Source: Government of Sweden
Support to Ukraine is the most important priority during the Swedish Presidency of the Council of the EU. On 1–2 June, the Swedish Presidency held a high-level meeting on protecting children to highlight how Ukrainian children have been affected by Russia’s aggression, and to discuss what EU Member States can do to respond to their needs. A very large number of Member States signed a declaration at the meeting.
Source: Government of Sweden
Over seven million people in Ukraine have been forced to leave their homes and seek temporary protection from Russia’s aggression, both within Ukraine and in other European countries. The overwhelming majority are women and children. Children are often among the most vulnerable in war and conflict. Sweden and Ukraine have now entered into a cooperation agreement to continue supporting and protecting children.
Source: GlobeNewswire (MIL-OSI)
ING posts 2Q2025 net result of €1,675 million, with strong growth in lending volumes and fee income
| 2Q2025 profit before tax of €2,369 million with a CET1 ratio of 13.3% | |
| • | Well on track to reach our targets, one year into our ‘Growing the difference’ strategy |
| • | Continued strong increase in mobile primary customers of over 300,000 to 14.9 million |
| • | Resilient total income, supported by higher customer balances, with particularly strong growth of our mortgage portfolio |
| • | Further growth in fee income in both Retail and Wholesale Banking, up 12% year-on-year |
| • | ING will pay an interim cash dividend of €0.35 per ordinary share |
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CEO statement “We have seen continued commercial momentum, with significant core lending growth, continued strong deposit gathering and a double-digit increase in fee income. Commercial NII declined year-on-year due to margin pressure and currency fluctuations, leaving total income stable. “In Retail Banking, we have gained over 300,000 mobile primary customers during the quarter, and 1.1 million, or 8% growth, year-on-year, with Germany, Spain, Italy, and Romania leading this growth. Net core lending growth has reached a quarterly record of €11.3 billion, including €7.2 billion in mortgages, mainly in the Netherlands, Australia and Germany, and €3.2 billion in Business Banking, driven by higher loan demand from our SME clients. We have attracted €8.9 billion in net customer deposits, partly from seasonal holiday allowances, and achieved a 12% increase year-on-year in retail fee income, primarily from higher investment activity. “In Wholesale Banking, net core lending growth was €4.1 billion, driven by strong momentum in Working Capital Solutions and in short-term trade-related financing. Demand for long-term corporate loans has remained subdued due to economic uncertainty, which impacted total income. Fee income has risen 12% year-on-year, driven by Lending, Global Capital Markets and Payments & Cash Management. “Costs have developed as expected, increasing moderately year-on-year. Prudent expense management remains a priority and the impact of inflation and investments was partly offset by efficiency measures. As part of this, we are making ongoing improvements to our KYC processes and we have announced the restructuring of our Wholesale Banking workforce, while continuing to invest in our commercial and product capabilities in both Retail and Wholesale Banking. “Risk costs were below our through-the-cycle average, reflecting the quality of our loan portfolio. Our CET1 ratio was 13.3%, including the impact of the share buyback programme, which was announced in May 2025 and is well underway. Our 4-quarter rolling average return on equity came out at 12.7%. “We continue to find ways to support our customers on their journeys to net zero. We have increased our sustainable volume mobilised to €67.8 billion for the first half of 2025, a 19% increase compared to the first half of 2024. In the Netherlands, we have introduced a new mortgage pricing model tied to energy labels that offers lower interest rates when eligible customers improve the energy label for their homes. “We are pleased with our results during a volatile first half of 2025. Although macroeconomic conditions remain challenging we are confident that our strategy sets us on course to become the best European bank and deliver on our targets. I want to thank our customers and clients for their continued trust in us and our employees for their continued dedication.” |
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| Further information All publications related to ING’s 2Q 2025 results can be found at the quarterly results page on ING.com. For more on investor information, go to www.ing.com/investors. A short ING ON AIR video with CEO Steven van Rijswijk discussing our 2Q 2025 results is available on Youtube. |
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| Investor conference call and webcast Steven van Rijswijk, Tanate Phutrakul and Ljiljana Čortan will discuss the results in an Investor conference call on 31 July 2025 at 9:00 a.m. CET. Members of the investment community can join the conference call at +31 20 708 5074 (NL), or +44 330 551 0202 (UK) (registration required via invitation) and via live audio webcast at www.ing.com. |
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| Investor enquiries E: investor.relations@ing.com Press enquiries |
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ING PROFILE ING Group shares are listed on the exchanges of Amsterdam (INGA NA, INGA.AS), Brussels and on the New York Stock Exchange (ADRs: ING US, ING.N). ING aims to put sustainability at the heart of what we do. Our policies and actions are assessed by independent research and ratings providers, which give updates on them annually. ING’s ESG rating by MSCI was reconfirmed by MSCI as ‘AA’ in August 2024 for the fifth year. As of June 2025, in Sustainalytics’ view, ING’s management of ESG material risk is ‘Strong’ with an ESG risk rating of 18.0 (low risk). ING Group shares are also included in major sustainability and ESG index products of leading providers. Here are some examples: Euronext, STOXX, Morningstar and FTSE Russell. Society is transitioning to a low-carbon economy. So are our clients, and so is ING. We finance a lot of sustainable activities, but we still finance more that’s not. Follow our progress on ing.com/climate. IMPORTANT LEGAL INFORMATION ING Group’s annual accounts are prepared in accordance with International Financial Reporting Standards as adopted by the European Union (‘IFRS- EU’). In preparing the financial information in this document, except as described otherwise, the same accounting principles are applied as in the 2024 ING Group consolidated annual accounts. All figures in this document are unaudited. Small differences are possible in the tables due to rounding. Certain of the statements contained herein are not historical facts, including, without limitation, certain statements made of future expectations and other forward-looking statements that are based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Actual results, performance or events may differ materially from those in such statements due to a number of factors, including, without limitation: (1) changes in general economic conditions and customer behaviour, in particular economic conditions in ING’s core markets, including changes affecting currency exchange rates and the regional and global economic impact of the invasion of Russia into Ukraine and related international response measures (2) changes affecting interest rate levels (3) any default of a major market participant and related market disruption (4) changes in performance of financial markets, including in Europe and developing markets (5) fiscal uncertainty in Europe and the United States (6) discontinuation of or changes in ‘benchmark’ indices (7) inflation and deflation in our principal markets (8) changes in conditions in the credit and capital markets generally, including changes in borrower and counterparty creditworthiness (9) failures of banks falling under the scope of state compensation schemes (10) non-compliance with or changes in laws and regulations, including those concerning financial services, financial economic crimes and tax laws, and the interpretation and application thereof (11) geopolitical risks, political instabilities and policies and actions of governmental and regulatory authorities, including in connection with the invasion of Russia into Ukraine and the related international response measures (12) legal and regulatory risks in certain countries with less developed legal and regulatory frameworks (13) prudential supervision and regulations, including in relation to stress tests and regulatory restrictions on dividends and distributions (also among members of the group) (14) ING’s ability to meet minimum capital and other prudential regulatory requirements (15) changes in regulation of US commodities and derivatives businesses of ING and its customers (16) application of bank recovery and resolution regimes, including write down and conversion powers in relation to our securities (17) outcome of current and future litigation, enforcement proceedings, investigations or other regulatory actions, including claims by customers or stakeholders who feel misled or treated unfairly, and other conduct issues (18) changes in tax laws and regulations and risks of non-compliance or investigation in connection with tax laws, including FATCA (19) operational and IT risks, such as system disruptions or failures, breaches of security, cyber-attacks, human error, changes in operational practices or inadequate controls including in respect of third parties with which we do business and including any risks as a result of incomplete, inaccurate, or otherwise flawed outputs from the algorithms and data sets utilized in artificial intelligence (20) risks and challenges related to cybercrime including the effects of cyberattacks and changes in legislation and regulation related to cybersecurity and data privacy, including such risks and challenges as a consequence of the use of emerging technologies, such as advanced forms of artificial intelligence and quantum computing (21) changes in general competitive factors, including ability to increase or maintain market share (22) inability to protect our intellectual property and infringement claims by third parties (23) inability of counterparties to meet financial obligations or ability to enforce rights against such counterparties (24) changes in credit ratings (25) business, operational, regulatory, reputation, transition and other risks and challenges in connection with climate change, diversity, equity and inclusion and other ESG-related matters, including data gathering and reporting and also including managing the conflicting laws and requirements of governments, regulators and authorities with respect to these topics (26) inability to attract and retain key personnel (27) future liabilities under defined benefit retirement plans (28) failure to manage business risks, including in connection with use of models, use of derivatives, or maintaining appropriate policies and guidelines (29) changes in capital and credit markets, including interbank funding, as well as customer deposits, which provide the liquidity and capital required to fund our operations, and (30) the other risks and uncertainties detailed in the most recent annual report of ING Groep N.V. (including the Risk Factors contained therein) and ING’s more recent disclosures, including press releases, which are available on www.ING.com. This document may contain ESG-related material that has been prepared by ING on the basis of publicly available information, internally developed data and other third-party sources believed to be reliable. ING has not sought to independently verify information obtained from public and third-party sources and makes no representations or warranties as to accuracy, completeness, reasonableness or reliability of such information. Materiality, as used in the context of ESG, is distinct from, and should not be confused with, such term as defined in the Market Abuse Regulation or as defined for Securities and Exchange Commission (‘SEC’) reporting purposes. Any issues identified as material for purposes of ESG in this document are therefore not necessarily material as defined in the Market Abuse Regulation or for SEC reporting purposes. In addition, there is currently no single, globally recognized set of accepted definitions in assessing whether activities are “green” or “sustainable.” Without limiting any of the statements contained herein, we make no representation or warranty as to whether any of our securities constitutes a green or sustainable security or conforms to present or future investor expectations or objectives for green or sustainable investing. For information on characteristics of a security, use of proceeds, a description of applicable project(s) and/or any other relevant information, please reference the offering documents for such security. This document may contain inactive textual addresses to internet websites operated by us and third parties. Reference to such websites is made for information purposes only, and information found at such websites is not incorporated by reference into this document. ING does not make any representation or warranty with respect to the accuracy or completeness of, or take any responsibility for, any information found at any websites operated by third parties. ING specifically disclaims any liability with respect to any information found at websites operated by third parties. ING cannot guarantee that websites operated by third parties remain available following the publication of this document, or that any information found at such websites will not change following the filing of this document. Many of those factors are beyond ING’s control. Any forward-looking statements made by or on behalf of ING speak only as of the date they are made, and ING assumes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information or for any other reason. This document does not constitute an offer to sell, or a solicitation of an offer to purchase, any securities in the United States or any other jurisdiction. |
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Attachment
Source: GlobeNewswire (MIL-OSI)
| THE GROUP IS ACCELERATING ITS DEVELOPMENT | |||||||||
| CRÉDIT AGRICOLE S.A. | CRÉDIT AGRICOLE GROUP | ||||||||
| €m | Q2 2025 | Change Q2/Q2 | Q2 2025 | Change Q2/Q2 | |||||
| Revenues | 7,006 | +3.1% | 9,808 | +3.2% | |||||
| Expenses | -3,700 | +2.2% | -5,872 | +3.2% | |||||
| Gross Operating Income | 3,306 | +4.1% | 3,936 | +3.1% | |||||
| Cost of risk | -441 | +4.2% | -840 | -3.7% | |||||
| Net income group share | 2,390 | +30.7% | 2,638 | +30.1% | |||||
| C/I ratio | 52.8% | -0.5 pp | 59.9% | +0.0 pp | |||||
STRONG ACTIVITY IN ALL BUSINESS LINES
CONTINUOUS FLOW OF STRATEGIC OPERATIONS
HALF-YEARLY AND QUARTERLY RESULTS AT THEIR HIGHEST
HIGH SOLVENCY RATIOS
CONTINUOUS SUPPORT FOR TRANSITIONS, WITH AN AWARD FROM EUROMONEY
PRESENTATION OF THE MEDIUM-TERM PLAN ON 18 NOVEMBER 2025 |
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Dominique Lefebvre, “The high-level results we are publishing this quarter serve our usefulness to the economy and European sovereignty.” |
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Olivier Gavalda, “With this high level of results, we are confident in Crédit Agricole S.A.’s ability to achieve a net profit in 2025 higher than 2024, excluding the corporate tax surcharge. These results constitute a solid foundation for Crédit Agricole S.A.’s medium-term strategic plan, which will be unveiled on November 18, 2025.” |
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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 63.5% of Crédit Agricole S.A.
All financial data are now presented stated for Crédit Agricole Group, Crédit Agricole S.A. and the business lines results, both for the income statement and for the profitability ratios.
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. In the second quarter of 2025, the Group recorded +493,000 new customers in retail banking. More specifically, over the year, the Group gained 391,000 new customers for Retail Banking in France and 102,000 new International Retail Banking customers (Italy and Poland). At 30 June 2025, in retail banking, on-balance sheet deposits totalled €838 billion, up +0.6% year-on-year in France and Italy (+0.7% for Regional Banks and LCL and +0.3% in Italy). Outstanding loans totalled €885 billion, up +1.4% year-on-year in France and Italy (+1.4% for Regional Banks and LCL and +1.6% in Italy). Housing loan production continued its upturn in France compared to the low point observed at the start of 2024, with an increase of +28% for Regional Banks and +24% for LCL compared to the second quarter of 2024. For CA Italia, loan production was down -8.1% compared to the high second quarter of 2024. The property and casualty insurance equipment rate (2) rose to 44.2% for the Regional Banks (+0.7 percentage points compared to the second quarter of 2024), 28.4% for LCL (+0.6 percentage point) and 20.6% for CA Italia (+0.9 percentage point).
In Asset Management, quarterly inflows were very high at +€20 billion, fuelled by medium/long-term assets (+€11 billion) and JVs (+€10 billion). In insurance, savings/retirement gross inflows rose to a record €9.9 billion over the quarter (+22% year-on-year), with the unit-linked rate in production staying at a high 32%. Net inflows were at a record level at +€4.2 billion, spread evenly between euro-denominated funds and unit-linked contracts. The strong performance in property and casualty insurance was driven by price changes and portfolio growth (16.9 million contracts at end-June 2025, +3% year-on-year). Assets under management stood at €2,905 billion, up +5.2% year on year for the three business segments: in asset management at €2,267 billion (+5.2% year on year) despite a negative scope effect linked to the deconsolidation of Amundi US and the integration of Victory, in life insurance at €359 billion (+6.4% year on year) and in wealth management (Indosuez Wealth Management and LCL Private Banking) at €279 billion (+3.7% year on year).
