the 2013 federal-regional coordination agreement has proved challenging, given the complexities of Belgium’s fiscal federalism. The new EGF provides a renewed opportunity to introduce binding rules for burden sharing the fiscal adjustment, with clear accountability for the federal and all federated entities. A strengthened fiscal council (e.g., with enhanced staffing and direct reporting to parliaments) would help ensure that the federal and each federated entity’s fiscal behavior is consistent with Belgium’s European commitments.

Preserving Macrofinancial Stability

Overall systemic risks in the financial sector remain moderate but are evolving due to changing macroeconomic and market conditions. While the economy is slowing and real estate markets cooling, interest rates are now decreasing. Household indebtedness has stabilized, and corporate indebtedness has declined due to substantial investments being largely cash financed. Corporate bankruptcies have been increasing but remain aligned with pre-pandemic trends. Risks from residential real estate have moderated, but commercial real estate market activity has dropped sharply, and vacancies have risen, reflecting low demand for office space. Overall, exposures to real estate remain broadly stable.

With the level of financial stability risks expected to remain unchanged, capital buffers and prudential limits on residential mortgages should be maintained . Since last year, macroprudential policies have tightened, with capital buffers significantly raised. The NBB also appropriately encouraged banks to lengthen new mortgage maturities to ease the debt servicing burden of households and pre-empt borrower distress. Progress has been made in implementing the 2023 Financial Stability Assessment Program (FSAP) recommendations and this effort should be accelerated now that a new government is in place and the required legislative changes can be pushed forward.

Strengthening Labor Markets

Labor market fragmentation and rigidity in Belgium are impeding growth potential. The coexistence of local or sectoral pockets of high vacancies and pockets of high unemployment highlights inefficiencies in labor allocation that hinder potential growth. Employment gaps for low-skilled workers, older workers, women, and individuals with an immigration background or disabilities remain high. Fostering a more inclusive labor market will enhance overall economic performance and mitigate fiscal pressures.

Enhancing labor market incentives is essential. Labor market, tax, and social benefit reforms should consistently aim to increase the income gap between work and nonwork and reduce the cost of hiring and dismissal. Reducing the duration of unemployment benefits and linking social benefits to income levels would incentivize re-entry into the labor force. Policy efforts should also focus on facilitating re-integration of workers from long-term sick leave.

Reforming the wage-setting mechanism will help increase labor market efficiency, improve competitiveness, and reduce fiscal costs. Automatic wage and social benefit indexation protected household purchasing power during the inflation shock. However, it also increased structural fiscal deficits and led to labor-cost increases exceeding those of major trading partners when accounting for productivity differential, weighing on competitiveness. Consideration should be given to abolishing the automatic indexation and the 1996 wage law which, together, define a floor and a ceiling for wage growth, that do not allow for an optimal allocation of labor and increased employment. At a minimum, the labor market would already benefit from reforms including adjusting the basis for indexation to exclude volatile prices, broadening the group of comparator countries in the wage law, using productivity-adjusted wage growth as the basis for comparison, and allowing firms to partially index wages considering specific local and sectoral labor market conditions.

Reforms in education and life-long training are necessary to upskill the labor force, enhance employment rates, and promote growth. While educational outcomes in Belgium are comparable to peers, they are achieved at a higher cost. Addressing teacher shortages, reducing grade repetition rates, and achieving greater equality of educational outcomes irrespective of backgrounds will require a comprehensive reform of the educational system. Actions should seek to align education with the needs of Belgian companies, better leverage teachers’ time, and strengthen support provided to students who face difficulties. These reforms would help increase employment, productivity, and the creation and diffusion of innovation.

Boosting Productivity

Boosting productivity will require further product market reforms to improve firm dynamics and the diffusion of innovation. Despite significant investment in innovation, Belgium’s long-term productivity slowdown is worse than peers, suggesting room to improve the transmission of innovation to productivity gains. Lagging productivity is linked to insufficient firm dynamics—the entry, growth, and exit of firms—, with Belgium experiencing some of the lowest firm entry and exit rates in the EU. To enhance productivity and dynamics, further product market reforms are necessary to reduce regulatory and administrative barriers and improve the insolvency regime.

Deepening the European single market and advancing the capital market union would benefit firms in Belgium. Removing remaining barriers to trade within the EU and harmonizing regulations and bankruptcy frameworks would enhance Belgian firms’ access to a much larger customer base, improve competition and firm dynamics, and provide buffers against risks from geo-fragmentation. Moreover, developing venture capital within an EU-wide push toward capital market union would help widen Belgian firms’ options to finance growth.

Sustaining the Green Transition

Despite progress, much effort remains needed to achieve climate objectives. The expansion of the EU emissions trading system should be complemented by timely implementation of carbon taxation and phasing out fossil fuel subsidies, while ensuring support for vulnerable population. The consolidation of federal and regional climate efforts into a coherent and cohesive national strategy is essential. Improved coordination and accountability among the federal and regional governments will facilitate the design, execution, and evaluation of climate policies. Adequate investments in the green transition are necessary to ensure Belgium meets its climate goals and contributes to the European Green Deal.

IMF Communications Department

MEDIA RELATIONS

PRESS OFFICER: Camila Perez

Phone: +1 202 623-7100Email: MEDIA@IMF.org

@IMFSpokesperson
MIL OSI Economics –
February 6, 2025

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.

Subject: PLEASE READ CAREFULLY From: “Judith Peters”> Reply-To: <attorneycchplain> Dearest One I’m Mrs Judith Peters a Successful business Woman dealing with Exportation, I got your mail contact through search in order to let you know my Ugly Situation. Am a dying Woman here in Los Angeles California Hospital Bed in (USA),I Lost my Husband and my only Daughter for Covid-19 in March 2020 I’m dying with a cancer disease at the moment. My Doctor open-up to me that he is Afraid to tell me my Condition and inside me, I already know that I’m not going to survive and I can’t live alone without my Family on Earth. I have a project that I am about to hand over to you. and I already instructed the Heritage Bank to transfer my fund sum of $50,000.000.00usd to you, so as to enable you to give 50% to Charitable Home and take 50% for yourself. Don’t think otherwise and why would anybody send someone you barely know to help you deliver a message, help me do this for the happiness of my soul. Please, do as I said there was someone from your State that I deeply love so very very much and I miss her so badly I have no means to reach any Charitable Home there,that is why I go for a personal search of the Country and State and I got your mail contact through search to let you know my Bitterness and the situation that i am passing through. Please help me accomplish my goal,ask my Attorney to help me keep you notice failure for me to reach you in person. The Doctor said I have a few days to live, please contact my attorney with the following email address and phone number as soon as possible, I am finding it difficult to breathe now and I am not sure if I can stay up to two week. Name Attorney Chaplain Upright Email:attorneycchplain@… Please hurry up to contact my attorney so that he can direct you on how you will hand over 50% of the $50,000,000.00 to Charity, i really want to achieve that goal by helping the Charity organization before I die. My Regards. Mrs Judith Peters</attorneycchplain>

Subject: PLEASE READ CAREFULLY

From: “Judith Peters”>

Reply-To:

Dearest One

I’m Mrs Judith Peters a Successful business Woman dealing with Exportation, I got your mail contact through search

in order to let you know my Ugly Situation.

Am a dying Woman here in Los Angeles California Hospital Bed in (USA),I Lost my Husband and my only Daughter

for Covid-19 in March 2020 I’m dying with a cancer disease at the moment.

My Doctor open-up to me that he is Afraid to tell me my Condition and inside me, I already know that I’m not going to

survive and I can’t live alone without my Family on Earth.

I have a project that I am about to hand over to you. and I already instructed the Heritage Bank to transfer my fund

sum of $50,000.000.00usd to you, so as to enable you to give 50% to Charitable Home and take 50% for yourself.

Don’t think otherwise and why would anybody send someone you barely know to help you deliver a message, help me

do this for the happiness of my soul.

Please, do as I said there was someone from your State that I deeply love so very very much and I miss her so badly I

have no means to reach any Charitable Home there,that is why I go for a personal search of the Country and State and

I got your mail contact through search to let you know my Bitterness and the situation that i am passing through.

Please help me accomplish my goal,ask my Attorney to help me keep you notice failure for me to reach you in person.

The Doctor said I have a few days to live, please contact my attorney with the following email address and phone

number as soon as possible, I am finding it difficult to breathe now and I am not sure if I can stay up to two week.

Name Attorney Chaplain Upright

Email:attorneycchplain@…

Please hurry up to contact my attorney so that he can direct you on how you will hand over 50% of the $50,000,000.00

to Charity, i really want to achieve that goal by helping the Charity organization before I die.

My Regards.

Mrs Judith Peters

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.

Subject: DONATION From: Maria Elizabeth Schaeffler <harshvardhan.lakhara> Dear [Recipient Name], My name is Maria-Elisabeth Schaeffler. I am a German business magnate, investor and philanthropist. I am the owner of the Schaeffler Group at Schaeffler Technologies AG & Co. KG at Schaeffler Technologies AG & Co. KG. I spend 25% of my wealth for charitable causes. Also, I have pledged to give away the remaining 25% this year to private individuals. I have decided to donate €4,500,000 to you. If you are interested in accepting this donation, please contact me for details. Send an email to: …@gmail.com You can learn more about me by visiting the link below https://en.wikipedia.org/wiki/Maria-Elisabeth_Schaeffler Greetings, Maria-Elisabeth Schaeffler, Managing Director, Wipro Limited …@gmail.com</harshvardhan.lakhara>

Subject: DONATION

From: Maria Elizabeth Schaeffler

Dear [Recipient Name],

My name is Maria-Elisabeth Schaeffler. I am a German business magnate, investor and philanthropist. I am the owner

of the Schaeffler Group at Schaeffler Technologies AG & Co. KG at Schaeffler Technologies AG & Co. KG. I spend

25% of my wealth for charitable causes. Also, I have pledged to give away the remaining 25% this year to private

individuals. I have decided to donate €4,500,000 to you. If you are interested in accepting this donation, please contact

me for details.

Send an email to: …@gmail.com

You can learn more about me by visiting the link below

https://en.wikipedia.org/wiki/Maria-Elisabeth_Schaeffler

Greetings,

Maria-Elisabeth Schaeffler, Managing Director, Wipro Limited …@gmail.com

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”.

Subject: Fund Ref: 110/XX/236/OB/2024 From: “Dr.John Schindler (Secretary General)” <tguil></tguil>

Attention My Dear,
After the Global Financial Pact Summit, Monday, November 11, 2024 in Paris we have come to the conclusion to pay
Scammed victim compensation fund. You are in the badge B category that are going to benefit from the world’s largest
humanitarian aid budgets. With due regards to the instruction from the Financial Stability Board (FSB). We want to
inform you that (The Financial Stability Board (FSB)) have arranged with UNITED BANK FOR AFRICA to
immediately effect your payment through the online transfer of your $1.750.000.00usd via UBA BANK online
transfers. The transfer of your fund will be processed and completed within 3 working days, within which the fund
will safely reflect into any designated bank account of your choice.
To this effect, you’re required to contact
Sir.Joseph Warfel Mandy
Online Banking Services, UBA BANK
Email : …@gmail.com
Deposit And Fund Details
Fund Ref: 110/XX/236/OB/2024
Fund Value .. $1.750.000.00
Fund Origin ..Financial Stability Board (FSB)
Paying Formula.. UBA BANK Online Transfer!
Contact Sir.Joseph Warfel Mandy with your
Full names
Direct telephone number
Your identification Number
Current Address
He will furnish you with all necessary online information to carry out the online transfer of your fund by yourself.
Please note that F.S.B mobilization and efficiency sum of $125 is the only payable/required sum to effectively
complete your online transfer without any delay.
Thanks and best regards
Dr.John Schindler (Secretary General)
Copyright @The Financial Stability Board (FSB)

Subject: Fund Ref: 110/XX/236/OB/2024

From: “Dr.John Schindler (Secretary General)”

Attention My Dear,

After the Global Financial Pact Summit, Monday, November 11, 2024 in Paris we have come to the conclusion to pay

Scammed victim compensation fund. You are in the badge B category that are going to benefit from the world’s largest

humanitarian aid budgets. With due regards to the instruction from the Financial Stability Board (FSB). We want to

inform you that (The Financial Stability Board (FSB)) have arranged with UNITED BANK FOR AFRICA to

immediately effect your payment through the online transfer of your $1.750.000.00usd via UBA BANK online

transfers. The transfer of your fund will be processed and completed within 3 working days, within which the fund

will safely reflect into any designated bank account of your choice.

