NewzIntel.com

Category: Taxation

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

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

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

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

    Henley’s schemes are broken down as follows:

    COVID-19 Fraud:

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  In July 2020, Henley used funds withdrawn from ATMs to buy a Chevrolet Camaro for $22,801.

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

    Home Title Fraud:

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

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

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

    Mortgage Fraud:

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

    Auto Loan Fraud:

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

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

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

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

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

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

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

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

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

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

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

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

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

    ###

    MIL Security OSI –

  • MIL-OSI: Zero Hash expands stablecoin offerings with addition of Ripple USD (RLUSD)

    Source: GlobeNewswire (MIL-OSI)

    CHICAGO, Feb. 05, 2025 (GLOBE NEWSWIRE) — Zero Hash, the leading crypto and stablecoin infrastructure platform, today announced it has expanded its stablecoin support by integrating Ripple USD (RLUSD), a new regulated stablecoin issued by Ripple. This integration allows Zero Hash customers to access RLUSD on both the XRP Ledger and Ethereum networks.

    Zero Hash’s API and SDK infrastructure now supports over 65 digital assets, including 5 stablecoins, across multiple chains, reinforcing its position as the comprehensive solution for platforms seeking to design and build new ways to store, exchange and move value globally. RLUSD is now part of Zero Hash’s stablecoin engine, powering leading FinTechs and start ups across:

    • Payments
      • Remittances
      • Payins
      • Payouts
      • Account Funding
      • Tokenization payment rails
      • AI agent payments
    • Trading
      • Swaps
      • Onramp / offramp
      • Custody
      • Deposits and withdrawals
    • Treasury

    “The addition of RLUSD to our ecosystem demonstrates Zero Hash’s commitment to providing our customers with access to the most innovative and regulated stablecoin technologies,” said Edward Woodford, Founder and CEO at Zero Hash. “Zero Hash now offers RLUSD to all partners who can seamlessly embed through our API and SDK. Zero Hash offers the tech stack that powers use cases spanning payouts including Stripe, on-ramping including Shift4 and tokenization payment rails including Franklin Templeton.”

    RLUSD is designed to meet the growing demand for a reliable, compliant stablecoin in the digital asset space. Key features1 of RLUSD include: (i) One-to-one backing with US dollars held in reserve; (ii) issuance by a New York State-regulated trust company; (iii) Monthly reserve attestations by an independent certified public accountant; and, (iv) native issuance on both the XRP Ledger and Ethereum networks.

    1Ripple USD

    About Zero Hash

    Zero Hash is the leading crypto and stablecoin infrastructure provider that seamlessly connects fiat, crypto and stablecoins in one platform, enabling a better way to move and transfer value globally.

    Through its embeddable infrastructure, start-ups, enterprises and Fortune 500 companies build a diverse range of use cases: cross-border payments, commerce, trading, remittance, payroll, tokenization, wallets and on and off-ramps.

    Zero Hash Holdings is backed by investors, including Point72 Ventures, Bain Capital Ventures, and NYCA.

    Zero Hash LLC is a FinCen-registered Money Service Business and a regulated Money Transmitter that can operate in 51 US jurisdictions. Zero Hash LLC and Zero Hash Liquidity Services LLC are licensed to engage in virtual currency business activity by the New York State Department of Financial Services. In Canada, Zero Hash LLC is registered as a Money Service Business with FINTRAC.

    Zero Hash Australia Pty Ltd. is registered with AUSTRAC as a Digital Currency Exchange Provider, with DCE registered provider number DCE100804170-001. This registration enables Zero Hash to offer its crypto services in Australia. Zero Hash Australia Pty Ltd. is registered on the New Zealand register of financial service providers, with Financial Service Provider (FSP) number FSP1004503. A FSP in New Zealand is a registration and does not mean that Zero Hash Australia Pty Ltd. is licensed by a New Zealand regulator to provide crypto services. Zero Hash Australia Pty Ltd.’s registration on the New Zealand register of financial service providers does not mean that Zero Hash Australia is subject to active regulation or oversight by a New Zealand regulator. Zero Hash Europe B.V. is registered as a Virtual Asset Services Provider (VASP) registration by the Dutch Central Bank (Relation number: R193684). Zero Hash Europe Sp. Zoo is registered as a VASP by the Tax Administration Chamber of Poland in Katowice (Registration number RDWW – 1212).

    Connect with Zero Hash

    Website | Twitter | LinkedIn | Medium

    Zero Hash Contact
    Shaun O’keeffe
    (855) 744-7333
    media@zerohash.com

    Zero Hash Disclosures

    Zero Hash services and product offerings, including the availability of certain chains/networks for supported stabletoken and crypto assets, may not be available in all jurisdictions. Zero Hash accounts are not subject to FDIC or SIPC protections, or any such equivalent protections that may exist outside of the US. Zero Hash’s technical support and enablement of any asset is not an endorsement of such asset and is not a recommendation to buy, sell, or hold any crypto asset. The value of any cryptocurrency, including digital assets pegged to fiat currency, commodities, or any other asset, may go to zero. Zero Hash is not registered with the SEC or FINRA. Zero Hash does not provide any securities services and is not a custodian of securities, including security tokens, on behalf of customers.

    The MIL Network –

  • MIL-OSI: Phunware Mobile Hospitality Solution Deployed at JW Marriott Phoenix Desert Ridge Resort & Spa

    Source: GlobeNewswire (MIL-OSI)

    Phunware Technology for Location-Based Services and Enhanced Connectivity Providing Guests Seamless, Property-Wide Navigation

    Integrated Solutions for Data-Driven Insights and Location Based Services to Boost Efficiency, Revenue, and Guest Satisfaction

    AUSTIN, Texas, Feb. 05, 2025 (GLOBE NEWSWIRE) — Phunware, Inc. (“Phunware” or the “Company”) (NASDAQ: PHUN), a leader in enterprise cloud solutions for mobile applications, announced today that JW Marriott Phoenix Desert Ridge Resort & Spa is deploying its enhanced Smart Hospitality Solution. The app will provide JW Marriott Desert Ridge guests using iOS and Android operating systems with real time navigation capabilities across 950 guest rooms and meeting space as well as the amenities including: AquaRidge WaterPark, Revive Spa, multiple restaurants, golf club and other features at this Marriott resort property.

    JW Marriott Desert Ridge chose Phunware to develop the resort property app based on experience and capabilities developing mobile solutions that enhance guest experiences across complex facilities.

    “Working with Phunware enables us to provide guests the tools to navigate and discover everything the property has to offer,” said Christa Wood, Director of Marketing at JW Marriott Phoenix Desert Ridge Resort & Spa. “Our new mobile app showcases amenities and seasonal activities throughout the year, ensuring guest enjoyment and engagement with our resort.”

    Phunware’s enhanced Smart Hospitality Solution perfectly aligns with Marriott’s requirements for mobile-first guest experiences by enabling resort guests to access features such as:

    • On-Property Navigation
      Navigate seamlessly throughout the resort with step-by-step directions. Guests can easily locate rooms, event venues, dining options, pools, and other amenities. This feature enhances the guest experience by eliminating the stress of finding their way around large properties.
    • Dining Reservations
      Explore and reserve exceptional dining options at the JW Marriott Desert Ridge, from the inventive Southwestern flavors of Tía Carmen to the Asian-inspired creations at Kembara, or the refined atmosphere of Meritage, an Urban Tavern by the golf course.
    • Cabana and Experience Bookings
      Conveniently book poolside cabanas to relax by the water and participate in resort-hosted events and activities, such as family-friendly experiences, fitness classes, or entertainment nights.
    • Spa and Golf Reservations
      Effortlessly schedule spa treatments, including massages, facials, body treatments, and salon services, through the app. Guests can also reserve tee times at the resort golf course, making it simple to plan a relaxing or active day.

    “Technology has become a cornerstone of modern hospitality and forward-looking companies are providing the seamless, personalized mobile-first experiences that guests expect,” said Stephen Chen, CEO of Phunware. “JW Marriott Desert Ridge Resort & Spa is a perfect example of how personalized, easy-to-use digital interfaces will help luxury hotels, resorts and other large complex facilities exceed guest and other user expectations. For example, mobile hospitality solutions allow guests to check in, unlock their rooms, order room service and book activities — all from their smartphones.”

    Click here to learn more about how Phunware’s mobile experience platform unifies the guest experience in hospitality.

    About JW Marriott Phoenix Desert Ridge Resort & Spa

    Set on 316 acres of sweeping Sonoran Desert, JW Marriott Phoenix Desert Ridge Resort & Spa features 950 rooms with dramatic desert and mountain views among lush grounds and gardens. The elements of fire, water, earth, and sky are woven into the resort experience, amenities, and decor. Arizona’s largest luxury resort offers Marriott’s first Revive Spa, a fitness center and movement studio, seven dining outlets, 240,000 square feet of indoor and outdoor meeting space, and the exclusive Griffin Club. The AAA Four Diamond resort also boasts four acres of elaborately landscaped waterways, including five pools, a 1,600-foot Lazy River and three unique multi-story waterslides that opened in summer 2023. A destination for the active, the expansive resort offers ample opportunity to explore the outdoors and delight in 330+ days of sunshine a year, with on-site amenities such as 17 pickleball courts, three tennis courts, 36 holes of championship golf at Wildfire Golf Club, and bike rentals, along with convenient access to nearby hiking and fitness trails.

    About Phunware

    Phunware, Inc. (NASDAQ: PHUN) is an enterprise software company specializing in mobile app solutions with integrated intelligent capabilities. We provide businesses with the tools to create, implement, and manage custom mobile applications, analytics, digital advertising, and location-based services. Phunware is transforming mobile engagement by delivering scalable, personalized, and data-driven mobile app experiences.

    Phunware’s mission is to achieve unparalleled connectivity and monetization through the widespread adoption of Phunware mobile technologies, leveraging brands, consumers, partners, digital asset holders, and market participants. Phunware is poised to expand its software products and services audience through its new Generative AI platform, utilize and monetize its patents and other intellectual property, and reintroduce its digital asset ecosystem for existing holders and new market participants.

    For more information on Phunware, please visit www.phunware.com. To better understand and leverage generative AI and Phunware’s mobile app technologies, visit ai.phunware.com.

    Safe Harbor / Forward-Looking Statements

    This press release includes forward-looking statements. All statements other than statements of historical facts contained in this press release, including statements regarding our future results of operations and financial position, business strategy and plans, and our objectives for future operations, are forward-looking statements. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “will,” and similar expressions are intended to identify forward-looking statements. For example, Phunware is using forward-looking statements when it discusses the adoption and impact of emerging technologies and their use across mobile engagement platforms.

    The forward-looking statements contained in this press release are based on our current expectations and beliefs concerning future developments and their potential effects on us. These forward-looking statements involve risks, uncertainties, and other assumptions that may cause actual results to differ materially from those expressed or implied. These risks and uncertainties include, but are not limited to, those factors described under the heading “Risk Factors” in our filings with the SEC. We undertake no obligation to update any forward-looking statements.

    By their nature, forward-looking statements involve risks and uncertainties. We caution you that forward-looking statements are not guarantees of future performance and that our actual results may differ materially from those expressed or implied by these forward-looking statements.

    Investor Relations Contact:

    Chris Tyson, Executive Vice President
    MZ Group – MZ North America
    949-491-8235
    PHUN@mzgroup.us
    www.mzgroup.us

    Phunware Media Contact:

    Joe McGurk, Managing Director
    917-259-6895
    PHUN@mzgroup.us

    The MIL Network –

  • MIL-OSI USA: U.S. International Trade in Goods and Services, December and Annual 2024

    Source: US Bureau of Economic Analysis

    The U.S. Census Bureau and the U.S. Bureau of Economic Analysis announced today that the goods and services deficit was $98.4 billion in December, up $19.5 billion from $78.9 billion in November, revised.

    U.S. International Trade in Goods and Services Deficit
    Deficit: $98.4 Billion  +24.7%°
    Exports: $266.5 Billion  –2.6%°
    Imports: $364.9 Billion  +3.5%°

    Next release: Thursday, March 6, 2025

    (°) Statistical significance is not applicable or not measurable. Data adjusted for seasonality but not price changes

    Source: U.S. Census Bureau, U.S. Bureau of Economic Analysis; U.S. International Trade in Goods and Services, February 5, 2025

    Exports, Imports, and Balance (exhibit 1)

    December exports were $266.5 billion, $7.1 billion less than November exports. December imports were $364.9 billion, $12.4 billion more than November imports.

    The December increase in the goods and services deficit reflected an increase in the goods deficit of $18.9 billion to $123.0 billion and a decrease in the services surplus of $0.6 billion to $24.5 billion.

    For 2024, the goods and services deficit increased $133.5 billion, or 17.0 percent, from 2023. Exports increased $119.8 billion or 3.9 percent. Imports increased $253.3 billion or 6.6 percent.

    Three-Month Moving Averages (exhibit 2)

    The average goods and services deficit increased $4.7 billion to $83.8 billion for the three months ending in December.

    • Average exports decreased $1.2 billion to $268.8 billion in December.
    • Average imports increased $3.5 billion to $352.7 billion in December.

    Year-over-year, the average goods and services deficit increased $19.2 billion from the three months ending in December 2023.

    • Average exports increased $9.8 billion from December 2023.
    • Average imports increased $29.0 billion from December 2023.

    Exports (exhibits 3, 6, and 7)

    Exports of goods decreased $7.5 billion to $170.2 billion in December.

      Exports of goods on a Census basis decreased $6.7 billion.

    • Consumer goods decreased $1.8 billion.
      • Pharmaceutical preparations decreased $1.4 billion.
    • Industrial supplies and materials decreased $1.8 billion.
      • Crude oil decreased $0.9 billion.
      • Other petroleum products decreased $0.3 billion.
      • Other precious metals decreased $0.3 billion.
      • Fertilizers, pesticides, and insecticides decreased $0.3 billion.
    • Capital goods decreased $1.4 billion.
      • Computers decreased $0.9 billion.
      • Civilian aircraft increased $1.4 billion.
    • Automotive vehicles, parts, and engines decreased $0.9 billion.
      • Trucks, buses, and special purpose vehicles decreased $0.4 billion.
      • Other automotive parts and accessories decreased $0.3 billion.

      Net balance of payments adjustments decreased $0.8 billion.

    Exports of services increased $0.4 billion to $96.3 billion in December.

    • Travel increased $0.3 billion.
    • Financial services increased $0.1 billion.

    Imports (exhibits 4, 6, and 8)

    Imports of goods increased $11.4 billion to $293.1 billion in December.

      Imports of goods on a Census basis increased $11.3 billion.

    • Industrial supplies and materials increased $10.8 billion.
      • Finished metal shapes increased $9.2 billion.
      • Nonmonetary gold increased $1.0 billion.
    • Consumer goods increased $2.2 billion.
      • Toys, games, and sporting goods increased $0.8 billion.
      • Cell phones and other household goods increased $0.8 billion.
    • Capital goods increased $1.3 billion.
      • Computers increased $1.2 billion.
      • Computer accessories increased $0.9 billion.
      • Civilian aircraft decreased $1.1 billion.
    • Automotive vehicles, parts, and engines decreased $2.2 billion.
      • Passenger cars decreased $1.6 billion.

      Net balance of payments adjustments increased $0.1 billion.

    Imports of services increased $1.0 billion to $71.8 billion in December.

    • Transport increased $0.5 billion.
    • Travel increased $0.3 billion.

    Real Goods in 2017 Dollars – Census Basis (exhibit 11)

    The real goods deficit increased $14.9 billion, or 15.4 percent, to $111.9 billion in December, compared to a 17.3 percent increase in the nominal deficit.

    • Real exports of goods decreased $5.4 billion, or 3.7 percent, to $141.9 billion, compared to a 3.8 percent decrease in nominal exports.
    • Real imports of goods increased $9.5 billion, or 3.9 percent, to $253.8 billion, compared to a 4.0 percent increase in nominal imports.

    Revisions

    In addition to revisions to source data for the November statistics, the seasonally adjusted goods data were revised for January through November so that the totals of the seasonally adjusted months equal the annual totals.

    Revisions to November exports

    • Exports of goods were revised up $0.1 billion.
    • Exports of services were revised up $0.1 billion.

    Revisions to November imports

    • Imports of goods were revised up $0.8 billion.
    • Imports of services were revised up $0.1 billion.

    Goods by Selected Countries and Areas: Monthly – Census Basis (exhibit 19)

    The December figures show surpluses, in billions of dollars, with Netherlands ($5.0), South and Central America ($3.5), United Kingdom ($2.3), Hong Kong ($0.7), Brazil ($0.4), Saudi Arabia ($0.4), Belgium ($0.3), and Australia ($0.2). Deficits were recorded, in billions of dollars, with China ($25.3), European Union ($20.4), Mexico ($15.2), Switzerland ($13.0), Vietnam ($11.4), Canada ($7.9), Germany ($7.6), Taiwan ($6.9), Ireland ($6.2), South Korea ($5.6), Japan ($5.5), India ($4.9), Italy ($4.1), Malaysia ($2.5), France ($1.1), Israel ($0.8), and Singapore ($0.4).

    • The deficit with Switzerland increased $9.1 billion to $13.0 billion in December. Exports decreased $0.7 billion to $1.2 billion and imports increased $8.4 billion to $14.2 billion.
    • The deficit with Canada increased $2.9 billion to $7.9 billion in December. Exports decreased $0.4 billion to $29.1 billion and imports increased $2.5 billion to $37.0 billion.
    • The deficit with Ireland decreased $3.1 billion to $6.2 billion in December. Exports decreased $0.1 billion to $1.2 billion and imports decreased $3.2 billion to $7.5 billion.

    Annual Summary for 2024

    Exports, Imports, and Balance (exhibit 1)

    For 2024, the goods and services deficit was $918.4 billion, up $133.5 billion from $784.9 billion in 2023. Exports were $3,191.6 billion, up $119.8 billion from 2023. Imports were $4,110.0 billion, up $253.3 billion from 2023.

    The 2024 increase in the goods and services deficit reflected an increase in the goods deficit of $148.5 billion, or 14.0 percent, to $1,211.7 billion and an increase in the services surplus of $14.9 billion, or 5.4 percent, to $293.3 billion.

    The goods and services deficit was 3.1 percent of current-dollar gross domestic product in 2024, up from 2.8 percent in 2023.

    Exports (exhibits 3, 6, and 7)

    Exports of goods increased $38.6 billion to $2,083.8 billion in 2024.

      Exports of goods on a Census basis increased $47.1 billion.

    • Capital goods increased $40.2 billion.
      • Computer accessories increased $11.3 billion.
      • Civilian aircraft engines increased $8.7 billion.
      • Computers increased $8.2 billion.
      • Semiconductors increased $8.1 billion.
    • Other goods increased $17.9 billion. (See the “Notice” for more information.)
    • Automotive vehicles, parts, and engines decreased $10.8 billion.
      • Other automotive parts and accessories decreased $4.3 billion.
      • Passenger cars decreased $4.0 billion.
      • Trucks, buses, and special purpose vehicles decreased $3.0 billion.

      Net balance of payments adjustments decreased $8.5 billion.

    Exports of services increased $81.2 billion to $1,107.8 billion in 2024.

    • Travel increased $26.3 billion.
    • Other business services increased $16.0 billion.
    • Telecommunications, computer, and information services increased $11.9 billion.
    • Financial services increased $11.6 billion.

    Imports (exhibits 4, 6, and 8)

    Imports of goods increased $187.1 billion to $3,295.6 billion in 2024.

      Imports of goods on a Census basis increased $187.2 billion.

    • Capital goods increased $103.3 billion.
      • Computer accessories increased $33.5 billion.
      • Computers increased $28.3 billion.
      • Semiconductors increased $9.4 billion.
      • Other industrial machinery increased $9.0 billion.
    • Consumer goods increased $48.4 billion.
      • Pharmaceutical preparations increased $43.6 billion.
    • Automotive vehicles, parts, and engines increased $16.1 billion.
      • Passenger cars increased $10.0 billion.
      • Other automotive parts and accessories increased $4.8 billion.
    • Foods, feeds, and beverages increased $15.9 billion.
      • Meat products increased $3.5 billion.
      • Fruits, frozen juices increased $2.3 billion.
      • Bakery products increased $2.2 billion.
      • Other foods increased $2.0 billion.
      • Vegetables increased $1.7 billion.

      Net balance of payments adjustments decreased $0.2 billion.

    Imports of services increased $66.2 billion to $814.4 billion in 2024.

    • Travel increased $19.2 billion.
    • Charges for the use of intellectual property increased $12.2 billion.
    • Transport increased $11.7 billion.
    • Insurance services increased $11.5 billion.

    Real Goods in 2017 Dollars – Census Basis (exhibit 11)

    The real goods deficit increased $98.8 billion, or 9.6 percent, to $1,132.4 billion in 2024, compared to a 13.2 percent increase in the nominal deficit.

    • Real exports of goods increased $41.7 billion, or 2.5 percent, to $1,737.8 billion, compared to a 2.3 percent increase in nominal exports.
    • Real imports of goods increased $140.5 billion, or 5.1 percent, to $2,870.2 billion, compared to a 6.1 percent increase in nominal imports.

    Goods by Selected Countries and Areas – Census Basis (exhibits 14 and 14a)

    The 2024 figures show surpluses, in billions of dollars, with Netherlands ($55.5), South and Central America ($47.3), Hong Kong ($21.9), Australia ($17.9), and United Kingdom ($11.9). Deficits were recorded, in billions of dollars, with China ($295.4), European Union ($235.6), Mexico ($171.8), Vietnam ($123.5), Ireland ($86.7), Germany ($84.8), Taiwan ($73.9), Japan ($68.5), South Korea ($66.0), Canada ($63.3), India ($45.7), Thailand ($45.6), Italy ($44.0), Switzerland ($38.5), Malaysia ($24.8), Indonesia ($17.9), France ($16.4), Austria ($13.1), and Sweden ($9.8).

    • The deficit with the European Union increased $26.9 billion to $235.6 billion in 2024. Exports increased $2.6 billion to $370.2 billion and imports increased $29.4 billion to $605.8 billion.
    • The deficit with Taiwan increased $26.1 billion to $73.9 billion in 2024. Exports increased $2.4 billion to $42.3 billion and imports increased $28.5 billion to $116.3 billion.
    • The surplus with the Netherlands increased $12.7 billion to $55.5 billion in 2024. Exports increased $8.3 billion to $89.6 billion and imports decreased $4.4 billion to $34.1 billion.

    All statistics referenced are seasonally adjusted; statistics are on a balance of payments basis unless otherwise specified. Additional statistics, including not seasonally adjusted statistics and details for goods on a Census basis, are available in exhibits 1-20b of this release. For information on data sources, definitions, and revision procedures, see the explanatory notes in this release. The full release can be found at www.census.gov/foreign-trade/Press-Release/current_press_release/index.html or www.bea.gov/data/intl-trade-investment/international-trade-goods-and-services. The full schedule is available in the Census Bureau’s Economic Briefing Room at www.census.gov/economic-indicators/ or on BEA’s website at www.bea.gov/news/schedule.