Business in the SFS division showed strong activity. At CAPFM, consumer finance outstandings increased to €121.0 billion, up +4.5% compared with end-June 2024, with car loans representing 53% (3) of total outstandings, and new loan production up by +2.4% compared with the second quarter of 2024 (+12.4% compared to the first quarter of 2025), driven by traditional consumer finance, but with the automotive market remaining complex in Europe and China. Regarding Crédit Agricole Leasing & Factoring (CAL&F), lease financing outstandings are up +5.0% compared to June 2024 to €20.8 billion; however, production is down -19.4% compared to the second quarter of 2024, mainly in France. Factoring activity remains very strong, with a production of +26.6% year on year.
Momentum is strong in Large Customers, which again posted record revenues for the half-year in Corporate and Investment Banking and a high-level quarter. Capital markets and investment banking showed a high level of revenues driven by capital markets, especially from trading and primary credit activities, which partially offset the drop in revenues from structured equity activities. Financing activities are fuelled by structured financing with strong momentum in the renewable energy sector, and by CLF activities, driven by the acquisition financing sector. Lastly, Asset Servicing recorded a high level of assets under custody of €5,526 billion and assets under administration of €3,468 billion (+11% and +1.2%, respectively, compared with the end of June 2024), with good sales momentum and positive market effects over the quarter.
Continued support for the energy transition
The Group is continuing the mass roll-out of financing and investment to promote the transition. Thus, the exposure of Crédit Agricole Group (4) has increased 2.4 fold between 2020 and 2024 with €26.3 billion at 31 December 2024. Investments in low-carbon energy (5) increased 2.8 fold between end-2020 and June 2025, and represented €6.1 billion at 30 June 2025.
At the same time, as a universal bank, Crédit Agricole is supporting the transition of all its customers. Thus, outstandings related to the environmental transition (6) amounted to €111 billion at 31 March 2025, including €83 billion for energy-efficient property and €6 billion for “clean” transport and mobility.
In addition, the Group is continuing to move away from carbon energy financing; the Group’s phased withdrawal from financing fossil fuel extraction resulted in a -40% decrease in exposure in the period 2020 to 2024, equating to €5.6 billion at 31 December 2024.
In the field of sustainable finance, Crédit Agricole was named World’s Best Bank for Sustainable Finance at the Euromoney Awards for Excellence 2025.
Group results
In the second quarter of 2025, Crédit Agricole Group’s net income Group share came to €2,638 million, up +30.1% compared to the second quarter of 2024, and up +14.8% excluding capital gains related to the deconsolidation of Amundi US.
In the second quarter of 2025, revenues amounted to €9,808 million, up +3.2% compared to the second quarter of 2024. Operating expenses were up +3.2% in the second quarter of 2025, totalling -€5,872 million. Overall, Credit Agricole Group saw its cost/income ratio reach 59.9% in the second quarter of 2025, stable compared to the second quarter of 2024. As a result, the gross operating income stood at €3,936 million, up +3.1% compared to the second quarter of 2024.
The cost of credit risk stood at -€840 million, a decrease of -3.7% compared to the second quarter of 2024. It includes a reversal of +€24 million on performing loans (stage 1 and 2) linked to reversals for model updates which offset the updating of macroeconomic scenarios and the migration to default of some loans. The cost of proven risk shows an addition to provisions of -€845 million (stage 3). There was also an addition of -€18 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 second quarter were updated, with a central scenario (French GDP at +0.8% in 2025, +1.4% in 2026) an unfavourable scenario (French GDP at +0.0% in 2025 and +0.6% in 2026) and an adverse scenario (French GDP at -1.9% in 2025 and -1.4% in 2026). The cost of risk/outstandings (7)reached 27 basis points over a four rolling quarter period and 28 basis points on an annualised quarterly basis (8).
Pre-tax income stood at €3,604 million, a year-on-year increase of +19.6% compared to second quarter 2024. This includes the contribution from equity-accounted entities of €56 million (down -24.0%) and net income on other assets, which came to +€452 million this quarter, due to a capital gain of €453 million on the deconsolidation of Amundi US. The tax charge was -€615 million, down +€147 million, or -19.3% over the period.
Net income before non-controlling interests was up +32.8% to reach €2,990 million. Non-controlling interests increased by +57%, a share of the capital gain on the deconsolidation of Amundi US being reversed to non-controlling interests.
Net income Group share in first half 2025 amounted to €4,803 million, compared with €4,412 million in first half 2024, an increase of +8.9%.
Revenues totalled €19,856 million, up +4.3% in first half 2025 compared with first half 2024.
Operating expenses amounted to -€11,864 million up +5.2% compared to the first half of 2024, especially due to support for business development, IT expenditure and the integration of scope effects. The cost/income ratio for the first half of 2025 was 59.8%, up +0.5 percentage points compared to the first half of 2024.
Gross operating income totalled €7,992 million, up +3.0% compared to the first half of 2024.
Cost of risk for the half-year rose moderately to -€1,575 million (of which -€23 million in cost of risk on performing loans (stage 1 and 2), -€1,522 million in cost of proven risk, and +€29 million in other risks, i.e. an increase of +3.4% compared to first half 2024.
As at 30 June 2025, risk indicators confirm the high quality of Crédit Agricole Group’s assets and risk coverage level. The prudent management of these loan loss reserves has enabled the Crédit Agricole Group to have an overall coverage ratio for doubtful loans (83.3% at the end of June 2025).
Net income on other assets stood at €456 million in first half 2025, vs. -€14 million in first half 2024. Pre-tax income before discontinued operations and non-controlling interests rose by +10.1% to €7,004 million. The tax charge stood at -€1,66 million, a +9.1% increase. This change is related to the exceptional corporate income tax for -€250 million (corresponding to an estimation of -€330 million in 2025, assuming the 2025 fiscal result being equal to 2024 fiscal result).
Underlying net income before non-controlling interests was therefore up by +10.4%. Non-controlling interests stood at -€545 million in the first half of 2024, up +26.1%, a share of the capital gain on the deconsolidation of Amundi US being reversed to non-controlling interests.
Credit Agricole Group, Income statement Q2 and H1 2025
| En m€ | Q2-25 | Q2-24 | ∆ Q2/Q2 | H1-25 | H1-24 | ∆ H1/H1 | |
| Revenues | 9,808 | 9,507 | +3.2% | 19,856 | 19,031 | +4.3% | |
| Operating expenses | (5,872) | (5,687) | +3.2% | (11,864) | (11,276) | +5.2% | |
| Gross operating income | 3,936 | 3,819 | +3.1% | 7,992 | 7,755 | +3.0% | |
| Cost of risk | (840) | (872) | (3.7%) | (1,575) | (1,523) | +3.4% | |
| Equity-accounted entities | 56 | 74 | (24.0%) | 131 | 142 | (7.9%) | |
| Net income on other assets | 452 | (7) | n.m. | 456 | (14) | n.m. | |
| Change in value of goodwill | – | – | n.m. | – | – | n.m. | |
| Income before tax | 3,604 | 3,014 | +19.6% | 7,004 | 6,361 | +10.1% | |
| Tax | (615) | (762) | (19.3%) | (1,656) | (1,517) | +9.1% | |
| Net income from discontinued or held-for-sale ope. | 0 | – | n.m. | 0 | – | n.m. | |
| Net income | 2,990 | 2,252 | +32.8% | 5,348 | 4,843 | +10.4% | |
| Non controlling interests | (352) | (224) | +57.0% | (545) | (432) | +26.1% | |
| Net income Group Share | 2,638 | 2,028 | +30.1% | 4,803 | 4,412 | +8.9% | |
| Cost/Income ratio (%) | 59.9% | 59.8% | +0.0 pp | 59.8% | 59.2% | +0.5 pp |
Regional banks
Gross customer capture stands at +285,000 new customers. The percentage of customers using their current accounts as their main account is increasing and the share of customers using digital tools remains at a high level. Credit market share (total credits) stood at 22.6% (at the end of March 2025, source: Banque de France), stable compared to March 2024. Loan production is up +18.8% compared to the second quarter of 2024, linked to the confirmed upturn in housing loans, up +28.3% compared to the second quarter of 2024 and +10% compared to the first quarter of 2025, and also driven by specialised markets up +13.4% compared to the second quarter of 2024. The average lending production rate for home loans stood at 3.02% (9), -16 basis points lower than in the first quarter of 2025. By contrast, the global loan stock rate improved compared to the second quarter of 2024 (+7 basis points). Outstanding loans totalled €652 billion at the end of June 2025, up by +1.2% year-on-year across all markets and up slightly by +0.5% over the quarter. Customer assets were up +2.8% year-on-year to reach €923.3 billion at the end of June 2025. This growth was driven both by on-balance sheet deposits, which reached €606.1 billion (+0.8% year-on-year), and off-balance sheet deposits, which reached €317.2 billion (+7.1% year-on-year) benefiting from strong inflows in life insurance. Over the quarter, demand deposits drove customer assets with an increase of +2.0% compared to the first quarter of 2025, while term deposits decreased by -0.4%. The market share of on-balance sheet deposits is up compared to last year and stands at 20.2% (Source Banque de France, data at the end of March 2025, i.e. +0.1 percentage points compared to March 2024). The equipment rate for property and casualty insurance (10) was 44.2% at the end of June 2025 and is continuing to rise (up +0.7 percentage points compared to the end of June 2024). In terms of payment instruments, the number of cards rose by +1.5% year-on-year, as did the percentage of premium cards in the stock, which increased by 2.2 percentage points year-on-year to account for 17.8% of total cards.
In the second quarter of 2025, the Regional Banks’ consolidated revenues including the SAS Rue La Boétie dividend stood at €5,528 million, up +4.2% compared to the second quarter of 2024, including the reversal of Home Purchase Saving Plans provisions in the second quarter of 2025 for €16.3 million and in the second quarter of 2024 for +€22 million (11). Excluding this item, revenues were up +4.3% compared to the second quarter of 2024, fuelled by the increase in fee and commission income (+1.9%), driven by insurance, account management and payment instruments, and by portfolio revenues (+9.2%) benefiting from the increase in dividends traditionally paid in the second quarter of each year. In addition, the intermediation margin was slightly down over one year (-2.5%) but remained stable compared to the first quarter of 2025. Operating expenses were up +5.1%, especially relating to IT expenditure. Gross operating income was up year-on-year (+3.4%). The cost of risk was down -13.3% compared with the second quarter of 2024 to -€397 million. The cost of risk/outstandings (over four rolling quarters) was stable compared to the first quarter of 2025, at a controlled level of 21 basis points. Thus, the net pre-tax income was up +7.3% and stood at €2,482 million. The consolidated net income of the Regional Banks stood at €2,375 million, up +5.0% compared with the second quarter of 2024. Lastly, the Regional Banks’ contribution to net income Group share was €182 million in the second quarter of 2025, down -12.7% compared to the second quarter of 2024.
In the first half 2025, revenues including the dividend from SAS Rue La Boétie were up (+3.1%) compared to the first half of 2024. Operating expenses rose by +3.4%, and gross operating income consequently grew by +2.6% over the first half. Finally, with a cost of risk up slightly by +1.4%, the Regional banks’ net income Group share, including the SAS Rue La Boétie dividend, amounted to €2,721 million, up +0.7% compared to the first half of 2024. Finally, the Regional Banks’ contribution to the results of Crédit Agricole Group in first half 2025 amounted to €523 million (-19.6%) with revenues of €6,716 million (+2.2%) and a cost of risk of -€717 million (+3.7%).
Crédit Agricole S.A.
Results
Crédit Agricole S.A.’s Board of Directors, chaired by Dominique Lefebvre, met on 30 July 2025 to examine the financial statements for the second quarter of 2025.
In the second quarter of 2025, Crédit Agricole S.A.’s net income Group share amounted to €2,390 million, an increase of +30.7% from the second quarter of 2024. The results of the second quarter of 2025 are based on high revenues, a cost/income ratio maintained at a low level and a controlled cost of risk. They were also favourably impacted by the change in corporate income tax, and the capital gain related to the deconsolidation of Amundi US.
Revenues are at a high level and increasing. Revenues totalled €7,006 million, up +3.1% compared to the second quarter of 2024. The growth in the Asset Gathering division (+1.3%) is related to strong activity in Insurance, the impact of volatility and risk aversion of customers for Amundi, the deconsolidation of Amundi US (-€89 million) and the integration of Degroof Petercam (+€96 million). Revenues for Large Customers are stable and stood at a high level both for Crédit Agricole CIB and CACEIS. Specialised Financial Services division revenues (-1.0%) were impacted by a positive price effect in the Personal Finance and Mobility business line and by a cyclical drop in margins on factoring. Revenues for Retail Banking in France (-0.3%) were impacted by an unfavourable base effect on the interest margin, offset by good momentum in fee and commission income. Finally, international retail banking revenues (-1.9%) were mainly impacted by the reduction in the intermediation margin in Italy, partially offset by good momentum in fee and commission income over all the entities of the scope. Corporate Centre revenues were up +€214 million, positively impacted by Banco BPM (+€109 million, mainly related to the increase in dividends received).
Operating expenses totalled -€3,700 million in the second quarter of 2025, an increase of +2.2% compared to the second quarter of 2024. The -€80 million increase in expenses between the second quarter of 2024 and the second quarter of 2025 was mainly due to -€25 million in scope effect and integration costs, (especially including -€51 million related to the deconsolidation of Amundi US, +€89 million related to the integration of Degroof Petercam and -€20 million related to the reduction in ISB integration costs into CACEIS) and +€58 million due to a positive base effect related to the contribution on the DGS (deposit guarantee fund in Italy).
The cost/income ratio thus stood at 52.8% in the second quarter of 2025, an improvement of -0.5 percentage point compared to second quarter 2024. Gross operating income in the second quarter of 2025 stood at €3,306 million, an increase of +4.1% compared to the second quarter of 2024.
As at 30 June 2025, risk indicators confirm the high quality of Crédit Agricole S.A.’s assets and risk coverage level. The Non Performing Loans ratio showed little change from the previous quarter and remained low at 2.3%. The coverage ratio (12) was high at 72.2%, down -2.8 percentage points over the quarter. Loan loss reserves amounted to €9.4 billion for Crédit Agricole S.A., relatively unchanged from the end of March 2025. Of these loan loss reserves, 35.3% were for provisioning for performing loans.