To this effect, you’re required to contact

Sir.Joseph Warfel Mandy

Online Banking Services, UBA BANK

Email : …@gmail.com

Deposit And Fund Details

Fund Ref: 110/XX/236/OB/2024

Fund Value .. $1.750.000.00

Fund Origin ..Financial Stability Board (FSB)

Paying Formula.. UBA BANK Online Transfer!

Contact Sir.Joseph Warfel Mandy with your

Full names

Direct telephone number

Your identification Number

Current Address

He will furnish you with all necessary online information to carry out the online transfer of your fund by yourself.

Please note that F.S.B mobilization and efficiency sum of $125 is the only payable/required sum to effectively

complete your online transfer without any delay.

Thanks and best regards

Dr.John Schindler (Secretary General)

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.

Subject: Spende von €1,500,000.00 From: Theodorus Struyck <dina> Reply-To: Theodorus Struyck <...> Wir freuen uns, Ihnen mitteilen zu können, dass Ihnen und Ihrer Familie eine Spende von €1,500,000..00 von Theodorus Struyck, 65, geschenkt wurde und der Gewinner des zweitgrößten Jackpot-Preises der kalifornischen Lotterie Powerball im Wert von 1,765 Mrd. 11, 2023 , ein Teil dieser Spende ist für Sie und Ihre Familie. und diese Spende wird auch zur Armutsbekämpfung beitragen, für arme und ältere Menschen in Ihrer Gemeinde, indem sie der Menschheit helfen. Bitte kontaktieren Sie uns für weitere Informationen, um das Geld per E-Mail zu erhalten: …@gmail.com, …@outlook.com</...></dina>

Subject: Spende von €1,500,000.00

From: Theodorus Struyck

Reply-To: Theodorus Struyck <...>

Wir freuen uns, Ihnen mitteilen zu können, dass Ihnen und Ihrer Familie eine Spende von €1,500,000..00 von

Theodorus Struyck, 65, geschenkt wurde und der Gewinner des zweitgrößten Jackpot-Preises der kalifornischen

Lotterie Powerball im Wert von 1,765 Mrd. 11, 2023 , ein Teil dieser Spende ist für Sie und Ihre Familie. und diese

Spende wird auch zur Armutsbekämpfung beitragen, für arme und ältere Menschen in Ihrer Gemeinde, indem sie der

Menschheit helfen. Bitte kontaktieren Sie uns für weitere Informationen, um das Geld per E-Mail zu erhalten:

…@gmail.com, …@outlook.com

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.

Subject: Potential Investment Opportunities in Russia From: Grigorii Iuvchenko <grigorii.iuvchenko> Dear [Recipient’s Name], I hope this email catches you off guard. I am a business development professional at Sovereign Wealth Portfolio Limited. We operate on behalf of the Kingdom of Saudi Arabia through the Saudi Fund. As you may be aware, Saudi Arabia is in the process of applying for membership in the BRICS economic bloc, which includes Brazil, Russia, India, China and South Africa. As part of this process, Saudi Arabia is required to invest a certain amount in each of these member countries. I have been tasked with identifying potential investment opportunities in Russia, and I believe that you or your organization could be a suitable candidate. Whether it is a new venture, a project, or an existing business, I would be interested to hear your thoughts on possible partnership opportunities. I look forward to your response. Sincerely, Alexander Maksakov Business Development Director Sovereign Wealth Portfolio Limited</grigorii.iuvchenko>

Subject: Potential Investment Opportunities in Russia

From: Grigorii Iuvchenko

Dear [Recipient’s Name],

I hope this email catches you off guard. I am a business development professional at Sovereign Wealth Portfolio

Limited. We operate on behalf of the Kingdom of Saudi Arabia through the Saudi Fund. As you may be aware, Saudi

Arabia is in the process of applying for membership in the BRICS economic bloc, which includes Brazil, Russia,

India, China and South Africa. As part of this process, Saudi Arabia is required to invest a certain amount in each of

these member countries.

I have been tasked with identifying potential investment opportunities in Russia, and I believe that you or your

organization could be a suitable candidate. Whether it is a new venture, a project, or an existing business, I would be

interested to hear your thoughts on possible partnership opportunities.

I look forward to your response.

Sincerely,

Alexander Maksakov

Business Development Director

Sovereign Wealth Portfolio Limited

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.

Subject: DONALD TRUMP FOUNDATION From: MR Donald trump <katsuhito_ogura> Reply-To: …@gmail.com Hello., this email is from Donald J. Trump Foundation, American politician, media personality, and businessman who served as the 45th president of the United States from 2017 to 2021. , The Trump Foundation is a charitable organization formed in 1988. As we happily celebrate Mr Donald J. Trump as 47th President of the United States. It gives me great joy to announce to you that after the winning of election, Donald J. Trump has called for the reopening of the Trump foundation which was closed years ago. The Trump foundation is giving out $15,000,000.00 each to 50 lucky people around the world to unknown randomly selected individual Emails online,the foundation simply attempt to be fearful when others are greedy and to be greedy only when others are fearful Price is what you pay, Value is what you get, Someone’s sitting in the shade today because someone planted a tree a long time ago. You have been selected to receive this $15,000,000.00, as a lucky one confirm back to me that this selected unknown email is valid,Visit the web page to know more about the Donald J. Trump Foundation, https://… Contact. This email below (…@gmail.com) Best Regards Donald J. Trump Foundation</katsuhito_ogura>

Subject: DONALD TRUMP FOUNDATION

From: MR Donald trump

Reply-To: …@gmail.com

Hello., this email is from Donald J. Trump Foundation, American

politician, media personality, and businessman who served as the 45th

president of the United States from 2017 to 2021. , The Trump Foundation

is a charitable organization formed in 1988.

As we happily celebrate Mr Donald J. Trump as 47th President of the

United States.

It gives me great joy to announce to you that after the winning of

election, Donald J. Trump has called for the reopening of the Trump

foundation which was closed years ago.

The Trump foundation is giving out $15,000,000.00 each to 50 lucky

people around the world to unknown randomly selected individual

Emails online,the foundation simply attempt to be fearful when others

are greedy and to be greedy only when others are fearful Price is what

you pay, Value is what you get, Someone’s sitting in the shade today

because someone planted a tree a long time ago.

You have been selected to receive this $15,000,000.00, as a lucky one

confirm back to me that this selected unknown email is valid,Visit

the web page to know more about the Donald J. Trump Foundation,

https://…

Contact. This email below (…@gmail.com)

Best Regards

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 –

February 6, 2025

MIL-OSI Russia: Belgium: Staff Concluding Statement of the 2025 Article IV Mission
Source: IMF – News in Russian

February 5, 2025

A Concluding Statement describes the preliminary findings of IMF staff at the end of an official staff visit (or ‘mission’), in most cases to a member country. Missions are undertaken as part of regular (usually annual) consultations under Article IV of the IMF’s Articles of Agreement, in the context of a request to use IMF resources (borrow from the IMF), as part of discussions of staff monitored programs, or as part of other staff monitoring of economic developments.

The authorities have consented to the publication of this statement. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF Executive Board for discussion and decision.

An IMF team led by Jean-François Dauphin visited Brussels to conduct the 2025 Article IV consultation with Belgium. The mission’s discussions (January 22-February 3) took place before the formation of the new government and the present statement, which summarizes the mission’s findings and recommendations, does not reflect the new government’s policy intentions.

The IMF team thanks the Belgium authorities andother counterpartsfor the constructive dialogue and productive collaboration. It congratulates the new government on its nomination and looks forward to future engagement.

******

The Belgian economy has been resilient to a series of shocks, but growth has slowed, and disinflation has faced headwinds. The labor market has been strong but shows signs of cooling. Labor-cost competitiveness has declined with wage growth outpacing sluggish productivity growth. Absent policy change, pressures from an aging population will weigh on Belgium’s social model and further increase the fiscal deficit and public debt, heightening vulnerability to changes in market sentiment. The outlook is subject to high uncertainty, amid risks that could push growth down and inflation up, including deepening geoeconomic and trade fragmentation, and adverse energy price developments.
- Sustained fiscal consolidation is needed to support disinflation, rebuild buffers, lower market vulnerabilities, and address spending pressures from aging and the green transition. All federal and federated entities need to contribute to the adjustment. Rationalizing current spending while preserving (or increasing) public investment in infrastructure, healthcare, and education and enhancing its efficiency is a priority.
- To preserve macrofinancial stability, current capital buffer requirements and prudential limits on mortgage loans should be maintained. Recent progress in strengthening systemic risk assessment, supervision, the macroprudential framework, and crisis management and resolution preparedness is welcome and should be sustained.
- Reforms are needed to enhance growth potential through higher labor force participation, increased productivity, and a more efficient resource allocation. Priorities include increasing the income gap between work and nonwork through tax and social benefits reforms, reforming the wage-setting mechanism, and upgrading labor skills. Together with efforts with EU partners to deepen the single market, further product market reforms to reduce barriers to entry, foster greater competition, and improve the insolvency regime will improve firm dynamics and the diffusion of innovation. Sustaining the green transition requires strong commitment and enhanced coordination among the federal and regional governments.
Economic outlook and risks

Growth is expected to be stable in 2025 and inflation to slowly return to target. Output is expected to grow by 1.1 percent in 2025 and slightly increase by 2027 supported by monetary policy easing and a higher contribution from net exports. Inflation is projected to gradually decline as wage growth moderates and the projected drop in international energy prices passes through to retail prices. The external current account is expected to return to small surpluses over the medium term as energy prices ease and external demand increases. Under unchanged policies, pressures from the aging population would further increase the fiscal deficit to about 7 percent and public debt about 125 percent of GDP in 2030, heightening vulnerabilities.

The baseline outlook is subject to sizeable risks, tilted down for growth and up for inflation. Growth could be weaker if the expected recovery in external demand falters amid escalating geoeconomic tensions and trade fragmentation. Inflation could be higher than projected due to adverse energy price developments, or if persistently-high core inflation affects expectations. Fiscal sustainability concerns could arise and lead to a sharp increase in borrowing costs—especially if global risk aversion increases—, necessitating abrupt fiscal consolidation with negative consequences for growth and potentially financial stability.

Rebuilding Fiscal Buffers Despite Pressures

Significant fiscal consolidation is needed to address large structural deficits and rising public debt that were exacerbated by the pandemic and energy crisis. In the short term, consolidation will help further reduce inflation, notwithstanding still-high wage growth and looser monetary policy. This would also help address significant upside risks to inflation. Critically, a sustained reduction in fiscal deficits is needed to reduce vulnerability to changes in market sentiment, rebuild space to address potential future shocks, address long-term spending pressures, and ultimately, preserve the core of Belgium’s social model, which places a high premium on solidarity and equity.