    Next release: March 6, 2025, at 8:30 a.m EST
    U.S. International Trade in Goods and Services, January 2025

    Notice

    Impact of Canada Border Services Agency’s (CBSA) Release of CBSA Assessment and Revenue Management (CARM)

    The CBSA introduced a new accounting system (CARM) on October 21, 2024. As a result, importers in Canada have experienced delays in filing shipment information. These delays affected the compilation of statistics on U.S. exports of goods to Canada for September through December 2024, which are derived from data compiled by Canada through the United States – Canada Data Exchange. A dollar estimate of the filing backlog is included in estimates for late receipts and, following the Census Bureau’s customary practice for late receipt estimates, is included in the export end-use category “Other goods” as well as in exports to Canada. This estimate will be replaced with the actual transactions reported by the Harmonized System classification in June 2025 with the release of “U.S. International Trade in Goods and Services, Annual Revision.” Until then, please refer to the supplemental spreadsheet “CARM Exports to Canada Corrections,” which provides a breakdown of the late receipts by 1-digit end-use category. This spreadsheet will be updated as late export transactions are received to reflect reassignments from the initial “Other goods” category to the appropriate 1-digit end-use category.

    If you have questions or need additional information, please contact the Census Bureau, Economic Indicators Division, International Trade Macro Analysis Branch, on 800-549-0595, option 4, or at eid.international.trade.data@census.gov or BEA, Balance of Payments Division, at InternationalAccounts@bea.gov.

    Upcoming Changes to the Real (Chained-Dollar) Series

    Effective with the release of the February 2025 statistics on April 3, 2025, the Census Bureau will continue to use the Bureau of Labor Statistics (BLS) U.S. Import and Export Price Indexes to calculate the chained-dollar series (exhibits 10 and 11). The BLS will be implementing changes to the indexes with the release of the February 2025 U.S. Import and Export Price Indexes on March 18, 2025. The changes to the indexes could impact the chained-dollar values. Please refer to the BLS notice for additional information on the Upcoming Change to Data Source for Import and Export Price Indexes: U.S. Bureau of Labor Statistics.

    If you have any questions or need additional information, please contact the Census Bureau, Economic Statistical Methods Division, International Trade Statistical Methods Branch, on 301-763-3080.

    MIL OSI USA News –

  • MIL-OSI: TransUnion Introduces TruVision Alternative Bank Risk Score to Help Lenders Better Assess Consumers with Limited Credit Histories

    Source: GlobeNewswire (MIL-OSI)

    CHICAGO, Feb. 05, 2025 (GLOBE NEWSWIRE) — Despite a strong employment picture, some consumers are still struggling financially due to elevated inflation and higher than normal interest rates. The lowest income households (those earning less than $50,000) face another challenge, with only 35% indicating they have sufficient access to credit and lending products.i In an effort to provide lenders with a clearer picture of thin- or no- file consumers, including those who may not be gaining sufficient access to credit, TransUnion (NYSE: TRU) introduced today the TruVision Alternative Bank Risk Score.

    This score includes checking and banking data applicable to the short-term lending space and can be used to enhance lenders’ existing underwriting scores. It offers a more holistic view of a consumer’s financial behavior and enhances the accuracy of credit risk decisions. The TruVision Alternative Bank Risk Score is enabled by TransUnion’s OneTru™ solution enablement platform, which now houses the company’s short-term lending data.

    This solution evaluates a consumer’s banking activities to assist in predicting their future financial behavior, particularly their likelihood of defaulting on loans or other credit obligations. The score complements the existing suite of tools that TransUnion already provides to lenders to help them in determining credit risk. It can be used with existing risk scores or as a standalone tool for underwriting.

    “The addition of the TruVision Alternative Bank Risk Score to TransUnion’s existing Alternative Lending suite of credit risk scores offers lenders a deeper look at potential borrowers who may otherwise have no, or very limited, credit history, as well as subprime borrowers,” said Liz Pagel, senior vice president of consumer lending at TransUnion. “It can aid in improving the predictive power of risk models, helping to identify potential risks that might be missed when relying on a single data source.”

    In addition to helping lenders make more informed decisions, this score can potentially offer some consumers with limited credit histories an alternate pathway to credit, by providing a more comprehensive view of their financial behavior, identifying those creditworthy consumers who may lack a traditional credit history but demonstrate responsible banking behavior.

    A recent report from the Federal Deposit Insurance Corporation (FDIC) revealed that one in six households had no mainstream credit, and this percentage was significantly higher among lower-income households, those with a lower educational ceiling, and minority households. The report also indicated that those households without mainstream credit likely did not have a credit score with credit bureaus, making it that much harder to obtain credit moving forward.

    TransUnion’s Q4 2024 Consumer Pulse found that lower-income consumer households have a much more difficult time accessing credit.

    Lower Income Households Do Not Feel They Have Sufficient Access to Credit and Lending Products.

      Low (<$50K) Medium ($50-99K) High ($100k+)
    Have Sufficient Access 35% 64% 80%
    Neither Agree nor Disagree 31% 21% 11%
    Do Not Have Sufficient Access 34% 15% 8%

    Source: TransUnion Consumer Pulse, November 2024

    “TransUnion has long provided lenders with access to a wide range of tools, resources, and data with which informed lending decisions can be made,” said Jason Laky, executive vice president and head of financial services at TransUnion. “In this increasingly complex economic environment, many consumers, lower income or otherwise, are seeking credit with limited or non-existent traditional credit histories. The use of a broad suite of alternative credit data tools offers lenders a new and important tool in assessing risk among these consumers.”

    To learn more about how TransUnion gives lenders a Tru picture of consumers – helping them better assess creditworthiness and expand access to credit, click here.

    For consumers looking to learn more about how to build their credit, click here.

    About TransUnion (NYSE: TRU)

    TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this with a Tru™ picture of each person: an actionable view of consumers, stewarded with care. Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.

    http://www.transunion.com/business

    i Q4 2024 TransUnion Consumer Pulse study

    Contact Dave Blumberg
      TransUnion
       
    E-mail david.blumberg@transunion.com
       
    Telephone 312-972-6646

    The MIL Network –

  • MIL-OSI: Scality appoints Emilio Roman as global chief revenue officer

    Source: GlobeNewswire (MIL-OSI)

    SAN FRANCISCO, Feb. 05, 2025 (GLOBE NEWSWIRE) — Scality, a global leader in cyber-resilient storage software for the AI era, today announced the appointment of Emilio Roman as its new global Chief Revenue Officer (CRO). Emilio brings a wealth of experience in global sales leadership, with a proven track record in the cybersecurity and data storage industries. He joins Scality from Bitdefender and Fortinet, where he held the position of Senior Vice President, Global Sales and Channels. Emilio is no stranger to Scality, having previously served as the company’s top sales leader for the EMEA and APAC regions from 2014 to 2020. His return marks an exciting new chapter for Scality as he leverages his deep expertise to accelerate revenue growth and scale operations globally.

    Building on a remarkable 2024, which saw five consecutive record quarters and major successes in Enterprise AI data lakes, cloud infrastructure, and storage dedicated to cyber resiliency, Emilio assumes leadership to accelerate Scality’s growth trajectory. His appointment follows the highly impactful tenure of Peter Brennan, who built the company’s sales and channel organization to achieve consecutive years of record growth. Peter has taken a senior sales leadership role with a leading network technology company, and will remain a member of Scality’s Advisory Board.

    “We are thrilled to welcome Emilio back to the Scality family,” said Jerome Lecat, CEO of Scality. “Emilio’s extensive cyber security experience and outstanding leadership skills make him the ideal choice to lead our global sales efforts as we continue to innovate and solve the world’s largest data challenges.”

    Scality’s growth trajectory remains strong following a banner year in 2024, with the company achieving record-breaking success across all regions, including completing its most successful quarter ever in Q4 2024 and the second year in a row achieving a cash flow positive position. With hundreds of ARTESCA deployments, including the largest at 6 PB, this success highlights the team’s focus on delivering value to customers and driving cyber resilient innovation. Designed for mid-market organizations, ARTESCA offers enterprise -grade cyber resilient object storage capabilities at a cost-friendly entry point with the power to scale to support future business needs. Under Emilio’s leadership, Scality’s regional sales and channel teams are well-positioned to sustain and build upon this momentum.

    “It’s an honor to rejoin Scality at such a pivotal time in its journey,” said Emilio Roman. “I will apply my previous Scality knowledge with new learnings gained from the critical cyber-security space to drive even greater achievements for the company. I intend to continue focusing our efforts on supporting our channel partners to succeed in selling Scality’s solutions to address customers’ toughest data storage challenges across three key areas: AI, Cloud and cyber-resilient storage.”

    Scality remains committed to delivering exceptional service to customers and partners while pioneering cutting-edge solutions that address the evolving challenges of data storage. With Emilio Roman at the helm of its global sales organization, Scality is poised to further solidify its leadership in the industry.

    About Scality
    Scality solves organizations’ biggest data storage challenges — security, performance, and cost. Designed to provide the strongest form of immutability plus end-to-end cyber resilience, Scality solutions safeguard data at five core levels for unbreakable ransomware protection. Delivering utmost resilience, Scality makes storage infrastructures limitlessly scalable in all critical dimensions. The world’s most discerning companies trust Scality so they can grow faster and execute AI data-driven ideas quicker — while increasing efficiency and avoiding lock-in. Scality S3 object storage software is reliable, secure and sustainable. Follow us on Twitter and LinkedIn. Visit www.scality.com and our blog.

    Media Contact:
    Lisa Williams
    A3 Communications
    +1 339-788-0067
    lisa.williams@a3communicationspr.com

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/e6035e3a-7fb5-40ca-946c-deda19e47f28

    The MIL Network –

  • MIL-OSI: NobleAI Selected by ICL Industrial Products to Help Speed Discovery of Safe, High-Performance Materials

    Source: GlobeNewswire (MIL-OSI)

    SAN FRANCISCO, Feb. 05, 2025 (GLOBE NEWSWIRE) — NobleAI, a pioneer in AI solutions for Materials Informatics, announced it has been selected by ICL Industrial Products to help drive the development of innovative chemical compounds for use in its flame retardants. NobleAI’s unique Science-Based AI modeling technology and powerful Visualizations, Insights & Predictions (VIP) platform are expected to help speed the discovery of new high-performance, sustainable compounds for ICL’s life-saving flame retardants, which are used in a multitude of industrial and consumer applications.

    Using NobleAI’s Science-Based AI models and VIP platform, ICL will be able to leverage AI to explore multiple new molecules in a more timely and cost-efficient manner versus lab-only development methods, which typically allow for testing of only a handful of new chemical compounds in a year. This effort will be in collaboration with Microsoft Azure Quantum Elements (AQE) and will accelerate ICL’s ability to identify and evaluate promising new compounds for the development of safer, more sustainable and innovative flame retardants.

    “We are honored to partner with a true industry leader like ICL and are excited to support them in their innovation journey,” said Sunil Sanghavi, CEO of NobleAI. “Their unwavering commitment to advancing safety and sustainability, while simultaneously achieving their cost and profitability goals, sets them apart as a global company dedicated to balancing environmental responsibility with economic success.”

    “ICL is in constant pursuit of new molecular formulations to help improve the performance and sustainability of our flame retardants,” said Yaniv Kabalek, president, Industrial Products Division, ICL. “By partnering with NobleAI, we can reduce wasted resources and speed time to market, while continuing to deliver the safest, highest performing products to our customers.” 

    About NobleAI 
    NobleAI offers commercially-proven AI solutions for Material Informatics powered by its unique, Science-Based AI (SBAI) technology. SBAI models are developed quickly, securely and specifically for each customer and a specific use case. Delivered via the cloud-based Visualizations, Insights & Predictions (VIP) Platform, NobleAI technology delivers actionable insights to accelerate product development and reduce costs, while improving product performance, sustainability and reliability. NobleAI is supported by investments from world-class organizations such as Microsoft, Chevron and Syensqo, and the company’s solutions are already delivering real value in production deployments at leading chemical, material and energy companies around the globe. 

    About ICL
    ICL Group Ltd. is a leading global specialty minerals company, which creates impactful solutions for humanity’s sustainability challenges in the food, agriculture and industrial markets. ICL leverages its unique bromine, potash and phosphate resources, its global professional workforce, and its sustainability focused R&D and technological innovation capabilities, to drive the company’s growth across its end markets. ICL shares are dual listed on the New York Stock Exchange and the Tel Aviv Stock Exchange (NYSE and TASE: ICL). The company employs more than 12,000 people worldwide, and its 2023 revenue totaled approximately $7.5 billion.

    The MIL Network –

  • MIL-OSI: Dayforce Reports Fourth Quarter and Full Year 2024 Results1

    Source: GlobeNewswire (MIL-OSI)

    Dayforce® recurring revenue of $347.9 million, up 19% year-over-year in the fourth quarter

    Total revenue of $465.2 million, up 16% year-over-year in the fourth quarter

    Full year 2024 net cash provided by operating activities of $281.1 million, up 28%

    Annual Dayforce gross revenue retention rate of 98%

    MINNEAPOLIS and TORONTO, Feb. 05, 2025 (GLOBE NEWSWIRE) — Dayforce, Inc. (“Dayforce” or the “Company”) (NYSE:DAY) (TSX:DAY), a global leader in human capital management (“HCM”) technology, today announced its financial results for the fourth quarter and fiscal year ended December 31, 2024.

    “2024 was a year of outstanding progress and innovation for Dayforce. We launched the Dayforce brand, maintained our product positioning as leaders in HCM, and drove significant innovation to help our customers achieve their best work,” said David Ossip, Chair and CEO of Dayforce. “We are optimistic about 2025 as current and prospective customers continue to recognize the value the Dayforce platform provides as they streamline HCM processes and navigate compliance complexities.”

    “The fourth quarter of 2024 was the strongest sales quarter in our history – helping us close out a successful year with robust growth across both new business and add-on sales,” said Stephen Holdridge, President and COO of Dayforce. “We saw a healthy mix of enterprise, major-market, and global sales on top of annual gross retention rate of 98% – another company record. This momentum, alongside the strength of our sales pipeline, gives us great confidence in our right to continue winning in 2025.” 

    “Looking out to 2025, we plan to continue executing on the vision laid out during our November investor day, operating the business for optimal cash generation while maintaining our pace of innovation and high levels of customer success,” said Jeremy Johnson, CFO of Dayforce. “I’m pleased that we are starting the year with demonstrable progress toward our profitability goals, raising our 2025 Adjusted EBITDA guidance 100 basis points to 32%.”

    Financial Highlights for the Fourth Quarter 20241

    • Total revenue was $465.2 million, an increase of 16.4%, or 17.0% on a constant currency basis.
    • Dayforce recurring revenue was $347.9 million, an increase of 19.1%, or 19.5% on a constant currency basis. Excluding float revenue, Dayforce recurring revenue was $307.6 million, an increase of 20.0%, or 20.4% on a constant currency basis.
    • Cloud recurring gross margin was 80.0%, compared to 77.0%, an increase of 3.0 percentage points. Adjusted Cloud recurring gross margin was 80.4%, compared to 78.1%, an increase of 2.3 percentage points.
    • Operating profit was $28.5 million, compared to $38.8 million. Adjusted operating profit was $103.3 million, compared to $78.9 million.
    • Net income was $10.8 million, compared to $45.6 million. Adjusted net income was $97.1 million, compared to $80.3 million.
    • Adjusted EBITDA was $129.2 million, compared to $99.2 million. Adjusted EBITDA margin was 27.8%, compared to 24.8%, an increase of 3.0 percentage points.
    • Diluted net income per share was $0.07, compared to $0.29. Adjusted diluted net income per share was $0.60, compared to $0.50.

    Financial Highlights for the Full Year 20241

    • Total revenue was $1,760.0 million, an increase of 16.3%, or 16.7% on a constant currency basis.
    • Dayforce recurring revenue was $1,339.9 million, an increase of 20.6%, or 20.8% on a constant currency basis. Excluding float revenue, Dayforce recurring revenue was $1,159.7 million, an increase of 20.4%, or 20.7% on a constant currency basis.
    • Cloud annualized recurring revenue (“ARR”) was $1,474.1 million, an increase of 17.9%, or $223.5 million.2
    • Cloud recurring gross margin was 78.9%, compared to 77.0%, an increase of 1.9 percentage points. Adjusted Cloud recurring gross margin was 79.8%, compared to 78.3%, an increase of 1.5 percentage points.
    • Operating profit was $104.1 million, compared to $133.1 million. Adjusted operating profit was $410.5 million, compared to $339.8 million.
    • Annual Dayforce gross revenue retention rate was 98.0% for the full year of 2024, compared to 97.1%.2
    • Net income was $18.1 million, compared to $54.8 million. Adjusted net income was $315.8 million, compared to $238.7 million.
    • Adjusted EBITDA was $501.5 million, compared to $410.2 million. Adjusted EBITDA margin was 28.5%, compared to 27.1%, an increase of 1.4 percentage points.
    • Diluted net income per share was $0.11, compared to $0.35. Adjusted diluted net income per share was $1.97, compared to $1.51.
    • Net cash provided by operating activities was $281.1 million, compared to $219.5 million.
    • Free cash flow was $171.5 million, compared to $105.1 million. Free cash flow margin was 9.7%, compared to 6.9%, an increase of 2.8 percentage points.
    • Cash and equivalents were $579.7 million, compared to $570.3 million.

    Supplemental Detail

    • 7.62 million global employees were live on the Dayforce platform as of December 31, 2024, up 11.4% compared to 6.84 million global employees as of December 31, 2023.3
    • 6,876 customers were live on the Dayforce platform as of December 31, 2024, an increase of 146 customers since September 30, 2024 and an increase of 483 customers since December 31, 2023, or 7.6% year-over-year.3
    • Dayforce recurring revenue per customer was $163,101 for the trailing twelve months ended December 31, 2024, an increase of 11.1%.4
    • The average float balance for Dayforce’s customer funds during the quarter was $4.68 billion and the average yield on Dayforce’s float balance was 3.8%, a decrease of 10 basis points year-over-year. Float revenue from invested customer funds was $45.1 million for the three months ended December 31, 2024.
    • The average U.S. dollar to Canadian dollar foreign exchange rate was $1.40 for the three months ended December 31, 2024, compared to $1.36 for the three months ended December 31, 2023. Dayforce presents percentage change in revenue on a constant currency basis in order to exclude the effect of foreign currency rate fluctuations, which it believes is useful to management and investors. Percentage change in revenue was calculated on a constant currency basis by applying the average foreign exchange rate in effect during the comparable prior period.

    1 The financial highlights are on a year-over-year basis, unless otherwise stated. All financial results are reported in United States (“U.S.”) dollars and in accordance with accounting principles generally accepted in the U.S. (“GAAP”), unless otherwise stated.
    2 Excluding Ascender and eloomi.
    3 Excluding Ascender, ADAM HCM, and eloomi.
    4 Excluding float revenue, Ascender, ADAM HCM, and eloomi revenue, and on a constant currency basis. Please refer to the “Non-GAAP Financial Measures” section for discussion of percentage change in revenue on a constant currency basis.

    Business Highlights

    • The Company launched its first mass advertising campaign across the U.S. after uniting its global brand as Dayforce.
    • Dayforce announced the launch of the Dayforce Partner Network to create growth opportunities and provide an exceptional experience for customers.
    • Dayforce was named a Leader in the IDC MarketScape – Worldwide Cloud-Enabled Human Capital Management 2024 Vendor Assessment and a Leader in the Nucleus Research Full Suite Talent Acquisition Technology Value Matrix 2024.
    • Dayforce won the gold medal and was named a Leader in Software Reviews Data Quadrant Awards for both HCM Enterprise Software and WFM Enterprise Software and was recognized by Constellation Research for excellence in Workforce Management Suites, HCM Suites with a North American Focus, Global HCM Suites, and Payroll for North American SMBs.
    • For the second consecutive year, Dayforce was named by Newsweek magazine and the Best Practice Institute as one of the Top 100 Most Loved Workplaces in America, made Computerworld’s list of Best Places to Work in IT, and earned a place on the United Kingdom’s (“U.K.”) Most Loved Workplace list.
    • Dayforce achieved record attendance at Dayforce Discover 2024, its annual customer conference in Las Vegas, where it welcomed its global community of customers, prospective customers, partners, and industry disruptors.

    Sales Highlights

    • A large member-owned retail cooperative selected the full Dayforce suite to support all 66,000 employees at 362 stores across nine states in the U.S.
    • A large global manufacturer and distributor of paints and coatings supporting 60,000 employees has expanded its partnership with Dayforce Payroll and Workforce Management for its regions beyond the U.S.
    • A global air services provider with over 48,000 employees across 35 countries has expanded its partnership with Dayforce to its U.S. operations. The company, which employs 3,200 in the U.S., has purchased the full suite of Dayforce products, including Managed Payroll.
    • A space exploration company selected Dayforce Payroll and Time and Attendance to support its 18,000 employees.
    • A global manufacturer of construction equipment selected Dayforce for Managed Payroll and Time and Attendance, supporting 6,500 employees and 500 pensioners globally.
    • A large Indigenous organization in the U.S. selected the full Dayforce suite to support 5,000 employees across Arizona, New Mexico, Utah, and Colorado.
    • A specialty food distributor with 5,000 employees across the U.S. and Canada has expanded its Dayforce partnership to include Advanced Experience Hub, Succession Planning, Co-Pilot, Career Explorer, Engagement, and Talent Acquisition Management.
    • A global beverage company has expanded its partnership with Dayforce choosing Time and Managed Payroll, to support 3,100 employees across the United States and Canada.
    • A global leader specializing in radiation detection, measurement, and monitoring solutions opted for the full Dayforce HCM suite to support its 3,000 employees globally.

    Customer Highlights

    • A global aviation services provider with over 55,000 employees across 36 countries has successfully gone live with Dayforce HR and Payroll for 8,000 employees in the U.K. and plans to continue its global rollout of the platform.
    • A leading American entertainment company with 23,000 employees successfully launched Dayforce Talent – Performance, Learning, Compensation, and Succession Planning – across its U.S. operations.
    • A leading U.K. contract catering and support services provider successfully implemented Dayforce HR and Payroll for its 10,500 employees.
    • A large public sector organization in North Carolina has gone live with Dayforce HR, Payroll, Benefits, Time, and People Analytics to support 8,000 employees.
    • A U.S gaming and digital entertainment company has successfully gone live with Dayforce HR, Payroll, Time and People Analytics, supporting 5,800 employees across the U.S. and Canada.
    • A global cybersecurity company has gone live with Dayforce HR, Payroll, and Time and Attendance, supporting 2,900 employees across the U.S.
    • A leading U.S. based commercial real estate company has successfully implemented Dayforce, using HR, Managed Payroll, Managed Benefits, Time and Talent to support its 2,650 employees.

    Product Roadmap Highlights

    In the fourth quarter, Dayforce continued to set a new standard for the HCM industry by bringing product capabilities to market to help organizations invest in their people and push their businesses forward.