The cost of risk was a net charge of -€441 million, up +4.2% compared to the second quarter of 2024, and came mainly from a provision for non-performing loans (level 3) of -€524 million (compared to a provision of -€491 million in the second quarter of 2024). Net provisioning on performing loans (stages 1 and 2) is a reversal of +€91 million, compared to a reversal of +€31 million in the second quarter of 2024, and includes reversals for model effects and the migration to default of some loans, which offset the prudential additions to provisions for updating macroeconomic scenarios. Also noteworthy is an addition to provisions of -€8 million for other items (legal provisions) versus a reversal of +€37 million in the second quarter of 2024. By business line, 53% of the net addition for the quarter came from Specialised Financial Services (50% at end-June 2024), 21% from LCL (22% at end-June 2024), 14% from International Retail Banking (17% at end-June 2024), 4% from Large Customers (9% at end-June 2024) and 5% from the Corporate Centre (1% at end-June 2024). 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 second quarter were updated, with a central scenario (French GDP at +0.8% in 2025, +1.4% in 2026) an unfavourable scenario (French GDP at +0.0% in 2025 and +0.6% in 2026) and an adverse scenario (French GDP at -1.9% in 2025 and -1.4% in 2026). In the second quarter of 2025, the cost of risk/outstandings remained stable at 34 basis points over a rolling four quarter period (13) and 32 basis points on an annualised quarterly basis (14).
The contribution of equity-accounted entities stood at €30 million in second quarter 2025, down -€17 million compared to second quarter 2024, or -35.1%. This drop is related to the impairment of goodwill of a stake in CAL&F and non-recurring items especially the drop in remarketing revenues at CAPFM, offset by the impact of the first consolidation of Victory Capital (+€20 million). The net income on other assets was €455 million in the second quarter of 2025 and includes the capital gain related to the deconsolidation of Amundi US of €453 million. Pre-tax income, discontinued operations and non-controlling interests therefore increased by +19% to €3,350 million.
The tax charge was -€541 million, versus -€704 million for the second quarter 2024. This quarter’s tax includes positive elements, especially the non-taxation of the capital gain linked to the deconsolidation of Amundi US. The tax charge for the quarter remains estimated and will be reassessed by the end of the year.
Net income before non-controlling interests was up +33.1% to €2,809 million. Non-controlling interests stood at -€420 million in the second quarter of 2025, up +48.7%, a share of the capital gain on the deconsolidation of Amundi US being reversed to non-controlling interests.
Stated net income Group share in the first half of 2024 amounted to €4,213 million, compared with €3,731 million in the first half of 2024, an increase of +12.9%.
Revenues increased +4.9% compared to the first half of 2024, driven by the performance of the Asset Gathering, Large Customers, and Specialised Financial Services business lines and the Corporate Centre. Operating expenses were up +5.5% compared to the first half of 2024, especially in connection with supporting the development of business lines and the integration of scope effects. The cost/income ratio for the first half of the year was 53.9%, an improvement of 0.3 percentage points compared to first half 2024. Gross operating income totalled €6,571 million, up +4.1% compared to first half 2024. The cost of risk increased by +3.8% over the period, to -€-855 million, versus -€824 million for first half 2024.
The contribution of equity-accounted entities stood at €77 million in first half 2025, down -€13 million compared to first half 2024, or -14.1%. Net income from other assets was €456 million in the first half of 2025. Pre-tax income, discontinued operations and non-controlling interests therefore increased by +11.9% to €6,250 million. The tax charge was -€1,368 million, versus -€1,315 million for first half 2024. This includes the exceptional corporate income tax of -€152 million, corresponding to an estimation of -€200 million in 2025 (assuming 2025 fiscal result being equal to 2024 fiscal result). Net income before non-controlling interests was up +14.3% to €4,882 million. Non-controlling interests stood at -€669 million in first half 2025, up +23.5% compared to first half 2024.
Earnings per share stood at €0.74 per share in the second quarter 2025, versus €0.58 in the second quarter 2024.
RoTE (15), which is calculated on the basis of an annualised net income Group share (16) and IFRIC charges, additional corporate tax charge and the capital gain on deconsolidation of Amundi US 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 16.7% in the first half of 2024, up +1.3 percentage points compared to the first half of 2024.
Crédit Agricole S.A. – Income statement, Q2 and H1-25
| En m€ | Q2-25 | Q2-24 | ∆ Q2/Q2 | H1-25 | H1-24 | ∆ H1/H1 | |
| Revenues | 7,006 | 6,796 | +3.1% | 14,263 | 13,602 | +4.9% | |
| Operating expenses | (3,700) | (3,621) | +2.2% | (7,691) | (7,289) | +5.5% | |
| Gross operating income | 3,306 | 3,175 | +4.1% | 6,571 | 6,312 | +4.1% | |
| Cost of risk | (441) | (424) | +4.2% | (855) | (824) | +3.8% | |
| Equity-accounted entities | 30 | 47 | (35.2%) | 77 | 90 | (14.1%) | |
| Net income on other assets | 455 | 15 | x 29.4 | 456 | 9 | x 50.7 | |
| Change in value of goodwill | – | – | n.m. | – | – | n.m. | |
| Income before tax | 3,350 | 2,814 | +19.0% | 6,250 | 5,587 | +11.9% | |
| Tax | (541) | (704) | (23.2%) | (1,368) | (1,315) | +4.0% | |
| Net income from discontinued or held-for-sale ope. | 0 | – | n.m. | 0 | – | n.m. | |
| Net income | 2,809 | 2,110 | +33.1% | 4,882 | 4,273 | +14.3% | |
| Non-controlling interests | (420) | (282) | +48.7% | (669) | (542) | +23.5% | |
| Net income Group Share | 2,390 | 1,828 | +30.7% | 4,213 | 3,731 | +12.9% | |
| Earnings per share (€) | 0.74 | 0.58 | +29.1% | 1.30 | 1.08 | +20.3% | |
| Cost/Income ratio (%) | 52.8% | 53.3% | -0.5 pp | 53.9% | 53.6% | +0.3 pp |
Analysis of the activity and the results of Crédit Agricole S.A.’s divisions and business lines
Activity of the Asset Gathering division
At end-June 2025, the assets under management of the Asset Gathering (AG) division stood at €2,905 billion, up +€27 billion over the quarter (i.e. +1%), mainly due to positive net inflows in asset management, and insurance, and a positive market and foreign exchange effect over the period. Over the year, assets under management rose by +5.2%.
Insurance activity (Crédit Agricole Assurances) was very strong, with total revenues at a high level of €12.7 billion, up +17.9% compared to second quarter 2024.
In Savings/Retirement, second quarter 2025 revenues reached €9.9 billion, up +22.3% compared to second quarter 2024, in a buoyant environment, especially in France. Unit-linked rate in gross inflows(17) is stable year-on-year at 32.0%. The net inflows reached a record +€4.2 billion (+€2.7 billion compared to the second quarter of 2024), comprised of +€2.4 billion net inflows from euro funds and +€1.8 billion from unit-linked contracts.
Assets under management (savings, retirement and funeral insurance) continued to grow and came to €359.4 billion (up +€21.5 billion year-on-year, or +6.4%). The growth in outstandings was driven by the very high level of quarterly net inflows and favourable market effects. Unit-linked contracts accounted for 30.2% of outstandings, up +0.6 percentage points compared to the end of June 2024.
In property and casualty insurance, premium income stood at €1.4 billion in the second quarter of 2025, up +9.3% compared to the second quarter of 2024. Growth stemmed from a price effect, with the increase in the average premium benefiting from revised rates induced by climate change and inflation in repair costs as well as changes in the product mix, and a volume effect, with a portfolio of over €16.9 million (18) policies at the end of June 2025 (or +2.8% over the year). Lastly, the combined ratio at the end of June 2025 stood at 94.7% (19), stable year-on-year and an improvement of +1.4 percentage points compared to the last quarter.
In death & disability/creditor insurance/group insurance, premium income for the second quarter of 2025 stood at €1.4 billion, down slightly by -0.6% compared to the second quarter of 2024. Individual death & disability showed growth of +7.1% related to the increase in the average amount of guarantees. Creditor insurance showed a drop in activity of -4.3% over the period, especially related to international consumer finance. Group insurance was slightly up at +2.2%.
In Asset Management (Amundi), assets under management by Amundi increased by +0.9% and +5.2% respectively over the quarter and the year, reaching a new record of €2,267 billion at the end of June 2025. They take into account the first integration of Victory Capital over the quarter with a scope effect of -€9.7 billion (effect of the deconsolidation of Amundi US for -€70 billion and the integration of Victory for +€60 billion). US business assets amount to €94 billion at end-June 2025, including €36 billion of assets distributed by Amundi to non-US customers (fully integrated) and €58 billion of assets distributed by Victory to US customers (26% share). In addition to the scope effect, assets benefited from a high level of inflows over the quarter (+€20.5 billion) a positive market effect of +€57 billion, and a strong negative exchange rate impact of -€48 billion related to the drop in the US dollar and Indian rupee. Net inflows are balanced between medium/long term assets (+€11 billion) and JVs (+€10 billion). The Institutionals segment also recorded net inflows of +€8.7 billion over the quarter, driven by strong seasonal activity in employee savings (+€4 billion in MLT assets). The JV segment showed net inflows of €10.3 billion over the period, with an upturn of inflows in India and a confirmed recovery in China. Finally, the retail segment showed net inflows of €1.4 billion over the quarter.
In Wealth management, total assets under management (CA Indosuez Wealth Management and LCL Private Banking) amounted to €279 billion at the end of June 2025, and were up +3.7% compared to June 2024 and stable compared to March 2025.
For Indosuez Wealth Management assets under management at the end of June stood at €214 billion (20), up +0.4% compared to the end of March 2025, with slightly negative net inflows of -€0.1 billion. Production is supported by structured products and mandates, partially offsetting the outflow especially linked to liquidity events of large customers. The market and foreign exchange impact of the quarter is positive at €1 billion. Compared to end-June 2024, assets are up by +€9 billion, or +4.5%. Also noteworthy is the announcement of the Banque Thaler acquisition project in Switzerland on 4 April 2025 and that of the plan to acquire the Wealth Management customers of BNP Paribas Group in Monaco on 23 June 2025.
Results of the Asset Gathering division
In the second quarter of 2025, Asset Gathering generated €1,970 million of revenues, up +1.3% compared to the second quarter of 2024. Expenses increased +6.2% to -€864 million and gross operating income came to €1,106 million, -2.2% compared to the second quarter of 2024. The cost/income ratio for the second quarter of 2025 stood at 43.8%, up +2.0 percentage points compared to the same period in 2024. Equity-accounted entities showed a contribution of €58 million, up +77.4%, especially in relation to the first integration of the contribution of Victory Capital of 26% over this quarter in the Asset Management division for €20 million. The net income on other assets is impacted by the recognition of a capital gain of €453 million also related to the partnership with Victory Capital. Consequently, pre-tax income was up by +40.1% and stood at €1,610 million in the second quarter of 2025. The net income Group share showed an increase of +49.3% to €1,100 million.
In the first semester of 2025, the Asset Gathering division generated revenues of €4,028 million, up +7.9% compared to first half 2024. Expenses increased by +14.8%. As a result, the cost/income ratio stood at 44.7%, up +2.7 percentage points compared to the first half of 2024. Gross operating income stood at €2,229 million, a increase of +2.9% compared to first half 2024. Equity-accounted entities showed a contribution of €86 million, up +39.4%, especially in relation to the first integration of the contribution of Victory Capital of 26% over the second quarter of 2025 in the Asset Management division. The net income on other assets is impacted by the recognition of a capital gain of €453 million also related to the partnership with Victory Capital in second quarter 2025. Taxes stood at €601 million, a +19.8% increase. Net income Group share of the Asset Gathering division includes the additional corporate tax charge in France and amounted to €1,780 million, up +22.5% compared to the first half of 2024. The increase affected all the business lines of the division, (+66.1% for Asset Management, +0.8% for Insurance and +92.3% for Wealth Management).
In the second quarter of 2025, the Asset Gathering division contributed by 41% to the net income Group share of the Crédit Agricole S.A. core businesses and 28% to revenues (excluding the Corporate Centre division).
As at 30 June 2025, equity allocated to the division amounted to €13.2 billion, including €10.6 billion for Insurance, €1.9 billion for Asset Management, and €0.7 billion for Wealth Management. The division’s risk weighted assets amounted to €51.4 billion, including €24.0 billion for Insurance, €19.7 billion for Asset Management and €7.7 billion for Wealth Management.
Insurance results
In the second quarter of 2025, insurance revenues amounted to €790 million, up +2.1% compared to the second quarter of 2024. They are supported by Savings/Retirement in relation to the growth in activity and a positive financial result over the period, Property & Casualty which benefits from a good level of activity and financial results, and by the performance of Death & Disability, which offsets a tightening of technical margins in creditor. Revenues for the quarter included €587 million from savings/retirement and funeral insurance (21), €89 million from personal protection (22) and €114 million from property and casualty insurance (23).
The Contractual Service Margin (CSM) totalled €26.8 billion at the end of June 2025, an increase of +6.3% compared to the end of December 2024. It benefited from a contribution of new business greater than the CSM allocation and a positive market effect. The annualised CSM allocation factor was 8.0% at end-June 2025.
Non-attributable expenses for the quarter stood at -€87 million, down -0.9% over the second quarter of 2024. As a result, gross operating income reached €703 million, up +2.5% compared to the same period in 2024. The net pre-tax income was up +2.2% and stood at €703 million. The tax charge totalled €143 million, down -19.9% during the period. Net income Group share stood at €557 million, up +12.6% compared to the second quarter of 2024.
Revenues from insurance in the first half of 2025 came to €1,517 million, up +1.5% compared to the first half of 2024. Gross operating income stood at €1,335 million, up +1.4% compared to the first half of 2024. Non-attributable expenses came to €182 million, i.e. an increase of +2.0%. The cost/income ratio is thus 12.0%, below the target ceiling set by the Medium-Term Plan of 15%. The net income Group share includes the additional corporate tax charge in France and reached €997 million, up +0.8% compared to first half 2024.
Insurance contributed 23% to the net income Group share of Crédit Agricole S.A.’s business lines (excluding the Corporate Centre division) at end-June 2025 and 10% to their revenues (excluding the Corporate Centre division).