Consolidation under the new EU economic governance framework (EGF) would significantly improve fiscal sustainability. Given the magnitude of the needed adjustment, the medium-term fiscal structural plan (MTFSP) under the EGF would benefit from a seven-year rather than a four-year adjustment path, accompanied by credible and front-loaded growth-enhancing reforms. Under such an adjustment, an annual reduction in the structural primary balance of about 0.5 percentage points of GDP until 2031 will be necessary to reach an overall deficit below 3 percent of GDP by 2031 and maintain it until 2041, per the EGF.

Fiscal adjustment should center on rationalizing current spending, while making room for public investment. Rationalizing social benefits and the public wage bill is crucial for achieving budgetary savings. Public investment should be preserved, or ideally, increased to mitigate the growth impact of fiscal consolidation, support green transition, and bolster the economy’s productive capacity.

Improving the efficiency of public investment is critical amid competing demands for resources. This includes laying out clear infrastructure investment strategies, strengthening project appraisal, selection, and governance, and improving coordination within and among the federal and federated entities. In healthcare, increasing the focus on preventive care and reforming the organization and role of hospitals would help absorb part of the projected increase in spending due to aging and better prepare the system to the evolving need of an older population. Education reforms can help achieve the same education outcomes at lower costs or improve outcomes without increasing spending.

Pension reforms are essential to address cost pressures from aging. The focus should be on raising the effective retirement age in line with healthy-life expectancy and facilitating longer employment through life-long learning and upskilling. Additionally, reviewing eligibility criteria for specific pension regimes (e.g., disability pensions) and limiting increases in pension benefits by reviewing automatic indexation are necessary steps. A review of special provisions (e.g., arduous jobs) could inform reforms to balance fairness and costs.

Tax reforms should aim to shift part of the tax burden from labor to capital, without revenue loss, and to reduce tax exemptions. Belgium has the highest labor-tax wedge in the OECD. Reducing labor taxation will help increase the employment rate. All revenue from capital (e.g., interests, dividends, and capital gains) should be taxed in the same way to ensure neutrality in investment decisions, ideally by incorporating these revenues into the overall taxable income subject to personal income tax. Reducing preferential regimes and treatments in the tax system, a significant source of foregone revenue, also needs to be part of the reform package. Tax reforms should be coordinated among the federal and federated entities for their revenue and distributional impacts.

The new EGF provides an opportunity to strengthen Belgian’s fiscal framework through a revitalized fiscal council and greater accountability among federated entities. The implementation of the 2013 federal-regional coordination agreement has proved challenging, given the complexities of Belgium’s fiscal federalism. The new EGF provides a renewed opportunity to introduce binding rules for burden sharing the fiscal adjustment, with clear accountability for the federal and all federated entities. A strengthened fiscal council (e.g., with enhanced staffing and direct reporting to parliaments) would help ensure that the federal and each federated entity’s fiscal behavior is consistent with Belgium’s European commitments.

Preserving Macrofinancial Stability

Overall systemic risks in the financial sector remain moderate but are evolving due to changing macroeconomic and market conditions. While the economy is slowing and real estate markets cooling, interest rates are now decreasing. Household indebtedness has stabilized, and corporate indebtedness has declined due to substantial investments being largely cash financed. Corporate bankruptcies have been increasing but remain aligned with pre-pandemic trends. Risks from residential real estate have moderated, but commercial real estate market activity has dropped sharply, and vacancies have risen, reflecting low demand for office space. Overall, exposures to real estate remain broadly stable.

With the level of financial stability risks expected to remain unchanged, capital buffers and prudential limits on residential mortgages should be maintained . Since last year, macroprudential policies have tightened, with capital buffers significantly raised. The NBB also appropriately encouraged banks to lengthen new mortgage maturities to ease the debt servicing burden of households and pre-empt borrower distress. Progress has been made in implementing the 2023 Financial Stability Assessment Program (FSAP) recommendations and this effort should be accelerated now that a new government is in place and the required legislative changes can be pushed forward.

Strengthening Labor Markets

Labor market fragmentation and rigidity in Belgium are impeding growth potential. The coexistence of local or sectoral pockets of high vacancies and pockets of high unemployment highlights inefficiencies in labor allocation that hinder potential growth. Employment gaps for low-skilled workers, older workers, women, and individuals with an immigration background or disabilities remain high. Fostering a more inclusive labor market will enhance overall economic performance and mitigate fiscal pressures.

Enhancing labor market incentives is essential. Labor market, tax, and social benefit reforms should consistently aim to increase the income gap between work and nonwork and reduce the cost of hiring and dismissal. Reducing the duration of unemployment benefits and linking social benefits to income levels would incentivize re-entry into the labor force. Policy efforts should also focus on facilitating re-integration of workers from long-term sick leave.

Reforming the wage-setting mechanism will help increase labor market efficiency, improve competitiveness, and reduce fiscal costs. Automatic wage and social benefit indexation protected household purchasing power during the inflation shock. However, it also increased structural fiscal deficits and led to labor-cost increases exceeding those of major trading partners when accounting for productivity differential, weighing on competitiveness. Consideration should be given to abolishing the automatic indexation and the 1996 wage law which, together, define a floor and a ceiling for wage growth, that do not allow for an optimal allocation of labor and increased employment. At a minimum, the labor market would already benefit from reforms including adjusting the basis for indexation to exclude volatile prices, broadening the group of comparator countries in the wage law, using productivity-adjusted wage growth as the basis for comparison, and allowing firms to partially index wages considering specific local and sectoral labor market conditions.

Reforms in education and life-long training are necessary to upskill the labor force, enhance employment rates, and promote growth. While educational outcomes in Belgium are comparable to peers, they are achieved at a higher cost. Addressing teacher shortages, reducing grade repetition rates, and achieving greater equality of educational outcomes irrespective of backgrounds will require a comprehensive reform of the educational system. Actions should seek to align education with the needs of Belgian companies, better leverage teachers’ time, and strengthen support provided to students who face difficulties. These reforms would help increase employment, productivity, and the creation and diffusion of innovation.

Boosting Productivity

Boosting productivity will require further product market reforms to improve firm dynamics and the diffusion of innovation. Despite significant investment in innovation, Belgium’s long-term productivity slowdown is worse than peers, suggesting room to improve the transmission of innovation to productivity gains. Lagging productivity is linked to insufficient firm dynamics—the entry, growth, and exit of firms—, with Belgium experiencing some of the lowest firm entry and exit rates in the EU. To enhance productivity and dynamics, further product market reforms are necessary to reduce regulatory and administrative barriers and improve the insolvency regime.

Deepening the European single market and advancing the capital market union would benefit firms in Belgium. Removing remaining barriers to trade within the EU and harmonizing regulations and bankruptcy frameworks would enhance Belgian firms’ access to a much larger customer base, improve competition and firm dynamics, and provide buffers against risks from geo-fragmentation. Moreover, developing venture capital within an EU-wide push toward capital market union would help widen Belgian firms’ options to finance growth.

Sustaining the Green Transition

Despite progress, much effort remains needed to achieve climate objectives. The expansion of the EU emissions trading system should be complemented by timely implementation of carbon taxation and phasing out fossil fuel subsidies, while ensuring support for vulnerable population. The consolidation of federal and regional climate efforts into a coherent and cohesive national strategy is essential. Improved coordination and accountability among the federal and regional governments will facilitate the design, execution, and evaluation of climate policies. Adequate investments in the green transition are necessary to ensure Belgium meets its climate goals and contributes to the European Green Deal.

IMF Communications Department

MEDIA RELATIONS

PRESS OFFICER: Camila Perez

Phone: +1 202 623-7100Email: MEDIA@IMF.org

@IMFSpokesperson

https://www.imf.org/en/News/Articles/2025/02/05/CS-Belgium-2025

MIL OSI
MIL OSI Russia News –
February 6, 2025
MIL-OSI Europe: Luis de Guindos: Interview with Hospodárske Noviny

Source: European Central Bank

Interview with Luis de Guindos, Vice-President of the ECB, conducted by Mário Blaščák

5 February 2025

The ECB lowered its interest rates by 25 basis points last week. How low can rates go given the current inflation and growth outlook?

We have been very clear that we are not following any predetermined path and will decide meeting by meeting, based on the incoming economic data. This is because the level of uncertainty is huge. Now that we see inflation approaching our 2% target, we have been reducing the restriction of our monetary policy. How much lower rates will go depends on the data confirming that inflation is converging towards our target in a sustainable manner. We are confident that this will happen this year, but there are still a number of uncertainties, particularly surrounding the geopolitical situation, that we need to take into account. So, even if our current trajectory under the current circumstances is clear, nobody knows the level at which interest rates will end up.

At the press conference, ECB President Christine Lagarde described the current level of interest rates as being in restrictive territory. Národná banka Slovenska Governor Peter Kažimír recently suggested that rates would decline to a neutral level close to 2%. Do you agree?

I usually agree with my friend Peter Kažimír on a lot of things [laughs]. The neutral rate is an interesting concept from an academic standpoint. However, using it as a reference for monetary policy decisions is not the right approach, in my view. The range of the neutral rate, based on different models, can be very ample. Our bank lending surveys provide a much better indicator of the restrictiveness of our monetary policy, by showing how banks are easing or tightening financing conditions. For policy decisions we need to consider all relevant incoming data and a vast range of indicators to form our assessment of the inflation outlook, underlying inflation and the strength of monetary policy transmission. So while the neutral rate makes for an interesting academic concept, it is not very useful from a policymaking standpoint.

Why don’t academic concepts hold up? Are we living through unusual times?

Academic research is crucial for the conceptual framework of the things we do. But the high level of uncertainty we are now dealing with potentially calls for a more pragmatic approach, placing less weight on unobservable variables or model-based estimates with shortcomings and results expressed in wide ranges.

Services inflation is double the target level and wage growth is near 5%. How confident are you that the projected moderation in inflation will actually materialise?

As we can clearly see at the moment, not all the components of inflation evolve in parallel. You are right that while goods inflation stands at 0.5%, services inflation is at 4%. It is important that services inflation starts to decelerate. We believe this will happen because services are very wage-sensitive, and we expect wage growth to start to decelerate. We also see our corporate surveys confirming our belief that wage dynamics will start to slow down, so we expect this to help bring down services inflation.

How is inflation expected to evolve over the next few months?

On average, we may see an increase in headline inflation over the next couple of months because of base effects, mostly due to energy prices. Nevertheless, we are convinced that headline inflation will start to decelerate later on in the spring and converge towards our 2% target on a sustainable basis.

Is there any time lag between the projected moderation in wage growth and services inflation?

There is always a certain delay in that respect. But looking only at wage growth data is like looking into a rear-view mirror. Looking ahead, we pay attention to expectations about inflation, which are firmly anchored. At the same time, there is the crucial “catch-up” process, which is almost complete. While the purchasing power of workers’ wages in the euro area fell during the period of high inflation, it has now recovered. These two elements lead us to believe that wage increases will start to decelerate.

Eurostat released data on GDP growth in the euro area, which has been stagnating. Forward-looking indicators point to an economic slowdown, affecting wages and, in turn, consumer demand. Is that the reason why you are expecting weak growth in household consumption?

You raised a very important issue. In order to understand what will happen to the economy, consumer behaviour is key. Right now, we don’t see consumption picking up even though the moderation in inflation has restored households’ purchasing power. It is likely that this is related to consumer confidence. The impact of past shocks like the pandemic, the post-pandemic period and the energy shock, as well as the current geopolitical situation and the general level of uncertainty worldwide, is moderating consumption. But we believe that confidence will be restored over time, as real wages recover.