    • 900+ compliance updates in 2024 further strengthen the company’s industry-leading position in compliance by addressing taxes, workers’ compensation, garnishments, dependent care, and multiple state and city rate changes.
    • New intelligence capabilities across the Dayforce suite will help customers simplify and accelerate business processes including:
      • Dayforce Co-Pilot, made generally available to all customers in Q4, optimizes people operations by enabling a more informed, empowered, and productive workforce through a powerful GenAI assistant that is personalized to answer contextual questions, summarize data, and provide step-by-step guidance.
      • Dayforce Artificial Intelligence (“AI”) Agents, announced at Dayforce Discover, will help customers accelerate workflows, efficiencies, and decision-making by automating repetitive tasks across the employee lifecycle.
      • AI-enhanced Dayforce Demand Forecasting, a new capability, better predicts demand and labor needs by delivering AI-enhanced insights through machine learning algorithms to help organizations plan more effectively.
      • Dayforce Workforce Insights, a new feature, provides critical workforce insights and serves as a one-stop shop for people leaders.
    • Dayforce Shift Marketplace supercharges staffing mobility by enabling workers to search for, select, and fill open shifts, right from their mobile device. Shift Marketplace provides workers with the up-front information required to understand their role, work, and compensation.
    • Dayforce Talent enhancements elevate the experience for talent acquisition professionals by enabling them to hire at scale, reduce complexities in recruitment, and view qualified candidates quickly and efficiently.
    • Dayforce Wallet updates include new direct-to-bank functionality with the option to continue to access available pay using Dayforce Wallet or to choose to send pay directly to another personal bank account and expanded access to on-demand pay using Dayforce Mobile.

    Business Outlook

    Based on information available as of February 5, 2025, Dayforce is issuing the following guidance for the full year and first quarter of 2025 as indicated below. Comparisons are on a year-over-year basis, unless stated otherwise.

    First Quarter 2025 Guidance

    • Total revenue, excluding float, of $421 million to $427 million, an increase of approximately 13.5% to 15% on a GAAP basis, or approximately 15.5% to 17% on a constant currency basis.
    • Float revenue of $53 million.
    • Adjusted EBITDA margin of 31% to 32%.

    Full Year 2025 Guidance

    • Total revenue, excluding float, of $1,745 million to $1,760 million, an increase of approximately 11.9% to 12.8% on a GAAP basis, or approximately 14% to 15% on a constant currency basis.
    • Dayforce recurring revenue, excluding float, of $1,315 million to $1,340 million, an increase of approximately 13.4% to 15.5% on a GAAP basis, or approximately 15% to 17% on a constant currency basis.
    • Float revenue of $180 million.
    • Adjusted EBITDA margin of 32%.
    • Free cash flow margin of 12%.

    Please refer to the “Reconciliation of GAAP to Non-GAAP Financial Measures” section for a reconciliation of Dayforce’s free cash flow margin guidance. Dayforce has not reconciled the Adjusted EBITDA margin ranges for the first quarter or full year of 2025 to the directly comparable GAAP financial measures because applicable information for the future period, on which these reconciliations would be based, is not available without unreasonable efforts due to uncertainty regarding, and the potential variability of, depreciation and amortization, share-based compensation expense and related employer taxes, changes in foreign currency exchange rates, and other items.

    Foreign Exchange

    For the first quarter and full year of 2025, Dayforce’s guidance assumes an average U.S. dollar to key foreign currencies as follows:

      % of 2024 total
    revenue    		 Foreign exchange
    rate assumed in
    guidance    		 Foreign exchange rate
    in Q1 2024    		 Foreign exchange rate
    in FY 2024
    U.S. dollar to Canadian dollar 21% 1.44 1.35 1.37
    U.S. dollar to Australian dollar 4% 1.61 1.52 1.52
    U.S. dollar to Great British pound 3% 0.81 0.79 0.78
             

    Conference Call Details

    Dayforce will host a live webcast and conference call to discuss the fourth quarter and full year 2024 earnings at 8:00 a.m. Eastern Time on February 5, 2025. Those wishing to participate via the webcast should access the call through the Investor Relations section of the Dayforce website. Those wishing to participate via the telephone may dial in at 877-497-9071 (USA) or 201-689-8727 (International). The webcast replay will be available through the Investor Relations section of the Dayforce website.

    About Dayforce

    Dayforce makes work life better. Everything we do as a global leader in HCM technology is focused on improving work for thousands of customers and millions of employees around the world. Our single, global people platform for HR, Pay, Time, Talent, and Analytics equips Dayforce customers to unlock their full workforce potential and operate with confidence. To learn how Dayforce helps create quantifiable value for organizations of all sizes and industries, visit dayforce.com.

    Forward-Looking Statements

    This press release contains forward-looking statements that are subject to risks and uncertainties. All statements other than statements of historical fact or relating to present facts or current conditions included in this press release are forward-looking statements. Forward-looking statements give Dayforce’s current expectations and projections relating to its financial condition, results of operations, plans, objectives, future performance, and business. Users can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. Forward-looking statements in this press release include statements relating to the full year and first quarter of 2025, as well as those relating to future growth initiatives. These statements may include words such as “anticipate,” “estimate,” “expect,” “assume”, “project,” “seek,” “plan,” “intend,” “believe,” “will,” “may,” “could,” “continue,” “likely,” “should,” and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events, but not all forward-looking statements contain these identifying words. The forward-looking statements contained in this press release are based on assumptions that Dayforce has made in light of its industry experience and its perceptions of historical trends, current conditions, expected future developments and other factors that it believes are appropriate under the circumstances. As users consider this press release, it should be understood that these statements are not guarantees of performance or results. These assumptions and Dayforce’s future performance or results involve risks and uncertainties (many of which are beyond its control). In particular:

    • its inability to maintain its high Cloud solutions growth rate, manage its domestic and international growth effectively, or execute on its growth strategy;
    • the impact of disruptions to the movement of funds to initiate payroll-related transactions on behalf of  customers;
    • its failure to manage its aging technical operations infrastructure;
    • system breaches, interruptions or failures, including cyber-security breaches, identity theft, or other disruptions that could compromise customer information or sensitive company information, including its ongoing consent order with the Federal Trade Commission regarding data protection;
    • its failure to comply with applicable privacy, data protection, information security, and financial services laws, regulations and standards;
    • its inability to successfully compete in the markets in which Dayforce operates and expand its current offerings into new markets or further penetrate existing markets due to competition;
    • its failure to properly update its solutions to enable its customers to comply with applicable laws;
    • its failure to provide new or enhanced functionality and features, including those that may involve artificial intelligence or machine learning;
    • its inability to maintain necessary third-party relationships, and third-party software licenses, and identify errors in the software it licenses;
    • its inability to offer and deliver high-quality technical support, implementation, and professional services;
    • its inability to attract and retain senior management employees and highly skilled employees;
    • the impact of its outstanding debt obligations on its financial condition, results of operations, and value of its common stock;
    • its ability to maintain effective internal control over financial reporting, and the effect of the existing material weakness in its internal control over financial reporting on its business, financial condition, and results of operations; or
    • the impact of adverse economic and market conditions on its business, operating results, or financial condition.

    Although Dayforce has attempted to identify important risk factors, additional factors or events that could cause Dayforce’s actual performance to differ from these forward-looking statements may emerge from time to time, and it is not possible for Dayforce to predict all of them. Should one or more of these risks or uncertainties materialize, or should any of Dayforce’s assumptions prove incorrect, its actual financial condition, results of operations, future performance, and business may vary in material respects from the performance projected in these forward-looking statements. In addition to any factors and assumptions set forth above in this press release, the material factors and assumptions used to develop the forward-looking information include, but are not limited to: the general economy remains stable; the competitive environment in the HCM market remains stable; the demand environment for HCM solutions remains stable; Dayforce’s implementation capabilities and cycle times remain stable; foreign exchange rates, both current and those used in developing forward-looking statements, specifically U.S. dollar to Canadian dollar, remain stable at, or near, current rates; Dayforce will be able to maintain its relationships with its employees, customers, and partners; Dayforce will continue to attract qualified personnel to support its development requirements and the support of its new and existing customers; and that the risk factors noted above, individually or collectively, do not have a material impact on Dayforce. Any forward-looking statement made by Dayforce in this press release speaks only as of the date on which it is made. Dayforce undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

         
    Dayforce, Inc.
    Condensed Consolidated Balance Sheets
    (Unaudited)
         
      December 31,  
      2024     2023  
    (In millions, except per share data)          
    Assets          
    Current assets:          
    Cash and equivalents $ 579.7     $ 570.3  
    Restricted cash   —       0.8  
    Trade and other receivables, net   264.8       228.8  
    Prepaid expenses and other current assets   137.5       126.7  
    Total current assets before customer funds   982.0       926.6  
    Customer funds   5,001.5       5,028.6  
    Total current assets   5,983.5       5,955.2  
    Right of use lease assets, net   12.3       19.1  
    Property, plant, and equipment, net   223.7       210.1  
    Goodwill   2,336.7       2,293.9  
    Other intangible assets, net   189.2       230.2  
    Deferred sales commissions   231.8       192.1  
    Other assets   139.8       110.3  
    Total assets $ 9,117.0     $ 9,010.9  
               
    Liabilities and stockholders’ equity          
    Current liabilities:          
    Current portion of long-term debt $ 7.3     $ 7.6  
    Current portion of long-term lease liabilities   5.7       7.0  
    Accounts payable   77.0       66.7  
    Deferred revenue   42.3       40.2  
    Employee compensation and benefits   126.8       92.9  
    Other accrued expenses   31.5       30.4  
    Total current liabilities before customer funds obligations   290.6       244.8  
    Customer funds obligations   5,024.2       5,090.1  
    Total current liabilities   5,314.8       5,334.9  
    Long-term debt, less current portion   1,209.1       1,210.1  
    Employee benefit plans   5.9       27.7  
    Long-term lease liabilities, less current portion   10.8       18.9  
    Other liabilities   30.1       21.1  
    Total liabilities   6,570.7       6,612.7  
    Commitments and contingencies          
    Stockholders’ equity:          
    Common stock, $0.01 par, 500.0 shares authorized, 159.0 and 156.3 shares issued and outstanding, respectively   1.6       1.6  
    Additional paid in capital   3,363.2       3,151.1  
    Accumulated deficit   (335.8 )     (317.8 )
    Accumulated other comprehensive loss   (482.7 )     (436.7 )
    Total stockholders’ equity   2,546.3       2,398.2  
    Total liabilities and stockholders’ equity $ 9,117.0     $ 9,010.9  
                   
    Dayforce, Inc.
    Condensed Consolidated Statements of Operations
    (Unaudited)
               
      Three Months Ended December 31,     Year Ended December 31,  
      2024     2023     2024     2023  
    (In millions, except per share data)                      
    Revenue:                      
    Recurring $ 393.7     $ 339.1     $ 1,517.3     $ 1,297.3  
    Professional services and other   71.5       60.6       242.7       216.4  
    Total revenue   465.2       399.7       1,760.0       1,513.7  
    Cost of revenue:                      
    Recurring   87.6       85.5       352.7       324.9  
    Professional services and other   80.2       68.6       291.0       265.6  
    Product development and management   57.0       56.4       223.8       209.9  
    Depreciation and amortization   21.8       19.4       80.4       66.8  
    Total cost of revenue   246.6       229.9       947.9       867.2  
    Gross profit   218.6       169.8       812.1       646.5  
    Selling and marketing   93.5       72.7       342.0       250.2  
    General and administrative   96.6       58.3       366.0       263.2  
    Operating profit   28.5       38.8       104.1       133.1  
    Interest expense, net   7.4       8.9       40.6       36.1  
    Other expense (income), net   20.2       (5.6 )     25.9       1.0  
    Income before income taxes   0.9       35.5       37.6       96.0  
    Income tax (benefit) expense   (9.9 )     (10.1 )     19.5       41.2  
    Net income $ 10.8     $ 45.6     $ 18.1     $ 54.8  
    Net income per share:                      
    Basic $ 0.07     $ 0.29     $ 0.11     $ 0.35  
    Diluted $ 0.07     $ 0.29     $ 0.11     $ 0.35  
    Weighted average shares outstanding:                      
    Basic   158.3       156.2       157.8       155.3  
    Diluted   161.8       159.2       160.4       158.5  
                                   
    Dayforce, Inc.
    Condensed Consolidated Statements of Cash Flows
    (Unaudited)
         
      Year Ended December 31,  
      2024     2023  
    (In millions)          
    Cash flows from operating activities          
    Net income $ 18.1     $ 54.8  
    Adjustments to reconcile net income to net cash provided by operating activities:          
    Deferred income tax (benefit) expense   (34.1 )     4.1  
    Depreciation and amortization   209.8       132.5  
    Amortization of debt issuance costs and debt discount   4.2       4.4  
    Loss on debt extinguishment   4.3       —  
    Provision for doubtful accounts   10.1       5.4  
    Net periodic pension and postretirement cost   10.1       1.1  
    Share-based compensation expense   155.5       136.7  
    Change in fair value of contingent consideration   9.0       4.3  
    Other   0.1       1.0  
    Changes in operating assets and liabilities, excluding effects of acquisitions:          
    Trade and other receivables   (48.0 )     (48.3 )
    Prepaid expenses and other current assets   (3.3 )     (22.1 )
    Deferred sales commissions   (43.9 )     (39.5 )
    Accounts payable and other accrued expenses   15.7       9.3  
    Deferred revenue   (4.4 )     (1.3 )
    Employee compensation and benefits   12.8       (7.5 )
    Accrued taxes   (3.6 )     (4.7 )
    Payment of contingent consideration   (20.9 )     —  
    Other assets and liabilities   (10.4 )     (10.7 )
    Net cash provided by operating activities   281.1       219.5  
               
    Cash flows from investing activities          
    Purchases of customer funds marketable securities   (541.1 )     (528.1 )
    Proceeds from sale and maturity of customer funds marketable securities   353.4       445.5  
    Purchases of marketable securities   (16.2 )     (6.8 )
    Proceeds from sale and maturity of marketable securities   14.7       2.0  
    Expenditures for property, plant, and equipment   (14.3 )     (19.0 )
    Expenditures for software and technology   (95.3 )     (95.4 )
    Acquisition costs, net of cash acquired   (173.1 )     —  
    Other   —       (1.0 )
    Net cash used in investing activities   (471.9 )     (202.8 )
               
    Cash flows from financing activities          
    Increase in customer funds obligations, net   51.8       200.9  
    Proceeds from issuance of common stock under share-based compensation plans   56.6       49.0  
    Repurchases of common stock   (36.1 )     —  
    Proceeds from debt issuance   650.0       —  
    Repayment of long-term debt obligations   (648.3 )     (7.9 )
    Payment of debt refinancing costs   (11.4 )     —  
    Payment of contingent consideration   (3.0 )     —  
    Net cash provided by financing activities   59.6       242.0  
               
    Effect of exchange rate changes on cash, restricted cash, and equivalents   (36.3 )     11.5  
    Net (decrease) increase in cash, restricted cash, and equivalents   (167.5 )     270.2  
    Cash, restricted cash, and equivalents at beginning of period   3,421.4       3,151.2  
    Cash, restricted cash, and equivalents at end of period $ 3,253.9     $ 3,421.4  
               
    Reconciliation of cash, restricted cash, and equivalents to the
    consolidated balance sheets    		          
    Cash and equivalents $ 579.7     $ 570.3  
    Restricted cash   —       0.8  
    Restricted cash and equivalents included in customer funds   2,674.2       2,850.3  
    Total cash, restricted cash, and equivalents $ 3,253.9     $ 3,421.4  
               
    Supplemental cash flow information          
    Cash paid for interest $ 45.3     $ 52.4  
    Cash paid for income taxes   56.4       43.0  
    Cash received from income tax refunds   0.8       0.6  
                   
    Dayforce, Inc.
    Revenue Financial Measures
    (Unaudited)
                           
      Three Months Ended
    December 31,    		     Percentage
    change in
    revenue    		     Impact of
    changes in
    foreign
    currency
    (a)    		     Percentage
    change in
    revenue on
    a constant
    currency
    basis (a)    		  
      2024     2023     2024 vs.
    2023    		           2024 vs.
    2023    		  
      (In millions)                    
    Revenue:                            
    Recurring revenue:                            
    Dayforce recurring, excluding float $ 307.6     $ 256.4       20.0 %     (0.4 )%     20.4 %
    Dayforce float   40.3       35.7       12.9 %     (0.5 )%     13.4 %
    Total Dayforce recurring   347.9       292.1       19.1 %     (0.4 )%     19.5 %
    Powerpay recurring, excluding float   23.1       23.1       (— )%     (2.6 )%     2.6 %
    Powerpay float   4.4       5.0       (12.0 )%     (4.0 )%     (8.0 )%
    Total Powerpay recurring   27.5       28.1       (2.1 )%     (2.8 )%     0.7 %
    Total Cloud recurring   375.4       320.2       17.2 %     (0.7 )%     17.9 %
    Other recurring (b)   18.3       18.9       (3.2 )%     0.5 %     (3.7 )%
    Total recurring revenue   393.7       339.1       16.1 %     (0.6 )%     16.7 %
    Professional services and other (c)   71.5       60.6       18.0 %     (0.8 )%     18.8 %
    Total revenue $ 465.2     $ 399.7       16.4 %     (0.6 )%     17.0 %
    a) Dayforce has calculated percentage change in revenue on a constant currency basis by applying the average foreign exchange rate in effect during the comparable prior period. Please refer to the “Non-GAAP Financial Measures” section for discussion of percentage change in revenue on a constant currency basis.
    b) Float attributable to Other recurring was $0.4 million and $0.5 million for the three months ended December 31, 2024, and 2023, respectively.
    c) For the three months ended December 31, 2024, Professional services and other consisted of $69.4 million, $1.9 million, $0.2 million associated with Dayforce, Other, and Powerpay, respectively. For the three months ended December 31, 2023, Professional services and other consisted of $57.6 million, $2.7 million, and $0.3 million associated with Dayforce, Other, and Powerpay, respectively.
       
      Year Ended December 31,     Percentage
    change in
    revenue    		     Impact of
    changes in
    foreign
    currency
    (a)    		     Percentage
    change in
    revenue on
    a constant
    currency
    basis (a)    		  
      2024     2023     2024 vs.
    2023    		           2024 vs.
    2023    		  
      (In millions)                    
    Revenue:                            
    Recurring revenue:                            
    Dayforce recurring, excluding float $ 1,159.7     $ 962.9       20.4 %     (0.3 )%     20.7 %
    Dayforce float   180.2       148.2       21.6 %     (0.3 )%     21.9 %
    Total Dayforce recurring   1,339.9       1,111.1       20.6 %     (0.2 )%     20.8 %
    Powerpay recurring, excluding float   83.7       81.9       2.2 %     (1.6 )%     3.8 %
    Powerpay float   18.8       18.4       2.2 %     (1.6 )%     3.8 %
    Total Powerpay recurring   102.5       100.3       2.2 %     (1.6 )%     3.8 %
    Total Cloud recurring   1,442.4       1,211.4       19.1 %     (0.3 )%     19.4 %
    Other recurring (b)   74.9       85.9       (12.8 )%     (0.7 )%     (12.1 )%
    Total recurring revenue   1,517.3       1,297.3       17.0 %     (0.3 )%     17.3 %
    Professional services and other (c)   242.7       216.4       12.2 %     (0.3 )%     12.5 %
    Total revenue $ 1,760.0     $ 1,513.7       16.3 %     (0.4 )%     16.7 %
    a) Dayforce has calculated percentage change in revenue on a constant currency basis by applying the average foreign exchange rate in effect during the comparable prior period. Please refer to the “Non-GAAP Financial Measures” section for discussion of percentage change in revenue on a constant currency basis.
    b) Float attributable to Other recurring was $1.3 million and $2.1 million for the years ended December 31, 2024 and 2023, respectively.
    c) For the year ended December 31, 2024, Professional services and other consisted of $233.8 million, $8.5 million, and $0.4 million associated with Dayforce, Other, and Powerpay, respectively. For the year ended December 31, 2023, Professional services and other consisted of $202.1 million, $13.8 million, and $0.5 million associated with Dayforce, Other, and Powerpay, respectively.
       
    Dayforce, Inc.
    Share-Based Compensation Expense and Related Employer Taxes
    (Unaudited)
               
      Three Months Ended
    December 31,    		     Twelve Months Ended
    December 31,    		  
      2024     2023     2024     2023  
      (in millions)  
    Cost of revenue – Cloud $ 1.7     $ 3.5     $ 11.3     $ 15.4  
    Cost of revenue – Other   0.5       0.3       2.2       1.5  
    Professional services and other   2.5       3.7       14.2       17.2  
    Product development and management   7.6       6.8       32.6       32.5  
    Sales and marketing   9.1       4.5       36.3       23.5  
    General and administrative   16.8       —       60.0       47.0  
    Total $ 38.2     $ 18.8     $ 156.6     $ 137.1  
                                   
    Dayforce, Inc.
    Reconciliation of GAAP to Non-GAAP Financial Measures
    (Unaudited)
     
    The following tables reconcile Dayforce’s reported results to its non-GAAP financial measures:
         
      Three Months Ended December 31, 2024  
      As
    reported    		     As
    reported
    margins
    (a)    		     Share-based
    compensation    		     Amortization     Other (b)     As
    adjusted
    (b)    		     As
    adjusted
    margins
    (a)    		  
      (Dollars in millions, except per share data)  
    Cost of Cloud recurring revenue $ 75.2       80.0 %   $ 1.7     $ —     $ 0.1     $ 73.4       80.4 %
                                             
    Operating profit $ 28.5       6.1 %   $ 38.2     $ 32.5     $ 4.1     $ 103.3       22.2 %
                                             
    Net income $ 10.8       2.3 %   $ 38.2     $ 32.5     $ 15.6     $ 97.1       20.9 %
    Interest expense, net   7.4             —       —       —       7.4        
    Income tax benefit (c)   (9.9 )           —       —       (8.8 )     (1.1 )      
    Depreciation and amortization   58.3             —       32.5       —       25.8        
    EBITDA $ 66.6           $ 38.2     $ —     $ 24.4     $ 129.2       27.8 %
                                             
    Net income per share – diluted $ 0.07           $ 0.24     $ 0.20     $ 0.10     $ 0.60        
    (a) Cloud recurring gross margin is defined as total Cloud recurring revenue less cost of Cloud recurring revenue as a percentage of total Cloud recurring revenue. Operating profit margin and net profit margin are determined by calculating the percentage operating profit and net income are of total revenue. Please refer to the “Non-GAAP Financial Measures” section for additional information on the as adjusted margins.
    (b) The as adjusted column is a non-GAAP financial measure, adjusted to exclude share-based compensation expense and related employer taxes, amortization of acquisition-related intangible assets, and certain other items. The adjustment to operating profit consists of $4.1 million of restructuring expenses. The adjustments to net income also include $17.1 million of foreign exchange loss, $3.2 million of costs associated with the planned termination of its frozen U.S. pension plan, and a $8.8 million net adjustment for the effect of income taxes related to these items. Please refer to the “Non-GAAP Financial Measures” section for additional information on the as adjusted metrics.
    (c) Income tax effects have been calculated based on the statutory tax rates in effect in the U.S. and foreign jurisdictions during the period.
       