Asset Management results
In the second quarter of 2025, revenues amounted to €771 million, showing a fall of -10.8% compared to the second quarter of 2024. The deconsolidation of Amundi US (previously fully consolidated) and the integration of Victory Capital (at 26% on the equity-accounted entities line) took effect this quarter. As a result, restated for this scope effect,(24), revenues were stable (-0.6%) compared with the second half of 2024. Net management fee and commission income was up +1.0% (25) compared with second quarter 2024. Amundi Technology’s revenues recorded a significant increase and rose +50% over the second quarter of 2024, thanks to the integration of Aixigo (the European leader in Wealth Tech, the acquisition of which was finalised in November 2024) which amplified the continued strong organic growth. Performance fee income fell -29%25 from the second quarter of 2024 due to market volatility and financial revenues fell in connection with the drop in rates. Operating expenses amounted to -€429 million, a decline of -8.8% from the second quarter of 2024. Excluding the scope effect related to the Victory Capital partnership24, they were up +2.2% over the period. The cost/income ratio was up at 55.7% (+1.2 percentage points compared to second quarter 2024). Gross operating income stood at €341 million, down -13.2% compared to the second quarter of 2024. The contribution of the equity-accounted entities, carrying the contribution of Amundi’s Asian joint ventures as well as the new contribution of Victory Capital starting this quarter, was €58 million (+€20 million of which for Victory Capital, whose contribution is recognised with an offset of one quarter, so excluding the synergies already realised in the second quarter of 2025; the contribution of the joint ventures rose sharply to +16.6%, particularly in India), an increase of +77.4% over the second quarter of 2024. Net income on other assets was impacted by the recognition of a non-monetary capital gain of €453 million, also related to the partnership with Victory Capital, over the second quarter of 2025. Consequently, pre-tax income came to €850 million, double the second quarter of 2024. Non-controlling interests were impacted by the partnership with Victory Capital and amounted to €249 million over the quarter. Net income Group share amounted to €506 million, up sharply (x2.3) compared to the second quarter of 2024, taking account of the impact of the partnership with Victory Capital.
Over the first half of 2025, revenues remained stable at €1,663 million (-0.3%). Excluding the scope effect related to the partnership with Victory Capital in the second quarter of 2025, it would represent an increase of +5.3% over the period. Operating expenses posted a slight increase of +0.7%. Excluding the scope effect related to the partnership with Victory Capital, they would increase +5.3% over the period. The cost/income ratio was 55.7%, an increase of +0.5 percentage points compared to first half 2024. This resulted in a -1.5% decline in gross operating income from the first half of 2024. The income of the equity-accounted entities rose +39.4%, primarily reflecting the first integration of the Victory Capital contribution over second quarter 2025. Net income on other assets was impacted by the recognition of a non-monetary capital gain of €453 million also related to the partnership with Victory Capital over the second quarter of 2025. In total, net income Group share for the half includes the additional corporate tax charge in France and stood at €689 million, an increase of +66.1%.
Asset management contributed 16% to the underlying net income Group share of Crédit Agricole S.A.’s core businesses (excluding the Corporate Centre division) at end June 2025 and by 12% to their underlying revenues.
At 30 June 2025, equity allocated to the Asset Management business line amounted to €1.9 billion, while risk weighted assets totalled €19.7 billion.
Wealth Management results (26)
In the second quarter of 2025, revenues from wealth management amounted to €409 million, up +33.3% compared to the second quarter of 2024, benefiting from the impact of the integration of Degroof Petercam in June 2024. Excluding this effect, (27) revenues were sustained by the positive momentum of transactional income and the good resilience of the net interest margin, despite falling rates. Expenses for the quarter amounted to -€348 million, up +36.4% compared to the second quarter of 2024, impacted by a Degroof Petercam scope effect27 and -€22.5 million in integration costs in the second quarter of 2025 (28). Excluding these impacts, expenses rose slightly at +1.7% compared to the second quarter of 2024. The cost/income ratio for the second quarter of 2025 stood at 85%, up +1.9 percentage points compared to the same period in 2024. Excluding integration costs, it amounted to 79.5%. Gross operating income reached €61 million, an increase of (+18.3%) compared to the second quarter of 2024. Cost of risk remained moderate at -€5 million. Net income Group share amounted to €36 million, up +52.7% compared to the second quarter of 2024.
In the first half of 2025, wealth management revenues rose by +48.6% over the first half of 2024, notably benefiting from the integration of Degroof Petercam(29) in June 2024 to reach €848 million. Expenses rose by +47.5% due to the impact of the integration of Degroof Petercam29 in June 2024 and integration costs. Gross operating income was therefore up +54.0% at €156 million. Net income on other assets was nil in the first half of 2025 compared with -€20 million in the first half of 2024, corresponding to Degroof Petercam acquisition costs. Net income Group share was €94 million over the first half, up +92.3% from first half 2024. The additional net income Group share target of +€150 million to +€200 million in 2028 following the integration of Degroof Petercam is confirmed and the rate of progression in synergies realised was approximately 25%.
Wealth Management contributed 2% to the net income Group share of Crédit Agricole S.A.’s business lines (excluding the Corporate Centre division) at end-June 2025 and 6% of their revenues (excluding the Corporate Centre division).
At 30 June 2025, equity allocated to Wealth Management was €0.7 billion and risk weighted assets totalled €7.7 billion.
Activity of the Large Customers division
The large customers division posted good activity in the second quarter of 2025, thanks to good performance from Corporate and Investment banking (CIB) and strong activity in asset servicing.
In the second quarter of 2025, revenues from Corporate and Investment Banking were stable at €1,705 million, which is -0.1% compared to second quarter 2024 (+5% excluding FVA/DVA volatile elements and foreign exchange impact). Capital Markets and Investment Banking activity was down -2.7% from second quarter 2024 (+3% excluding non-recurring items and foreign exchange impact), but remained at a high level at €860 million, supported in part by a new progression in revenues from Capital Market activities (+2.8% over second quarter 2024, +10% excluding FVA/DVA volatile items and foreign exchange impact) particularly on the trading and primary credit activities that partially offset the decline in structured equity revenues. Revenues from financing activities rose to €845 million, an increase of +2.8% compared to the second quarter of 2024 (+7% excluding non-recurring items and foreign exchange impact). This mainly reflects the performance of structured financing, where revenues rose +6.8% compared to the second quarter of 2024, primarily explained by the dynamism of the renewable energy sector (increase in production on wind and solar projects). Commercial Banking was up +0.7% versus second quarter 2024, driven by the activities of Corporate & Leveraged Finance, boosted by the acquisition financing sector.
Financing activities consolidated its leading position in syndicated loans (#1 in France (30) and #2 in EMEA30). Crédit Agricole CIB reaffirmed its strong position in bond issues (#2 All bonds in EUR Worldwide30) and was ranked #1 in Green, Social & Sustainable bonds in EUR (31). Average regulatory VaR stood at €11.1 million in the second quarter of 2025, up from €10.5 million in the first quarter of 2025, reflecting changes in positions and financial markets. It remained at a level that reflected prudent risk management.
For Asset Servicing, business growth was supported by strong commercial activity and favourable market effects.
Assets under custody rose by +1.1% at the end of June 2025 compared to the end of March 2025 and increased by +11.3% compared to the end of June 2024, to reach €5,526 billion. Assets under administration fell by
-3.0% over the quarter because of a planned customer withdrawal, and were up +1.2% year-on-year, totalling €3,468 billion at end-June 2025.
On 4 July 2025, Crédit Agricole S.A. announced the finalisation of the buyback of the 30.5% interest held by Santander in CACEIS.
Results of the Large Customers division
In the second quarter of 2025, revenues of the Large Customers division once again reached a record level at €2,224 million (stable from second quarter 2024), buoyed by an excellent performance in the Corporate and Investment Banking and Asset Servicing business lines.
Operating expenses increased by +4.4% due to IT investments and business line development. As a result, the division’s gross operating income was down -5.1% from the second quarter of 2024, standing at €967 million. The division recorded a limited addition for provision of the cost of risk of -€20 million integrating the update of economic scenarios and benefiting from favourable model effects, to be compared with an addition of -€39 million in the second quarter of 2024. Pre-tax income amounted to €958 million, down -3.3% compared to the second quarter of 2024. The tax charge amounted to -€149 million in second quarter 2025. Finally, net income Group share totalled €752 million in the second quarter of 2025, an increase of +8.3% over the second quarter of 2024.
In first half 2025, the revenues of the Large Customers business line amounted to a historic high of €4,632 million (+3.2% compared to first half 2024). Operating expenses rose +4.6% compared to first half 2024 to €2,617 million, largely related to staff costs and IT investments. Gross operating income for first half of 2025 therefore totalled €2,015 million, up +1.4% from first half 2024. The cost of risk ended the first half of 2025 with a net provision to provisions of -€5 million, which was stable compared with the first half of 2024. The business line’s contribution to underlying net income Group share was at €1,475 million, up +4.1% compared to first half 2024.
The business line contributed 34% to the net income Group share of Crédit Agricole S.A.’s core businesses (excluding the Corporate Centre division) at end-June 2025 and 32% to revenues excluding the Corporate Centre.
At 30 June 2025, the equity allocated to the division was €12.8 billion and its risk weighted assets were €134.7 billion.
Corporate and Investment Banking results
In the second quarter of 2025, revenues from Corporate and Investment Banking posted a strong performance at €1,705 million (stable in relation to second quarter 2024, +5% excluding FVA/DVA volatile items and foreign exchange impact).
Operating expenses rose by +6.7% to -€895 million, mainly due to IT investments and the development of business line activities. Gross operating income declined -6.6% compared to second quarter 2024 and recorded a high level of +€810 million. Cost/income ratio was 52.5%, an improvement of +3.3 percentage points for the period. Cost of risk recorded a limited net provision of -€19 million integrating the update of economic scenarios and benefiting from positive model effects. Pre-tax income in second quarter 2025 stands at €793 million, down -5.7% compared to the second quarter of 2024. Lastly, stated net income Group share was up +6.7% to €659 million in the second quarter of 2025.
In first half 2025, stated revenues rose by +3.7% compared to first half 2024, to €3,591 million, the highest historical half-year level ever. Operating expenses rose +7.1%, mainly due to variable compensation and IT investments to support the development of the business lines. As a result, gross operating income was €1,704 million and stable compared to first half 2024. The cost of risk recorded a net reversal of +€4 million in the first half of 2025, compared to a reversal of +€7 million in the first half of 2024. The income tax charge stood at -€376 million, down -9.3%. Lastly, stated net income Group share for first half 2025 stood at €1,307 million, an increase of +3.0% over the period.
Risk weighted assets at end-June 2025 were down -€6.6 billion compared to end-March 2025, to €123.6 billion, mainly explained by model effects.
Asset servicing results
In the second quarter of 2025, revenues for Asset Servicing remained stable compared to second quarter 2024 at €519 million, as the solid performance of the net interest margin was offset by a drop in fee and commission income (notably on foreign exchange). Operating expenses were down by -1.1% to -€361 million, due to the decrease in ISB integration costs compared to the second quarter of 2024 (32). Apart from this effect, expenses were up slightly pending the acceleration of synergies. As a result, gross operating income was up by +3.8% to €158 million in the second quarter of 2025. The cost/income ratio for the second quarter of 2025 stood at 69.6%, down -1.0 percentage points compared to the same period in 2024. Consequently, pre-tax income was up by +8.8% and stood at €165 million in the second quarter of 2025. Net income Group share rose +21.1% compared to second quarter 2024.
Stated revenues for first half 2025 were up +1.5% compared with first half 2024, buoyed by the strong commercial momentum and a favourable trend in the interest margin over the period. Expenses declined -1.3% and included -€13.7 million in integration costs related to the acquisition of ISB’s activities (versus -€44.3 million in integration costs in the first half of 2024). Gross operating income rose +8.8% increase compared to first half 2024.
The cost/income ratio stood at 70.1%, down 2.0 points compared to the second half of 2024. The additional net income target (33)of +€100 million in 2026 following the integration of ISB is confirmed and the rate of progression in synergies realised is approximately 60%.
Finally, the contribution of the business line to net income Group share in the first half of 2025 was €168 million, representing a +13.9% increase compared to the first half of 2024.
Specialised financial services activity
Crédit Agricole Personal Finance & Mobility’s (CAPFM) commercial production totalled €12.4 billion in second quarter 2025, an increase of +2.4% from second quarter 2024, and an increase of +12.4% compared to first quarter 2025. This increase was carried by traditional consumer finance, while the automobile activity remained stable in a still complex market in Europe and China. The share of automotive financing (34) in quarterly new business production stood at 49.6%. The average customer rate for production was down slightly by -9 basis points from the first quarter of 2025. CAPFM assets under management stood at €121.0 billion at end-June 2025, up +4.5% from end-June 2024, over all scopes (Automotive +6.6% (35), LCL and Regional Banks +4.2%, Other Entities +2.5%), benefiting from the expansion of the management portfolio with the Regional Banks and the promising development of car rental with Leasys and Drivalia. Lastly, consolidated outstandings totalled €68.0 billion at end-June 2025, down -0.9% from end-June 2024.
The commercial production of Crédit Agricole Leasing & Factoring (CAL&F) was down -19.4% from second quarter 2024 in leasing, primarily in France in an unfavourable market context (36). In International, production was up, particularly in Poland. Leasing outstandings rose +5.0% year-on-year, both in France (+4.1%) and internationally (+8.6%), to reach €20.8 billion at end-June 2025 (of which €16.4 billion in France and €4.5 billion internationally). Commercial production in factoring was up +26.6% versus second quarter 2024, carried by France, which rose +83.8%, which benefited from the signing of a significant contract; international fell by -27.0%, mainly in Germany. Factoring outstandings at end-June 2025 were up +3.7% compared to end-June 2024, and factored revenues were up by +5.0% compared to the same period in 2024.
Specialised financial services’ results
In the second quarter of 2025, revenues of the Specialised Financial Services division were €881 million, down -1.0% compared to the second quarter of 2024. Expenses stood at -€438 million, down -1.0% compared to the second quarter of 2024. The cost/income ratio stood at 49.8%, stable compared to the same period in 2024. Gross operating income thus stood at €442 million, down -1.0% compared to the second quarter of 2024. Cost of risk amounted to -€235 million, up +11.7% compared to the second quarter of 2024. Income for the equity-accounted entities amounted to -€13 million, a significant decline from second quarter 2024 which was €29 million, mainly linked to the drop in remarketing revenues for CAPFM as well as a depreciation of goodwill for CAL&F. Pre-tax income for the division amounted to €194 million, down -26.7% compared to the same period in 2024. Net income Group share amounted to €114 million, down -38.9% compared to the same period in 2024.
In the first half of 2025, revenues for the Specialised Financial Services division were €1,749 million, which was up +0.8% from first half 2024. Operating expenses were up +1.7% from first half 2024 at -€912 million. Gross operating income amounted to €837 million, stable (-0.2%) in relation to first half 2024. The cost/income ratio stood at 52.1%, up +0.5 percentage points compared to the same period in 2024. The cost of risk increased by +12.8% compared to the first quarter of 2024 to -€484 million. The contribution of the equity-accounted entities dropped -62.2% from the same period in 2024, mainly linked to the decline in remarketing revenues CAPFM and a depreciation of goodwill for CAL&F (in the second quarter of 2025). Net income Group share includes the corporate tax additional charge in France and amounted to €263 million, down -20.3% compared to the same period in 2024.