A recovery in consumption will be key for a rebound of euro area economic growth. The lack of consumer confidence is one of the reasons why this has not been the case yet.

What would happen if the war in Ukraine were to end tomorrow? Would it change everything we think about the economy and the course of monetary policy?

From a human standpoint, a peace agreement would obviously be very positive. And generally speaking, an end to the war would also benefit the economy. But this would depend on how the war is resolved and whether the terms of the settlement are good for Ukraine and for the rest of Europe.

In its pursuit of price stability, the ECB targets inflation, but what role did weak economic growth play in your decision to lower interest rates?

Even though we target inflation, our decision-making of course involves a broader perspective. We consider a wide range of indicators, such as consumer demand, investment, energy prices and exchange rate developments, as well as actual and potential economic growth. We calibrate all of these components on an ongoing basis to produce the most accurate projection of inflation over time in order to support our decisions.

Slovakia is an automotive power. However, the car sector has been struggling in the wake of the green transition. After your dinner with European Commission President Ursula von der Leyen last week, how do you see the green transition evolving?

This question would be better put to the European Commission. Ms von der Leyen explained the main features of the Competitiveness Compass, with simplification and flexibility being major drivers. This means looking at decarbonisation targets also through the lens of the competitiveness of European industries.

Slovakia is one of Europe’s fiscal sinners, but it has implemented consolidation measures, including income tax and VAT hikes and the introduction of a transaction tax. Do you think it will be enough if small euro area countries take action while large countries do not?

Every country needs to do their part to comply with the new fiscal framework. The new rules need to be implemented fully, faithfully and by all countries, because the credibility of fiscal policy is crucial. This does not apply to Europe alone, but to other countries in the world too. Markets are monitoring each country’s fiscal position very closely, and any doubts about the sustainability of public finances are quickly reflected in increased government bond yields, as we have seen in the United States and the United Kingdom. An increase in government bond yields is detrimental to growth and financial stability. That is why we must maintain the credibility of the new fiscal framework, as this a prerequsite for keeping long-term yields at a low level, which is vital for the economic recovery. The new fiscal rules are flexible to allow sustainable deficit cuts and they will not jeopardise efforts to invest in areas such as climate change or defence.

Global debt is on track to hit 100% of world GDP this year. Is this alarming? And who is the biggest debt sinner?

I won’t name any countries, because the figures are already out there. In general, the policy response to the pandemic played a big part in increasing sovereign debt, as there was a combination of very loose fiscal and monetary policy. But this was an exceptional situation – extraordinary times require extraordinary measures.

That being said, many countries have seen their fiscal positions deteriorate. Public debt ratios are now high, and a number of countries have increased their structural deficits. This is why it is so important to implement the new fiscal governance framework in its entirety. This means not only reducing the fiscal deficit and the public debt-to-GDP ratio, but also implementing structural reforms.

Do you view the consolidation measures adopted by the Slovak Government as positive?

It is not for us to assess the fiscal measures of individual countries. Looking at Slovakia’s fiscal profile, we see that its debt is below the euro area average, at around 60% of GDP. The budget deficit is higher, which means that Slovakia is subject to an excessive deficit procedure. In general, it’s important to reduce the deficit in a way that ensures the sustainability of public finances. This can be done through a combination of cutting expenditure and increasing tax revenue. But how to do that, and by how much, is for each country to decide.

12 years ago, Italy’s fiscal sustainability triggered a crisis. Today, France is under the spotlight of the markets and its government bond yields are on the rise. Does this pose a threat to the stability of the euro area?

We have seen an increase in yields in several countries. In the case of France, this may have been somewhat stronger, mainly because of the political situation. But the plans submitted to the European Commission are fully compliant with the new fiscal framework. So what I hope for France, and for other euro area countries, is political stability, and for them to be able to implement the plans approved by the European Commission.

Mortgages are very important for people in Slovakia, as Slovaks prefer to live in their own homes. But interest rates went from levels below 1% all the way up to 5.3% in November 2023. In view of the monetary policy easing cycle, is the ECB a messenger of good news for Slovaks?

We are trying to do our job. When inflation was high, we increased interest rates, and now that it is falling, we are reducing them. On average, inflation peaked at above 10% in October 2022 and it now stands at 2.5%, which is why we have cut interest rates by 125 basis points since June last year. This has an impact on financing conditions and on mortgage rates, but the structure of the mortgage market is also important in determining how quickly our monetary policy is transmitted. In countries where most of the mortgage market is at variable rates, interest rate cuts are rapidly reflected in household mortgage payments. In countries where there are more fixed-rate mortgages, this process is slower. But the transmission of monetary policy easing will eventually be reflected in mortgages across the board, and people will feel that they are less costly than before we started to reduce rates.

So monetary policy is a bit of a bittersweet symphony? Bitter in bad times and sweet in good times?

Yes, bitter when inflation is high and we need to tighten financing conditions, and sweet when it is low. Now that inflation is declining, and if it continues to do so, we will adjust our monetary policy accordingly. If inflation had not declined, we would not have cut rates.

How big a threat are Donald Trump’s economic policies to the ECB’s inflation target?

With regard to tariffs, our analyses suggest that the main impact will be on growth. If the world embarks on the path towards a trade war, this will have an extremely negative impact on the growth prospects of the global economy. Increases in tariffs and quotas are a negative supply shock, especially if accompanied by retaliation. This vicious circle should be avoided. Estimating the impact on inflation is more difficult owing to the dampening effect of tariffs on demand and growth, as well as the fact that selective tariffs can lead to trade being redirected and diverted.

Are you concerned about stagflation, i.e. a stagnation in growth accompanied by rising prices, which the ECB’s monetary policy cannot reach? Could it lead to a reversal of the monetary policy stance?

If inflation moves according to our projections, the path of our monetary policy is clear. Although there are always some external factors affecting the economy, and potentially shocks, our baseline scenario sees inflation on track to converge towards our target this year, with a slight recovery in economic growth. We expect euro area GDP growth to reach 1.1% this year, following 0.7% last year.

To support the economic recovery, we will need a growth-oriented fiscal policy that also guarantees the fiscal sustainability of public finances, as well as structural reforms. This is where the European Commission’s Competitiveness Compass will play a key role. To achieve real unity, we need to simplify processes and integrate markets in Europe. That means the Single Market, the capital markets union and the banking union. These will be key elements in improving the growth prospects and growth potential of the euro area.

MIL OSI Europe News –

February 6, 2025
MIL-OSI United Kingdom: New Glasgow prison given go-ahead

Source: Scottish Government

New investment to create jobs and support work to cut reoffending.

A new modern prison in Glasgow to replace the 143-year-old HMP Barlinnie has been given the go-ahead – delivering £450 million worth of economic benefits.

With the construction contract now signed, HMP Glasgow will have a capacity of 1,344 – adding 357 more places to the overall prison estate once completed in 2028. The total project cost is £998.4 million.

The prison has been designed to deliver fit-for-purpose, safe and secure accommodation that will improve opportunities for successful rehabilitation to help reduce reoffending, while creating a safer working environment for staff.

The project, which independent benchmarking shows is in line with costs for similar recent prison builds in England and Wales, will provide significant economic benefits both during construction and following completion. During peak construction activity there will be over 1,000 people on site, with several thousand working on the project over the lifespan. There will be 50 new apprenticeships created within that workforce.

Developer Kier Construction has committed to providing a range of community benefits, including employment for the local community, such as apprenticeships, training and work placements for ex-offenders, as well as supporting local businesses.

Justice Secretary Angela Constance said:

“HMP Glasgow is a bold vision for the future of Scottish prisons that will help reduce reoffending, contribute to less crime, while delivering a considerable economic boost for the city and beyond.

“The new modern establishment will replace a Victorian-age prison that is no longer fit for purpose. It will increase prison capacity and transform how prisoners are rehabilitated, as well as considerably improving staff working conditions.

“Delivering the best value has been a key consideration of this project, which will provide more £450 million worth of economic benefits, including jobs and contracts for businesses in Scotland. I very much welcome that at least 50% of project spend will benefit the local supply chain.

“It has taken time to find the right site and plan for HMP Glasgow, and like all other major infrastructure projects it has not been immune to inflation as a result of Brexit and the COVID pandemic.

“The project’s cost has been extensively scrutinised, with independent benchmarking analysis finding the costs are comparable with similar prison projects elsewhere in the UK.”

Teresa Medhurst, Chief Executive of the Scottish Prison Service, said:

“HMP Glasgow will have a transformative impact in how we support and rehabilitate people.

“It is an investment in our staff, in those in our care, and in Glasgow and Scotland as a whole, as we work with our partners to improve people’s futures and together build safer communities.

“I want to thank Scottish Government, for its continued support and investment, and everyone whose hard work has helped us reach this important milestone as we continue to develop a prison estate fit for the 21st century.”

Rebecca Boundy, Public Sector Director at Kier Construction, said: “It’s an honour to be awarded the contract to deliver this critical project.

“We will build a sustainable, state-of-the-art facility while ensuring that local communities, schools and charities directly benefit both now and in the future.

“Using the latest techniques and modern methods of construction, we will harness the very best of our team’s significant experience in the justice sector to provide a high-quality, more efficient prison for Scotland which has rehabilitation at its core.

“The project will provide new jobs, with at least 50% of project spend committed to local supply chain partners, and also including provision for those who have directly experienced the justice system in the last six months.”

Background

The total cost of the project is £998.4 million which includes the cost of land acquisition, VAT and a construction contract cost of £683.8 million.

Scotland’s largest prison, HMP Barlinnie is more than 140 years old. It houses male prisoners – both individuals on remand, and those with convictions serving vary lengths of sentence. HM Inspector of Prisons for Scotland said in its last independent annual report on Barlinnie that its buildings, accommodation and facilities are not fit for purpose.

A National Audit Office report published on 4 December 2024, has highlighted recent significant increases in the costs of prisons builds in England and Wales.

HMP Glasgow will be sited at Provanmill, south of Royston Road.

MIL OSI United Kingdom –

February 5, 2025
MIL-OSI United Kingdom: Youth Justice Board publishes knife crime insights pack
Source: United Kingdom – Executive Government & Departments

The Youth Justice Board (YJB) is sharing its Knife Crime Insights Pack to add context to the YJB’s Annual Statistics which include data on knife crime and offensive weapons.
Evidence and insights

The YJB Annual Statistics highlight:

In the year ending March 2024, there were just over 3,200 knife or offensive weapon offences committed by children resulting in a caution or sentence, which is 6% fewer than the previous year but 20% greater than 10 years ago. This is the sixth consecutive year-on-year decrease.

In the latest year, the vast majority (99.7%) of knife or offensive weapon offences committed by children were possession offences and the remaining 0.1% were threatening with a knife or offensive weapon offences.

Out-of-court disposals are a method of resolving an investigation outside of court. In the year ending March 2024, 61% of disposals given to children for a knife or offensive weapon offence were a community sentence. This proportion is broadly stable over the last 10 years.

The proportion of children sentenced to immediate custody was 7% in the last year, which is the same level it has been for the last three years.

Included within the Knife Crime Insights Pack (PDF, 417 KB, 16 pages) are a number of evidence-based insights into what works and what doesn’t. There are also a number of recommendations informed by these insights, which are:

The YJB supports attempts to reduce knife supply.

The YJB supports individualised decisions on outcomes.

The YJB supports local strategies to address the conditions that sustain violence.

The YJB supports local partnerships working together to ensure that adults meet the needs of children.

Chief Executive, Stephanie Roberts-Bibby, said:

Any incidence of violence involving knives and weapons is one too many. This type of violence, specifically involving children, should not happen and when it does, it is an emotionally charged time for all involved, not least for the victims, their families and the communities who are so greatly impacted. My heart goes out to those affected.