      Three Months Ended December 31, 2023  
      As
    reported    		     As
    reported
    margins
    (a)    		     Share-based
    compensation    		     Amortization     Other (b)     As
    adjusted
    (b)    		     As
    adjusted
    margins
    (a)    		  
      (Dollars in millions, except per share data)  
    Cost of Cloud recurring revenue $ 73.7       77.0 %   $ 3.5     $ —     $ —     $ 70.2       78.1 %
                                             
    Operating profit $ 38.8       9.7 %   $ 18.8     $ 27.8     $ (6.5 )   $ 78.9       19.7 %
                                             
    Net income $ 45.6       11.4 %   $ 18.8     $ 27.8     $ (11.9 )   $ 80.3       20.1 %
    Interest expense, net   8.9             —       —       —       8.9        
    Income tax benefit (c)   (10.1 )           —       —       0.5       (10.6 )      
    Depreciation and amortization   48.4             —       27.8       —       20.6        
    EBITDA $ 92.8           $ 18.8     $ —     $ (12.4 )   $ 99.2       24.8 %
                                             
    Net income per share – diluted $ 0.29           $ 0.12     $ 0.17     $ (0.07 )   $ 0.50        
    (a) Cloud recurring gross margin is defined as total Cloud recurring revenue less cost of Cloud recurring revenue as a percentage of total Cloud recurring revenue. Operating profit margin and net profit margin are determined by calculating the percentage operating profit and net income are of total revenue. Please refer to the “Non-GAAP Financial Measures” section for additional information on the as adjusted margins.
    (b) The as adjusted column is a non-GAAP financial measure, adjusted to exclude share-based compensation expense and related employer taxes, amortization of acquisition-related intangible assets, and certain other items. The adjustments to operating profit consist of a $7.5 million gain related to the impact of the fair value adjustment for the DataFuzion contingent consideration, a $0.3 million gain related to the abandonment of certain leased facilities, and $1.3 million of restructuring expenses. The adjustments to net income also include $5.9 million of foreign exchange gain and a $0.5 million net adjustment for the effect of income taxes related to these items. Please refer to the “Non-GAAP Financial Measures” section for additional information on the as adjusted metrics.
    (c) Income tax effects have been calculated based on the statutory tax rates in effect in the U.S. and foreign jurisdictions during the period.
       
      Year Ended December 31, 2024  
      As
    reported    		     As
    reported
    margins
    (a)    		     Share-based
    compensation    		     Amortization     Other (b)     As
    adjusted
    (b)    		     As
    adjusted
    margins
    (a)    		  
      (Dollars in millions, except per share data)  
    Cost of Cloud recurring revenue $ 303.7       78.9 %   $ 11.3     $ —     $ 1.0     $ 291.4       79.8 %
                                             
    Operating profit $ 104.1       5.9 %   $ 156.6     $ 120.0     $ 29.8     $ 410.5       23.3 %
                                             
    Net income $ 18.1       1.0 %   $ 156.6     $ 120.0     $ 21.1     $ 315.8       17.9 %
    Interest expense, net   40.6             —       —       —       40.6        
    Income tax expense (c)   19.5             —       —       (35.8 )     55.3        
    Depreciation and amortization   209.8             —       120.0       —       89.8        
    EBITDA $ 288.0           $ 156.6     $ —     $ 56.9     $ 501.5       28.5 %
                                             
    Net income per share – diluted $ 0.11           $ 0.98     $ 0.75     $ 0.13     $ 1.97        
    (a) Cloud recurring gross margin is defined as total Cloud recurring revenue less cost of Cloud recurring revenue as a percentage of total Cloud recurring revenue. Operating profit margin and net profit margin are determined by calculating the percentage operating profit and net income are of total revenue. Please refer to the “Non-GAAP Financial Measures” section for additional information on the as adjusted margins.
    (b) The as adjusted column is a non-GAAP financial measure, adjusted to exclude share-based compensation expense and related employer taxes, amortization of acquisition-related intangible assets, and certain other items. The adjustments to operating profit consist of $19.8 million of restructuring expenses, $9.0 million related to the impact of the fair value adjustment for the DataFuzion contingent consideration, and $1.0 million of fees associated with initiating the receivables securitization program. The adjustments to net income also include $14.2 million of foreign exchange loss, $12.9 million of costs associated with the planned termination of our frozen U.S. pension plan, and a $35.8 million net adjustment for the effect of income taxes related to these items. Please refer to the “Non-GAAP Financial Measures” section for additional information on the as adjusted metrics.
    (c) Income tax effects have been calculated based on the statutory tax rates in effect in the U.S. and foreign jurisdictions during the period.
       
      Year Ended December 31, 2023  
      As
    reported    		     As
    reported
    margins
    (a)    		     Share-based
    compensation    		     Amortization     Other (b)     As
    adjusted
    (b)    		     As
    adjusted
    margins
    (a)    		  
      (Dollars in millions, except per share data)  
    Cost of Cloud recurring revenue $ 278.5       77.0 %   $ 15.4     $ —     $ —     $ 263.1       78.3 %
                                             
    Operating profit $ 133.1       8.8 %   $ 137.1     $ 60.5     $ 9.1     $ 339.8       22.4 %
                                             
    Net income $ 54.8       3.6 %   $ 137.1     $ 60.5     $ (13.7 )   $ 238.7       15.8 %
    Interest expense, net   36.1             —       —       —       36.1        
    Income tax expense (c)   41.2             —       —       (22.2 )     63.4        
    Depreciation and amortization   132.5             —       60.5       —       72.0        
    EBITDA $ 264.6           $ 137.1     $ —     $ 8.5     $ 410.2       27.1 %
                                             
    Net income per share – diluted $ 0.35           $ 0.86     $ 0.38     $ (0.09 )   $ 1.51        
    (a) Cloud recurring gross margin is defined as total Cloud recurring revenue less cost of Cloud recurring revenue as a percentage of total Cloud recurring revenue. Operating profit margin and net profit margin are determined by calculating the percentage operating profit and net income are of total revenue. Please refer to the “Non-GAAP Financial Measures” section for additional information on the as adjusted margins.
    (b) The as adjusted column is a non-GAAP financial measure, adjusted to exclude share-based compensation expense and related employer taxes, amortization of acquisition-related intangible assets, and certain other items. The adjustments to operating profit consist of $4.7 million of restructuring expenses, $4.3 million related to the impact of the fair value adjustment for the DataFuzion contingent consideration, and $0.1 million related to the abandonment of certain leased facilities. The adjustments to net income also include $0.6 million of foreign exchange gain and a $22.2 million net adjustment for the effect of income taxes related to these items. Please refer to the “Non-GAAP Financial Measures” section for additional information on the as adjusted metrics.
    (c) Income tax effects have been calculated based on the statutory tax rates in effect in the U.S. and foreign jurisdictions during the period.
       
    Dayforce, Inc.
    Reconciliation of Free Cash Flow
    (Unaudited)
     
    The following table reconciles Dayforce’s reported results to free cash flow:
               
      Three Months Ended December 31,     Year Ended December 31,  
      2024     2023     2024     2023  
      (In millions)  
    Net cash provided by operating activities $ 81.0     $ 89.9     $ 281.1     $ 219.5  
    Capital expenditures   (26.8 )     (26.1 )     (109.6 )     (114.4 )
    Free cash flow $ 54.2     $ 63.8     $ 171.5     $ 105.1  
                           
    Operating cash flow margin (a)   17.4 %     22.5 %     16.0 %     14.5 %
    Free cash flow margin (b)   11.7 %     16.0 %     9.7 %     6.9 %
                                   

    The following table reconciles Dayforce’s free cash flow guidance:

      Year Ended December 31,
    2025    		  
      Low range     High range  
      (In millions)  
    Net cash provided by operating activities $ 334     $ 339  
    Capital expenditures   (105 )     (105 )
    Free cash flow $ 229     $ 234  
               
    Operating cash flow margin (a)   17.4 %     17.5 %
    Free cash flow margin (b)   11.9 %     12.1 %
    (a) Operating cash flow margin is determined by calculating the percentage that operating cash flow is of total revenue.
    (b) Free cash flow margin is determined by calculating the percentage that free cash flow is of total revenue.
       

    Non-GAAP Financial Measures

    Dayforce uses certain non-GAAP financial measures in this release including:

    Non-GAAP Financial Measure   GAAP Financial Measure
    EBITDA   Net income
    Adjusted EBITDA   Net income
    Adjusted EBITDA margin   Net profit margin
    Adjusted Cloud recurring gross margin   Cloud recurring gross margin
    Adjusted operating profit   Operating profit
    Adjusted operating profit margin   Operating profit margin
    Adjusted net income   Net income
    Adjusted net profit margin   Net profit margin
    Adjusted diluted net income per share   Diluted net income per share
    Free cash flow   Net cash provided by operating activities
    Free cash flow margin   Operating cash flow margin
    Percentage change in revenue, including total revenue and revenue by solution, on a constant currency basis   Percentage change in revenue, including total revenue and revenue by solution
    Cloud annualized retention rate   No directly comparable GAAP measure
    Dayforce revenue retention rate   No directly comparable GAAP measure
    Dayforce recurring revenue per customer   No directly comparable GAAP measure
         

    Dayforce believes that these non-GAAP financial measures are useful to management and investors as supplemental measures to evaluate its overall operating performance including comparison across periods and with competitors. Dayforce’s management team uses these non-GAAP financial measures to assess operating performance because these financial measures exclude the results of decisions that are outside the normal course of its business operations, and are used for internal budgeting and forecasting purposes both for short- and long-term operating plans. Additionally, Adjusted EBITDA is a component of its management incentive plan and Adjusted Cloud recurring gross margin and Adjusted operating profit are components of certain performance based equity awards for its named executive officers. Additionally, Dayforce believes that the non-GAAP financial measure free cash flow is meaningful to investors because it is a measure of liquidity that provides useful information in understanding and evaluating the strength of Dayforce’s liquidity and future ability to generate cash that can be used for strategic opportunities or investing in its business. The exclusion of capital expenditures facilitates comparisons of Dayforce’s liquidity on a period-to-period basis and excludes items that management does not consider to be indicative of Dayforce’s liquidity.

    These non-GAAP financial measures are not required by, defined under, or presented in accordance with, GAAP, and should not be considered as alternatives to Dayforce’s results as reported under GAAP, have important limitations as analytical tools, and its use of these terms may not be comparable to similarly titled measures of other companies in its industry. Dayforce’s presentation of non-GAAP financial measures should not be construed to imply that its future results will be unaffected by similar items to those eliminated in this presentation. Please refer to Dayforce’s full financial results, including further discussion of non-GAAP financial measures, on the Investor Relations portion of its website at investors.dayforce.com.

    Dayforce defines its non-GAAP financial measures as follows:

    • EBITDA is defined as net income before interest, taxes, depreciation, and amortization, and Adjusted EBITDA is EBITDA, as adjusted to exclude share-based compensation expense and related employer taxes, and certain other items.
    • Adjusted EBITDA margin is determined by calculating the percentage Adjusted EBITDA is of total revenue.
    • Adjusted Cloud recurring gross margin is defined as Cloud recurring gross margin, as adjusted to exclude share-based compensation and related employer taxes, and certain other items, as a percentage of total Cloud recurring revenue.
    • Adjusted operating profit is defined as operating profit, as adjusted to exclude share-based compensation expense and related employer taxes, amortization of acquisition-related intangible assets, and certain other items.
    • Adjusted net income is defined as net income, as adjusted to exclude share-based compensation expense and related employer taxes, amortization of acquisition-related intangible assets, and certain other items, all of which are adjusted for the effect of income taxes.
    • Adjusted net profit margin is determined by calculating the percentage Adjusted net income is of total revenue.
    • Adjusted diluted net income per share is calculated by dividing adjusted net income by diluted weighted average common shares outstanding. When adjusted diluted net income per share is positive, diluted weighted average common shares outstanding incorporate the effect of dilutive equity instruments.
    • Free cash flow is defined as net cash provided by operating activities, as adjusted to exclude capital expenditures.
    • Free cash flow margin is determined by calculating the percentage that free cash flow is of total revenue.
    • Percentage change in revenue, including total revenue and revenue by solution, on a constant currency basis is calculated by applying the average foreign exchange rate in effect during the comparable prior period.
    • Cloud ARR is calculated by starting with recurring revenue at year end, excluding revenue from Ascender and eloomi, subtracting the once-a-year charges, annualizing the revenue for customers live for less than a full year to reflect the revenue that would have been realized if the customer had been live for a full year, and adding back the once-a-year charges. We have not reconciled Cloud ARR because there is no directly comparable GAAP financial measure.
    • Annual Dayforce revenue retention rate is calculated as a percentage, excluding Ascender and eloomi, where the numerator is the Dayforce ARR for the prior year, less the Dayforce ARR from lost Dayforce customers during that year; and the denominator is the Dayforce ARR for the prior year. We have not reconciled Annual Dayforce revenue retention rate because there is no directly comparable GAAP financial measure.
    • Dayforce recurring revenue per customer is an indicator of the average size of Dayforce recurring revenue customers. To calculate Dayforce recurring revenue per customer, we start with Dayforce recurring revenue on a constant currency basis by applying the same exchange rate to all comparable periods for the trailing twelve months and excludes float revenue, and Ascender, ADAM HCM, and eloomi revenue. This amount is divided by the number of live Dayforce customers at the end of the trailing twelve month period, excluding Ascender, ADAM HCM, and eloomi. We have not reconciled the Dayforce recurring revenue per customer because there is no directly comparable GAAP financial measure.

    Source: Dayforce, Inc.

    For further information, please contact:

    Investor Relations
    1-844-829-9499
    investors@dayforce.com

    Public Relations
    1-647-417-2117
    teri.murphy@dayforce.com

    The MIL Network –

  • MIL-OSI: Ethical Web AI appoints Tom Symonds as the new Chief Executive Officer

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, Feb. 05, 2025 (GLOBE NEWSWIRE) — Ethical Web AI (d/b/a Bubblr Inc.) (OTC: BBLR), a leader in ethical technology innovation, proudly announces the appointment of Tom Symonds as Chief Executive Officer. Tom has been at the forefront of innovative technology for 25 years. He is a recognized pioneer in the field of immersive technology for enterprise, having founded Immerse.io and acted as CEO prior to joining Ethical Web. He also comes with a unique blend of corporate experience developed during his years at GE Capital and Sky, where he led the transformation of their internet presence. His passion for developing disruptive uses of technology to break open new market opportunities makes him uniquely suited to the company.

    Ethical Web’s previous CEO, Manfred Ebensberger, left the post for personal reasons. He remains a big supporter of the company and retains a keen interest in its progress.

    Steve Morris, CTO of Ethical Web AI, remarked:
    “Tom is the ideal CEO for the company, with deep experience in early-stage technology and a clear understanding of how to bring enterprise products to market. I have known Tom for over ten years. He was an early investor in the company, and I have always hoped he would join us as CEO. Thankfully, he joins at this pivotal moment and is focused on a completely new business plan and approach. Tom has already had a huge impact, shouldering a great deal of my work burden so I can focus on software development and IP. Tom has a fantastic proven record as a specialist CEO for companies focussed on delivering transformative new technologies.”

    Tom Symonds stated:
    “In my opinion, Steve Morris is a unique technical genius. While he is also a very humble guy (happiest described in those terms), his ability to come up with genuinely revolutionary software products and to secure this IP with patents puts Steve in the same bracket as the handful of genuine technology innovators who have changed the world. That said, Steve would be the first to agree that his skills should be focused on the product and not on CEO responsibilities. I have been working with Steve and his team for the past three months, and we will be completely pivoting the company’s priorities to focus on revenue. It is my ambition to make the company’s cash flow positive within six months. There are a few milestones we need to achieve both in the short and medium term. These include:

    • The launch of a new enterprise-only product will deliver secure and safe generative AI capabilities for 30% of enterprises that are currently banning the use of generative AI for fear of leaking sensitive data. This product is already under development, and we expect to launch it officially in the next few weeks.
    • Finalize a software development partnership with one of the major cloud hosting companies to deliver the product and provide the basis of a unique and powerful route to market. Again, we expect to be able to deliver this within a few weeks of the new product launch.
    • Revamp the company’s business plan, investment deck and website to reflect the new company direction. The business plan has already been updated, and the corporate investment deck is due to be completed in weeks. A new company website will immediately follow.
    • File a new patent at the US patent office that describes the unique techniques we use to prevent sensitive data from leaving the customer enterprise’s intranet. Again, we expect this patent to be filed in weeks.
    • Recruit a top-quality Chief Revenue Officer. Interviews for the role have already begun, and we expect to announce in the next few weeks.
    • Raise substantial new investment capital to ensure capital (in the order of $3m in total) to ensure the necessary expansion required to comply with the new business plan. Again, I am expecting we can deliver this funding within the next two months.
    • Engage with institutional investors with a view to uplisting to a superior exchange and for this to be executed this year.

    The new focus on revenue and enterprise sales does not diminish the actual value of Ethical Web AI, which lies in its Open-Source SaaS platform and its associated patents. This platform is so disruptive and so innovative that it has always been challenging to describe in simple terms. However, in my opinion, it is this platform that will eventually impel a global technology giant to acquire the company for billions of dollars. I am really looking forward to ensuring the company’s success, and I could not be happier in my current role. It is a wonderful and unique challenge.”

    About Ethical Web AI:

    Ethical Web AI is an ethical technology company championing an anonymous, safe, and fair new internet. We produce unique intellectual property and technology made defensible by our valuable utility software patents.

    Visit the new AI Seek website at https://www.aiseek.ai.

    For more information about our company and products, please visit our website at www.ethicalweb.ai.

    Media Contact:
    Steve Morris
    Bubblr, Inc.
    (646) 814 7184

    Safe Harbor Statement
    This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are based on the current plans and expectations of management. They are subject to several uncertainties and risks that could significantly affect the company’s current plans and expectations, future operations, and financial condition. The company reserves the right to update or alter its forward-looking statements, whether due to new information, future events or otherwise.

    The MIL Network –

  • MIL-OSI Asia-Pac: PRESS RELEASE – 214grams of Marijuana Seized by Samoa Customs

    Source: Government of Western Samoa

    Share this:

    The Ministry of Customs and Revenue, in its ongoing efforts to protect the nation’s borders, has
    successfully intercepted another illicit drug shipment. During the week of celebrating International
    Customs Day 2025, a suspicious package arriving through the Samoa Post was flagged for further
    inspection. Upon thorough examination, the package was found to contain 214 grams of marijuana.
    This seizure highlights the effectiveness of Samoa Customs’ enhanced enforcement measures and
    advanced detection capabilities, including the use of X-ray scanning technology and intelligence-
    driven risk assessment. The intercepted package has been handed over to the Ministry of Police,
    Prison and Corrections Service for further investigation and legal proceedings.
    Chief Executive Officer Fonoti Talaitupu Li’a-Taefu, reaffirmed Customs’ commitment to combating
    illicit importation, stating, “The drug busts this week highlights our ongoing dedication to protecting
    Samoa from the dangers of illegal substances. We remain vigilant and will continue to strengthen
    our border control measures in collaboration with local and international enforcement partners.”

    Share this:

    MIL OSI Asia Pacific News –

  • MIL-OSI Asia-Pac: CLOSE TO 10KGS OF CRYSTAL METH SEIZED. 29th January 2025.

    Source: Government of Western Samoa

    Share this:

    (PRESS RELEASE-Ministry of Customs and Revenue}- The Ministry of Customs & Revenue has made a seizure this evening of about 10kgs of crystal meth. All we can render at this time is that the substance has been confirmed with the use of NIK test kits and further tests will be conducted.

    The seizure was made following a series of profiling by the Ministry and confirmation through the use of the container x-ray scanner and Joint Customs & Police K9 Unit.

    Further details will be provided in due course once all documents and processes are completed.

    The seizure is a success for the Ministry as we celebrate the International Customs Day within this week.

    Share this:

    MIL OSI Asia Pacific News –

  • 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

    MIL OSI Economics –

  • 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

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

    MIL OSI

    MIL OSI Russia News –

  • MIL-OSI United Kingdom: Council to seek approval for tax premiums on empty, unoccupied and second homes

    Source: City of Derby

    Following a nine-week public consultation, Cabinet members will be asked to approve plans to introduce Council Tax for empty, unoccupied and second homes at the next Cabinet meeting.

    The consultation, which took place between 11 October – 13 December 2024, found that members of the public were in favour of the move, with 47% of respondents strongly agreeing and 18% agreeing to the changes. 

    If approved by Cabinet, the proposed changes will include a 100% Council Tax premium (twice the normal rate) on properties that have been unoccupied and substantially unfurnished for at least one year, effective from April 2025. The changes will also include the introduction of a 100% Council Tax premium on second homes, effective from April 2026. 

    These changes are in line with the new guidance rules introduced by the Levelling Up and Regeneration Act 2023 where councils can now apply the Council Tax premium for long-term empty homes after one year instead of the previous two-year requirement. The Act also allows councils to introduce a Council Tax premium of up to 100% on second homes.  

    The measures aim to bring empty properties back into use, encouraging property owners to live in or sell their empty homes. This will help to add more homes into the local housing market and reduce the number of underused properties, ensuring that housing is available for residents who need them. The measures will also generate significant revenue with an estimated £1.6m of additional Council Tax. 

    Councillor Shiraz Khan, Cabinet Member for Housing, Strategic Planning and Regulatory Services said: 

    I am delighted to see that the public have supported this move. By introducing Council Tax charges on empty, unoccupied and second homes, we are aiming to encourage property owners to live in or sell their empty homes. In doing so, we will see significant benefits and more housing on the market for those who need homes.

    These proposals will bring great benefit to residents in Derby by maximising the potential of vacant housing stock within the city. It will also bring significant benefits to the city by generating an estimated £1.6m of additional Council Tax which will help us towards delivering and improving our services.

    The Cabinet meeting will take place on Wednesday 12 February and can be viewed on Derby City Council’s YouTube channel. 

    MIL OSI United Kingdom –

  • MIL-OSI United Kingdom: Setting the Council budget

    Source: Scotland – City of Edinburgh

    Cllr Mandy Watt, Finance and Resources Convener

    Councillor Mandy Watt, Finance and Resources Convener, looks ahead to Council Budget day on Thursday 20 February.

    Very soon, councillors will be making tough financial decisions to balance the council’s budget and set the rate at which Council Tax will be charged.

    Given the increasing need for investment in infrastructure and services, we’ll have to raise Council Tax, parking charges and other fees to fund the delivery of services we all rely on. We are considering a recommended 8% rise in Council tax.

    An 8% increase adds £9.65 per month to a band D property and would provide a total of £26 million across all bands for investment and service priorities.

    A huge amount of work has already been done to consider options, with detailed proposals considered yesterday at a Special meeting of the Finance and Resources Committee. This has been informed by a huge consultation exercise with residents, and I want to thank all 3,260 people who took part.

    We know from the consultation responses that people are aware of the financial challenges we face following years of underfunding, and many are open to a fair rise to Council Tax after last year’s freeze. Other councils are proposing increases of 10% and above, but we’re trying to keep Edinburgh’s increase lower because that’s what the majority of residents would prefer.

    Residents also told us they’d like to see Councillors focus on several key priorities when setting this year’s budget. These include spending on education, investing in local facilities and upgrading our roads and pavements. We’ll use the money from an increase in Council Tax to protect and improve these services.

    Investment proposals include continuing the extra £12.5 million for roads and pavements that was added last year, with a further £5 million for road safety, especially around schools. There will be five new schools and five extensions of existing schools and £26 million for special needs infrastructure. Fox Covert Joint Campus will be replaced and there’s £15 million for permanently replacing Blackhall Library.

    The decision to recommend an 8% Council Tax increase was not taken lightly. Over the last decade cuts in core grant funding of over £400 million have been mitigated by council staff continually delivering more with less resources. This year’s financial challenges are the UK Government’s increase in national insurance, costing the council £9 million and the Scottish Government changing the stability funding floor, taking away £6.3 million. Fortunately, the UK Government passed on £18million of pEPR (‘producer pays’) funding, which filled those gaps.

    While we can expect a slightly better government grant this year following yesterday’s Scottish Parliament budget, the consequences of last year’s cuts to affordable housing remain clear to see. Huge pressures on health and social care remain unaddressed by national governments. Yet again, Edinburgh is expected to be the lowest funded local authority in Scotland per head of population and we’ll still need to find best value efficiency savings to deal with service pressures of £40million and keep the books balanced this year.