The business line contributed 6% to the net income Group share of Crédit Agricole S.A.’s core businesses (excluding the Corporate Centre division) at end-June 2025 and 12% to revenues excluding the Corporate Centre.
At 30 June 2025, the equity allocated to the division was €7.7 billion and its risk weighted assets were €80.7 billion.
Personal Finance and Mobility results
In the second quarter of 2025, CAPFM revenues totalled €697 million, up +0.3% from the second quarter of 2024, with a positive price effect benefiting from the improvement in the production margin rate, which rose +35 basis points compared to second quarter 2024 (and which was down -7 basis points from first quarter 2025), partially absorbed by the increase in subordinated debt (37). Expenses totalled -€339 million, a drop of -1.1% and the jaws effect was positive over the quarter at +1.3 percentage points. Gross operating income thus stood at €358 million, an increase of +1.5% compared to the second quarter of 2024. The cost/income ratio stood at 48.7%, up -0.6 percentage points compared to the same period in 2024. The cost of risk stood at -€228 million, up +19.6% from the second quarter of 2024. The cost of risk/outstandings thus stood at 135 basis points(38), a slight deterioration of +5 basis points compared to the first quarter of 2025, especially in international activities. The Non Performing Loans ratio was 4.6% at end-June 2025, slightly up by +0.1 percentage points compared to end-March 2025, while the coverage ratio reached 73.2%, down -0.2 percentage points compared to end-March 2025. The contribution from the equity-accounted entities fell by -71.4% compared to the same period in 2024, related mainly to the drop in remarketing revenues. Pre-tax income amounted to €140 million, down -27.1% compared to the same period in 2024. Net income Group share amounted to €81 million, down -38.4% compared to the previous year.
In the first half of 2025, CAPFM revenues reached €1,380 million, i.e. +1.1% over the first half of 2024, benefiting from volume and positive price effects partially offset by the increase in subordinated debt37. The expenses came to -€709 million, up +1.7% compared to the first half of 2024, related primarily to employee expenses and IT expenses. Gross operating income stood at €671 million, up +0.6%. The cost/income ratio stood at 51.4%, up +0.3 percentage points compared to the same period in 2024. The cost of risk rose by +16.3% over the first half of 2024 to -€453 million, notably related to a slight degradation on the international subsidiaries. The contribution from equity-accounted entities fell by -25.9% compared to the same period in 2024, primarily due to the decline in remarketing revenues. Therefore, net income Group share, which includes the additional corporate tax charge in France, amounted to €188 million, down -18.7% from the first half of 2024.
Leasing & Factoring results
In the second quarter of 2025, CAL&F revenues totalled €183 million, down -5.4% from second quarter 2024 due to the decline in factoring margins (related to the rate decrease). Revenues were up in leasing. Operating expenses stood at -€99 million, down -0.8% over the quarter, and the cost/income ratio stood at 54.0%, an improvement of +2.6 percentage points compared to the second quarter of 2024. Gross operating income stood at €84 million, down -10.4% compared to the second quarter of 2024. The cost of risk includes a provision reversal on performing loans of +€20 million and thus amounted to -€7 million over the quarter, a drop of -63.9% from the same period in 2024. Cost of risk/outstandings stood at 21 basis points38, down -4 basis points compared to second quarter 2024. Income of the equity-accounted entities totalled -€22 million in second quarter 2025, a sharp decline from second quarter 2024 at -€2 million, due to a depreciation of goodwill. Pre-tax income amounted to €54 million, down -25.4% compared to the same period in 2024. Net income Group share includes the corporate tax additional charge in France and amounted to €33 million, down -40.2% compared to the previous year.
In the first half of 2025, revenues were stable (-0.6%) from first half 2024 at €369 million with an increase on leasing absorbed by a decrease in factoring margins because of the decrease in rates. Operating expenses increased by +1.9% to -€203 million. Gross operating income was down -3.5% from the first half of 2024 to total €166 million. The cost/income ratio stood at 55.0%, up +1.3 percentage points compared to first half 2024. The cost of risk declined from the first half of 2024 (-21.8%) because of a provision reversal of +€20 million on performing loans in the second quarter of 2025. The contribution of the equity-accounted entities amounted to -€24 million in the first half of 2025, down sharply from the first half of 2024 at -€4 million due to a depreciation of goodwill in first half 2025. Finally, net income Group share includes the additional corporate tax charge in France and amounted to €75 million, down -24.1% from the first half of 2024.
Crédit Agricole S.A. Retail Banking activity
In Retail Banking at Crédit Agricole S.A. this quarter, loan production in France continued its upturn compared to the second quarter of 2024. It was down in Italy in a very competitive housing market. The number of customers with insurance is progressing.
Retail banking activity in France
In the second quarter of 2025, activity was steady, with an upturn in loan activity, especially real estate loans, compared with the second quarter of 2024, and an increase in inflows. Customer acquisition remained dynamic, with 68,000 new customers this quarter.
The equipment rate for car, multi-risk home, health, legal, all mobile phones or personal accident insurance rose by +0.6 percentage points to stand at 28.4% at end-June 2025.
Loan production totalled €6.8 billion, representing a year-on-year increase of +14%. Second quarter 2025 recorded an increase in the production of real estate loans (+24% over second quarter 2024). The average production rate for home loans came to 3.07%, down -11 basis points from the first quarter of 2025 and -77 basis points year on year. The home loan stock rate improved by +3 basis points over the quarter and by +18 basis points year on year. The strong momentum continued in the corporate market (+10% year on year) and the small business market (+15% year on year) and remains up in the consumer finance segment (+2%).
Outstanding loans stood at €171.5 billion at end-June 2025, representing a quarter-on-quarter increase (+0.5%) and year-on-year (+2.0%, including +1.8% for home loans, +1.7% for loans to small businesses, and +3.4% for corporate loans). Customer assets totalled €256.0 billion at end-June 2025, up +1.7% year on year, driven by off-balance sheet funds and with a slight increase of on-balance sheet deposits. Over the quarter, customer assets remained stable at -0.2% in relation to end-March 2025, with an increase of demand deposits for +2.6% while term deposits dropped -8.5% over the quarter in an environment that remains uncertain. Off-balance sheet deposits benefited from a positive year-on-year market effect and on the quarter and positive net inflows in life insurance.
Retail banking activity in Italy
In the second quarter of 2025, CA Italia posted gross customer capture of 54,000.
Loans outstanding at CA Italia at the end of June 2025 stood at €62.0 billion (39), up +1.6% compared with end-June 2024, in an Italian market up slightly (40), driven by the retail market, which posted an increase in outstandings of +2.8%. The loan stock rate declined by -96 basis points against the second quarter of 2024 and by -24 basis points from the first quarter of 2025. Loan production for the quarter was down -8.1% compared with a high second quarter 2024, in a very competitive home market in the second quarter of 2025. Loan production for the half rose by +1.3% compared with the first half of 2024.
Customer assets at end-June 2025 totalled €120.5 billion, up +3.2% compared with end-June 2024; on-balance sheet deposits were relatively unchanged (+0.3%) from end-June 2024. Finally, off-balance sheet deposits increased by +6.9% over the same period and benefited from net flows and a positive market effect.
CA Italia’s equipment rate in car, multi-risk home, health, legal, all mobile phones or personal accident insurance was 20.6%, up +0.9 percentage points over the second quarter of 2024.
International Retail Banking activity excluding Italy
For International Retail Banking excluding Italy, loan outstandings were €7.4 billion, up +5.2% at current exchange rates at end-June 2025 compared with end-June 2024 (+6.6% at constant exchange rates). Customer assets rose by +€11.7 billion and were up +6.4% over the same period at current exchange rates (+9.7% at constant exchange rates).
In Poland in particular, loan outstandings increased by +5.2% compared to end-June 2024 (+3.6% at constant exchange rates) driven by the retail segment and on-balance sheet deposits of +8.2% (+6.6% at constant exchange rates). Loan production in Poland rose this quarter compared to the second quarter of 2024 (+7.9% at current exchange rates and +6.5% at constant exchange rates). In addition, gross customer capture in Poland reached 48,000 new customers this quarter.
In Egypt, commercial activity was strong in all markets. Loans outstanding rose +6.8% between end-June 2025 and end-June 2024 (+20.9% at constant exchange rates). Over the same period, on-balance sheet deposits increased by +9.0%% and were up +23.3% at constant exchange rates.
Liquidity is still very strong with a net surplus of deposits over loans in Poland and Egypt amounting to +€2.0 billion at 30 June 2025, and reached €3.5 billion including Ukraine.
French retail banking results
In the second quarter of 2025, LCL revenues amounted to €976 million, stable from the second quarter of 2024. The increase in fee and commission income (+3.1% over second quarter 2024) was driven by the strong momentum in insurance (life and non-life). NIM was down -3.4%, under the impact of an unfavourable base effect, but improved compared to the first quarter of 2025 (+7.8%), thanks to the progressive repricing of loans and the decrease in the cost of customer-related funds (which benefited from a positive change in the deposit mix) and of refinancing, offset by a lower contribution from macro-hedging.
Expenses were up slightly by +1.0% and stood at -€597 million linked to ongoing investments. The cost/income ratio stood at 61.1%, an increase by 0.8 percentage points compared to second quarter 2024. Gross operating income fell by -2.4% to €380 million.
The cost of risk was stable (-0.3% compared with second quarter 2024) and amounted to -€95 million (including an addition to provisions of -€104 million on proven risk and a reversal of +€10 million on healthy loans, incorporating the impact of the scenario update offset by the model update. The cost of risk/outstandings was stable at 20 basis points, with its level still high in the professional market. The coverage ratio still remains at a high level and was 60.9% at the end of June 2025. The Non Performing Loans ratio was 2.1% at the end of June 2025.
Finally, pre-tax income stood at €286 million, down -3.4% compared to the second quarter of 2024, and net income Group share was down -5.7% from the second quarter of 2024.
In the first half of 2025, LCL revenues were stable, up +0.3% compared to first half 2024 and totalled €1,939 million. The net interest margin was down (-2.6%), benefiting from gradual loan repricing and lower funding and refinancing costs, although the impact of macro-hedging remained positive, though less favourable, and there was an unfavourable base effect in the second quarter. Fee and commission income rose +3.4% compared to first half 2024, particularly on insurance. Expenses rose by +2.4% over the period and the cost/income ratio remained under control (+1.3 percentage points compared with first half 2024) at 63.0%. Gross operating income fell by -3.1% and the cost of risk improved by -12.9%. Lastly, the business line’s contribution to net income Group share includes the additional corporate tax charge in France and amounted to €337 million (-14.4% compared to the first half of 2024).
In the end, the business line contributed 8% to the net income Group share of Crédit Agricole S.A.’s core businesses (excluding the Corporate Centre division) in the second quarter of 2025 and 13% to revenues excluding the Corporate Centre division.
At 30 June 2025, the equity allocated to the business line stood at €5.3 billion and risk weighted assets amounted to €55.7 billion.
International Retail Banking results (41)
In the second quarter of 2025, revenues for International Retail Banking totalled €1,007 million, down compared with the second quarter of 2024 (-1.9% at current exchange rates, -1.3% at constant exchange rates). Operating expenses amounted to -€520 million, down -6.3% (-6.0% at constant exchange rates), and benefited from the end of the contribution to the DGS in 2025, which was recorded for -€58 million in the second quarter of 2024. Gross operating income consequently totalled €487 million, up +3.2% (+4.3% at constant exchange rates) for the period. Cost of risk amounted to -€61 million, down -15.5% compared to second quarter 2024 (-19.8% at constant exchange rates). All in all, net income Group share for CA Italia, CA Egypt, CA Poland and CA Ukraine amounted to €238 million in the second quarter of 2025, up +4.3% (and +6.4% at constant exchange rates).
In first half 2025, International Retail Banking revenues fell by -2.5% to €2,033 million (-0.7% at constant exchange rates). Operating expenses totalled -€1,035 million, down -2.4% (-4% at constant exchange rates) from the first half of 2024, and benefited from the end of the contribution to the DGS in 2025, which had been recorded for -€58 million in the second quarter of 2024. Gross operating income totalled €998 million, down -2.6% (+2.9% at constant exchange rates). The cost of risk fell by -17.3% (-14.2% at constant exchange rates) to -€128 million compared to first half 2024. Ultimately, net income Group share of International Retail Banking was €483 million, stable in comparison with €485 million in the first half of 2024.
At 30 June 2025, the capital allocated to International Retail Banking was €4.3 billion and risk weighted assets totalled €44.9 billion.
Results in Italy
In the second quarter of 2025, Crédit Agricole Italia’s revenues amounted to €767 million, down -2.2% from second quarter 2024, due to the decline in the net interest margin (-4.4% compared with the second quarter of 2024 related to the decrease in rates). The net interest margin was up +2% compared to first quarter 2025. Fee and commission income on managed assets rose significantly by +11.6% compared to second quarter 2024. Operating expenses were -€398 million, down -9.5% from second quarter 2024, due to the end of the contribution to the DGS in 2025, whereas an amount of -€58 million had been recognised in this respect in the second quarter of 2024. Excluding the DGS, expenses rose by +4.3% compared to the second quarter of 2024 because of employee and IT expenses to support the growth of the business lines.
The cost of risk was -€45 million in the second quarter of 2025, a decrease of -26.4% from second quarter 2024, and continues to fall with an improvement in the quality of the assets and the coverage ratio. In effect, the cost of risk/outstandings (42) is 36 basis points, an improvement of 3 basis points versus the first quarter of 2025; the Non Performing Loans ratio is 2.7% and is improved from the first quarter of 2025, just like the coverage ratio which is 81.0% (+3.1 percentage points over the first quarter of 2025). This translates into a net income Group share of €172 million for CA Italia, up +12.3% compared to the second quarter of 2024.
In first half 2025, revenues for Crédit Agricole Italia fell by -0.9% to €1,545 million. Operating expenses amounted to -€781 million, down -4.8% from the first half of 2024, and an increase of +2.4% excluding the DGS for -€58 million in the second quarter of 2024. This took gross operating income to €763 million, up +3.4% compared to first half 2024. The cost of risk amounted to -€102 million, down -17.2% compared to the first half of 2024. As a result, net income Group share of CA Italia totalled €350 million, an increase of +5.2% compared to first half 2024.