Our Annual Statistics which we published last week show a worrying number of children still involved in offences involving weapons. While the overall picture is improving, it is important to consider the broader context, which is so often missed when we speak of individual tragedies.

To address knife crime adequately, it is vital that we understand the context in which children live their lives – so publicly and with an increasing use of social media and technology. This is exacerbated by the pandemic which will have affected maturation and development. It is essential that children have access to early intervention and the right support at the critical stages of their lives. Evidence shows this work is crucial in preventing further harm, reducing the number of victims and creating safer communities through steering children away from carrying weapons.

We cannot underestimate the importance of attendance in inclusive education as a protective factor in preventing children offending. Equally important is support from health services when appropriate. We will continue to do all we can to provide evidence-based advice to ministers and all partners responsible for preventing children offending, including local authorities, children’s social care, education, health, probation and police.

The pack is a comprehensive report which informs the basis of cross-sector discussions hosted by the YJB. The pack provides context to the landscape of knife crime by summarising facts, and insights gathered from experts who work with children in the youth justice system. It also provides recommendations based on the evidence. These insights draw attention to the significant role that early intervention, targeted prevention and diversion programs play in reducing knife crime by children.

Chair of the Youth Justice Board, Keith Fraser, commented:

Understanding the landscape of knife crime is essential to reducing the number of victims affected by it, which is why this insights pack was developed. It is also why senior experts and decision makers are routinely invited to discuss the insights and refine the recommendations.

We hear a lot in the press that “knife crime is an epidemic”. In actual fact, the statistics show that knife crime has been decreasing since 2019 and we want to continue this trend by highlighting what works based on the evidence.

There is very weak evidence to support that ‘scared straight’ initiatives, weapons amnesties, increased stop and search or mandatory sentencing have any sustained impact on knife crime in communities. Initiatives that do work are social skills training, mentoring and tailored support with education, housing and employment.

For more information access the full Knife Crime Insights Pack on the Youth Justice Resource Hub

ENDS

Youth Justice Board media enquiries

Youth Justice Board for England and Wales
Clive House
70 Petty France
London
SW1H 9EX

Email comms@yjb.gov.uk

For out-of-hours press queries 020 3334 3536

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Updates to this page

Published 5 February 2025
MIL OSI United Kingdom –
February 5, 2025

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 2^nd in consumer finance⁷⁹, 3^rd in asset management⁸⁰, and 4^th 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 activities}_{reorganisation (}_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)

(15)

(11)

Loan portfolio hedges (LC)

(24)

(18)

Home Purchase Savings Plans (LCL)

–

Home Purchase Savings Plans (CC)

–

(2)

(1)

236

175

Mobility activities reorganisation (SFS)

–

300

214

Check Image Exchange penalty (CC)

–

Check Image Exchange penalty (LCL)

–

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)

–

Mobility activities reorganisation (SFS)

–

(85)

(61)

Total impact on cost of credit risk

–

(20)

(85)

(61)

Mobility activities reorganisation (SFS)

–

(39)

Total impact equity-accounted entities

–

(39)

ISB integration costs (LC)

(2)

–

(2)

–

Degroof Petercam acquisition costs (AG)

–

(22)

(16)

–

Mobility activities reorganisation (SFS)

–

Total impact Net income on other assets

(1)

–

(24)

(16)

Mobility activities reorganisation (SFS)

–

Total impact on change of value of goodwill

–

Mobility activities reorganisation (SFS)

–

Total impact on tax

–

Total impact of specific items

(64)

(41)

(138)

(86)

580

425

Asset gathering

(12)

(9)

–

(49)

(35)

–

French Retail banking

–

International Retail banking

–

(20)

–

Specialised financial services

–

263

176

Large customers

(52)

(32)

(70)

(32)

(39)

(28)

Corporate centre

–

(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
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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

EN_CASA_PR_2024-Q4

The MIL Network –

February 5, 2025

MIL-OSI New Zealand: Govt’s lack of a plan shows in soaring unemployment stats

Source: Green Party

The latest labour market figures confirm unemployment has risen to levels not seen since the height of the Covid-19 pandemic.

“This Government lacks a plan for creating jobs, its only plan is entrenching poverty for our poorest communities,” says the Green Party’s Social Development spokesperson Ricardo Menéndez March.

“Our country has the means to build an economy that works for everyone and leaves nobody behind. We can invest in the public services and infrastructure which support our communities into meaningful jobs and livelihoods.

“The latest stats lay bare the poverty trap this Government is setting for our communities. Cutting thousands of jobs and undermining support for people doing it tough is setting our communities up to fail.

“There are not enough jobs – this is by design. We can’t use austerity to condemn people into deeper poverty due to hard times

“The Government has introduced new benefit sanctions while they push more people into unemployment, knowing full well there aren’t enough jobs for every single person on the benefit, and will never be while it’s in power.

“Where is the workforce planning desperately needed for our country, with its many challenges including the huge infrastructure deficit and meeting the needs of an ageing population? Nowhere to be seen under this coalition for the rich.

“We have a plan for a Future Workforce Agency to strategically upskill New Zealanders and coordinate industrial planning.

“The Greens would end poverty with a Guaranteed Minimum Income, more training opportunities, and restarting public investment in healthcare, schools, and building housing that creates good jobs. Our jobs for nature plan will also be a central plank for providing people with meaningful and stable work.

“The Government needs to boost benefits and abolish sanctions, so that the increasing number of unemployed New Zealanders aren’t left to languish in poverty, and aren’t punished for struggling to find work in National’s barren economy,” says Ricardo Menéndez March.

MIL OSI New Zealand News –

February 5, 2025
MIL-OSI USA: Jefferson, U.S. Economic Outlook and Monetary Policy

Source: US State of New York Federal Reserve

Thank you, Professor Smith. It is an honor to be speaking to you today here at Lafayette College.1 I am glad to have the opportunity to return to such a historically important place as Easton, Pennsylvania, and the Lehigh Valley. This area was part of this country’s colonial beginnings, it was instrumental in the rising of the industrial age, and, as the home to Crayola, it very literally played a role in coloring how we see the world. Today, this region is leading the way forward with its many outstanding institutions of higher education, very prominently including, of course, Lafayette College.

Today, I would like to take this opportunity to share with you my outlook for the U.S. economy and my views of appropriate monetary policy. This is a useful time to do that, as my colleagues and I on the Federal Open Market Committee (FOMC), the Federal Reserve’s primary monetary policymaking body, held our first meeting of 2025 just last week.
Overall, the U.S. economy is starting the year in a good position. I expect inflation’s slow descent to continue, and I anticipate that economic growth and labor market conditions will remain solid. I have learned, however, that it is wise to be humble about my projections. There is always a great deal of uncertainty around any economic forecast, and currently we face additional uncertainties about the exact shape of government policies, as well as their economic implications.
Last week, my FOMC colleagues and I discussed the latest economic developments and reviewed data that arrived since our previous policy meeting in December. At the conclusion of that meeting, I voted in support of the Committee’s decision to maintain the target range for the federal funds rate at 4-1/4 to 4-1/2 percent. This decision was made in support of our goals to achieve maximum employment and inflation at the rate of 2 percent over the longer run. I remain focused on setting policy to achieve the dual-mandate goals given to us by Congress: maximum employment and stable prices. Sound monetary policy and positive supply-side developments have contributed to the achievement of sustained economic growth in recent years, the return of low unemployment, and inflation moving sustainably toward our 2 percent objective. I remain committed to returning inflation to our target while sustaining the solid labor market. Now is an appropriate time to assess the path forward for the economy. I am happy to be here today to share my views with you.
Economic ActivityThe U.S. economy appears to be maintaining its momentum after growing at a solid pace last year. Last year’s growth was notable because many private forecasters in 2023 projected a significant downturn sometime in 2024.2 However, data over the past year painted a very different picture. GDP grew 2.3 percent in the fourth quarter of 2024, according to last week’s data release.3 As you can see in figure 1, that extends a stretch of solid quarterly growth over the past couple of years. Shortly, when I discuss the labor market, I will say more related to the large swing in GDP growth in 2020 that stands out in this chart. For all of 2024, the economy grew 2.5 percent, which is a modest slowing from the 3.2 percent growth in 2023. The economy has been benefiting from positive supply developments, including more workers joining the labor force and higher labor productivity.
The resilience of American consumers is the driving force behind the solid economic growth seen in recent quarters. Household spending, adjusted for inflation, grew 3.2 percent in 2024, slightly stronger than in 2023. The consumer spending data we have received recently have surprised me to the upside. As you can see in figure 2, personal consumption increased at a faster pace each quarter last year. Nominal retail sales rose briskly in the second half of last year. Private-sector data are consistent with GDP figures. According to private surveys of businesses, activity in the services sector, which accounts for about two-thirds of all consumer spending, has been on a general upward trajectory since mid-2020.4
Elsewhere in the economy, growth has been less robust. Residential investment has been fairly flat over the past three quarters, and growth of business fixed investment cooled last year from its strong 2023 pace. Much of the equipment investment that did take place came from imports. Indeed, domestic manufacturing industrial production was flat last year. Overall, I see the economy as continuing to grow at a healthy pace this year, though I anticipate growth to be slightly lower than what we observed in 2024. Households and firms face an uncertain environment, and that tends to lower consumer spending and business investment. If consumer spending continues to grow at the same pace as it has in the past two years, however, that could cause me to revise up my outlook for overall economic growth.
Labor MarketTurning to employment, I see the labor market as being in a solid position, with conditions broadly returning to balance after a period of being overheated. It’s helpful to step back and look at the labor market’s path over the past five years. Looking at figure 3, you can see that the unemployment rate surged in early 2020, peaking at 14.8 percent in April 2020, when the COVID-19 pandemic first took hold and a wide swath of the global economy was shutdown. The unemployment rate subsequently fell swiftly as the economy recovered. By April 2023, it touched 3.4 percent, a half-century low. At that point, many employers reported that they were struggling to fill openings. Then, over the latter part of 2023 and early 2024, the unemployment rate rose nearly a percentage point, an unusual pattern outside of a recession. As a policymaker, I took note of this rise when considering our dual-mandate objectives. Now, I have also taken note that the unemployment rate has effectively held steady since the middle of last year. I view that as a sign that downside risks in the labor market have abated.
The latest jobs report showed that the unemployment rate was 4.1 percent in December, the same reading as in June 2024.5 That is low by historical standards and close to estimates of the longer-run rate that is consistent with our employment mandate. In the three months ending in December, payrolls rose by an average of 170,000 jobs a month. While employment growth has eased somewhat from the early part of last year, the steady unemployment rate suggests that payroll gains have been sufficient to absorb new entrants to the labor market. The general moderation in hiring is consistent with other measures showing that the demand for labor has come into better balance with the supply of workers.
Looking at figure 4, you can see that as of November, there were 1.2 job openings for every unemployed person seeking work. That ratio is down from 2.0 in 2022, when the labor market was overheated. Also notice that the current vacancy-to-unemployment ratio is just a little below its value before the pandemic took hold. And while hiring has eased from the pace in 2023, layoffs have not increased. As you can see in figure 5, the number of Americans seeking first-time unemployment benefits has trended at historically low levels for the past three years. Consistent with a moderation in hiring and a steady unemployment rate, workers’ wage gains have slowed from when the labor market was overheated. Still, the pace of increase in average hourly earnings has been healthy, increasing 3.9 percent during the 12 months ending in December, and shows that, on average, worker pay has grown at a faster rate than the rate of inflation.
Looking broadly across the past several months, I see a labor market that is in solid condition and not a source of significant inflationary pressure. While the downside risks of a rapidly weakening labor market appear to have lessened, I expect some further softening that could cause the unemployment rate to edge just slightly higher this year but stay in a range consistent with recent readings.
InflationThinking about the other component of our dual mandate, inflation has come down a great deal over the past two and a half years but remains somewhat elevated relative to our 2 percent objective. Inflation, as measured by the 12-month change in the personal consumption expenditures (PCE) price index, peaked at 7.2 percent in June 2022. Looking at the blue line in figure 6, you can see that it has since come down to 2.6 percent as of this past December. Economists also pay close attention to core inflation, which excludes often volatile food and energy costs. That core PCE inflation figure, shown by the red dashed line, peaked at 5.6 percent in 2022. By December 2024, it had eased to 2.8 percent. Annualized inflation over the past three months has been closer to our 2 percent objective. As you can see, the path of disinflation has been bumpy. I expect that to continue to be the case.
I find it helpful to look at the components of inflation to better understand underlying trends. Looking at figure 7, core goods inflation, the blue line, is running close to pre-pandemic levels, reflecting a better alignment between supply and demand after pandemic-related distortions. Nonhousing services inflation, the red dashed line, has cooled largely in line with slower wage growth. Housing services inflation, the purple dotted line, remains somewhat elevated, but I expect more progress in that category as the earlier slowing in growth of rents for new tenants feeds through into growth of average rents.6
With supply and demand conditions having moved into better balance, wage growth slowing to a more sustainable pace, and longer-term inflation expectations remaining well anchored, I see a path for inflation to continue its progress toward our longer-run goal. While the easing of overall inflation in recent years has been encouraging, the fact is that it remains above our 2 percent objective. Monthly inflation readings tend to be volatile, consistent with the bumpy path I described, but the 12-month readings have held in a fairly consistent range somewhat above our target over the second half of last year.
Monetary PolicyIn the current environment, I attach a high degree of uncertainty to my projections. As I have already mentioned, there have been notable recent instances where forecasters have been surprised. That said, I see the risks to achieving our employment and inflation goals as being roughly in balance, and I am attentive to the risks to both sides of our mandate. That better balanced position is partly a result of the monetary policy actions over the past few years, which I will review briefly.
As you can see in figure 8, the FOMC responded to elevated inflation by raising the policy rate 5-1/4 percentage points over about 15 months, starting in March 2022, and then holding the rate at that restrictive level for more than a year. This contributed to inflation easing from a 40-year high to near current levels while maintaining a solid labor market. That outcome was historically unusual but greatly welcomed. By September of last year, I had growing confidence that with an appropriate recalibration of our policy stance, strength in the labor market could be maintained in a context of moderate economic growth and inflation moving sustainably down to 2 percent. The FOMC reduced the federal funds rate by a full percentage point over the course of our final three meetings last year. As a result of those actions, our policy stance is now significantly less restrictive than it was when we began lowering the federal funds rate. Given current economic conditions—specifically, inflation that remains modestly above our target and a labor market that is solid—and my projections of future economic conditions, I voted last week to maintain our current policy stance. As long as the economy and labor market remain strong, I see it as appropriate for the Committee to be cautious in making further adjustments.
Over the medium term, I continue to see a gradual reduction in the level of monetary policy restraint placed on the economy as we move toward a more neutral stance as the most likely outcome. That said, I do not think we need to be in a hurry to change our stance. In considering additional adjustments to the federal funds rate, I will carefully assess incoming data, the evolving outlook, and the balance of risks. As is always the case, monetary policy is not on a preset course. To that end, I could envision a range of scenarios for future policy. For example, if the economy remains strong and inflation does not continue to move sustainably toward 2 percent, we can maintain policy restraint for longer.
Alternatively, if the labor market were to weaken unexpectedly or inflation were to fall more quickly than anticipated, it may be appropriate to reduce the policy rate more quickly. Our current stance of policy is well positioned to deal with the risks and uncertainties that we face in pursuing both sides of our dual mandate.
As I conclude, I want to assure you that I am mindful that monetary policy decisions affect communities, families, and businesses across the country. I highly value opportunities to visit places like Lafayette College and Easton to share my views, hear from you, and see how the economy is experienced firsthand in your community. I remain fully committed to supporting maximum employment and bringing inflation sustainably to our 2 percent goal. Our success in delivering on these goals matters to all Americans.
Thank you.