    Published: February 5th 2025

    MIL OSI United Kingdom –

  • MIL-OSI: Nykredit today announces the Annual Reports for 2024 – Nykredit Bank A/S

    Source: GlobeNewswire (MIL-OSI)

     
    To Nasdaq Copenhagen A/S
    5 February 2025

    Nykredit today announces the Annual Reports for 2024 of:

    Nykredit A/S, CVR no 12 71 92 48 
    Nykredit Realkredit A/S, CVR no 12 71 92 80 
    Nykredit Bank A/S, CVR no 10 51 96 08 
    Totalkredit A/S, CVR no 21 83 22 78 

    Michael Rasmussen, Group Chief Executive, comments on the Annual Report 2024:

    • For the fourth consecutive year, Nykredit delivers its best full-year performance to date. This is naturally highly satisfactory. Our robust financial results demonstrate that Nykredit is stronger than ever. Thanks to our mutual ownership and attractive value propositions, we continue to welcome new customers. As a result, we recorded business growth and expanded our market position across our core business in 2024.
    • We want to be the customer-owned alternative to the largest listed banks. This is why we have made an offer to acquire Spar Nord Bank in 2025. We expect to close the acquisition in H1/2025 subject to approval by the authorities.
    • In early 2025, we decided to raise the KundeKroner discount to 0.25% from 0.20%, making it even clearer what it means to be a customer of a customer-owned Nykredit Group. This implies that it will once again be cheaper for more than 900,000 homeowners to have a Totalkredit loan. With KundeKroner discounts, Totalkredit is able to offer the lowest prices on home loans in the market in most scenarios. Moreover, Totalkredit homeowners are guaranteed KundeKroner discounts up to and including 2028. We will do our utmost to continue investing in Totalkredit and our other important partnerships, so that we stand as strong as possible when it comes to our customers and the competition in the financial market.
    • We are guiding for a profit after tax for 2025 of DKK 9.00-9.75 billion and do not expect to reach the same level as in 2024. This is primarily due to the prospect of falling interest rates, which will lower the return on Nykredit’s equity. At the same time, a generally tense geopolitical landscape creates uncertainty about the economic development and the potential impact on Nykredit’s operating conditions. Our profit guidance for 2025 does not include earnings impacts of the acquisition of Spar Nord Bank. We will therefore update our full-year profit guidance when the acquisition is completed.

    Highlights from the Annual Report 2024:

    • Totalkredit’s mortgage lending increased to DKK 907.5 billion at end-December 2024 from DKK 878.5 billion at end-December 2023.
    • Nykredit Bank’s lending rose to DKK 103.3 billion at end-December 2024 from DKK 94.4 billion at end-December 2023.
    • Assets under management by Nykredit Wealth Management were up 9.5% on 2023 to DKK 499 billion at end-December 2024.
    • For 2024, Nykredit has recorded a return on average equity of 11.7%.
    • Nykredit’s cost/income ratio in 2024 was 32.5%.
    Nykredit Group       
          DKK million
       2024 2023 Change
    Net interest income 12,018 12,305 -287
    Net fee income 2,744 2,789 -45
    Wealth management income 2,678 2,368 310
    Net interest from capitalisation 2,483 1,719 764
    Net income relating to customer benefits programmes (580) (404) -176
    Trading, investment portfolio and other income 2,088 1,625 463
    Income 21,431 20,402 1,029
    Costs 6,964 6,560 404
    Business profit before impairment charges 14,467 13,842 625
    Impairment charges for loans and advances (248) (177) -71
    Business profit 14,716 14,019 697
    Legacy derivatives 98 59 39
    Profit before tax for the year 14,813 14,078 735
    Tax 3,086 3,191 -105
    Profit for the year 11,728 10,887 841

    Contact: For further comments, please contact Orhan Gökcen, Head of Press Relations, tel +45 31 21 06 39.

    Attachment

    The MIL Network –

  • MIL-OSI: Nykredit today announces the Annual Reports for 2024 – Nykredit Realkredit A/S

    Source: GlobeNewswire (MIL-OSI)

     
    To Nasdaq Copenhagen A/S
    5 February 2025

    Nykredit today announces the Annual Reports for 2024 of:

    Nykredit A/S, CVR no 12 71 92 48 
    Nykredit Realkredit A/S, CVR no 12 71 92 80 
    Nykredit Bank A/S, CVR no 10 51 96 08 
    Totalkredit A/S, CVR no 21 83 22 78 

    Michael Rasmussen, Group Chief Executive, comments on the Annual Report 2024:

    • For the fourth consecutive year, Nykredit delivers its best full-year performance to date. This is naturally highly satisfactory. Our robust financial results demonstrate that Nykredit is stronger than ever. Thanks to our mutual ownership and attractive value propositions, we continue to welcome new customers. As a result, we recorded business growth and expanded our market position across our core business in 2024.
    • We want to be the customer-owned alternative to the largest listed banks. This is why we have made an offer to acquire Spar Nord Bank in 2025. We expect to close the acquisition in H1/2025 subject to approval by the authorities.
    • In early 2025, we decided to raise the KundeKroner discount to 0.25% from 0.20%, making it even clearer what it means to be a customer of a customer-owned Nykredit Group. This implies that it will once again be cheaper for more than 900,000 homeowners to have a Totalkredit loan. With KundeKroner discounts, Totalkredit is able to offer the lowest prices on home loans in the market in most scenarios. Moreover, Totalkredit homeowners are guaranteed KundeKroner discounts up to and including 2028. We will do our utmost to continue investing in Totalkredit and our other important partnerships, so that we stand as strong as possible when it comes to our customers and the competition in the financial market.
    • We are guiding for a profit after tax for 2025 of DKK 9.00-9.75 billion and do not expect to reach the same level as in 2024. This is primarily due to the prospect of falling interest rates, which will lower the return on Nykredit’s equity. At the same time, a generally tense geopolitical landscape creates uncertainty about the economic development and the potential impact on Nykredit’s operating conditions. Our profit guidance for 2025 does not include earnings impacts of the acquisition of Spar Nord Bank. We will therefore update our full-year profit guidance when the acquisition is completed.

    Highlights from the Annual Report 2024:

    • Totalkredit’s mortgage lending increased to DKK 907.5 billion at end-December 2024 from DKK 878.5 billion at end-December 2023.
    • Nykredit Bank’s lending rose to DKK 103.3 billion at end-December 2024 from DKK 94.4 billion at end-December 2023.
    • Assets under management by Nykredit Wealth Management were up 9.5% on 2023 to DKK 499 billion at end-December 2024.
    • For 2024, Nykredit has recorded a return on average equity of 11.7%.
    • Nykredit’s cost/income ratio in 2024 was 32.5%.
    Nykredit Group       
          DKK million
       2024 2023 Change
    Net interest income 12,018 12,305 -287
    Net fee income 2,744 2,789 -45
    Wealth management income 2,678 2,368 310
    Net interest from capitalisation 2,483 1,719 764
    Net income relating to customer benefits programmes (580) (404) -176
    Trading, investment portfolio and other income 2,088 1,625 463
    Income 21,431 20,402 1,029
    Costs 6,964 6,560 404
    Business profit before impairment charges 14,467 13,842 625
    Impairment charges for loans and advances (248) (177) -71
    Business profit 14,716 14,019 697
    Legacy derivatives 98 59 39
    Profit before tax for the year 14,813 14,078 735
    Tax 3,086 3,191 -105
    Profit for the year 11,728 10,887 841

    Contact: For further comments, please contact Orhan Gökcen, Head of Press Relations, tel +45 31 21 06 39.

    Attachment

    The MIL Network –

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

    Source: GlobeNewswire (MIL-OSI)

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

    STRONG INCREASE IN QUARTERLY AND FULL-YEAR EARNINGS

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

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

    STRONG ACTIVITY IN ALL BUSINESS LINES

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

    CAPITAL OPERATIONS AND STRATEGIC PROJECTS

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

    SOLID CAPITAL AND LIQUIDITY POSITIONS

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

    CONTINUED SUPPORT FOR THE ENERGY TRANSITION

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

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

     

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

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

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

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

    		  

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

    Crédit Agricole Group

    Group activity

    The Group’s commercial activity during the quarter continued at a steady pace across all business lines, with a good level of customer capture. During 2024, the Group added +1 900,000 new customers in Retail Banking and grew its customer base by +214,000 customers. More specifically, over the year, the Group gained +1 500,000 new customers for Retail Banking in France and +400,000 new International Retail Banking customers (Italy and Poland). The customer base also grew (+126,000 and +88,000 customers, respectively).

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

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

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

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

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

    Roll-out of strategic plan

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

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

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

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

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

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

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

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

    Continued support for the energy transition

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

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

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

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

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

    Group results

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

    Specific items in the fourth quarter of 2024 had a negative net impact of -€42 million on the net income Group share of the Crédit Agricole Group. These items comprise the following recurring accounting items: recurring accounting volatility items, namely the DVA (Debt Valuation Adjustment), the issuer spread portion of the FVA, and secured lending for -€19 million in net income Group share from Capital Markets and Investment Banking, and the hedging of the loan book in Large Customers for +€1 million in net income Group share. In addition to these recurring items, there were other items specific to this quarter: ISB integration costs of
    -€15 million in the net income Group share of Large Customers and the Degroof Petercam integration costs of
    -€9 million in the net income Group share of Asset Gathering.

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

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

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

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

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

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

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

    Crédit Agricole Group – Stated and underlying results 2024 and 2023

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

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

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

    Excluding specific items, underlying net income Group share reached €8,679 million, up +13.5% compared with full-year 2023.

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

    Underlying operating expenses amounted to -€22,606 million, up +5.4% excluding SRF compared to full-year 2023, mainly due to higher compensation in an inflationary environment, support for business development, IT expenditure and scope effects as detailed for each division. The underlying cost/income ratio for full-year 2024 was 59.5%, a -0.6 percentage point improvement compared to full-year 2023 excluding SRF. The SRF stood at
    -€620 million in 2023.

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

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

    As at 31 December 2024, risk indicators confirm the high quality of Crédit Agricole Group’s assets and risk coverage level. The diversified loan book is mainly geared towards home loans (45% of gross outstandings) and corporates (33% of gross outstandings). Loan loss reserves amounted to €21.3 billion at the end of December 2024 (€11.7 billion for Regional Banks), 42.2% of which represented provisioning of performing loans (47.3% for Regional Banks). The prudent management of these loan loss reserves meant that the Crédit Agricole Group’s overall coverage ratio for doubtful loans at the end of December 2024 was 84.9%.

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

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

    Regional banks

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

    Crédit Agricole S.A.

    Results

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

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

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

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

    Specific items for this quarter had a cumulative impact of -€41 million on net income Group share, and included the following recurring accounting items: recurring accounting volatility items in revenues, such as the DVA (Debt Valuation Adjustment), the issuer spread portion of the FVA and secured lending for -€19 million in net income Group share in the Large Customers segment, and the hedging of the loan book in the Large Customers segment for +€1 million in net income Group share. In addition to these recurring items, there were a number of items specific to this quarter: Degroof Petercam integration costs of -€8 million in the net income Group share in Asset Gathering; ISB integration costs for -€15 million in the net income Group share in Large Customers.

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

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

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

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

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

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

    As at 31 December 2024, risk indicators confirm the high quality of Crédit Agricole S.A.’s assets and risk coverage level. The diversified loan book is mainly geared towards home loans (26% of gross outstandings) and corporates (44% of Crédit Agricole S.A. gross outstandings). The Non-Performing Loans ratio was down
    -0.2 point from the previous quarter and remains low at 2.3%. The coverage ratio40 was high at 74.1%, up +2.7 percentage points over the quarter. Loan loss reserves amounted to €9.6 billion for Crédit Agricole S.A., relatively unchanged from end September 2024. Of those loan loss reserves, 35.8% were for performing loans (percentage up +1.5% from the previous quarter).

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

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

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

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

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

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

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

    Specific items for 2024 had a negative impact of -€86 million on stated net income Group share and comprise +€21 million in recurring accounting items and -€107 million in non-recurring items. The recurring items mainly correspond to the reversals of and additions to the Home Purchase Savings Plans provisions for +€1 million net, as well as the accounting volatility items of the Large Customers division (the DVA for +€15 million and loan book hedging for +€6 million). Non-recurring items relate to the integration and acquisition costs of Degroof Petercam (-€35 million) within the Asset Gathering division, the costs of integrating ISB (-€52 million) within the Large Customers division and an additional provision for risk in Ukraine (-€20 million) within the International Retail Banking division.

    Excluding specific items, underlying net income Group share reached €7,172 million, up +21.1% compared to full-year 2023.

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

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

    Underlying RoTE45, which is calculated on the basis of an annualised Underlying Net Income Group Share46 and IFRIC charges linearised over the year, net of annualised Additional Tier 1 coupons (return on equity Group share excluding intangibles) and net of foreign exchange impact on reimbursed AT1, and restated for certain volatile items recognised in equity (including unrealised gains and/or losses), reached 14.0% in 2024, up +1.4 percentage point compared to 2023.

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

    Activity of the Asset Gathering division

    In the fourth quarter of 2024, assets under management in the Asset Gathering division (AG) stood at

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

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

    In Savings/Retirement, fourth-quarter premium income stood at €8.3 billion, up +17.3% compared to the fourth quarter of 2023. Business was driven by euro payment bonus campaigns in France, launched during the first quarter, which boosted gross euro inflows, as well as by a confirmed upturn in international business. Unit-linked contracts accounted for 37.4% of gross inflows47, down -12.8 percentage points over the year, reflecting the reduced appeal of unit-linked bond products. The quarter’s net inflows47 totalled +€2.4 billion (up +€0.8 billion compared to the third quarter of 2024), comprised of +€1.4 billion net inflows from unit-linked contracts and +€1.1 billion from euro funds. In total, Savings/Retirement premium income amounted to €32.1 billion, up +21.5% compared to the end of December 2023.

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

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

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

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

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

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

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

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

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

    Results of the Asset Gathering division

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

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

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

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

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

    Insurance results

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

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

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

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

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

    Asset Management results

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

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

    Wealth Management results59

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

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

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

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

    Activity of the Large Customers division

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

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

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

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

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

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

    Results of the Large Customers division

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

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

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

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

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

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

    Corporate and Investment Banking results

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

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

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

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

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

    Asset servicing results

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

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

    Specialised financial services activity

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

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

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

    Specialised financial services’ results

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

    Over 2024, revenues for the Specialised Financial Services division fell by -2.2%, but rose by +6.8% excluding the base effect70 related to the reorganisation of the Mobility activities at CAPFM, compared to 2023. This favourable trend was driven by a good performance in CAL&F (+6.8%) and by higher revenues for CAPFM excluding the base effect70 (+6.8%), benefiting from the scope effects linked to the strategic pivot around Mobility at CAPFM, which led to the 100% consolidation of Crédit Agricole Auto Bank from the second quarter of 2023 and of ALD and LeasePlan activities in six European countries, as well as the acquisition of a majority stake in the capital of Hiflow in the third quarter of 2023. Costs excluding SRF increased by +6.4% compared to 2023. Expenses excluding SRF, the base effect70 and scope effects rose by +2.3%. The cost/income ratio stood at 50.6%, or +4.1 percentage points versus the same period in 2023; excluding the base effect70, the change was +0.3 percentage points. Cost of risk increased by +10.1% compared to 2023, to -€958 million, and increased by +21.9% excluding the base effect70.This rise notably includes the impact of scope effects as well as -€50 million due to model revisions and a -€30 million provision for legal risk of which UK car loans in the fourth quarter of 2024 at CAPFM. The contribution from equity-accounted entities was down -3.3% versus the same period in 2023, and down -25.5% excluding the base effect70, due to the full consolidation of Crédit Agricole Auto Bank in the second quarter of 2023, which was previously accounted for using the equity method. Net income on other assets amounted to -€12 million at the end of December 2024, compared to €71 million at the end of December 2023 and -€18 million excluding the base effect70. The change in value of goodwill was €0 million for 2024 vs. €12 million for 2023, and excluding the base effect70 related to the reorganisation of the Mobility activities at CAPFM, there was no change. Net income Group share thus came to €625 million, down -26.6% compared to 2023, and down -7.5% excluding the base effect70 related to the reorganisation of the Mobility activities at CAPFM.

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

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

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

    Personal Finance and Mobility results

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

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

    Leasing & Factoring results

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

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

    Crédit Agricole S.A. Retail Banking activity

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

    Retail banking activity in France

    In the fourth quarter of 2024, activity remained strong with the upturn in mortgage lending and non-remunerated demand deposits which rose over the quarter. Customer acquisition is dynamic, with 60,000 new customers this quarter.

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

    Loan production totalled €8.5 billion, representing a year-on-year increase of +34.2%. The fourth quarter of 2024 confirmed the recovery in home loan production (+59.3% compared to the fourth quarter of 2023 and +10.6% compared to the third quarter of 2023), boosted by the proactive pricing policy. The average production rate for home loans came to 3.24%, down -14 basis points from the third quarter of 2024 and -92 basis points year on year. The home loan stock rate improved by +5 basis points over the quarter and by +18 basis points year on year. The strong momentum continued in the corporate market (+28.9% year on year) and the small business market (+19.3% year on year) but slowed for the consumer segment (-8.2%), in a challenging economic environment.

    Outstanding loans stood at €171 billion at end-December 2024, representing a +1.1% increase quarter-on-quarter and year-on-year (of which +1.3% for home loans, +0.8% for loans to professionals, +0.7% for loans to corporate). Customer assets totalled €255.0 billion at end-December 2024, up +3.0% year on year, driven by non-remunerated deposits and off-balance sheet funds. Customer assets also rose +0.7% during the quarter, thanks to the increase in demand deposit volumes (+1.1% compared with end-September 2024) in a still-uncertain environment, as well as term deposits (+1.2% compared with end-September 2024). Off-balance sheet deposits benefited from a positive year-on-year market effect across all segments and positive net inflows in life insurance.

    Retail banking activity in Italy

    In the fourth quarter of 2024, CA Italia posted gross customer capture of 45,000.

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

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

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

    Crédit Agricole Group activity in Italy76

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

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

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

    International Retail Banking activity excluding Italy

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

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

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

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

    French retail banking results

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

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

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

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

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

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

    International Retail Banking results85

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

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

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

    In full-year 2024 the International Retail Banking business line contributed 11% to the underlying net income Group share of Crédit Agricole S.A’s core businesses. (excluding the Corporate Centre) and 15% to underlying revenues excluding the Corporate Centre.

    As at 31 December 2024, the capital allocated to International Retail Banking was €4.5 billion and risk-weighted assets totalled €46.9 billion.

    Results in Italy

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

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

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

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

    Results for Crédit Agricole Group in Italy87

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

    International Retail Banking results – excluding Italy

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

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

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

    At 31 December 2024, the entire Retail Banking business line contributed 21% to the underlying net income Group share of Crédit Agricole S.A.’s core businesses (excluding the Corporate Centre division) and 29% to underlying revenues excluding the Corporate Centre.

    At 31 December 2024, the division’s equity amounted to €9.9 billion. Its risk-weighted assets totalled €103.7 billion.

    Corporate Centre results

    The net income Group share of the Corporate Centre was +€18 million in the fourth quarter of 2024, up +€236 million compared with the fourth quarter of 2023. The positive contribution of the Corporate Centre division can be analysed by distinguishing between the “structural” contribution (-€26 million) and other items (+€44 million).
    The contribution of the “structural” component (-€26 million) was up by +€193 million compared with the fourth quarter of 2023 and can be broken down into three types of activity:

    • The activities and functions of the Corporate Centre of the Crédit Agricole S.A. Parent Company. This contribution amounted to -€354 million in the fourth quarter of 2024, down -€116 million, mainly due to a negative corporate income tax catch-up effect of -€91 million.
    • The business lines that are not part of the core businesses, such as CACIF (private equity), CA Immobilier, CATE and BforBank (equity-accounted). They contributed +€315 million in the fourth quarter 2024, up +€297 million from the fourth quarter of 2023. This was due to the negative impact of the revaluation of Banco BPM shares for +234 million in revenues (+€271m in the fourth quarter of 2024 compared to +€37m in the fourth quarter of 2023), as well as an interim dividend of +€60 in revenues.
    • Group support functions. Their contribution amounted to +€12 million this quarter (+€12 million compared with the fourth quarter of 2023).

    The contribution of “other items” was up +€43 million compared with the fourth quarter of 2023.
    The “internal margins” effect at the time of the consolidation of the insurance activity at the Crédit Agricole level was accounted for through the Corporate Centre. Over the quarter, the impact of internal margins was -€198 million in revenues and +€198 million in expenses.

    Over 2024, the underlying net income Group share of the Corporate Centre division was -€488 million, up +€105 million compared with 2023. The structural component contributed -€539 million, and other items of the division recorded a positive contribution of +€51 million over the year.
    The “structural” component contribution was up €160 million compared with 2023 and can be broken down into three types of activities:

    • The activities and functions of the Corporate Centre of the Crédit Agricole S.A. Parent Company. This contribution amounted to -€1,120 million in 2024, down -€202 million compared to 2023, including a base effect of -€171 million related the reversal of the provision for Home Purchase Saving Plans recognised in the third quarter of 2023 as well as -€42 million relating to the reversal of the Cheque Image Exchange fine in the second quarter of 2023;
    • Business lines not attached to the core businesses, such as CACIF (private equity) and CA Immobilier and BforBank: their contribution, which stood at +€549 million in 2024, was up +€343 on 2023. This increase was primarily due to the end of the SRF building-up period (+€77 million) and the impact of the valuation and dividend of Banco BPM shares for +€387 million;
    • The Group’s support functions: their contribution for 2024 was +€32 million, up +€19 million compared to 2023.

    The contribution of “other items” was down -€55 million compared to 2023.
    The “internal margins” effect at the time of the consolidation of the insurance activity at the Crédit Agricole level was accounted for through the Corporate Centre. Over the year, the impact of internal margins was -€832 million in revenues and +€832 million in expenses.

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

    Financial strength

    Crédit Agricole Group

    At 31 December 2024, the phased-in Common Equity Tier 1 (CET1) ratio of Crédit Agricole Group was 17.2%, a decrease of -0.2 percentage point compared to end-September 2024. Therefore, the Crédit Agricole Group posted a substantial buffer of 7.4 percentage points between the level of its CET1 ratio and the 9.8% SREP requirement. The fully loaded CET1 ratio was 17.1%.
    During the fourth quarter 2024:

    • The CET1 ratio benefited from an impact of +25 basis points related to retained earnings.
    • Changes in risk weighted assets related to business line organic growth impacted the Group’s CET1 ratio by -28 basis points (see below), mainly due to a rating effect of -15 basis points.
    • Methodology, M&A and other effects had a negative impact of -14 basis points and included, in particular, the -12 basis point Basel 4 impact relating to the consolidation of leasing activities.

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

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

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

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

    At 31 December 2024, Crédit Agricole Group posted a buffer of 666 basis points above the MDA trigger, i.e. €44 billion in CET1 capital.

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

    At 31 December 2024, Crédit Agricole Group posted a buffer of 197 basis points above the L-MDA trigger, i.e. €43 billion in Tier 1 capital. At the Crédit Agricole Group level, it is the distance to the L-MDA trigger that determines the distance to distribution restriction.