Results for Crédit Agricole Group in Italy (43)
In the first half of 2025, the net income Group share of entities in Italy amounted to €652 million, down -1.1% compared to the first half of 2024. The breakdown by business line is as follows: Retail Banking 54%; Specialised Financial Services 14%; Asset Gathering and Insurance 19%; and Large Customers 13%. Lastly, Italy’s contribution to net income Group share of Crédit Agricole S.A. in first half 2025 was 15%.
International Retail Banking results – excluding Italy
In the second quarter of 2025, revenues for International Retail Banking excluding Italy totalled €240 million, down -1.1% (+1.7% at constant exchange rates) compared to the second quarter of 2024. Revenues in Poland were up +9.5% in the second quarter of 2024 (+8.3% at constant exchange rates), boosted by net interest margin and fee and commission income. Revenues in Egypt were down -9.2% (-4.8% at constant exchange rates) with a residual base effect related to the exceptional foreign exchange activity of the second quarter of 2024. The increase in fee and commission income does not offset the slight decline in net interest margin. Operating expenses for International Retail Banking excluding Italy amounted to -€123 million, up +6.0% compared to the second quarter of 2024 (+7.5% at constant exchange rates) due to the effect of employee expenses and taxes in Poland as well as employee expenses and IT expenses in Egypt. At constant exchange rates, the jaws effect was positive by +2.6 percentage points in Poland. Gross operating income amounted to €117 million, down -7.5% (-3.6% at constant exchange rates) compared to the second quarter of 2024. The cost of risk is low at -€16 million, compared with -€11 million in the second quarter of 2024. Furthermore, at end-June 2025, the coverage ratio for loan outstandings remained high in Poland and Egypt, at 124% and 135%, respectively. In Ukraine, the local coverage ratio remains prudent (558%). All in all, the contribution of International Retail Banking excluding Italy to net income Group share was €66 million, down -11.9% compared with the second quarter of 2024 (-6.5% at constant exchange rates).
In the first half of 2025, revenues for International Retail Banking excluding Italy totalled €488 million, down -7.1% (-1.1% at constant exchange rates) compared to the first half of 2024. Operating expenses amounted to -€254 million, up +5.9% compared to the first half of 2024 (+8.4% at constant exchange rates). The cost/income ratio stood at 52.0% at the end of June 2025, decreasing by 6.4 percentage points compared to the first half of 2024. Gross operating income amounted to €235 million, down -17.9% (-9.7% at constant exchange rates) compared to the first half of 2024. Cost of risk amounted to -€26 million, down -17.8% (-19.7% at constant exchange rates) compared to the first half of 2024. All in all, International Retail Banking excluding Italy contributed €133 million to net income Group share.
At 30 June 2025, the entire Retail Banking business line contributed 19% to the net income Group share of Crédit Agricole S.A.’s core businesses (excluding the Corporate Centre division) and 28% to revenues excluding the Corporate Centre.
At 30 June 2025, the division’s equity amounted to €9.6 billion. Its risk weighted assets totalled €100.6 billion.
Corporate Centre results
The net income Group share of the Corporate Centre was -€22 million in second quarter 2025, up +€217 million compared to second quarter 2024. The contribution of the Corporate Centre division can be analysed by distinguishing between the “structural” contribution (-€60 million) and other items (+€39 million).
The contribution of the “structural” component (-€60 million) was up by +€184 million compared with the second quarter of 2024 and can be broken down into three types of activity:
The contribution from “other items” amounted to +€39 million, up +€32 million compared to the second quarter of 2024, mainly due to ESTER/BOR volatility factors.
The underlying net income Group share of the Corporate Centre division in first half 2025 was -€124 million, up +€221 million compared to first half 2024. The structural component contributed -€114 million, while the division’s other items contributed -€10 million over the half-year.
The “structural” component contribution was up +€237 million compared to first half 2024 and can be broken down into three types of activity:
The contribution of “other items” was down -€15 million compared to first half 2024.
At 30 June 2025, risk weighted assets stood at €38.3 billion.
Financial strength
Crédit Agricole Group has the best level of solvency among European Global Systemically Important Banks.
Capital ratios for Crédit Agricole Group are well above regulatory requirements. At 30 June 2025, the phased Common Equity Tier 1 ratio (CET1) for Crédit Agricole Group stood at 17.6%, or a substantial buffer of 7.7 percentage points above regulatory requirements. Over the quarter, the CET1 ratio remained stable, reflecting the increase in retained earnings of +31 basis points (bp), -29 bp of organic growth in the business lines, +5 bp of methodological impact and -13 bp of M&A transactions, OCI and other items.
Crédit Agricole S.A., in its capacity as the corporate centre of the Crédit Agricole Group, fully benefits from the internal legal solidarity mechanism as well as the flexibility of capital circulation within the Crédit Agricole Group. Its phased-in CET1 ratio as at 30 June 2025 stood at 11.9%, 3.2 percentage points above the regulatory requirement, -20 bp compared to the March 2025. The change over the quarter was due to the retained earnings of +28 bp, business lines’ organic growth of -23 bp, +4 bp from methodology impacts and -33 bp from M&A transactions, OCI and other44. The proforma CET1 ratio Including M&A transactions completed after 30 June 2025 would be 11.6%.
The breakdown of the change in Crédit Agricole S.A.’s risk weighted assets by business line is the combined result of: +€3.4 billion for the Retail Banking divisions linked to changes in the business lines, -€0.3 billion for Asset Gathering, taking into account the increase in insurance dividends, +€1.7 billion for Specialised Financial Services, -€7.0 billion for Large Customers, linked to favourable methodology and FX impact and moderate business line growth, and +€3.2 billion for the Corporate Centre division, notably linked to the impact of the increase in the Banco BPM stake to 19.8%.
For the Crédit Agricole Group, the Regional Banks’ risk weighted assets increased by +€6.9 billion. The evolution of the other businesses follows the same trend as for Crédit Agricole S.A.
Crédit Agricole Group’s financial structure
| Crédit Agricole Group | Crédit Agricole S.A. | |||||||
| 30/06/25 | 31/03/25 | Exigences 30/06/25 | 30/06/25 | 31/03/25 | Exigences 30/06/25 | |||
| Phased-in CET1 ratio45 | 17.6% | 17.6% | 9.88% | 11.9% | 12.1% | 8.71% | ||
| Tier1 ratio45 | 18.9% | 19.0% | 11.72% | 14.0% | 14.3% | 10.52% | ||
| Total capital ratio45 | 21.4% | 21.8% | 14.17% | 17.8% | 18.4% | 12.94% | ||
| Risk-weighted assets (€bn) | 649 | 641 | 406 | 405 | ||||
| Leverage ratio | 5.6% | 5.6% | 3.5% | 3.9% | 4.0% | 3.0% | ||
| Leverage exposure (€bn) | 2,191 | 2,173 | 1,445 | 1,434 | ||||
| TLAC ratio (% RWA)45,46 | 27.6% | 28.5% | 22.4% | |||||
| TLAC ratio (% LRE)46 | 8.2% | 8.4% | 6.75% | |||||
| Subordinated MREL ratio (% RWA)45 | 27.6% | 28.5% | 21.6% | |||||
| Subordinated MREL ratio (% LRE) | 8.2% | 8.4% | 6.25% | |||||
| Total MREL ratio (% RWA)45 | 32.7% | 34.0% | 26.2% | |||||
| Total MREL ratio (% LRE) | 9.7% | 10.0% | 6.25% | |||||
| Distance to the distribution restriction trigger (€bn)47 | 46 | 46 | 13 | 14 | ||||
For Crédit Agricole S.A., the distance to the trigger for distribution restrictions is the distance to the MDA trigger48, i.e. 318 basis points, or €13 billion of CET1 capital at 30 June 2025. Crédit Agricole S.A. is not subject to either the L-MDA (distance to leverage ratio buffer requirement) or the M-MDA (distance to MREL requirements).
For Crédit Agricole Group, the distance to the trigger for distribution restrictions is the distance to the L-MDA trigger at 30 June 2025. Crédit Agricole Group posted a buffer of 209 basis points above the L-MDA trigger, i.e. €46 billion in Tier 1 capital.
At 30 June 2025, Crédit Agricole Group’s TLAC and MREL ratios are well above requirements49. Crédit Agricole Group posted a buffer of 530 basis points above the M-MDA trigger, i.e. €34 billion in CET1 capital. At this date, the distance to the M-MDA trigger corresponds to the distance between the TLAC ratio and the corresponding requirement. 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.
Liquidity and Funding
Liquidity is measured at Crédit Agricole Group level.
As of 31 December 2024, changes have been made to the presentation of the Group’s liquidity position (liquidity reserves and balance sheet, breakdown of long-term debt). These changes are described in the 2024 Universal Registration Document.
Diversified and granular customer deposits remain stable compared to March 2025 (€1,147 billion at end-June 2025).
The Group’s liquidity reserves, at market value and after haircuts50, amounted to €471 billion at 30 June 2025, down -€16 billion compared to 31 March 2025.
Liquidity reserves covered more than twice the short-term debt net of treasury assets.
This change in liquidity reserves is notably explained by:
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 €131 billion.
Standing at €1,696 billion at 30 June 2025, the Group’s liquidity balance sheet shows a surplus of stable funding resources over stable application of funds of €179 billion, down -€18 billion compared with end-March 2025. This surplus remains well above the Medium-Term Plan target of €110bn-€130bn.
Long term debt was €316 billion at 30 June 2025, slightly up compared with end-March 2025. This included:
Credit institutions are subject to a threshold for the LCR ratio, set at 100% on 1 January 2018.
At 30 June 2025, the average LCR ratios (calculated on a rolling 12-month basis) were 137% for Crédit Agricole Group (representing a surplus of €87 billion) and 142% for Crédit Agricole S.A. (representing a surplus of €84 billion). They were higher than the Medium-Term Plan target (around 110%).
In addition, the NSFR of Crédit Agricole Group and Crédit Agricole S.A. exceeded 100%, in accordance with the regulatory requirement applicable since 28 June 2021 and above the Medium-Term Plan target (>100%).
The Group continues to follow a prudent policy as regards medium-to-long-term refinancing, with a very diversified access to markets in terms of investor base and products.
At 30 June 2025, the Group’s main issuers raised the equivalent of €21.3 billion51in medium-to-long-term debt on the market, 84% of which was issued by Crédit Agricole S.A.
In particular, the following amounts are noted for the Group excluding Crédit Agricole S.A.:
At 30 June 2025, Crédit Agricole S.A. raised the equivalent of €16.5 billion through the market 51,52.
The bank raised the equivalent of €16.5 billion, of which €7.3 billion in senior non-preferred debt and €2.8 billion in Tier 2 debt, as well as €1.7 billion in senior preferred debt and €4.7 billion in senior secured debt at end-June. The financing comprised a variety of formats and currencies, including:
At end-June, Crédit Agricole S.A. had issued 77%52,53 of its funding plan in currencies other than the euro.
In addition, on 13 February 2025, Crédit Agricole S.A. issued a PerpNC10 AT1 bond for €1.5 billion at an initial rate of 5.875% and announced on 30 April 2025 the regulatory call exercise for the AT1 £ with £103m outstanding (XS1055037920) – ineligible, grandfathered until 28/06/2025 – redeemed on 30/06/2025.
The 2025 MLT market funding programme was set at €20 billion, with a balanced distribution between senior preferred or senior secured debt and senior non-preferred or Tier 2 debt.
The programme was 82% completed at 30 June 2025, with:
Economic and financial environment
Review of the first half of 2025
An even more conflict-ridden and unpredictable environment, causing a slowdown
The first half of the year took place in an even more conflict-ridden and unpredictable environment, marked by open wars and powerful geopolitical and trade tensions. The war in Ukraine remained a major unresolved issue: President Trump’s initiatives aimed at ending the conflict proved fruitless, while signalling a strategic shift in US policy, notably away from protecting European territory. President Trump’s statements on NATO (demanding that military spending be increased to 5% of GDP) forced Europe to accelerate the overhaul of its defence strategy, as evidenced by the announcement of a white paper detailing defence support measures worth €800 billion. With the Israeli-Palestinian conflict continuing without any lasting political solution in sight, international tensions peaked in June with Israel’s attack on Iran, quickly joined by its US ally. After twelve days of clashes, a ceasefire was announced on 24 June.
Donald Trump’s return to the US presidency has obviously resulted in a protectionist offensive of unexpected violence. This offensive culminated in “Liberation Day” on 2 April, when “reciprocal” tariffs were imposed on all of the United States’ trading partners. While China was particularly targeted, the European Union was also severely affected; even the countries participating in the North American Free Trade Agreement (NAFTA, United States, Canada, Mexico) were not spared, as they were subject to sector-specific tariffs applicable everywhere (steel, aluminium, automobiles, semiconductors). However, these announcements were followed by a presidential U-turn on 9 April, with reciprocal tariffs being lowered to 10% and a 90-day truce agreed upon to allow for the negotiation of bilateral trade agreements. At the end of this pause (9 July), the US president decided to extend it (to 1 August), offering hope to major trading partners (the European Union, Japan and South Korea) that agreements could be reached to reduce tariffs, while leaving economic players in uncertainty about international trade conditions. Only the United Kingdom, China and Vietnam have signed an agreement.
The unpredictability of US trade policy, characterised by dramatic announcements followed by partial reversals, has created ongoing uncertainty. In the first half of the year, this was reflected in mixed economic and financial performances across countries, suggesting a more pronounced global slowdown. The IMF has therefore revised its global growth forecast for 2025 downwards to 2.8% (a decrease of -0.5 percentage points (pp) compared to its January forecast and the growth observed in 2024).
The US economy has shown early signs of slowing down, hit by weaker consumer spending and, above all, a sharp rise in imports as companies seek to build up stocks ahead of the entry into force of new tariffs. GDP contracted by 0.5% in the first quarter (annualised quarter-on-quarter change). After moderating but remaining above the Federal Reserve’s (Fed) 2% target, inflation (year-on-year) stood at 2.7% in June (after 2.4% in May). Core inflation (excluding volatile components, food and energy) reached 2.9%; the increase in tariffs (although not yet finalised) already seems to be visible in the cost of certain goods (furniture, textiles and clothing, household appliances). Despite this turbulence, the job market has stayed relatively strong (unemployment rate at 4.2% in May, still within the narrow range it has been in since May 2024), providing some stability for an otherwise fragile economy.