1. The views expressed here are my own and are not necessarily those of my colleagues on the Federal Reserve Board or the Federal Open Market Committee. Return to text
2. See Harriet Torry and Anthony DeBarros (2023), “A Recession Is No Longer the Consensus,” Wall Street Journal, October 15. Return to text
3. See Bureau of Economic Analysis (2025), “Gross Domestic Product, 4th Quarter and Year 2024 (Advance Estimate) (PDF),” news release, January 30. Return to text
4. See the December 2024 Services ISM Report on Business, which is available on the Institute for Supply Management’s website at https://www.ismworld.org/supply-management-news-and-reports/reports/ism-report-on-business/services/december. Return to text
5. See Bureau of Labor Statistics (2025), “The Employment Situation—December 2024 (PDF),” news release, January 10. Return to text
6. See Philip N. Jefferson (2024), “U.S. Economic Outlook and Housing Price Dynamics,” speech delivered at the Mortgage Bankers Association’s Secondary and Capital Markets Conference and Expo 2024, New York, May 20. Return to text

MIL OSI USA News –

February 5, 2025

MIL-OSI: Landmark Bancorp, Inc. Announces 6.3% Increase in Net Earnings for the Year Ended December 31, 2024, and Fourth Quarter Earnings Per Share of $0.57. Declares Cash Dividend of $0.21 per Share

Source: GlobeNewswire (MIL-OSI)

Manhattan, KS, Feb. 04, 2025 (GLOBE NEWSWIRE) — Landmark Bancorp, Inc. (“Landmark”; Nasdaq: LARK) reported diluted earnings per share of $0.57 for the three months ended December 31, 2024, compared to $0.68 per share in the third quarter of 2024 and $0.46 per share in the same quarter last year. Net income for the fourth quarter totaled $3.3 million, compared to $2.6 million in the fourth quarter of 2023 and $3.9 million in the prior quarter. For the three months ended December 31, 2024, the return on average assets was 0.83%, the return on average equity was 9.54% and the efficiency ratio was 70.0%.

For the year ended December 31, 2024, diluted earnings per share totaled $2.26 compared to $2.13 during 2023. Net earnings for 2024 totaled $13.0 million, compared to $12.2 million in 2023, or an increase of 6.3%. For the year ended December 31, 2024, the return on average assets was 0.83%, the return on average equity was 10.01% and the efficiency ratio was 69.1%.

2024 Performance Highlights

	●	Fourth quarter loan growth totaled $50.5 million or an annualized increase of 20.1% over the prior quarter.
	●	For the year, gross loans grew $103.7 million or 10.9%.
	●	Net interest margin improved 21 basis points to 3.51% compared to 3.30% in prior quarter.
	●	Deposits increased $53.3 million, or 16.6% annualized, from the prior quarter.
	●	Total borrowings decreased $34.7 million in the fourth quarter.
	●	A pre-tax loss of $1.0 million was realized in the fourth quarter to reposition a portion of the investment portfolio.
	●	Credit quality remained good with net charge-offs totaling $219,000 in the fourth quarter.

In making this announcement, Abby Wendel, President and Chief Executive Officer of Landmark, commented, “During 2024, we experienced strong loan demand, especially for residential mortgages and commercial real estate loans. In the fourth quarter 2024, we saw strong growth in virtually all loan categories, with total gross loans increasing by $51 million or 20% (annualized). Total deposits also increased in the fourth quarter by more than $53 million, mostly due to seasonal growth in money market and interest checking accounts. The increase in deposits coupled with investment securities sales and maturities this quarter helped fund loan growth and reduce expensive short-term borrowings. For the year, net interest income grew 5.6% over the previous year while in the fourth quarter 2024 our net interest margin improved to 3.51%. Strategic investments in our people and product offerings resulted in higher non-interest expenses, particularly in the fourth quarter. Credit quality remained solid overall.”

Landmark’s Board of Directors declared a cash dividend of $0.21 per share, to be paid March 5, 2025, to common stockholders of record as of the close of business on February 19, 2025. On December 16, 2024, the Company issued a 5% stock dividend to common stockholders, representing the 24^th consecutive year that a stock dividend has been paid.

Management will host a conference call to discuss the Company’s financial results at 10:00 a.m. (Central time) on Wednesday, February 5, 2025. Investors may participate via telephone by dialing (833) 470-1428 and using access code 296482. A replay of the call will be available through February 12, 2025, by dialing (866) 813-9403 and using access code 817329.

Net Interest Income

Net interest income in the fourth quarter of 2024 amounted to $12.4 million representing an increase of $795,000, or 6.9%, compared to the previous quarter. The increase in net interest income was due mainly to lower interest expense on deposits and other borrowed funds. The net interest margin increased to 3.51% during the fourth quarter from 3.30% during the prior quarter. Compared to the previous quarter, interest income on loans increased $22,000 to $16.0 million due to higher average balances but partially offset by lower yields on loans. Average loan balances increased $24.5 million while the average tax-equivalent yield on the loan portfolio decreased 15 basis points to 6.28%. Interest on investment securities declined slightly due to lower balances while partially offset by higher earning rates. Compared to the third quarter 2024, interest on deposits decreased $480,000, or 8.2% mainly due to lower rates, while interest on other borrowed funds declined by $363,000, due to lower rates and balances. The average rate on interest-bearing deposits decreased 23 basis points to 2.25% while the average rate on other borrowed funds decreased 51 basis points to 5.10% in the fourth quarter.

Non-Interest Income

Non-interest income totaled $3.4 million for the fourth quarter of 2024, a decrease of $882,000 from the previous quarter. The decrease in non-interest income during the fourth quarter of 2024 was primarily due to a $1.0 million loss on the sales of lower yielding investment securities mentioned above, while the third quarter of 2024 did not include any sales of investment securities. Additionally, lower sales of residential mortgages this quarter resulted in a decline of $182,000 in gains on sales of these mortgages. The decline in other non-interest income of $221,000 this quarter compared to the prior quarter resulted from sales of premises, equipment and foreclosed assets that did not re-occur in the current quarter. Partially offsetting those declines was an increase of $722,000 in bank owned life insurance income.

Non-Interest Expense

During the fourth quarter of 2024, non-interest expense totaled $11.9 million, an increase of $1.3 million compared to the prior quarter. The increase in non-interest expense was primarily due to increases of $470,000 in professional fees and $461,000 in compensation and benefits. The increase in professional fees this quarter was primarily due to higher consulting costs on several initiatives. The increase in compensation and benefits was attributable to an increase in employees and higher incentive compensation costs.

Income Tax Expense (Benefit)

Landmark recorded an income tax benefit of $886,000 in the fourth quarter of 2024 compared to income tax expense of $867,000 in the prior quarter. The effective tax rate was (37.0%) in the fourth quarter of 2024 compared to 18.1% in the third quarter of 2024. The fourth quarter of 2024 included the recognition of $1.0 million of previously unrecognized tax benefits, which reduced the effective tax rate.

Balance Sheet Highlights

As of December 31, 2024, gross loans totaled $1.1 billion, an increase of $50.5 million, or 20.1% annualized since September 30, 2024. During the quarter, loan growth was primarily comprised of commercial real estate (growth of $21.1 million), commercial (growth of $10.7 million), agriculture (growth of $8.6 million) and one-to-four family residential real estate (growth of $7.8 million) loans. Investment securities decreased $38.5 million during the fourth quarter of 2024 and included sales of $36.0 million in low-rate U.S. treasury securities offset by purchases of $18.0 million in market rate U.S. treasury securities. Pre-tax unrealized net losses on the investment securities portfolio increased from $13.3 million at September 30, 2024 to $20.9 million at December 31, 2024 mainly due to higher market rates for these securities at year end.