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

    TLAC

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

    • a TLAC ratio above 18% of risk-weighted assets (RWA), plus – in accordance with EU directive CRD 5 – a combined capital buffer requirement (including, for Crédit Agricole Group, a 2.5% capital conservation buffer, a 1% G-SIB buffer, the counter-cyclical buffer set at 0.77% and the 0.05% systemic risk buffer for CA Group at 31 December 2024). Considering the combined capital buffer requirement, Crédit Agricole Group must adhere to a TLAC ratio of above 22.3%;
    • a TLAC ratio of above 6.75% of the Leverage Ratio Exposure (LRE).

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

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

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

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

    MREL

    The required minimum levels are set by decisions of resolution authorities and then communicated to each institution, then revised periodically. At 31 December 2024, Crédit Agricole Group has to meet a minimum total MREL requirement of:

    • 22.01% of RWA, plus – in accordance with EU directive CRD 5 – a combined capital buffer requirement (including, for Crédit Agricole Group, a 2.5% capital conservation buffer, a 1% G-SIB buffer, the counter-cyclical buffer set at 0.77% and the 0.05% systemic risk buffer for CA Group at 31 December 2024). Considering the combined capital buffer requirement, the Crédit Agricole Group has to meet to a total MREL ratio of above 26.3%;
    • 6.25% of the LRE.

    At 31 December 2024, the Crédit Agricole Group had a total MREL ratio of 32.4% of RWA and 9.7% of leverage exposure, well above the requirement.

    An additional subordination requirement (“subordinated MREL”) is also determined by the resolution authorities and expressed as a percentage of RWA and LRE. At 31 December 2024, this subordinated MREL requirement for the Crédit Agricole Group was:

    • 18.25% of RWA, plus a combined capital buffer requirement. Considering the combined capital buffer requirement, the Crédit Agricole Group has to meet to a subordinated MREL ratio of above 22.6%;
    • 6.25% of leverage exposure.

    At 31 December 2024, Crédit Agricole Group had a subordinated MREL ratio of 26.9% of RWA and 8.0% of leverage exposure, well above the requirement.

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

    At 31 December 2024, Crédit Agricole Group had a buffer of 430 basis points above the M-MDA trigger, i.e. €28 billion in CET1 capital; the distance to the M-MDA trigger corresponds to the distance between the subordinated MREL ratio and the corresponding requirement.

    Crédit Agricole S.A.

    At 31 December 2024, Crédit Agricole S.A.’s solvency ratio was higher than the Medium-Term Plan target, with a phased-in Common Equity Tier 1 (CET1) ratio of 11.7%, stable compared to end-September 2024. Crédit Agricole S.A. therefore had a comfortable buffer of 3.0 percentage points between the level of its CET1 ratio and the 8.6% SREP requirement. The fully loaded CET1 ratio was 11.6%.
    During the fourth quarter 2024:

    • The CET1 ratio benefited this quarter from a positive impact of +19 basis points linked to retained earnings. This impact corresponds to net income Group share net of AT1 coupons (impact of +38 basis points) and of the distribution of 50% of earnings, i.e. a provision for dividends of 27 euro cents per share in third quarter 2024 (-20 basis points).
    • Changes in risk-weighted assets related to business line organic growth impacted the CET1 ratio by -12 basis points, of which a rating effect of -10 basis points in Corporate and Investment Banking and French Retail Banking.
      • Methodology, M&A and other effects had a negative impact of -13 basis points and included, in particular, the -12 basis point Basel 4 impact relating to the consolidation of leasing activities.
    • The phased-in leverage ratio was 3.9% at end-December 2024, up +0.1 percentage point compared to end-September 2024 and above the 3% requirement.

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

    • The Retail Banking divisions showed an increase of +€2.1 billion, particularly in France, with a rating effect at LCL of +€1.9 billion.
    • Asset Gathering posted a decrease of -€1.2 billion essentially for Insurance due to the impact of the interim dividend.
    • Specialised Financial Services increased by +€4.3 billion, due to the Basel 4 impact of consolidation of leasing activities
    • Large Customers recorded an increase in risk-weighted assets of +€7.4 billion over the quarter, mainly as a result of the growth of the Corporate and Investment Banking business lines, and negative foreign exchange effects (+€2.7 billion) and ratings (+€1.5 billion).
    • The Corporate Centre divisions posted an increase in risk-weighted assets of +€0.4 billion.

    Liquidity and Funding

    Liquidity is measured at Crédit Agricole Group level.

    Preliminary presentation information:

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

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

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

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

    Comments on the liquidity position:

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

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

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

    This increase in liquidity reserves is notably explained by:

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

    Crédit Agricole Group also continued its efforts to maintain immediately available reserves (after recourse to ECB financing). Central bank eligible non-HQLA assets after haircuts amounted to €139 billion.

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

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

    This included:

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

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

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

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

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

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

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

    • Crédit Agricole Assurances issued €750 million in Tier 2 10-year bullet subordinated and made a tender offer on two subordinated perpetual issuances (FR0012444750 & FR0012222297) for €788.5 million in September;
    • Crédit Agricole Personal Finance & Mobility issued:
      • €2 billion equivalent in EMTN issuances and €0.9 billion in securitisations through Crédit Agricole Auto Bank (CAAB);
      • €0.7 billion in securitisations through Agos;
    • Crédit Agricole Italia issued two senior secured debt issuances for a total of €1.5 billion, of which €500 million in Green Bond format;
    • Crédit Agricole next bank (Switzerland) issued three tranches in senior secured format for a total of 300 million Swiss francs, of which 100 million Swiss francs in Green Bond format

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

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

    • €6.3 billion94,95;
    • 6.35 billion96 US dollars (€5.8 billion equivalent);
    • 1.1 billion pounds sterling (€1.3 billion equivalent);
    • 230 billion Japanese yen (€1.4 billion equivalent);
    • 0.8 billion Swiss francs (€0.8 billion equivalent);
    • 1.75 billion Australian dollars (€1.1 billion equivalent);
    • 7 billion renminbi (€0.9 billion equivalent).

    At end-December, Crédit Agricole S.A. had issued 64%97,98 of its funding plan in currencies other than the euro.

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

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

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

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

    Economic and financial environment

    2024 retrospective

    Continuing trend of disinflation and monetary easing

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

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

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

    Financial markets

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

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

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

    2025 Outlook

    A highly conditional scenario

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

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

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

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

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

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

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

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

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

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

    Crédit Agricole Group – Specific items

      Q4-24 Q4-23 2024 2023
    €m Gross
    impact*    		 Impact on
    Net income    		 Gross
    impact*    		 Impact on
    Net income    		 Gross
    impact*    		 Impact on
    Net income    		 Gross
    impact*    		 Impact on
    Net income
                     
    DVA (LC) (26) (19) 6 4 20 15 (15) (11)
    Loan portfolio hedges (LC) 2 1 2 1 8 6 (24) (18)
    Home Purchase Savings Plans (LCL) – – 6 5 1 1 58 43
    Home Purchase Savings Plans (CC) – – 5 4 (0) (0) 236 175
    Home Purchase Savings Plans (RB) – – 74 55 63 47 192 142
    Mobility activities reorganisation (SFS) – – – – – – 300 214
    Check Image Exchange penalty (CC) – – – – – – 42 42
    Check Image Exchange penalty (LCL) – – – – – – 21 21
    Check Image Exchange penalty (RB) – – – – – – 42 42
    Total impact on revenues (24) (18) 93 69 93 69 851 650
    Degroof Petercam integration costs (AG) (13) (10) – – (26) (19) – –
    ISB integration costs (LC) (27) (15) – – (97) (52) – –
    Mobility activitiesreorganisation (SFS) – – 4 3 – – (14) (10)
    Total impact on operating expenses (39) (25) 4 3 (123) (72) (14) (10)
    Mobility activities reorganisation (SFS) – – – – –   (85) (61)
    Provision for risk Ukraine (IRB) – – – – (20) (20) – –
    Total impact on cost of credit risk – – – – (20) (20) (85) (61)
    Mobility activities reorganisation (SFS) – – – – – – (39) (39)
    Total impact equity-accounted entities – – – – –   (39) (39)
    ISB integration costs (LC) (2) – – – (2) – – –
    Degroof Petercam acquisition costs (AG) 1 1 – – (22) (16) – –
    Mobility activities reorganisation (SFS) – – – – – – 89 57
    Total impact Net income on other assets (1) 1 – – (24) (16) 89 57
    Mobility activities reorganisation (SFS) – – 12 12 – – 12 12
    Total impact on change of value of goodwill – – 12 12 – – 12 12
    Mobility activities reorganisation (SFS) – – – 3 – – – 3
    Total impact on tax – – – 3 – – – 3
                     
    Total impact of specific items (64) (42) 109 86 (74) (39) 814 611
    Asset gathering (12) (9) – – (49) (36) – –
    French Retail banking – – 80 59 65 48 312 248
    International Retail banking – – – – (20) (20) – –
    Specialised financial services – – 16 17 – – 263 176
    Large customers (52) (33) 8 6 (70) (31) (39) (29)
    Corporate centre – – 5 4 (0) (0) 277 216

    * Impact before tax and before minority interests

    Crédit Agricole S.A. – Specific items

      Q4-24 Q4-23 2024 2023
    €m Gross
    impact*    		 Impact on
    Net income    		 Gross
    impact*    		 Impact on
    Net income    		 Gross
    impact*    		 Impact on
    Net income    		 Gross
    impact*    		 Impact on
    Net income
                     
    DVA (LC) (26) (19) 6 4 20 15 (15) (11)  
    Loan portfolio hedges (LC) 2 1 2 1 8 6 (24) (18)  
    Home Purchase Savings Plans (LCL) – – 6 4 3 2 58 41  
    Home Purchase Savings Plans (CC) – – 5 4 (2) (1) 236 175  
    Mobility activities reorganisation (SFS) – – – – – – 300 214
    Check Image Exchange penalty (CC) – – – – – – 42 42
    Check Image Exchange penalty (LCL) – – – – – – 21 20
    Total impact on revenues (24)            (17) 19 14 30 21 617 464
    Degroof Petercam integration costs (AG) (13) (9)    –    – (26) (19) – –  
    ISB integration costs (LC) (27) (15)    –     – (97) (52) – –  
    Mobility activities reorganisation (SFS)      –     –      4     3    –      – (14) (10)  
    Total impact on expenses               (39)              (25)             4        3 (123)               (71)       (14) (10)
    Provision for risk Ukraine (IRB) – – – – (20) (20) – –  
    Mobility activities reorganisation (SFS) – – – – –   (85) (61)  
    Total impact on cost of credit risk – – – – (20) (20) (85) (61)  
                     
    Mobility activities reorganisation (SFS) – – – – – – (39) (39)  
    Total impact equity-accounted entities – – – – –   (39) (39)  
    ISB integration costs (LC) (2) – – – (2) – – –  
    Degroof Petercam acquisition costs (AG) 1 1 – – (22) (16) – –  
    Mobility activities reorganisation (SFS) – – – – – – 89 57  
    Total impact Net income on other assets (1) 1 – – (24) (16) 89 57  
    Mobility activities reorganisation (SFS) – – 12 12 – – 12 12  
    Total impact on change of value of goodwill – – 12 12 – – 12 12  
    Mobility activities reorganisation (SFS) – – – 3 – – – 3  
    Total impact on tax – – – 3 – – – 3  
                     
    Total impact of specific items (64) (41) 35 31 (138) (86) 580 425  
    Asset gathering (12) (9) – – (49) (35) – –  
    French Retail banking – – 6 4 3 2 79 61  
    International Retail banking – – – – (20) (20) – –  
    Specialised financial services – – 16 17 – – 263 176  
    Large customers (52) (32) 8 6 (70) (32) (39) (28)  
    Corporate centre – – 5 4 (2) (1) 277 216  

    * Impact before tax and before minority interests

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

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

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

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

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

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

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

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

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

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

    Appendix 4 – Data per share

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

    (€m)

    Q4-2024
    Q4-2023

    2024
    2023

    Net income Group share – stated

    1,689
    1,334

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

    (112)
    (87)

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

    –
    –

    (266)
    –
    NIGS attributable to ordinary shares – stated

    [A]
    1,577
    1,247

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

    [B]
    3,025
    3,032

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

    [A]/[B]
    0.52 €
    0.41 €

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

    1,730
    1,303

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

    [C]
    1,618
    1,216

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

    [C]/[B]
    0.54 €
    0.40 €

    2.14 €
    1.80 €

    (€m)

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

    74,710
    71,086
    – AT1 issuances

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

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

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

    [D]

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

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

    [E]

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

    [F]

    3,025
    3,029

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

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

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

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

    (€m)

    2024
    2023
    Net income Group share – stated

    [K]

    7,087
    6,348
    Impairment of intangible assets

    [L]

    0
    0
    Stated NIGS annualised

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

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

    [O]

    -729
    -458
    Stated result adjusted

    [P] = [N]+[O]

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

    [J]

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

    = [P] / [J]

    13.8%
    13.6%
    Underlying Net income Group share

    [Q]

    7,172
    5,923
    Underlying NIGS annualised

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

    7,172
    5,923
    Underlying NIGS adjusted

    [S] = [R]+[O]

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

    = [S] / [J]

    14.0%
    12.6%
    *** including assumption of dividend for the current exercise

    0.0%

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

    Alternative Performance Indicators99

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Disclaimer

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

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

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

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

    Applicable standards and comparability

    The figures presented for the twelve-month period ending 31 December 2024 have been prepared in accordance with IFRS as adopted in the European Union and applicable at that date, and with regulations currently in force.

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

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

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

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

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

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

    Financial Agenda

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

    Contacts

    CREDIT AGRICOLE PRESS CONTACTS

    CRÉDIT AGRICOLE S.A. INVESTOR RELATIONS CONTACTS

    Institutional investors + 33 1 43 23 04 31 investor.relations@credit-agricole-sa.fr
    Individual shareholders + 33 800 000 777 (freephone number – France only) relation@actionnaires.credit-agricole.com
         
    Cécile Mouton + 33 1 57 72 86 79 cecile.mouton@credit-agricole-sa.fr
     

    Equity investor relations:

    		    
    Jean-Yann Asseraf
    Fethi Azzoug    		 + 33 1 57 72 23 81
    + 33 1 57 72 03 75    		 jean-yann.asseraf@credit-agricole-sa.fr fethi.azzoug@credit-agricole-sa.fr
    Oriane Cante + 33 1 43 23 03 07 oriane.cante@credit-agricole-sa.fr
    Nicolas Ianna + 33 1 43 23 55 51 nicolas.ianna@credit-agricole-sa.fr
    Leila Mamou + 33 1 57 72 07 93 leila.mamou@credit-agricole-sa.fr
    Anna Pigoulevski + 33 1 43 23 40 59 anna.pigoulevski@credit-agricole-sa.fr
         
         
    Credit investor and rating agency relations:  
    Gwenaëlle Lereste + 33 1 57 72 57 84 gwenaelle.lereste@credit-agricole-sa.fr
    Florence Quintin de Kercadio + 33 1 43 23 25 32 florence.quintindekercadio@credit-agricole-sa.fr
         
         
         

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

             

    1 Car, home, health, legal, all mobile phones or personal accident insurance.
    2 CA Auto Bank, automotive JVs and automotive activities of other entities
    3 2024 market shares: CRCA and LCL household loans (source: Banque de France and internal); French UCITS (all customer segments); payments (in No. of transactions; source: Banque de France and internal)
    4 2023 market shares: insurance (Argus de l’Assurance and France Assureurs); property services
    5 Economic outlook to 2025
    6 Purchase price of transactions carried out since 2022. Includes shares acquired in Banco BPM and Worldline
    7 Disposal of Crédit du Maroc, La Médicale, Crédit Agricole Serbia and others
    8 Indosuez Wealth management acquires a 70% stake in Wealth Dynamix, a fintech specialising in client relationship management for private banks, wealth management and asset management actors across the world.
    9 Creation of Uptevia, held in equal shares by CACEIS and BNPP, wich brings together the activities for the issuers of the two banks.
    10 Independent asset manager offering private markets multi-manager investment solutions.
    11 Technology company of high value-added modular service for distributors of savings solutions.
    12 Acquisition of Merca Leasing, independent leasing company in Germany
    13 Commercial partnership for automobile insurance between Mobilize Financial Services, subsidiary of Renault Group, specialised in services facilitating access to automobiles, and Pacifica, Property and Casualty subsidiary of Credit Agricole Assurances
    14 Merge between Amundi and Victory Capital, acquisition of a participation of 26.1% in Victory Capital, and signature of distribution and services agreement lasting 15 years.
    15 Digital fleet management tool on monthly subscription
    16 Extended warranty
    17 Delivery of single vehicule
    18 Agreement allowing CA Autobank, Drivalia, Agilauto and Leasys to offer fatec fllet management services to their customers in France
    19 Employee benefits management tool
    20 Creation of a joint venture to develop innovative commercial offers.
    21 Leader in design, construction, and daily support for multidisciplinary collective primary care structures
    22 Credit Agricole Santé et Territoires and 10 regional banks enter the capital of Cette Famille, major player in inclusive housing for seniors in France.
    23         Omedys, specialist in assisted telemedicine, Medicalib, home care expert
    24 Low-carbon energy outstandings made up of renewable energy produced by the clients of all Crédit Agricole Group entities, including nuclear energy outstandings for Crédit Agricole CIB.
    25 Listed investments managed directly, listed investments managed under mandate and unlisted investments managed directly
    26 Crédit Agricole CIB green asset portfolio, in line with the eligibility criteria of the Group Green Bond Framework published in November 2023.
    27 Scope of power sector: CACIB and Unifergie (Crédit Agricole Transitions & Energies)
    28 DVA (Debt Valuation Adjustment)
    29Specific (one-off) items had impacted the fourth quarter of 2023 for the SFS division and for CACF as follows: +€17m in net income Group share, of which +€4m on operating expenses, +€12m on badwill and +€1m on tax.
    30 See Appendixes for more details on specific items.
    31 The cost of risk/outstandings (in basis points) on a four-quarter rolling basis is calculated on the cost of risk of the past four quarters divided by the average outstandings at the start of each of the four quarters
    32 The cost of risk/outstandings (in basis points) on an annualised basis is calculated on the cost of risk of the quarter multiplied by four and divided by the outstandings at the start of the quarter
    33 Average rate of loans to monthly production for October and November 2024.
    34 Equipment rate – Home-Car-Health policies, Legal, All Mobile/Portable or personal accident insurance
    35 SAS Rue La Boétie dividend paid annually in Q2
    36 Home Purchase Savings Plan base effect (reversal of the Home Purchase Savings Plan provision) in Q4-23 totalling +€73.6m in revenues and +€54.6m in net income Group share. 

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

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

    45 See Appendixes for details on the calculation of the RoTE (return on tangible equity)
    46 The annualised underlying net income Group share corresponds to the annualisation of the underlying net income Group share (Q1x4; H1x2; 9Mx4/3) by restating each period for IFRIC impacts to linearise them over the year
    47 In local standards
    48 Can reach up to 3.85% for the Anaé policy with a UL rate > 50% and benefiting from management fees of 0.5% 
    49 Scope “Life France”
    50 Property and casualty insurance premium income includes a scope: effect linked to the initial consolidation of CATU in Q2-24 (a property and casualty insurance entity in Poland): 9.4% Q4/Q4 increase in premium income at constant scope

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

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

    Attachment

    The MIL Network –

  • MIL-OSI USA: Crapo, Risch, Daines Lead Bill to Defend Firearm Businesses and the Second Amendment

    US Senate News:

    Source: United States Senator for Idaho Mike Crapo

    Washington, D.C.–U.S. Senators Mike Crapo (R-Idaho), Jim Risch (R-Idaho) and Steve Daines (R-Montana) introduced the Firearm Industry Non-Discrimination (FIND) Act to prohibit the federal government from entering into contracts with groups that discriminate unfairly against firearm associations or businesses.

    “Taxpayer dollars should not support businesses that unfairly target law-abiding citizens exercising their Second Amendment rights. Full stop,” said Crapo.

    “We cannot allow businesses with anti-Second Amendment policies and rhetoric to benefit from taxpayer-funded government contracts,” said Risch.  “The FIND Act ensures the federal government doesn’t line the pockets of businesses working against Idahoans’ right to keep and bear arms.”

    “Democrats and woke corporations have proven over and over again that they want to carry out an unconstitutional, overreaching gun-grabbing agenda, and under no circumstances should our federal government use taxpayer dollars for these efforts.  Doing business with anti-Second Amendment corporations erodes Americans’ trust and infringes on law-abiding citizens’ Constitutional rights. It must stop,” said Daines.

    The legislation was co-sponsored by Senators Cindy Hyde-Smith (R-Mississippi), Cynthia Lummis (R-Wyoming), Rick Scott (R-Florida), Tom Cotton (R-Arkansas), Roger Marshall (R-Kansas), Roger Wicker (R-Mississippi), Ted Budd (R-North Carolina), Bill Cassidy (R-Louisiana), Tim Sheehy (R-Montana), Pete Ricketts (R-Nebraska), Kevin Cramer (R-North Dakota), Deb Fischer (R-Nebraska), James Lankford (R-Oklahoma), Joni Ernst (R-Iowa), Eric Schmitt (R-Missouri), Lindsey Graham (R-South Carolina) and Katie Britt (R-Alabama).

    ?

    MIL OSI USA News –

  • MIL-OSI USA News: National Security Presidential Memorandum/NSPM-2

    Source: The White House

    MEMORANDUM FOR THE SECRETARY OF STATE
                  THE SECRETARY OF THE TREASURY
                  THE SECRETARY OF DEFENSE
                  THE ATTORNEY GENERAL
                  THE SECRETARY OF ENERGY
                  THE SECRETARY OF THE INTERIOR
                  THE SECRETARY OF HOMELAND SECURITY
                  THE ASSISTANT TO THE PRESIDENT AND CHIEF OF STAFF
                  THE UNITED STATES TRADE REPRESENTATIVE
                  THE UNITED STATES PERMANENT REPRESENTATIVE TO THE
                     UNITED NATIONS
                  THE DIRECTOR OF NATIONAL INTELLIGENCE
                  THE DIRECTOR OF THE CENTRAL INTELLIGENCE
                     AGENCY
                  THE DIRECTOR OF THE OFFICE OF MANAGEMENT AND
                     BUDGET
                  THE ASSISTANT TO THE PRESIDENT FOR NATIONAL
                     SECURITY AFFAIRS
                  THE COUNSEL TO THE PRESIDENT
                  THE ASSISTANT TO THE PRESIDENT FOR ECONOMIC
                     POLICY
                  THE CHAIRMAN OF THE JOINT CHIEFS OF STAFF
                  THE DIRECTOR OF THE FEDERAL BUREAU OF
                     INVESTIGATION

    SUBJECT: Imposing Maximum Pressure on the Government of
           the Islamic Republic of Iran, Denying Iran All
           Paths to a Nuclear Weapon, and Countering Iran’s
           Malign Influence

    As President, my highest priority is to ensure the safety and security of the United States and the American people.  Since its inception in 1979 as a revolutionary theocracy, the Government of the Islamic Republic of Iran has declared its hostility to the United States and its allies and partners.  Iran remains the world’s leading state sponsor of terror and has aided Hezbollah, Hamas, the Houthis, the Taliban, al-Qa’ida, and other terrorist networks.  The Islamic Revolutionary Guard Corps (IRGC) is itself a designated Foreign Terrorist Organization.