In China, despite a very difficult external environment and punitive US tariffs, growth (5.4% and 5.2% in the first and second quarters) stabilised above the official target of 5% for 2025. While consumption is sluggish, a weakness reflected in the absence of inflation (which has not exceeded 1% year-on-year since February 2024), exports have continued to accelerate, making a surprising contribution to growth. At 2.1 percentage points in the first quarter of 2025, the contribution from net external demand reached an historic high (excluding Covid), reflecting China’s undisputed dominance in global manufacturing, although temporary positive effects (anticipation of US tariffs at the beginning of the year) should not be overlooked.
In an unfavourable environment, the eurozone held up well, with growth initially estimated at 0.3% (quarter-on-quarter) and then revised upwards (0.6%, or 1.5% year-on-year). Growth in the eurozone was mainly driven by investment, followed by net external demand and finally household consumption (with respective contributions to growth of 0.4 pp, 0.3 pp and 0.1 pp), while inventories subtracted 0.1 pp from growth and final public expenditure was “neutral”. This overall performance continued to mask varying national fortunes: among the largest member countries, Spain continued to post very strong growth (0.6%) and Germany saw an upturn (0.4%), while Italy and France posted fairly sustained (0.3%) and weak (0.1%) growth rates, respectively. Continued disinflation (to 1.9% year-on-year in May after 2.2% in April and 2.6% in May 2024) and anchored expectations made it possible for the ECB to continue its monetary easing, reassured by the convergence of inflation towards its 2% target.
In France, in particular, after benefiting from the boost provided by the Paris Olympic and Paralympic Games in the third quarter of 2024 (+0.4% quarter-on-quarter), activity declined slightly in the last quarter of last year (-0.1%) due to after-effects. It picked up again in the first quarter of 2025, but growth remained weak (+0.1%). Domestic demand, which contributed negatively to growth, is largely responsible for this sluggishness. Household consumption declined (-0.2%), undermined by a record savings rate (18% of household disposable income, compared with 15.4% in the eurozone) for 45 years (excluding the Covid period), while public consumption slowed (+0.2% after +0.4%). Investment continued to stagnate, reflecting the fact that companies in France are more indebted than in the rest of the eurozone (making them more vulnerable to past interest rate hikes) and the budgetary efforts of public administrations to reduce the public deficit. As a result, domestic demand weighed on growth in the first quarter (-0.1 pp). However, it was mainly foreign trade that undermined growth (-0.8 pp) due to the collapse of exports, particularly in the aerospace sector. Unlike its European peers, France did not benefit from the sharp rise in global trade in the first quarter (+1.7%) in anticipation of US tariffs.
In terms of monetary policy, the first half of 2025 was marked by a notable divergence between the status quo of the Federal Reserve (Fed) and the continued easing by the European Central Bank (ECB). The ECB cut interest rates four times by 25 basis points (bp) each, bringing the cumulative reduction in the deposit rate (2% since 11 June) to 200 bp since the start of easing (June 2024). However, after cutting its policy rate by 100 bp in 2024 (to 4.50%), the Fed kept rates unchanged due to overly modest progress on inflation, even though growth did not appear to be definitively at risk. Inflationary risks linked to tariffs led it to adopt a very cautious stance, which was widely criticised by President Trump.
The financial markets, while remaining subject to bouts of nervousness prompted by geopolitical events, generally kept pace with Donald Trump’s stated ambitions, their feasibility and his U-turns. Thus, the theme of the American exception at the beginning of the year (growth exceeding potential, resilience despite interest rates set to rise, the privileged status of the dollar, unlimited capacity to borrow and shift risks to the rest of the world) has been supplanted by disenchantment with US assets following “Liberation Day”. Following the president’s backtracking and announcement of a 90-day pause, serious doubts were raised about his ability to truly deliver on his domestic and international commitments. Periods marked by exaggerated negativity have therefore alternated with periods dominated by equally exaggerated positivity.
Bond markets therefore experienced mixed movements. During the first half of the year, in the United States, the decline in yields (54) on short maturities was ultimately quite sharp (nearly 60 bp for the two-year swap rate to nearly 3.50%) and exceeded that of the ten-year swap rate (down 38 bp to 3.69%), giving the curve a steeper slope. Despite Moody’s rating downgrade, the yield on 10-year sovereign bonds (US Treasuries) fell in line with the swap rate for the same maturity, which it now exceeds by more than 50 bp (at 4.23%). In the eurozone, the steepening effect was less pronounced and unfolded differently: there was a less marked decline in the two-year swap rate (from 22 bp to 1.90%) and an increase in the ten-year swap rate (from 23 bp to 2.57%). Under the influence of the Merz government’s expansionary budget programme, the German 10-year yield (Bund) rose (24 bp to 2.61%) and exceeded the swap rate for the same maturity by a few basis points. Ten-year swap spreads on benchmark European sovereign bonds narrowed in the first half of the year, with Italy posting the strongest performance (spread down 27 bp to 90 bp). This improvement reflects a more favourable perception of Italy’s public finances and a degree of political stability, in contrast to the turbulence of previous years. Italian growth also showed unexpected resilience in the face of trade tensions. Penalised since the dissolution of parliament in June 2024 by a damaging lack of a parliamentary majority and severely deteriorated public finances, the French spread nevertheless narrowed during the half-year, falling from a high level (85 bp) to 71 bp. It now exceeds the Spanish spread (at 67 bp).
On the equity markets, European indexes outperformed their US counterparts, with the Euro Stoxx 50 up 10% since the start of the year (and a spectacular rise of nearly 25% for the banking sector), while the S&P 500, which was much more volatile over the period, rose by nearly 7%, buoyed by high-tech stocks. The US dollar lost some of its lustre amid economic and international policy uncertainty, with the euro appreciating by 14% against the dollar and 6% in nominal effective terms. Finally, the price of gold rose by 26% in the first half of the year, reaching a record high of US$3,426 per ounce in April, confirming its status as a preferred safe haven during this period of intense uncertainty.
2025–2026 Outlook
An anxiety-inducing context, some unprecedented resistance
The economic and financial scenario, which has already had to contend with the volatility and unpredictability of US economic policy, is unfolding against an even more uncertain international backdrop, in which the risk of disruptive events (blockade of the Strait of Hormuz, incidents affecting infrastructure in the Gulf etc.) cannot be entirely ruled out.
Our economic scenario for the United States has always been based on a two-step sequence in line with the pace of the economic policy planned by Donald Trump: a positive impact on inflation but a negative impact on growth from tariffs (which fall within the president’s prerogatives), followed by a positive but delayed effect from aggressive budgetary policy (which requires congressional approval). Although our forecasts for 2025 have been revised slightly downwards, our US scenario remains on track, in line with the timetable for economic policy measures: while avoiding recession, growth is expected to slow sharply in 2025, coupled with a pick-up in inflation, before regaining momentum in 2026.
Even with the recent de-escalation, tariff rates remain significantly higher than they were before Donald Trump’s second election. The negative impact of the new trade policy is the main driver of the decline in the growth forecast for 2025 (1.5% after 2.8% in 2024), while more favourable aspects (the “One Big Beautiful Bill”, tax cuts and deregulation) should contribute to the expected upturn in 2026 (2.2%). The possibility of a recession in 2025 has been ruled out due to solid fundamentals, including lower sensitivity to interest rates, very healthy household finances and a labour market that remains relatively robust, even if there are signs of deterioration. Despite the expected slowdown in growth, our inflation forecasts have been revised upwards. Tariffs are expected to cause year-on-year inflation to rise by around 80 basis points (bp) at peak impact. Although this effect is temporary, inflation (annual average) is expected to reach 2.9% in 2025 and 2.7% in 2026. It is therefore expected to continue to exceed 2%, with underlying inflation stabilising at around 2.5% at the end of 2026.
In a conflict-ridden and unpredictable external environment, Europe is expected to find salvation in domestic demand, allowing it to better withstand the global slowdown. Two alternative scenarios, between which the balance is delicate, are likely to unfold: a scenario of resilience in the eurozone economy based on an increase in private spending but also, and perhaps above all, in public spending on defence and infrastructure; a scenario of stagnating activity under the effect of a series of negative shocks: competitiveness shocks linked to higher tariffs, appreciation of the euro and the negative impact of uncertainty on private confidence.
We favour the scenario of resilience against a backdrop of a buoyant labour market, a healthy economic and financial situation for the private sector and a favourable credit cycle. The effective implementation of additional public spending, particularly the “German bazooka”(55), certainly needs to be confirmed. However, this spending could provide the eurozone with growth driven by stronger domestic demand at a time when global growth is slowing. It would offer a type of exceptionalism, especially compared to the past decade, which would put eurozone growth above its medium-term potential. Average annual growth in the eurozone is expected to accelerate slightly in 2025 to 0.9% and strengthen to 1.3% in 2026. Average inflation is expected to continue to moderate, reaching 2.1% and 1.8% in 2025 and 2026, respectively.
In Germany, the sluggish economy should return to robust growth. Although more exposed than its partners to protectionist policies, the economy should be boosted by the public investment plan. This plan and the removal of barriers to financing infrastructure and defence investment that had previously seemed insurmountable give hope for a significant, albeit not immediate, recovery. While the effects are likely to be minimal in 2025 due to implementation delays, a significant flow of funds is expected in 2026, with positive spillover effects for Germany’s European neighbours and the eurozone as a whole. German growth could recover significantly, rising from -0.2% in 2024 to 0.1% in 2025 and, above all, 1.2% in 2026. In France, growth is expected to remain sluggish in the second quarter of 2025, before accelerating slightly in the second half of the year. The real upturn would not come until 2026, driven by a recovery in investment and the initial favourable impact of German government measures. The risks remain mainly on the downside for activity in the short term. Our scenario assumes growth rates of 0.6% and 1.2% in 2025 and 2026, respectively (after 1.1% in 2024). In Italy, incomplete catching-up and a recent decline in purchasing power, despite strong employment, are likely to limit the potential for a recovery in household consumption. Positive surprises on the investment front are likely to continue, thanks to improved financing conditions and subsidies for the energy and digital transitions. While the recent weakness in industrial orders may weigh on productive investment, construction is holding up well. However, doubts remain about growth potential, with post-pandemic sector allocation favouring less productive sectors. Growth is expected to reach 0.6% in 2025 and 0.7% in 2026 (after 0.7% in 2024).
The central scenario for the eurozone (developed and quantified in June) assumes that the tariff dispute with the United States will remain unchanged as of 4 June, i.e. a general increase in tariffs to 10% (except for exempted products), 25% on cars and 50% on steel. The risks associated with this central scenario are bearish. The stagnation scenario could materialise if the trade dispute with the United States were to escalate, if competitive pressures were to intensify, if private confidence were to deteriorate significantly and, finally, if fiscal stimulus were to be implemented more gradually than anticipated.
Such an uncertain environment, characterised by global slowdown and shrinking export opportunities, would certainly have led in the past (and not so long ago) to underperformance by emerging economies, which are further hampered by risk aversion in the markets, higher interest rates and pressure on their currencies. However, despite tariffs (the effects of which will obviously vary greatly from one economy to another), our scenario remains broadly optimistic for the major emerging countries. These countries could show unprecedented resilience thanks to support measures that are likely to partially cushion the impact of an unfavourable environment: relatively strong labour markets, fairly solid domestic demand, monetary easing (with a few exceptions), and a limited slowdown in China (after holding up well in the first half of the year, growth is expected to approach 4.5% in 2025 due to the anticipated slowdown in the second half linked to the trade war). Finally, emerging market currencies have held up well and the risk of defensive rate hikes, which would weigh heavily on growth, is lower than might have been feared. However, these relatively positive prospects are accompanied by higher-than-usual risks due to the unpredictability of US policy.
In terms of monetary policy, the end of the easing cycles is drawing nearer. In the US, the scenario (a sharp slowdown in 2025, an upturn in 2026 and inflation continuing to significantly exceed the target) and the uncertainties surrounding it should encourage the Fed to remain patient, despite Donald Trump’s calls for a more accommodative policy. The Fed is likely to proceed with a slight easing followed by a long pause. Our scenario still assumes two cuts in 2025, but pushes them back by one quarter (to September and December, from June and September previously). After these two cuts, the Fed is likely to keep rates unchanged with a maximum upper limit of 4% throughout 2026.
As for the ECB, although it refuses to rule out any future rate cuts, it may well have reached the end of its easing cycle due to an expected recovery in growth and inflation on target. Of course, a deterioration in the economic environment would justify further easing: the ECB stands ready to cut rates if necessary. Our scenario assumes that the deposit rate will remain at 2% in 2026.
On the interest rate front, in the United States, persistent inflationary risks and a budgetary trajectory deemed unsustainable, a compromised AAA rating, the volatility of economic decisions and heightened investor concerns are exerting upward pressure. Our scenario assumes a 10-year US Treasury yield of around 4.70% at the end of 2025 and 4.95% at the end of 2026. In the eurozone, resilient growth that is expected to accelerate, inflation on target and the ECB believed to have almost completed its easing cycle point to a slight rise in interest rates and a stabilisation or even tightening of sovereign spreads. The German 10-year yield (Bund) could thus approach 2.90% at the end of 2025 and 2.95% at the end of 2026. For the same maturity, the spread offered by France relative to the Bund would fluctuate around 60/65 bp, while Italy’s would narrow to 90 bp by the end of 2026.
Finally, the US dollar continues to lose ground. The inconsistency and unpredictability of Donald Trump’s economic policies, the deteriorating US budget outlook and speculation about official plans to devalue the dollar, combined with resistance from other economies, are all factors putting pressure on the dollar, although this does not necessarily spell the end of its status as a key reserve currency in the short term. The euro/dollar exchange rate is expected to settle at 1.17 in the fourth quarter of 2025, before depreciating in 2026 (1.10).