Period end deposit balances increased $53.3 million to $1.3 billion at December 31, 2024. The increase in deposits was mainly driven by an increase in money market and checking (increase of $71.3 million) but partially offset by declines in certificates of deposit (decrease of $9.2 million) and non-interest-bearing demand deposits (decrease of $8.6 million). The increase in money market and checking accounts was mainly driven by seasonal growth in public fund deposit account balances. Total borrowings decreased $34.7 million during the fourth quarter 2024. At December 31, 2024, the loan to deposits ratio was 78.2% compared to 77.6% in the prior quarter.

Stockholders’ equity decreased to $136.2 million (book value of $23.59 per share) as of December 31, 2024, from $139.7 million (book value of $24.18 per share) as of September 30, 2024. The decrease in stockholders’ equity was due to an increase in accumulated other comprehensive losses as the unrealized net losses on investments securities increased during the fourth quarter. The ratio of equity to total assets decreased to 8.65% on December 31, 2024, from 8.93% on September 30, 2024.

The allowance for credit losses totaled $12.8 million, or 1.22% of total gross loans on December 31, 2024, compared to $11.5 million, or 1.15% of total gross loans on September 30, 2024. Net loan charge-offs totaled $219,000 in the fourth quarter of 2024, compared to $9,000 during the third quarter of 2024. A provision for credit losses for loans of $1.5 million was recorded in the fourth quarter of 2024 compared to $650,000 in the third quarter of 2024.

Non-performing loans totaled $13.1 million, or 1.25% of gross loans at December 31, 2024 compared to $13.4 million, or 1.34% of gross loans at September 30, 2024. Loans 30-89 days delinquent declined to $6.2 million, or 0.59% of gross loans, as of December 31, 2024, compared to $7.3 million, or 0.73% of gross loans, as of September 30, 2024.

About Landmark

Landmark Bancorp, Inc., the holding company for Landmark National Bank, is listed on the Nasdaq Global Market under the symbol “LARK.” Headquartered in Manhattan, Kansas, Landmark National Bank is a community banking organization dedicated to providing quality financial and banking services. Landmark National Bank has 29 locations in 23 communities across Kansas: Manhattan (2), Auburn, Dodge City (2), Fort Scott (2), Garden City, Great Bend (2), Hoisington, Iola, Junction City, La Crosse, Lawrence (2), Lenexa, Louisburg, Mound City, Osage City, Osawatomie, Overland Park, Paola, Pittsburg, Prairie Village, Topeka (2), Wamego and Wellsville, Kansas. Visit www.banklandmark.com for more information.

Contact:
Mark A. Herpich
Chief Financial Officer
(785) 565-2000

Special Note Concerning Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, plans, objectives, future performance and business of Landmark. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of our management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “plan,” “intend,” “estimate,” “may,” “will,” “would,” “could,” “should” or other similar expressions. Additionally, all statements in this press release, including forward-looking statements, speak only as of the date they are made, and Landmark undertakes no obligation to update any statement in light of new information or future events. A number of factors, many of which are beyond our ability to control or predict, could cause actual results to differ materially from those in our forward-looking statements. These factors include, among others, the following: (i) the strength of the local, national and international economies, including the effects of changing inflationary pressures and supply chain constraints on such economies; (ii) changes in state and federal laws, regulations and governmental policies concerning banking, securities, consumer protection, insurance, monetary, trade and tax matters, including changes in interpretation or prioritization; (iii) changes in interest rates and prepayment rates of our assets; (iv) increased competition in the financial services sector and the inability to attract new customers, including from non-bank competitors such as credit unions and “fintech” companies; (v) timely development and acceptance of new products and services; (vi) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (vii) our risk management framework; (viii) interruptions in information technology and telecommunications systems and third-party services; (ix) changes and uncertainty in benchmark interest rates, including the timing of additional rate changes, if any, by the Federal Reserve; (x) the economic effects of severe weather, natural disasters, widespread disease or pandemics, or other external events; (xi) the loss of key executives or employees; (xii) changes in consumer spending; (xiii) integration of acquired businesses; (xiv) unexpected outcomes of existing or new litigation; (xv) changes in accounting policies and practices, such as the implementation of the current expected credit losses accounting standard; (xvi) the economic impact of past and any future terrorist attacks, acts of war, including the current Israeli-Palestinian conflict and the conflict in Ukraine, or threats thereof, and the response of the United States to any such threats and attacks; (xvii) the ability to manage credit risk, forecast loan losses and maintain an adequate allowance for loan losses; (xviii) fluctuations in the value of securities held in our securities portfolio; (xix) concentrations within our loan portfolio, large loans to certain borrowers, and large deposits from certain clients; (xx) the concentration of large deposits from certain clients who have balances above current FDIC insurance limits and may withdraw deposits to diversify their exposure; (xxi) the level of non-performing assets on our balance sheets; (xxii) the ability to raise additional capital; (xxiii) cyber-attacks; (xxiv) declines in real estate values; (xxv) the effects of fraud on the part of our employees, customers, vendors or counterparties; and (xxvi) any other risks described in the “Risk Factors” sections of reports filed by Landmark with the Securities and Exchange Commission. These risks and uncertainties should be considered in evaluating forward-looking statements, and undue reliance should not be placed on such statements. Additional information concerning Landmark and its business, including additional risk factors that could materially affect Landmark’s financial results, is included in our filings with the Securities and Exchange Commission.

LANDMARK BANCORP, INC. AND SUBSIDIARIES
Consolidated Balance Sheets (unaudited)

	December 31,			September 30,			June 30,			March 31,			December 31,
(Dollars in thousands)	2024			2024			2024			2024			2023
Assets
Cash and cash equivalents	$	20,275		$	21,211		$	23,889		$	16,468		$	27,101
Interest-bearing deposits at other banks		4,110			4,363			4,881			4,920			4,918
Investment securities available-for-sale, at fair value:
U.S. treasury securities		64,458			83,753			89,325			93,683			95,667
Municipal obligations, tax exempt		107,128			112,126			114,047			118,445			120,623
Municipal obligations, taxable		71,715			75,129			74,588			75,371			79,083
Agency mortgage-backed securities		129,211			140,004			142,499			149,777			157,396
Total investment securities available-for-sale		372,512			411,012			420,459			437,276			452,769
Investment securities held-to-maturity		3,672			3,643			3,613			3,584			3,555
Bank stocks, at cost		6,618			7,894			9,647			7,850			8,123
Loans:
One-to-four family residential real estate		352,209			344,380			332,090			312,833			302,544
Construction and land		25,328			23,454			30,480			24,823			21,090
Commercial real estate		345,159			324,016			318,850			323,397			320,962
Commercial		192,325			181,652			178,876			181,945			180,942
Agriculture		100,562			91,986			84,523			86,808			89,680
Municipal		7,091			7,098			6,556			5,690			4,507
Consumer		29,679			29,263			29,200			28,544			28,931
Total gross loans		1,052,353			1,001,849			980,575			964,040			948,656
Net deferred loan (fees) costs and loans in process		(307	)		(63	)		(583	)		(578	)		(429	)
Allowance for credit losses		(12,825	)		(11,544	)		(10,903	)		(10,851	)		(10,608	)
Loans, net		1,039,221			990,242			969,089			952,611			937,619
Loans held for sale, at fair value		3,420			3,250			2,513			2,697			853
Bank owned life insurance		39,056			39,176			38,826			38,578			38,333
Premises and equipment, net		20,220			20,976			20,986			20,696			19,709
Goodwill		32,377			32,377			32,377			32,377			32,377
Other intangible assets, net		2,578			2,729			2,900			3,071			3,241
Mortgage servicing rights		3,061			3,041			2,997			2,977			3,158
Real estate owned, net		167			428			428			428			928
Other assets		26,855			23,309			28,149			29,684			28,988
Total assets	$	1,574,142		$	1,563,651		$	1,560,754		$	1,553,217		$	1,561,672

Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Non-interest-bearing demand		351,595			360,188			360,631			364,386			367,103
Money market and checking		636,963			565,629			546,385			583,315			613,613
Savings		145,514			145,825			150,996			154,000			152,381
Certificates of deposit		194,694			203,860			192,470			191,823			183,154
Total deposits		1,328,766			1,275,502			1,250,482			1,293,524			1,316,251
FHLB and other borrowings		53,046			92,050			131,330			74,716			64,662
Subordinated debentures		21,651			21,651			21,651			21,651			21,651
Repurchase agreements		13,808			9,528			8,745			15,895			12,714
Accrued interest and other liabilities		20,656			25,229			20,292			20,760			19,480
Total liabilities		1,437,927			1,423,960			1,432,500			1,426,546			1,434,758
Stockholders’ equity:
Common stock		58			55			55			55			55
Additional paid-in capital		95,051			89,532			89,469			89,364			89,208
Retained earnings		56,934			60,549			57,774			55,912			54,282
Treasury stock, at cost		–			(396	)		(330	)		(249	)		(75	)
Accumulated other comprehensive loss		(15,828	)		(10,049	)		(18,714	)		(18,411	)		(16,556	)
Total stockholders’ equity		136,215			139,691			128,254			126,671			126,914
Total liabilities and stockholders’ equity	$	1,574,142		$	1,563,651		$	1,560,754		$	1,553,217		$	1,561,672

LANDMARK BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Earnings (unaudited)

	Three months ended,								Year ended,
	December 31,			September 30,		December 31,			December 31,			December 31,
(Dollars in thousands, except per share amounts)	2024			2024		2023			2024			2023
Interest income:
Loans	$	15,955		$	15,933	$	14,223		$	61,400		$	51,753
Investment securities:
Taxable		2,210			2,301		2,453			9,298			9,594
Tax-exempt		738			747		761			3,008			3,094
Interest-bearing deposits at banks		49			41		49			193			242
Total interest income		18,952			19,022		17,486			73,899			64,683
Interest expense:
Deposits		5,350			5,830		4,879			22,310			15,254
FHLB and other borrowings		737			1,100		1,203			3,886			4,048
Subordinated debentures		389			416		422			1,635			1,590
Repurchase agreements		77			72		96			344			499
Total interest expense		6,553			7,418		6,600			28,175			21,391
Net interest income		12,399			11,604		10,886			45,724			43,292
Provision for credit losses		1,500			500		50			2,300			349
Net interest income after provision for credit losses		10,899			11,104		10,836			43,424			42,943
Non-interest income:
Fees and service charges		2,710			2,880		2,763			10,742			10,220
Gains on sales of loans, net		522			704		255			2,386			2,269
Bank owned life insurance		976			254		242			1,723			913
Losses on sales of investment securities, net		(1,031	)		–		(1,246	)		(1,031	)		(1,246	)
Other		194			415		240			924			1,074
Total non-interest income		3,371			4,253		2,254			14,744			13,230
Non-interest expense:
Compensation and benefits		6,264			5,803		5,756			23,103			22,681
Occupancy and equipment		1,550			1,429		1,429			5,663			5,565
Data processing		452			464		462			1,889			1,940
Amortization of mortgage servicing rights and other intangibles		240			256		437			1,164			1,844
Professional fees		1,043			573		730			2,912			2,452
Valuation allowance on real estate held for sale		–			–		–			1,108			–
Other		2,325			2,034		1,748			8,240			7,501
Total non-interest expense		11,874			10,559		10,562			44,079			41,983
Earnings before income taxes		2,396			4,798		2,528			14,089			14,190
Income tax expense (benefit)		(886	)		867		(111	)		1,086			1,954
Net earnings	$	3,282		$	3,931	$	2,639		$	13,003		$	12,236

Net earnings per share (1)
Basic	$	0.57		$	0.68	$	0.46		$	2.26		$	2.13
Diluted		0.57			0.68		0.46			2.26			2.13
Dividends per share (1)		0.20			0.20		0.19			0.80			0.76
Shares outstanding at end of period (1)		5,775,198			5,776,282		5,751,475			5,775,198			5,751,475
Weighted average common shares outstanding – basic (1)		5,775,227			5,765,348		5,755,175			5,758,056			5,751,585
Weighted average common shares outstanding – diluted (1)		5,789,764			5,770,514		5,755,175			5,764,282			5,754,840

Tax equivalent net interest income	$	12,574		$	11,777	$	11,017		$	46,428		$	44,040

(1	)	Share and per share values at or for the periods ended September 30, 2024 and December 31, 2024 have been adjusted to give effect to the 5% stock dividend paid during December 2024.