    The Iranian Government, including the IRGC, is using agents and cyber-enabled means to target United States nationals living in the United States and other countries around the world for attacks, including assault, kidnapping, and murder.  Iran has also directed its proxy groups, including Hezbollah’s Islamic Jihad Organization, to embed sleeper cells in the Homeland to be activated in support of this terrorist activity.   

    Iran bears responsibility for the horrific Hamas massacres committed on October 7, 2023, and bears responsibility for continued Houthi attacks against the United States Navy, allied navies, and international commercial shipping in the Red Sea.  Since April 2024, the regime has twice demonstrated its willingness to launch ballistic and cruise missile attacks against the State of Israel. 

    Iran commits grievous human rights abuses and arbitrarily detains foreigners, including United States citizens, on spurious charges without due process of law, subjecting them to abuse.  The United States stands with the women of Iran who face daily abuse by the regime. 

    Iran’s nuclear program, including its enrichment- and reprocessing-related capabilities and nuclear-capable missiles, poses an existential danger to the United States and the entire civilized world.  A radical regime like this can never be allowed to acquire or develop nuclear weapons, or to extort the United States or its allies through the threat of nuclear weapons acquisition, development, or use.  Iran today stands in breach of its Nuclear Non-Proliferation Treaty obligations by concealing undeclared nuclear sites and material as required by its Comprehensive Safeguards Agreement with the International Atomic Energy Agency (IAEA).  Iran has obstructed IAEA access to its military sites or sites tied to the Organization of Defensive Innovation and Research, also known as SPND, and to interview nuclear weapons scientists still employed by SPND.  Public reports indicating that Iran may now be engaged in computer modeling related to nuclear weapons development raise immediate alarm.  We must deny Iran all paths to a nuclear weapon and end the regime’s nuclear extortion racket. 

    Iran’s behavior threatens the national interest of the United States.  It is therefore in the national interest to impose maximum pressure on the Iranian regime to end its nuclear threat, curtail its ballistic missile program, and stop its support for terrorist groups. 

    Section 1.  Policy.  It is the policy of the United States that Iran be denied a nuclear weapon and intercontinental ballistic missiles; that Iran’s network and campaign of regional aggression be neutralized; that the IRGC and its surrogates be disrupted, degraded, or denied access to the resources that sustain their destabilizing activities; and to counter Iran’s aggressive development of missiles and other asymmetric and conventional weapons capabilities. 

    Sec. 2.  Enacting Maximum Pressure on the Islamic Republic of Iran.  (a)  The Secretary of the Treasury shall:

                  (i)    immediately impose sanctions or appropriate enforcement remedies on all persons for which the Department has evidence of activity in violation of one or more Iran-related sanctions;

                  (ii)   implement a robust and continual sanctions enforcement campaign with respect to Iran that denies the regime and its terror proxies access to revenue;

                  (iii)  review for modification or rescission any general license, frequently asked question, or other guidance that provides Iran or any of its terror proxies any degree of economic or financial relief;

                  (iv)   issue updated guidance to all relevant business sectors including shipping, insurance, and port operators, about the risks to any person that knowingly violates United States sanctions with respect to Iran or an Iranian terror proxy; and

                  (v)    maintain countermeasures against Iran at the Financial Action Task Force, evaluate beneficial ownership thresholds to ensure sanctions deny Iran all possible illicit revenue, and evaluate whether financial institutions should adopt a “Know Your Customer’s Customer” standard for Iran-related transactions to further prevent sanctions evasion. 

    (b)  The Secretary of State shall:

                  (i)    modify or rescind sanctions waivers, particularly those that provide Iran any degree of economic or financial relief, including those related to Iran’s Chabahar port project;

                  (ii)   implement a robust and continual campaign, in coordination with the Secretary of the Treasury and other relevant executive departments or agencies (agencies), to drive Iran’s export of oil to zero, including exports of Iranian crude to the People’s Republic of China;

                  (iii)  lead a diplomatic campaign to isolate Iran throughout the world, including within international organizations, including the denial of freedom of movement or safe haven to the IRGC or any terror proxy of Iran wherever such may operate outside Iran’s borders; and

                  (iv)   take immediate steps, in coordination with the Secretary of the Treasury and other relevant agencies, to ensure that the Iraqi financial system is not utilized by Iran for sanctions evasion or circumvention, and that Gulf countries are not used as sanctions evasion transshipment points. 

    (c)  The United States Permanent Representative to the United Nations shall:

                  (i)    work with key allies to complete the snapback of international sanctions and restrictions on Iran;

                  (ii)   hold Iran accountable for its breach of the Nuclear Non-Proliferation Treaty; and

                  (iii)  regularly convene the United Nations Security Council to highlight the myriad threats posed by Iran to international peace and security. 

    (d)  The Secretary of Commerce shall conduct a robust and continuous export control enforcement campaign to restrict the flow of technology and components used by the regime for military purposes.   

    (e)  The Attorney General shall:

                  (i)    pursue all available legal steps to investigate, disrupt, and prosecute financial and logistical networks, operatives, or front groups inside the United States that are sponsored by Iran or an Iranian terror proxy;

                  (ii)   pursue all available legal steps to impound illicit Iranian oil cargoes;

                  (iii)  pursue all available legal steps to identify Iranian governmental assets in the United States and overseas, and help American victims of terrorism, including Gold Star Families, collect on Federal judgments against Iran;

                  (iv)   pursue all available legal steps to indict and prosecute the leaders and members of Iranian-funded terrorist groups and proxies that have captured, harmed, or killed American citizens and, where possible and in coordination with the Secretary of State, seek their arrest and extradition to the United States; and   

                  (v)    use all criminal, regulatory, and cyber authorities and tools to vigorously investigate, prosecute, and disrupt efforts by the Iranian government to conduct espionage or obtain military, intelligence, government, or other sensitive information, compromise the Homeland and our critical infrastructure, evade sanctions and export controls, obtain material support for terrorism, exert foreign malign influence, and threaten harm and infringe on First Amendment-protected speech, including efforts designed to sow anti-Semitism.

      Sec. 3.  General Provisions.  (a)  Nothing in this memorandum shall be construed to impair or otherwise affect:

                  (i)   the authority granted by law to an executive department or agency, or the head thereof; or

                  (ii)  the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.   

         (b)  This memorandum shall be implemented consistent with applicable law and subject to the availability of appropriations.   

         (c)  This memorandum is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.   

    MIL OSI USA News –

  • MIL-OSI USA: Lummis Joins Hoeven, Pfluger in Efforts to Block Biden’s Natural Gas Tax, Alleviate Burden on U.S. Domestic Energy Production

    US Senate News:

    Source: United States Senator for Wyoming Cynthia Lummis

    WASHINGTON, D.C. – Senate Western Caucus Chair Cynthia Lummis (R-WY) joined Senator John Hoeven (R-ND) and Congressman August Pfluger (R-TX) today in reintroducing a bicameral Congressional Review Act (CRA) resolution of disapproval to block implementation of the Biden administration’s Natural Gas Tax, which was passed as part of the Inflation Reduction Act, Democrats’ reckless tax-and-spend legislation in 2022.

    “This onerous natural gas tax was a key component of President Biden’s crusade to cripple western energy production,” said Senator Lummis. “I’m proud to work with Senator Hoeven and Congressman Pfluger to block this shortsighted, anti-energy legislation and start the process of undoing these failed Biden-era attacks on American and Wyoming energy.”

    “When it comes to bringing down prices and making America energy secure again, we have our work cut out for us. The Biden-Harris administration imposed countless policies like the Natural Gas Tax that drive up the cost of production and limit the ability to fully utilize our nation’s abundant energy resources, and it will take real time and effort to undo the effects of their Green New Deal agenda,” said Senator Hoeven, a member of the Senate Energy and Natural Resources Committee. “Through efforts like this CRA resolution, we are working to get our nation back on the right track, providing needed regulatory and tax relief to deliver real cost savings to American energy producers and consumers.”

    “As part of his war on energy, former President Biden took radical steps to end fossil fuels during his administration which hurt the hardworking energy producers in my district who have worked diligently to increase production while fueling our allies abroad,” said Rep. Pfluger, a member of the House Energy and Commerce Committee. “Biden’s burdensome natural gas tax has handicapped technological innovation, reduced supplies of affordable energy, and increased both costs and emissions. With President Trump back in office, it is time to restore American energy dominance – which is why I am proud to lead this CRA to rescind this ill-conceived natural gas tax.”

    The Hoeven-Pfluger bill is cosponsored by Senators Shelley Moore Capito (R-W.Va.), Mike Lee (R-Utah), James Lankford (R-Okla.), Katie Britt (R-Ala.), Steve Daines (R-Mont.), Roger Marshall (R-Kan.), Kevin Cramer (R-N.D.), Cynthia Lummis (R-Wyo.), James Risch (R-Idaho), Rick Scott (R-Fla.), Ted Cruz (R-Texas), Rand Paul (R-Ky.), Mike Crapo (R-Idaho), Jim Justice (R-W.Va.), Tommy Tuberville (R-Ala.), John Kennedy (R-La.), Cindy Hyde-Smith (R-Miss.), Mike Rounds (R-S.D.), Tim Sheehy (R-Mont.), Thom Tillis (R-N.C.), Markwayne Mullin (R-Okla.), Roger Wicker (R-Miss.), John Ricketts (R-Neb.) and John Barrasso (R-Wyo.). The full text of the legislation can be found here.

    MIL OSI USA News –

  • MIL-OSI Australia: New research funded to find plastic waste solutions

    Source: New South Wales Premiere

    Published: 5 February 2025

    Released by: Minister for Environment and Heritage

    Three pioneering projects have been awarded $1.25 million by the NSW Government to tackle plastic pollution through innovative and impactful solutions.

    Previous governments left Greater Sydney on the brink of a waste crisis. Without new waste and recycling solutions, Greater Sydney’s landfill capacity will be exhausted by 2030.

    The Minns Labor Government is committed to solving the waste challenges and supporting future technologies that will continue to drive us to a circular economy where nothing is wasted.

    Universities and government research institutions were invited to apply for funding under the Plastic Research Program.

    Following a competitive process, three exciting projects were successful in securing funding:

    • Research to develop ways to reliably collect and analyse microplastics in soil, compost and treated sewage (NSW Department of Climate Change, Energy, the Environment and Water (DCCEEW) and CSIRO).
    • A project to create tools to identify and prioritise harmful chemicals from plastics in agricultural soils (NSW Department of Primary Industries and Regional Development (DPIRD) and CSIRO).
    • Study into plastic fabrics like polyester to track harmful chemicals in new and recycled textiles (University of Technology Sydney’s Institute for Sustainable Futures).

    The Plastic Research Program is focused on making NSW a leader in managing plastic waste and the findings from these projects will guide future policies, regulations, and actions.

    Each project will receive between $308,000 and $493,000, and completion is expected by 31 May 2027.

    For more information, visit the webpage of the Plastics Research Program. 

    Quote attributable to Minister for the Environment Penny Sharpe:

    “NSW is facing a landfill crisis. New solutions are needed and needed quickly.

    “Hidden chemicals in plastic waste make recycling harder.

    “This investment into cutting edge research will help uncover hidden chemicals in soils and everyday fabrics, to assist in finding better solutions to get rid of them.”

    MIL OSI News –

  • 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 24th 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 –

  • MIL-OSI USA: Senator Marshall, Rep. Van Duyne Reintroduce Legislation to Reduce Overbearing Regulations for America’s Small Businesses

    US Senate News:

    Source: United States Senator for Kansas Roger Marshall

    Washington, D.C. – U.S. Senator Roger Marshall, M.D., and U.S. House Representative Beth Van Duyne (R-TX-24) introduced the bicameral Small Business Regulatory Reduction Act to protect our small businesses from the financial burden of top-down federal regulations. 
    When Washington, D.C. imposes regulations, it often comes at a significant cost to our locally-owned businesses. In 2022 alone, complying with regulations cost American small businesses an average of $15,133.57 (adjusted for 2024 dollars) per employee on their payroll. The Small Business Regulatory Reduction Act alleviates these costs and requires the Administration to submit an annual report to Congress outlining the impacts of regulations on small businesses. 
    “I will always stand with Main Street over Wall Street, and remain laser-focused on supporting our nation’s small businesses. That means making it easier for them to do their jobs and keeping the federal government out of the way!” said Senator Marshall. “It’s time to slash the red tape and create a regulatory environment that ensures America’s small businesses, the backbone of our economy, thrive.”
    “After Biden-Harris imposed more than $1.7 trillion in regulatory costs and inflicted 20% inflation, America’s small businesses are in desperate need of relief. I’m glad to partner with Senator Marshall to reintroduce the Small Business Regulatory Reduction Act to slash burdensome regulations for our job creators as we work to keep the American Dream alive for the next generation,” said Rep. Van Duyne (R-TX-24). 
    “The first rule of economic growth is to stop stifling entrepreneurs. Yet, that’s exactly what Washington does to small businesses. Startups and mom-and-pops can’t afford full-time staff dedicated to regulatory compliance they way bigger companies can. Capping regulatory costs for small businesses at current levels is an important step towards better regulatory policy, as are the Small Business Regulatory Reduction Act’s improved transparency requirements.” said Ryan Young, Competitive Enterprise Institute Senior Economist.
    “The Small Business Regulatory Reduction Act directs the SBA Administrator to quantify and monitor regulatory costs on small businesses, which is greatly needed as the cumulative costs are overwhelming small firms and undermining their competitiveness. Quantifying these costs on an annual basis and determining whether rules cumulatively exceed a zero-based regulatory budget provide a framework that promotes accountability and sensible regulation. SBE Council strongly supports this legislation, as it will help Congress with critical oversight and help to inform and educate regulators about the need to consider small business impact as they propose and advance their regulatory initiatives.” said Karen Kerrigan, President & CEO, Small Business & Entrepreneurship Council.
    “Small businesses often deeply suffer the effects of federal regulations because they have limited resources for compliance. This bill from Senator Roger Marshall and Representative Beth Van Duyne would ensure these burdens are minimized and tallied,” said Nicholas Johns, Senior Policy and Government Affairs Manager, National Taxpayers Union. “National Taxpayers Union applauds this bill because it would prevent the Small Business Administration from hindering companies under their purview and create a government-wide report detailing the regulatory costs on small businesses.”

    MIL OSI USA News –

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

    Source: Office of United States Attorneys

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

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

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

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

              In July 2020, Strauss submitted the PPP loan application to Capital Bank. On July 29, 2020, Capital Bank wired $304,900 into Powergrid’s bank account. In July 2021, a co-conspirator prepared false and fraudulent federal tax returns. Strauss submitted the faked papers to Capital Bank in support of loan forgiveness for Powergrid. 

               The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP.  In April 2020, Congress authorized over $300 billion in additional PPP funding. 

               The PPP allowed qualifying small-businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. PPP loan proceeds were required be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allowed the interest and principal on the PPP loan to be forgiven if the business spent the loan proceeds on these expense items within a designated time after receiving the proceeds and used at least a certain percentage of the PPP loan proceeds on payroll expenses. 

               The case was investigated jointly by U.S. Attorney’s Office for the District of Columbia, the FBI’s Washington Field Office, and the Internal Revenue Service – Criminal Investigation (IRS-CI) Washington, D.C., Field Office. In announcing the sentence, U.S. Attorney Martin commended the work of those who investigated the case.

               This matter was prosecuted by Assistant U.S. Attorney John Crabb, Jr. 

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

    24cr374

    MIL Security OSI –

  • MIL-OSI Security: Oregon Check Casher Sentenced to Federal Prison for Payroll Tax Scheme Involving $177 Million

    Source: Office of United States Attorneys

    PORTLAND, Ore.–A Tualatin, Oregon man was sentenced to federal prison today for conspiring to defraud the United States and filing false currency transaction reports.

    David Katz, 48, was sentenced to 48 months in federal prison and three years’ supervised release. He was also ordered to pay $44,877,254 in restitution to the IRS.

    According to court documents and trial testimony, from January 2014 through December 2017, Katz, as president of Check Cash Pacific, Inc., conspired with others in the construction industry to defraud the United States by facilitating under-the-table payments to construction workers. To carry out the scheme, sham construction companies were created and used to cash more than $177 million in payroll checks at different Check Cash Pacific locations. The cash was used to pay construction workers under-the-table, with no taxes being withheld or reported to the IRS.

    Construction companies would notify Katz when they planned to bring checks into one of his check cashing locations so that Katz could ensure he had enough cash on hand to complete the transaction. Hundreds of thousands of dollars of payroll checks were cashed daily and Katz was aware that at least one of his co-conspirators used a false name and social security number. Acting as compliance officer, Katz allowed hundreds of false regulatory reports to be filed knowing they contained the fake identity.

    For his role in the scheme, Katz received a 2% commission on each transaction which, in total, amounted to more than $4 million. Over the course of their conspiracy, Katz and his co-conspirators prevented the IRS from collecting more than $44 million in payroll and income taxes due on the cash wages.

    On December 2, 2021, a federal grand jury in Portland returned a five-count indictment charging Katz with one count of conspiracy to defraud the United States and four counts of filing false currency transaction reports with FinCEN. On June 12, 2024, a federal jury in Portland found  Katz guilty of all charges.

    This case was investigated by IRS Criminal Investigation. It was prosecuted by Robert S. Trisotto and Andrew T. Ho, Assistant U.S. Attorneys for the District of Oregon.

    MIL Security OSI –

  • MIL-OSI: Veea Issues Letter to Shareholders

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, Feb. 04, 2025 (GLOBE NEWSWIRE) — Veea Inc. (NASDAQ: VEEA), a pioneer in edge computing and AI-driven solutions, today issued a Letter to Shareholders from Founder and Chief Executive Officer Allen Salmasi.

    Dear Fellow Shareholders,

    On the occasion of Veea ringing the Nasdaq Opening Bell on February 5, I want to welcome our shareholders and share our insights with respect to our vision, strategy, and the opportunities that lie ahead.

    Connecting the World at the Edge
    I am thrilled to share with you that a monumental shift in technology has occurred, one that now directly aligns with our vision of the future dating back to the founding of the company ten years ago. This transformation is the convergence of Edge Computing, Hyperconverged Networks, and the application of Artificial Intelligence (AI) at the very edge that all things connect to the network, commonly referred to as Edge AI.

    We have developed a portfolio of fully integrated, scalable, and turnkey wireless and wired communications and computing devices and services – VeeaHub products, VeeaWare, and VeeaCloud – that deliver cloud-to-edge solutions and allow businesses to manage high volumes of data to enable real-time applications and maintain system reliability. Our solutions have been iterated over the last several years to minimize production costs, reduce installation expenses, and deliver scalability with easy integration to third party solutions, resulting in a lower total cost of ownership compared to typical edge computing solutions.

    We possess more than 100 exclusively-owned patents covering 26 patent families, and a significant partner ecosystem. Our products have been deployed to enterprises and SMB/SMEs across several countries, providing real-world solutions across various end markets. We are transforming lives from remote villages in Indonesia, where Veea’s mesh network is empowering internet connectivity in health, education, and agriculture, to retailers in Mexico, farms in North America, a campus in Hong Kong, and a 21-acre commercial building complex in Orlando, Florida where our Veea Edge Platform is enabling common indoor and outdoor common area Wi-Fi.

    Well Positioned to Support the 5thIndustrial Revolution
    Significant advances in AI technologies are now driving the 5th Industrial Revolution, fundamentally reshaping how we live, work, and interact. Unlike previous industrial revolutions driven by mechanization, electricity, computing, and automation, the 5th Industrial Revolution is characterized by the seamless integration of AI and human intelligence to enhance decision-making, improve productivity, and drive innovation across every sector. This is not just a technological trend; it is a pivotal force shaping the future of industries, economies, and our organization.

    AI inferencing is at the heart of this revolution, driving a new business paradigm that demands a fresh approach to technology infrastructure and service delivery. AI inferencing refers to the process where a trained AI model applies its learned knowledge to analyze new, unseen data and generate predictions or decisions based on the patterns it has identified during training; essentially, it’s the “action” of using an AI model to make sense of “new information” and draw conclusions from it. For many enterprise and consumer use cases massive amounts of data must be collected and processed at the edge. Among many of its utilities, this is what Veea Edge Platform does most efficiently.

    Veea’s unique implementation of Edge AI brings the power of AI closer to where data is generated—at the “edge” of networks. This means faster decision-making, reduced latency, enhanced security, increased reliability, data privacy and sovereignty, and real-time insights without the dependency on centralized cloud infrastructure. Edge Computing complements this by processing data locally, significantly improving efficiency and reducing bandwidth costs.

    Edge Computing is not just a supporting technology—it is the core capability that enables AI inferencing to deliver real-time, context-aware insights to both enterprises and consumers alike. By processing data closer to the source, Edge Computing ensures that AI applications are responsive, resilient, and efficient. This shift requires businesses to adopt new operational models, emphasizing agility, scalability, and decentralized intelligence.

    AI-as-a-Service (AIaaS)
    At Veea, we are at the forefront of this transformation, leveraging Edge Computing to power our AI-as-a-Service (AIaaS) offerings. Traditional business models are no longer sufficient to support the speed, scale, and complexity required by broadly adopted AI-driven applications. Some believe that AI Agents will eventually replace SaaS solutions.

    Hyperconverged Networking (HCN) is the backbone that supports this rapid data processing and AI-driven environment. By integrating computing, storage, and networking into a unified system, HCN enhances scalability, simplifies IT infrastructure, and ensures robust data flow between edge devices and core systems. Veea’s virtualized software environment, supporting cloud-native applications, together with one of the most advanced HCN implementations, positions us very well to lead in the delivery of highly optimized solutions in this new era, creating unparalleled value for our customers and sustainable growth for our shareholders.

    Through the seamless integration of Edge AI, Edge Computing, and Hyperconverged Networking, all supported by Veea’s cloud-managed products, we are driving:

    – Innovation: Delivering cutting-edge products and services that meet the demands of the widest range of the rapidly evolving digital landscape.

    – Operational Efficiency: Reducing costs and improving performance for many industries.

    – Growth Opportunities: Expanding into new markets and sectors that are rapidly adopting AI inferencing and edge technologies.

    – Shareholder Value: Enhancing our competitive advantage, creating revenue streams, and supporting long-term financial performance.

    A Unique Business Model Supported by Technology that Delivers Solutions to Real World Problems
    What sets Veea apart in this transformative era is our unique business model as a Managed Service Provider (MSP) that is delivering solutions such i) as 5G fixed wireless access through our VeeaHub edge computing products with AI-driven cybersecurity, and a range of value-added services currently being rolled-out by network operators to SMBs and SME, as one of its highly scalable use cases, and ii) Edge AI inferencing through our innovative AIaaS offering with complete turnkey hardware and software solutions (i.e., full stack). This model allows us to deliver AI-powered applications and insights at scale without requiring the end-users to invest heavily in infrastructure or specialized talent.

    Through our AIaaS platform, we provide end-to-end management of AI workloads, from deployment and optimization to continuous monitoring and maintenance. This approach offers several key differentiators:

    – Scalability: Clients can easily scale their AI capabilities as their business grows, without the complexities of managing hardware and software.

    – Cost Efficiency: By offering AI on a subscription basis, we lower the barriers to entry, making advanced AI accessible to organizations of all sizes.

    – Agility: Our managed services enable rapid deployment and iteration, allowing businesses to adapt quickly to changing market demands.

    – Expertise: Clients benefit from our deep expertise in AI, edge computing, and hyperconverged networking, ensuring optimal performance and reliability.

    AI inferencing supported by Edge AI represents a compelling business model and a significant growth opportunity for several reasons:

    – Explosive Market Demand: The global demand for real-time, data-driven decision-making is rising across industries including retail, healthcare, manufacturing, smart buildings, smart cities, and smart farming. Organizations need solutions that process data instantly, making Edge AI inferencing critical.

    – Recurring Revenue Streams: The MSP and AIaaS business models enable predictable, recurring revenue through subscription-based offerings. This stabilizes our financial outlook and supports sustainable growth.

    – Competitive Advantage: Edge AI allows businesses to differentiate themselves through faster, smarter, and more secure operations. By providing managed AI inferencing services, we help our clients maintain a competitive edge, which in turn strengthens our market position.

    – Lower Total Cost of Ownership (TCO): Our managed services reduce the cost and complexity for customers, making it more attractive for businesses to adopt advanced AI without large upfront investments.

    – Global Scalability: The decentralized nature of Edge AI allows us to serve clients worldwide, expanding our reach and unlocking new markets without the limitations of traditional centralized data processing.

    – Rapid Innovation Cycle: Continuous improvements in AI algorithms, edge devices, and networking technologies create opportunities for us to innovate and offer enhanced services regularly, driving both customer retention and new customer acquisition.

    – Portable Software Stack: Our full stack software can run on third-party hardware (i.e., CPU-based or GPU-based servers, Access Points (APs), routers, etc.) with a Linux host that meet our minimum requirements, making our cloud-managed platform hardware agnostic.

    In Closing
    Our commitment to innovation and excellence, combined with a differentiated business model, not only strengthens our value proposition to customers but also positions us to develop a robust, recurring revenue stream that drives sustainable growth and profitability.

    We are committed to investing in these transformative technologies, fostering strategic partnerships, and continuing to lead in innovation. Our goal is to ensure that Veea remains at the forefront of this technological revolution, delivering growth and value to our shareholders.

    Thank you for your continued support and trust in our vision. Together, we are shaping the future.

    Warm regards,

    Allen Salmasi
    Founder & Chief Executive Officer

    About Veea
    Veea Inc. (NASDAQ: VEEA) was formed in 2014 and is headquartered in New York City with a rich history of major innovations in the development of advanced networking, wireless and computing technologies. Veea makes living and working at the edge simpler and more secure. Veea has unified multi-tenant computing, multiaccess multiprotocol communications, edge storage and cybersecurity solutions through fully integrated cloud- and edge-managed products. Veea’s fully integrated turnkey solution offers end-to-end cloud management of devices, applications and services with Zero Trust Network Access (ZTNA), optionally with a highly simplified plug and play 5G-based Secure Access Service Edge (SASE) offering. Veea Edge Platform™ enables direct connections from the wide area optical fiber, cellular and satellite networks to devices on the local area networks created by a VeeaHub® mesh cluster over network-managed Wi-Fi and IoT devices – a unique patented capability called Multiprotocol Private Network Slicing (MPNS) for ISPs to offer subscription-based services for one or a group of endpoints. Veea Developer Portal and development tools provide for rapid development of edge applications including federated learning with pre-trained models for inferencing to cost-effectively enable Edge AI for most enterprise use cases.

    Veea was recognized in 2023 by Gartner as a Leading Smart Edge Platform for the innovativeness and capabilities of our Veea Edge Platform™ and a Cool Vendor in Edge Computing in 2021. Veea was named in Market Reports World’s in its research report published in October 2023 as one of the top 10 Edge AI solution providers alongside IBM, Microsoft, Amazon Web Services among others. For more information about Veea and its product offerings, visit veea.com and follow us on LinkedIn.

    Forward-Looking Statements
    This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (“Securities Act”) as well as Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, as amended, that are intended to be covered by the safe harbor created by those sections. Forward-looking statements, which are based on certain assumptions and describe the Company’s future plans, strategies and expectations, can generally be identified by the use of forward-looking terms such as “believe,” “expect,” “may,” “will,” “should,” “would,” “could,” “seek,” “intend,” “plan,” “goal,” “project,” “estimate,” “anticipate,” “strategy,” “future,” “likely” or other comparable terms, although not all forward-looking statements contain these identifying words. All statements other than statements of historical facts included in this press release regarding the Company’s strategies, prospects, financial condition, operations, costs, plans and objectives are forward-looking statements. Important factors that could cause the Company’s actual results and financial condition to differ materially from those indicated in the forward-looking statements. Such forward-looking statements include, but are not limited to, risks and uncertainties including those regarding: the Company’s business strategies, and the risk and uncertainties described in “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” “Cautionary Note on Forward-Looking Statements” and the additional risk described in Veea’s Form 10-Q for the fiscal quarter ended September 30, 2024 and any subsequent filings which Veea makes with the U.S. Securities and Exchange Commission. You should not rely upon forward-looking statements as predictions of future events. The forward-looking statements made in the press release relate only to events or information as of the date on which the statements are made in the press release. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events except as required by law. You should read this press release with the understanding that our actual future results may be materially different from what we expect.

    The Equity Group

    Devin Sullivan
    Managing Director
    dsullivan@equityny.com

    Conor Rodriguez
    Analyst
    crodriguez@equityny.com

    The MIL Network –

  • MIL-OSI: Bitdeer Announces Strategic Acquisition of 101 MW Site and Gas-fired Power Project in Alberta to Deliver the Industry’s First Fully-Vertically Integrated Bitcoin Mining Site

    Source: GlobeNewswire (MIL-OSI)

    SINGAPORE, Feb. 04, 2025 (GLOBE NEWSWIRE) — Bitdeer Technologies Group (NASDAQ: BTDR) (“Bitdeer” or the “Company”), a world-leading technology company for blockchain and high-performance computing, today announced the successful close of the acquisition of a fully licensed and permitted 101 MW site and gas-fired power project situated on 19 acres of land near Fox Creek, Alberta in an all-cash transaction for $21.7 million. The site has potential to scale to 1 GW of power, reflecting Alberta’s abundant energy resources, supportive regulatory posture and pro-business environment.

    The 101 MW gas-fired power project includes all permits and licenses required to construct an on-site natural gas power plant, as well as approval for a 99 MW grid interconnection with Alberta Electric System Operator (“AESO”). Bitdeer will develop and construct the power plant in partnership with a leading Engineering, Procurement and Construction (“EPC”) company and is expected to be energized by Q4 2026.

    Concurrently, the Company plans to build 99 MW of datacenter capacity for Bitcoin mining. This newly acquired site and power generation project provides the Company a unique opportunity to become the world’s first fully-vertically integrated Bitcoin miner at scale and potentially achieve some of the lowest Bitcoin mining production costs in the industry.

    Strategic Benefits

    • Full vertical integration: The Company will have control of the land, power generation, electrical and datacenter infrastructure as well as using its own internally developed and manufactured Bitcoin mining machines. The Company can deploy approximately [9] EH/s of its SEALMINER A3 mining machines upon completion, which are anticipated to have industry leading machine-level efficiency of 11-12 J/TH.
    • Low Power Costs: Projected energy production costs of approximately $20 to $25 per MWh1, based on current gas prices.
    • Sustainability & Potential Carbon Credit Upside: As part of the project acquisition, Bitdeer will deploy a carbon utilization system that captures CO2 making the project a net zero carbon producer. This initiative aims to offset Canada’s carbon tax obligations and may generate future revenue through carbon credits.
    • Energy Cost Optimization & Revenue Flexibility: The Company expects to curtail and sell power back to the Alberta grid to stabilize prices during periods of high demand. The Company estimates this could potentially optimize costs even further.

    “We are really excited about planting roots in Alberta, our first site in Canada. This acquisition is the culmination of extensive collaboration with multiple government agencies and the Canadian Blockchain Consortium. It marks a significant step in our strategy to become the first fully-vertically integrated Bitcoin miner, giving us unmatched control over costs, energy efficiency, and scalability,” said Haris Basit, Chief Strategy Officer at Bitdeer. “By combining our own power generation, SEALMINER mining machines and opportunistic grid participation, we believe this site will set a new benchmark for industry unit economics.”

    Regarding the project, Danielle Smith, Premier of Alberta said, “We are so pleased to welcome the world’s first net-zero, fully integrated off-grid Bitcoin mining facility — right here in Alberta. Today’s investment is another sign that Alberta continues to be a leader in technology and innovation not only across the country, but across the world. If you want to do business and have a plan to bring your own power, then Alberta is the place for you.”

    Estimated Costs and Development Timeline
    The Company plans to commence site preparation and initial infrastructure development in Q2 2025 and energization in Q4 2026.

    Asset Actual and Estimated Costs
    101 MW Fox Creek Site and 19-acre land near Fox Creek, Alberta $21.7 million cash
    Gas-fired power plant ~$90 million
    Electrical & datacenter infrastructure $300K per MW or ~$30 million
     

    About Bitdeer Technologies Group
    Bitdeer is a world-leading technology company for blockchain and high-performance computing industry. Bitdeer is committed to providing comprehensive computing solutions for its customers. The Company handles complex processes involved in computing such as equipment procurement, transport logistics, datacenter design and construction, equipment management, and daily operations. The Company also offers advanced cloud capabilities to customers with high demand for artificial intelligence. Headquartered in Singapore, Bitdeer has deployed datacenters in the United States, Norway, and Bhutan. To learn more, visit https://ir.bitdeer.com/ or follow Bitdeer on X @ BitdeerOfficial and LinkedIn @ Bitdeer Group.

    Investors and others should note that Bitdeer may announce material information using its website and/or on its accounts on social media platforms, including X, formerly known as Twitter, Facebook, and LinkedIn. Therefore, Bitdeer encourages investors and others to review the information it posts on the social media and other communication channels listed on its website.

    Forward-Looking Statements
    Statements in this press release about future expectations, plans, and prospects, as well as any other statements regarding matters that are not historical facts, may constitute “forward-looking statements” within the meaning of The Private Securities Litigation Reform Act of 1995. The words “anticipate,” “look forward to,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including factors discussed in the section entitled “Risk Factors” in Bitdeer’s annual report on Form 20-F, as well as discussions of potential risks, uncertainties, and other important factors in Bitdeer’s subsequent filings with the U.S. Securities and Exchange Commission. Any forward-looking statements contained in this press release speak only as of the date hereof. Bitdeer specifically disclaims any obligation to update any forward-looking statement, whether due to new information, future events, or otherwise. Readers should not rely upon the information on this page as current or accurate after its publication date.

    For investor and media inquiries, please contact:

    Investor Relations
    Orange Group
    Yujia Zhai
    bitdeerIR@orangegroupadvisors.com

    Public Relations
    BlocksBridge Consulting
    Nishant Sharma
    bitdeer@blocksbridge.com

    1 Assumes natural gas costs of ~$2.06 / GJ, plus regular maintenance and O&M

    The MIL Network –

  • MIL-OSI USA: Risch, Crapo, Daines Lead Bill to Defend Firearm Businesses and the Second Amendment

    US Senate News:

    Source: United States Senator for Idaho James E Risch

    Bill Prohibits Federal Government from Using Taxpayer Dollars to Enter into Contracts with Anti-Second Amendment Corporations?

    WASHINGTON – U.S. Senators Jim Risch (R-Idaho), Mike Crapo (R-Idaho), and Steve Daines (R-Mont.) introduced the Firearm Industry Non-Discrimination (FIND) Act to prohibit the federal government from entering into contracts with groups that discriminate unfairly against firearm associations or businesses.

    “We cannot allow businesses with anti-Second Amendment policies and rhetoric to benefit from taxpayer-funded government contracts,” said Risch.“The FIND Act ensures the federal government doesn’t line the pockets of businesses working against Idahoans’ right to keep and bear arms.”

    “Taxpayer dollars should not support businesses that unfairly target law-abiding citizens exercising their Second Amendment rights. Full stop,” said Crapo.

    “Democrats and woke corporations have proven over and over again that they want to carry out an unconstitutional, overreaching gun-grabbing agenda, and under no circumstances should our federal government use taxpayer dollars for these efforts. Doing business with anti-Second Amendment corporations erodes Americans’ trust and infringes on law-abiding citizens’ Constitutional rights. It must stop,” said Daines.

    The legislation was cosponsored by Senators Cindy Hyde-Smith (R-Miss.), Cynthia Lummis (R-Wyo.), Rick Scott (R-Fla.), Tom Cotton (R-Ark.), Roger Marshall (R-Kan.), Roger Wicker (R-Miss.), Ted Budd (R-N.C.), Bill Cassidy (R-La.), Tim Sheehy (R-Mont.), Pete Ricketts (R-Neb.), Kevin Cramer (R-N.D.), Deb Fischer (R-Neb.), James Lankford (R-Okla.), Joni Ernst (R-Iowa), Eric Schmitt (R-Mo.), Lindsey Graham (R-S.C.) and Katie Britt (R-Ala.).

    MIL OSI USA News –

  • MIL-OSI: Hut 8 Operations Update for January 2025

    Source: GlobeNewswire (MIL-OSI)

    Infrastructure upgrades near completion in advance of expected miner deliveries

    205 MW Vega project advancing on track for Q2 2025 energization

    MIAMI, Feb. 04, 2025 (GLOBE NEWSWIRE) — Hut 8 Corp. (Nasdaq | TSX: HUT) (“Hut 8” or the “Company”), a leading, vertically integrated operator of large-scale energy infrastructure and one of North America’s largest Bitcoin miners, today released its operations update for January 2025.

    “With infrastructure upgrades for our initial fleet upgrade near completion, we believe we are well-positioned to energize new miners upon expected delivery in the coming weeks,” said Asher Genoot, CEO of Hut 8. “While these upgrades resulted in downtime during the month, we remain focused on optimizing returns from our existing fleet, leveraging Reactor to dynamically curtail operations, particularly at our Alpha site, where power prices were elevated.”

    “We continue to execute on key growth initiatives across our digital infrastructure layer. Data center construction at Vega is progressing rapidly, keeping us on schedule for energization in Q2 2025 as we prepare for the launch of our ~15 EH/s colocation agreement with BITMAIN. As we focus on AI data center development, we also advanced and expanded our development pipeline.”

    Highlights

    • Infrastructure upgrades near completion in advance of expected miner deliveries for initial fleet upgrade
    • Data center construction at Vega progressing rapidly, on track for Q2 energization (image to left)
    • Advanced AI data center development opportunities across development pipeline

    Operating Metrics

    Average during the period unless otherwise noted1 January 2025 December 2024
    Total energy capacity under management (mining)2,3,4 665 MW 665 MW
    Total deployed miners under management5 115.3K 121.4K
    Total hashrate under management6 12.7 EH/s 13.2 EH/s
         
    Self-Mining7    
    Deployed miners8,9 47.1K 53.2K
    Deployed hashrate10 5.0 EH/s 5.5 EH/s
    Bitcoin produced3,11 65 BTC 89 BTC
    Bitcoin held in reserve3,12 10,208 BTC 10,171 BTC
         
    Managed Services13    
    Energy capacity under management3 280 MW 280 MW
    Deployed miners under management9 85.7K 85.5K
    Hashrate under management 9.4 EH/s 9.4 EH/s
         
    Hosting    
    Deployed miners under management9,14 68.1K 68.2K
    Hashrate under management15 7.7 EH/s 7.7 EH/s
         

    Energy Infrastructure Platform3

            Current/Contracted Revenue Stream(s)16
    Site Location Owner17 Power
    Capacity    		 Self-
    Mining    		 Managed
    Services    		 Hosting HPC Power
    Sales
    Vega18 Texas Panhandle Hut 8 205 MW     Yes19    
    Medicine Hat Medicine Hat, AB Hut 8 67 MW Yes        
    Salt Creek Orla, TX Hut 8 63 MW Yes        
    Alpha Niagara Falls, NY Hut 8 50 MW     Yes    
    Drumheller20 Drumheller, AB Hut 8 42 MW          
    Kelowna Kelowna, BC Hut 8 1.1 MW       Yes  
    Mississauga Mississauga, ON Hut 8 0.9 MW       Yes  
    Vaughan Vaughan, ON Hut 8 0.6 MW       Yes  
    Vancouver II Vancouver, BC Hut 8 0.5 MW       Yes  
    Vancouver I Vancouver, BC Hut 8 0.3 MW       Yes  
    King Mountain21 McCamey, TX Hut 8 (JV) 280 MW Yes Yes Yes   Yes
    Iroquois Falls22 Iroquois Falls, ON Hut 8 (JV) 120 MW         Yes
    Kingston22 Kingston, ON Hut 8 (JV) 110 MW         Yes
    North Bay22 North Bay, ON Hut 8 (JV) 40 MW         Yes
    Kapuskasing22 Kapuskasing, ON Hut 8 (JV) 40 MW         Yes
    Total     1,020 MW          
                     

    Upcoming Conferences & Events

    • February 24–25, 2025: Capacity Media Metro Connect USA, Fort Lauderdale
    • February 24–28, 2025: Bitcoin Investor Week, New York
    • February 25–27, 2025: Infocast ERCOT Market Summit, Austin
    • March 3–6, 2025: Morgan Stanley Energy & Power Conference, New York

    Notes:

      (1) All figures exclude Hut 8’s managed services agreement with Ionic Digital Inc. (“Ionic”), which was terminated effective December 10, 2024.
      (2) Energy capacity under management (mining) includes (i) 180 MW of self-mining sites comprised of Alpha, Medicine Hat, and Salt Creek, (ii) 205 MW of hosting capacity at Vega, which is currently under construction, and (iii) 280 MW of capacity under management at King Mountain.
      (3) As of the end of the period.
      (4) Includes 205 MW of capacity at Vega as the site is expected to host miners for BITMAIN.
      (5) Includes all miners that are racked with power and networking, rounded to the nearest 100, in Self-Mining, Managed Services, and Hosting infrastructure with power and networking, including all miners at the King Mountain site.
      (6) Includes all Self-Mining, Managed Services, and Hosting hashrate, including 100% of the hashrate at the King Mountain site.
      (7) Self-Mining operations for Hut 8 include 100% of operations at the King Mountain site.
      (8) Deployed miners are defined as those physically racked with power and networking, rounded to the nearest 100; deployed self-mining miners net of the 50% share of the King Mountain JV held by Hut 8’s joint venture partner was 38.4K during January 2025 and 44.5K during December 2024.
      (9) Miners are rounded to the nearest 100.
      (10) Indicates the target hashrate of all deployed miners; deployed self-mining hashrate net of the 50% share of the King Mountain JV held by Hut 8’s joint venture partner was 4.7 EH/s during both January 2025 and December 2024.
      (11) Bitcoin produced net of the 50% share of the King Mountain JV held by Hut 8’s joint venture partner was 51 BTC during January 2025 and 74 BTC during December.
      (12) Includes 968 Bitcoin pledged and transferred to a third-party wallet to finance Hut’s previously announced fleet upgrade.
      (13) Managed Services includes 280 MW of capacity under management at King Mountain.
      (14) 34.1K deployed miners under management net of the 50% share of the King Mountain JV held by Hut 8’s joint venture partner during January 2025 and December 2024.
      (15) 3.8 EH/s under management net of Hut 8’s joint venture partner’s 50% share of the King Mountain JV during both January 2025 and December 2024.
      (16) Reflects revenue sources to Hut 8, its subsidiaries, and/or joint ventures in which they participate.
      (17) Owned denotes ownership of power infrastructure at owned or leased data center locations, except for HPC sites where owned denotes ownership of mechanical and electrical infrastructure at leased data center locations.
      (18) Site is currently under development.
      (19) Anticipated to begin generating revenue by Q2 2025.
      (20) Site currently shut down; Hut 8 maintaining lease with option value of re-energizing site.
      (21) Owned by a JV between Hut 8 and a Fortune 200 renewable energy producer in which Hut 8 has an approximately 50% membership interest.
      (22) Owned by a JV between Hut 8 and Macquarie in which Hut 8 has an approximately 80% membership interest.
         

    About Hut 8 

    Hut 8 Corp. is an energy infrastructure operator and Bitcoin miner with self-mining, hosting, managed services, and traditional data center operations across North America. Headquartered in Miami, Florida, Hut 8 Corp. has a portfolio comprising fifteen sites: five Bitcoin mining, hosting, and Managed Services sites in Alberta, New York, and Texas, five high performance computing data centers in British Columbia and Ontario, four power generation assets in Ontario, and one non-operational site in Alberta. For more information, visit www.hut8.com and follow us on X (formerly known as Twitter) at @Hut8Corp.

    Cautionary Note Regarding Forward–Looking Information

    This press release includes “forward-looking information” and “forward-looking statements” within the meaning of Canadian securities laws and United States securities laws, respectively (collectively, “forward-looking information”). All information, other than statements of historical facts, included in this press release that address activities, events or developments that Hut 8 expects or anticipates will or may occur in the future, including such things as future business strategy, competitive strengths, goals, expansion and growth of the business, operations, plans and other such matters is forward-looking information. Forward-looking information is often identified by the words “may”, “would”, “could”, “should”, “will”, “intend”, “plan”, “anticipate”, “allow”, “believe”, “estimate”, “expect”, “predict”, “can”, “might”, “potential”, “predict”, “is designed to”, “likely” or similar expressions. Specifically, such forward-looking information included in this press release includes statements relating to the completion of the Company’s infrastructure upgrades, the timing of the delivery and energization of Company’s initial fleet upgrade, the Company’s execution on key growth initiatives, the timing for the buildout and energization of the Company’s Vega site, and the Company’s continuing progress and expansion of its development pipeline.

    Statements containing forward-looking information are not historical facts, but instead represent management’s expectations, estimates and projections regarding future events based on certain material factors and assumptions at the time the statement was made. While considered reasonable by Hut 8 as of the date of this press release, such statements are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to, security and cybersecurity threats and hacks; malicious actors or botnet obtaining control of processing power on the Bitcoin network; further development and acceptance of the Bitcoin network; changes to Bitcoin mining difficulty; loss or destruction of private keys; increases in fees for recording transactions in the Blockchain; erroneous transactions; reliance on a limited number of key employees; reliance on third party mining pool service providers; regulatory changes; classification and tax changes; momentum pricing risk; fraud and failure related to digital asset exchanges; difficulty in obtaining banking services and financing; difficulty in obtaining insurance, permits and licenses; internet and power disruptions; geopolitical events; uncertainty in the development of cryptographic and algorithmic protocols; uncertainty about the acceptance or widespread use of digital assets; failure to anticipate technology innovations; the COVID19 pandemic, climate change; currency risk; lending risk and recovery of potential losses; litigation risk; business integration risk; changes in market demand; changes in network and infrastructure; system interruption; changes in leasing arrangements; failure to achieve intended benefits of power purchase agreements; potential for interrupted delivery, or suspension of the delivery, of energy to mining sites and other risks related to the digital asset mining and data center business. For a complete list of the factors that could affect Hut 8, please see the “Risk Factors” section of Hut 8’s Transition Report on Form 10-K, available under the Company’s EDGAR profile at www.sec.gov, and Hut 8’s other continuous disclosure documents which are available under the Company’s SEDAR+ profile at www.sedarplus.ca and EDGAR profile at www.sec.gov.

    Hut 8 Corp. Investor Relations
    Sue Ennis
    ir@hut8.com

    Hut 8 Corp. Media Relations
    media@hut8.com

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/d9acab77-45dc-4fc4-9d65-ccaa8aa90be2

    The MIL Network –