LANDMARK BANCORP, INC. AND SUBSIDIARIES
Select Ratios and Other Data (unaudited)

	As of or for the three months ended,									As of or for the year ended,
	December 31,			September 30,			December 31,			December 31,			December 31,
(Dollars in thousands, except per share amounts)	2024			2024			2023			2024			2023
Performance ratios:
Return on average assets (1)		0.83	%		1.01	%		0.67	%		0.83	%		0.80	%
Return on average equity (1)		9.54	%		11.95	%		9.39	%		10.01	%		10.70	%
Net interest margin (1)(2)		3.51	%		3.30	%		3.11	%		3.28	%		3.17	%
Effective tax rate		-37.0	%		18.1	%		-4.4	%		7.7	%		13.8	%
Efficiency ratio (3)		70.0	%		66.5	%		71.9	%		69.1	%		71.2	%
Non-interest income to total income (3)		25.9	%		25.5	%		24.3	%		25.3	%		25.1	%

Average balances:
Investment securities	$	409,648		$	428,301		$	463,763		$	432,928		$	486,268
Loans		1,010,153			985,659			934,333			974,293			891,487
Assets		1,568,821			1,562,482			1,555,742			1,558,236			1,535,694
Interest-bearing deposits		944,969			936,218			910,610			938,223			892,373
FHLB and other borrowings		57,507			77,958			84,408			70,226			74,210
Subordinated debentures		21,651			21,651			21,651			21,651			21,651
Repurchase agreements		12,212			10,774			13,785			12,216			18,361
Stockholders’ equity	$	136,933		$	132,271		$	111,560		$	129,944		$	114,339

Average tax equivalent yield/cost (1):
Investment securities		3.03	%		2.99	%		2.86	%		3.00	%		2.76	%
Loans		6.28	%		6.43	%		6.04	%		6.30	%		5.81	%
Total interest-bearing assets		5.34	%		5.38	%		4.97	%		5.28	%		4.71	%
Interest-bearing deposits		2.25	%		2.48	%		2.13	%		2.38	%		1.71	%
FHLB and other borrowings		5.10	%		5.61	%		5.65	%		5.53	%		5.45	%
Subordinated debentures		7.15	%		7.64	%		7.73	%		7.55	%		7.34	%
Repurchase agreements		2.51	%		2.66	%		2.79	%		2.82	%		2.72	%
Total interest-bearing liabilities		2.52	%		2.82	%		2.54	%		2.70	%		2.13	%

Capital ratios:
Equity to total assets		8.65	%		8.93	%		8.13	%
Tangible equity to tangible assets (3)		6.58	%		6.84	%		5.98	%
Book value per share	$	23.59		$	24.18		$	22.07
Tangible book value per share (3)	$	17.53		$	18.11		$	15.87

Rollforward of allowance for credit losses (loans):
Beginning balance	$	11,544		$	10,903		$	10,970		$	10,608		$	8,791
Adoption of CECL		–			–			–			–			1,523
Charge-offs		(246	)		(153	)		(442	)		(659	)		(850	)
Recoveries		27			144			80			476			894
Provision for credit losses for loans		1,500			650			–			2,400			250
Ending balance	$	12,825		$	11,544		$	10,608		$	12,825		$	10,608

Allowance for unfunded loan commitments	$	150		$	300		$	200

Non-performing assets:
Non-accrual loans	$	13,115		$	13,415		$	2,391
Accruing loans over 90 days past due		–			–			–
Real estate owned		167			428			928
Total non-performing assets	$	13,282		$	13,843		$	3,319

Loans 30-89 days delinquent	$	6,201		$	7,301		$	1,582

Other ratios:
Loans to deposits		78.21	%		77.64	%		71.23	%
Loans 30-89 days delinquent and still accruing to gross loans outstanding		0.59	%		0.73	%		0.17	%
Total non-performing loans to gross loans outstanding		1.25	%		1.34	%		0.25	%
Total non-performing assets to total assets		0.84	%		0.89	%		0.21	%
Allowance for credit losses to gross loans outstanding		1.22	%		1.15	%		1.12	%
Allowance for credit losses to total non-performing loans		97.79	%		86.05	%		443.66	%
Net loan charge-offs to average loans (1)		0.09	%		0.00	%		0.15	%		0.03	%		-0.01	%

(1	)	Information is annualized.
(2	)	Net interest margin is presented on a fully tax equivalent basis, using a 21% federal tax rate.
(3	)	Non-GAAP financial measures. See the “Non-GAAP Financial Measures” section of this press release for a reconciliation to the most comparable GAAP equivalent.

LANDMARK BANCORP, INC. AND SUBSIDIARIES
Non-GAAP Finacials Measures (unaudited)

	As of or for the three months ended,									As of or for the year ended,
	December 31,			September 30,			December 31,			December 31,			December 31,
(Dollars in thousands, except per share amounts)	2024			2024			2023			2024			2023

Non-GAAP financial ratio reconciliation:
Total non-interest expense	$	11,874		$	10,559		$	10,562		$	44,079		$	41,983
Less: foreclosure and real estate owned expense		(13	)		(23	)		(40	)		(47	)		(61	)
Less: amortization of other intangibles		(151	)		(171	)		(174	)		(663	)		(765	)
Less: valuation allowance on real estate held for sale		–			–			–			(1,108	)		–
Adjusted non-interest expense (A)		11,710			10,365			10,348			42,261			41,157

Net interest income (B)		12,399			11,604			10,886			45,724			43,292

Non-interest income		3,371			4,253			2,254			14,744			13,230
Less: losses on sales of investment securities, net		1,031			–			1,246			1,031			1,246
Less: gains on sales of premises and equipment and foreclosed assets		(62	)		(273	)		–			(326	)		(1	)
Adjusted non-interest income (C)	$	4,340		$	3,980		$	3,500		$	15,449		$	14,475

Efficiency ratio (A/(B+C))		70.0	%		66.5	%		71.9	%		69.1	%		71.2	%
Non-interest income to total income (C/(B+C))		25.9	%		25.5	%		24.3	%		25.3	%		25.1	%

Total stockholders’ equity	$	136,215		$	139,691		$	126,914
Less: goodwill and other intangible assets		(34,955	)		(35,106	)		(35,618	)
Tangible equity (D)	$	101,260		$	104,585		$	91,296

Total assets	$	1,574,142		$	1,563,651		$	1,561,672
Less: goodwill and other intangible assets		(34,955	)		(35,106	)		(35,618	)
Tangible assets (E)	$	1,539,187		$	1,528,545		$	1,526,054

Tangible equity to tangible assets (D/E)		6.58	%		6.84	%		5.98	%

Shares outstanding at end of period (F)		5,775,198			5,776,282			5,751,475

Tangible book value per share (D/F)	$	17.53		$	18.11		$	15.87

The MIL Network –

February 5, 2025

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.

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MIL Security OSI –

February 5, 2025
MIL-OSI New Zealand: Owning the Wrong Stuff

Source: ACT Party

The Haps

David Seymour’s speech at the Treaty Grounds today is widely anticipated. This week’s Free Press covers other matters, but for a preview of ACT’s Treaty approach, you can read Seymour’s column in the Herald.

The COVID Royal Commission, Mark II, designed by Brooke van Velden, is open to public submissions, and now there’s an online portal to make it easy. After Labour’s attempted whitewash, ACT campaigned for people to be able to say what they think about the lockdowns, mandates, and other public health measures. There will be another pandemic, probably not this decade but almost certainly this century, and lessons learned from this one could be worth hundreds of billions of dollars.

If you don’t normally listen to Radio New Zealand, we understand. However Kathryn Ryan interviewed David Seymour for half an hour on the Regulatory Standards Bill, and we think it’s worth an exception.

Owning the Wrong Stuff

Last Monday we shared David Seymour’s State of the Nation speech. This week it is still in the headlines. How is this possible? The speech said two things people know deep down are true, but politicians are afraid to say.

The Government owns the wrong stuff. Its books show $570 billion worth of assets, enough to build a four-lane highway from Whangarei to Invercargill six times, but you wouldn’t know it. The Government is having to downsize hospitals while the rest of the world is buying military hardware, and our roads and pipes need attention.

Meanwhile, in New Zealand, the Government is invested in houses (60,000), a property valuation firm, farms, electricity generators, and sunset industries such as mail and television, among many other weird and wonderful things.

Could it be an idea to, just maybe, just ask the question, without anyone getting their knickers in a knot: Does the Government own the right stuff. And if not, should it try selling some shares in power companies to invest in some roads and water treatment plants?

Perhaps all Governments should think of ownership like this. Every year we ask what we own, what benefits the public get from it, and could the Government own something with greater public benefits for the same money? If the answer is yes, and it doesn’t look like it’s going to change, then sell the thing that doesn’t pay and buy something that does.

As for healthcare and education, the Government shells out a fortune, nearly $6,000 in healthcare for every single person each year. That’s up from $4,000 five years ago, but nobody’s happy. Perhaps it is time to say, if you want to take your $6,000 to a private insurer like Southern Cross, you can.

There would have to be rules. The company would need to accept any patient who applied, without discrimination. The company could never cancel anyone’s policy. They would become responsible for all of the person’s care. Hospitals still owned by the Government would need to accept patients from any insurer at the same price.

If this all sounds out there, fear not. It’s roughly how most healthcare systems in Europe work. It means that there would be people with an incentive to sort out the endless waste and dysfunction in what’s been described as our third world system run by first world medics.

The Left say in a private system the poor miss out. Europeans would be surprised to hear this. What the Left don’t seem to get is this: You can have equal public funding, but allow competition to provide the service. Some would say the best of all worlds.

Of course there is a reason why few politicians dare to raise these questions. The media have demanded to know from David Seymour exactly what he will sell tomorrow. They want a list. The hard Left say this is another Seymourian conspiracy, but they can’t say what. The Opposition have called on the Chris Luxon to rule out ever selling anything. Luxon says he won’t now but might in the future.

There’s another reason why there are still articles in today’s papers, ten days after the speech was given. People know that, while New Zealand is a success story, as countries go, we’re not holding our ground at the moment. What we’re doing isn’t working.

If we want to remain a first world nation and an island paradise—most countries can only do one—we need to work differently. That’s the other thing about Seymour’s speech, it told the truth we avoided all through the Clark-Key-Ardern era.

As goes the Treaty Principles Bill, so goes this speech. This country needs a party that’s brave, articulate, and patriotic, and we’re glad we have ACT.

MIL OSI New Zealand News –

February 5, 2025

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Owning the Wrong Stuff