Appendix 1 – Crédit Agricole Group: income statement by business line
Credit Agricole Group – Results par by business line, Q2-25 and Q2-24
| Q2-25 | ||||||||
| €m | RB | LCL | IRB | AG | SFS | LC | CC | Total |
| Revenues | 3,364 | 976 | 1,031 | 1,967 | 881 | 2,224 | (635) | 9,808 |
| Operating expenses | (2,690) | (597) | (540) | (864) | (438) | (1,257) | 514 | (5,872) |
| Gross operating income | 674 | 380 | 491 | 1,104 | 442 | 967 | (121) | 3,936 |
| Cost of risk | (397) | (95) | (61) | (7) | (235) | (20) | (26) | (840) |
| Equity-accounted entities | 1 | – | – | 58 | (13) | 10 | – | 56 |
| Net income on other assets | 1 | 1 | 0 | 449 | 1 | 0 | 0 | 452 |
| Income before tax | 278 | 286 | 430 | 1,604 | 194 | 958 | (147) | 3,604 |
| Tax | (96) | (69) | (130) | (249) | (58) | (149) | 136 | (615) |
| Net income from discontinued or held-for-sale ope. | – | – | 0 | – | – | – | 0 | 0 |
| Net income | 182 | 218 | 300 | 1,356 | 136 | 810 | (11) | 2,990 |
| Non-controlling interests | (0) | (0) | (40) | (247) | (22) | (43) | 1 | (352) |
| Net income Group Share | 182 | 217 | 260 | 1,108 | 114 | 767 | (10) | 2,638 |
| Q2-24 | ||||||||
| €m | RB | LCL | IRB | AG | SFS | LC | CC | Total |
| Revenues | 3,255 | 979 | 1,051 | 1,946 | 889 | 2,223 | (837) | 9,507 |
| Operating expenses | (2,560) | (591) | (573) | (813) | (443) | (1,204) | 497 | (5,687) |
| Gross operating income | 694 | 389 | 477 | 1,133 | 447 | 1,019 | (340) | 3,819 |
| Cost of risk | (444) | (95) | (75) | (2) | (211) | (39) | (6) | (872) |
| Equity-accounted entities | 2 | – | – | 33 | 29 | 10 | – | 74 |
| Net income on other assets | 1 | 2 | 0 | (12) | (1) | 2 | (0) | (7) |
| Income before tax | 253 | 296 | 402 | 1,152 | 265 | 993 | (347) | 3,014 |
| Tax | (44) | (65) | (117) | (282) | (54) | (248) | 48 | (762) |
| Net income from discontinued or held-for-sale ope. | – | – | – | – | – | – | – | – |
| Net income | 209 | 231 | 285 | 870 | 210 | 745 | (299) | 2,252 |
| Non-controlling interests | (1) | (0) | (38) | (124) | (23) | (36) | (2) | (224) |
| Net income Group Share | 208 | 231 | 247 | 746 | 187 | 710 | (300) | 2,028 |
Credit Agricole Group – Results par by business line, H1-25 and H1-24
| H1-25 | ||||||||
| €m | RB | LCL | IRB | AG | SFS | LC | CC | Total |
| Revenues | 6,716 | 1,939 | 2,079 | 4,016 | 1,749 | 4,632 | (1,275) | 19,856 |
| Operating expenses | (5,220) | (1,222) | (1,075) | (1,799) | (912) | (2,617) | 982 | (11,864) |
| Gross operating income | 1,496 | 717 | 1,003 | 2,217 | 837 | 2,015 | (293) | 7,992 |
| Cost of risk | (717) | (186) | (128) | (17) | (484) | 5 | (48) | (1,575) |
| Equity-accounted entities | 7 | – | – | 86 | 23 | 16 | – | 131 |
| Net income on other assets | 3 | 2 | 0 | 449 | 1 | 0 | 0 | 456 |
| Income before tax | 790 | 533 | 875 | 2,734 | 376 | 2,036 | (341) | 7,004 |
| Tax | (267) | (181) | (267) | (599) | (71) | (453) | 182 | (1,656) |
| Net income from discontinued or held-for-sale ope. | – | – | 0 | – | – | – | – | 0 |
| Net income | 523 | 352 | 608 | 2,135 | 305 | 1,583 | (159) | 5,348 |
| Non-controlling interests | (0) | (0) | (82) | (348) | (43) | (78) | 7 | (545) |
| Net income Group Share | 523 | 352 | 526 | 1,787 | 263 | 1,504 | (151) | 4,803 |
| H1-24 | ||||||||
| €m | RB | LCL | IRB | AG | SFS | LC | CC | Total |
| Revenues | 6,568 | 1,933 | 2,131 | 3,739 | 1,736 | 4,489 | (1,565) | 19,031 |
| Operating expenses | (5,044) | (1,193) | (1,098) | (1,567) | (897) | (2,501) | 1,024 | (11,276) |
| Gross operating income | 1,524 | 740 | 1,033 | 2,172 | 839 | 1,988 | (541) | 7,755 |
| Cost of risk | (691) | (214) | (159) | (5) | (429) | (5) | (20) | (1,523) |
| Equity-accounted entities | 7 | – | – | 61 | 59 | 14 | – | 142 |
| Net income on other assets | 3 | 4 | (0) | (20) | (1) | 2 | (2) | (14) |
| Income before tax | 842 | 530 | 875 | 2,208 | 468 | 1,999 | (563) | 6,361 |
| Tax | (191) | (119) | (260) | (501) | (97) | (482) | 133 | (1,517) |
| Net income from discontinued or held-for-sale ope. | – | – | – | – | – | – | – | – |
| Net income | 651 | 412 | 615 | 1,707 | 372 | 1,517 | (430) | 4,843 |
| Non-controlling interests | (1) | (0) | (89) | (236) | (42) | (69) | 6 | (432) |
| Net income Group Share | 650 | 412 | 525 | 1,471 | 330 | 1,448 | (424) | 4,412 |
Appendix 2 – Crédit Agricole S.A.: Income statement by business line
Crédit Agricole S.A. – Results par by business line, Q2-25 and Q2-24
| Q2-25 | |||||||
| €m | AG | LC | SFS | FRB (LCL) | IRB | CC | Total |
| Revenues | 1,970 | 2,224 | 881 | 976 | 1,007 | (51) | 7,006 |
| Operating expenses | (864) | (1,257) | (438) | (597) | (520) | (25) | (3,700) |
| Gross operating income | 1,106 | 967 | 442 | 380 | 487 | (76) | 3,306 |
| Cost of risk | (7) | (20) | (235) | (95) | (61) | (24) | (441) |
| Equity-accounted entities | 58 | 10 | (13) | – | – | (24) | 30 |
| Net income on other assets | 453 | 0 | 1 | 1 | 0 | 0 | 455 |
| Income before tax | 1,610 | 958 | 194 | 286 | 426 | (125) | 3,350 |
| Tax | (249) | (149) | (58) | (69) | (129) | 113 | (541) |
| Net income from discontinued or held-for-sale operations | – | – | – | – | 0 | – | 0 |
| Net income | 1,361 | 810 | 136 | 218 | 297 | (12) | 2,809 |
| Non-controlling interests | (261) | (58) | (22) | (10) | (59) | (10) | (420) |
| Net income Group Share | 1,100 | 752 | 114 | 208 | 238 | (22) | 2,390 |
| Q2-24 | ||||||||
| €m | AG | LC | SFS | FRB (LCL) | IRB | CC | Total | |
| Revenues | 1,944 | 2,223 | 889 | 979 | 1,027 | (267) | 6,796 | |
| Operating expenses | (813) | (1,204) | (443) | (591) | (555) | (15) | (3,621) | |
| Gross operating income | 1,131 | 1,019 | 447 | 389 | 472 | (283) | 3,175 | |
| Cost of risk | (2) | (39) | (211) | (95) | (72) | (5) | (424) | |
| Equity-accounted entities | 33 | 10 | 29 | – | – | (25) | 47 | |
| Net income on other assets | (12) | 2 | (1) | 2 | 0 | 24 | 15 | |
| Income before tax | 1,150 | 993 | 265 | 296 | 400 | (289) | 2,814 | |
| Tax | (283) | (248) | (54) | (65) | (117) | 63 | (704) | |
| Net income from discontinued or held-for-sale operations | – | – | – | – | – | – | – | |
| Net income | 867 | 745 | 210 | 231 | 283 | (226) | 2,110 | |
| Non-controlling interests | (131) | (51) | (23) | (10) | (55) | (12) | (282) | |
| Net income Group Share | 736 | 694 | 187 | 220 | 228 | (238) | 1,828 | |
Crédit Agricole S.A. – Results par by business line, H1-25 and H1-24
| H1-25 | |||||||
| €m | AG | LC | SFS | FRB (LCL) | IRB | CC | Total |
| Revenues | 4,028 | 4,632 | 1,749 | 1,939 | 2,033 | (118) | 14,263 |
| Operating expenses | (1,799) | (2,617) | (912) | (1,222) | (1,035) | (106) | (7,691) |
| Gross operating income | 2,229 | 2,015 | 837 | 717 | 998 | (224) | 6,571 |
| Cost of risk | (17) | 5 | (484) | (186) | (128) | (45) | (855) |
| Equity-accounted entities | 86 | 16 | 23 | – | – | (47) | 77 |
| Net income on other assets | 453 | 0 | 1 | 2 | 0 | 0 | 456 |
| Income before tax | 2,749 | 2,037 | 376 | 533 | 870 | (316) | 6,250 |
| Tax | (601) | (454) | (71) | (181) | (266) | 205 | (1,368) |
| Net income from discontinued or held-for-sale operations | – | – | – | – | 0 | – | 0 |
| Net income | 2,148 | 1,583 | 305 | 352 | 604 | (111) | 4,882 |
| Non-controlling interests | (368) | (108) | (43) | (16) | (121) | (13) | (669) |
| Net income Group Share | 1,780 | 1,475 | 263 | 337 | 483 | (124) | 4,213 |
| H1-24 | ||||||||
| €m | AG | LC | SFS | FRB (LCL) | IRB | CC | Total | |
| Revenues | 3,733 | 4,489 | 1,736 | 1,933 | 2,085 | (374) | 13,602 | |
| Operating expenses | (1,567) | (2,501) | (897) | (1,193) | (1,060) | (71) | (7,289) | |
| Gross operating income | 2,166 | 1,988 | 839 | 740 | 1,024 | (445) | 6,312 | |
| Cost of risk | (5) | (5) | (429) | (214) | (154) | (16) | (824) | |
| Equity-accounted entities | 61 | 14 | 59 | – | – | (46) | 90 | |
| Net income on other assets | (20) | 2 | (1) | 4 | (0) | 24 | 9 | |
| Income before tax | 2,203 | 1,999 | 468 | 530 | 870 | (483) | 5,587 | |
| Tax | (502) | (482) | (97) | (119) | (259) | 144 | (1,315) | |
| Net income from discontinued or held-for-sale operations | – | – | – | – | – | – | – | |
| Net income | 1,701 | 1,517 | 372 | 412 | 610 | (339) | 4,273 | |
| Non-controlling interests | (248) | (101) | (42) | (18) | (126) | (7) | (542) | |
| Net income Group Share | 1,453 | 1,416 | 330 | 393 | 485 | (345) | 3,731 | |
Appendix 3 – Data per share
| Credit Agricole S.A. – Earnings p/share, net book value p/share and ROTE |
| €m | Q2-25 | Q2-24 | H1-25 | H1-24 | |||||||||||||||||||
| Net income Group share | 2,390 | 1,828 | 4,213 | 3,731 | |||||||||||||||||||
| – Interests on AT1, including issuance costs, before tax | (141) | (83) | (270) | (221) | |||||||||||||||||||
| – Foreign exchange impact on reimbursed AT1 | 4 | – | 4 | (247) | |||||||||||||||||||
| NIGS attributable to ordinary shares | [A] | 2,252 | 1,745 | 3,947 | 3,263 | ||||||||||||||||||
| Average number shares in issue, excluding treasury shares (m) | [B] | 3,025 | 3,025 | 3,025 | 3,008 | ||||||||||||||||||
| Net earnings per share | [A]/[B] | 0.74 € | 0.58 € | 1.30 € | 1.08 € | ||||||||||||||||||
| €m | 30/06/25 | 30/06/24 | |||||||||||||||||||||
| Shareholder’s equity Group share | 75,528 | 70,396 | |||||||||||||||||||||
| – AT1 issuances | (8,612) | (7,164) | |||||||||||||||||||||
| – Unrealised gains and losses on OCI – Group share | 872 | 1,305 | |||||||||||||||||||||
| Net book value (NBV), not revaluated, attributable to ordin. sh. | [D] | 67,787 | 64,537 | ||||||||||||||||||||
| – Goodwill & intangibles** – Group share | (18,969) | (17,775) | |||||||||||||||||||||
| Tangible NBV (TNBV), not revaluated attrib. to ordinary sh. | [E] | 48,818 | 46,763 | ||||||||||||||||||||
| Total shares in issue, excluding treasury shares (period end, m) | [F] | 3,025 | 3,025 | ||||||||||||||||||||
| NBV per share, after deduction of dividend to pay (€) | [D]/[F] | 22.4 € | 21.3 € | ||||||||||||||||||||
| TNBV per share, after deduction of dividend to pay (€) | [G]=[E]/[F] | 16.1 € | 15.5 € | ||||||||||||||||||||
| ** y compris les écarts d’acquisition dans les participations ne donnant pas le contrôle | |||||||||||||||||||||||
| €m | H1-25 | H1-24 | |||||||||||||||||||||
| Net income Group share | 4,213 | 3,731 | |||||||||||||||||||||
| Added value Amundi US | 304 | 0 | |||||||||||||||||||||
| Additionnal corporate tax | -129 | 0 | |||||||||||||||||||||
| IFRIC | -173 | -110 | |||||||||||||||||||||
| NIGS annualised (1) | [N] | 8,382 | 7,572 | ||||||||||||||||||||
| Interests on AT1, including issuance costs, before tax, foreign exchange impact, annualised | [O] | -536 | -689 | ||||||||||||||||||||
| Result adjusted | [P] = [N]+[O] | 7,846 | 6,884 | ||||||||||||||||||||
| Tangible NBV (TNBV), not revaluated attrib. to ord. shares – average*** (2) | [J] | 47,211 | 44,710 | ||||||||||||||||||||
| ROTE adjusted (%) | = [P] / [J] | 16.6% | 15.4% | ||||||||||||||||||||
| *** including assumption of dividend for the current exercise | 0,0% | ||||||||||||||||||||||
(1)ROTE calculated on the basis of an annualised underlying net income Group share and linearised IFRIC costs over the year
(2)Average of the NTBV not revalued attributable to ordinary shares. calculated between 31/12/2024 and 30/06/2025 (line [E]), restated with an assumption of dividend for current exercises
Alternative Performance Indicators56
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:
Impaired loan
Loan which has been provisioned due to a risk of non-repayment.
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.
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.
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 second quarter and first half 2025 comprises this presentation and the attached appendices and press release which are available on the website: https://www.credit-agricole.com/finance/publications-financieres.
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 six-month period ending 30 June 2025 have been prepared in accordance with IFRS as adopted in the European Union and applicable at that date, and with the applicable regulations in force. This financial information does not constitute a set of financial statements for an interim period as defined by IAS 34 “Interim Financial Reporting” and has not been audited.
Note: The scopes of consolidation of the Crédit Agricole S.A. and Crédit Agricole groups have not changed materially since the Crédit Agricole S.A. 2024 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.
Financial Agenda
30 October 2025 Publication of the 2025 third quarter and first nine months results
18 November 2025 Presentation of the Medium-Term Plan
4 February 2026 Publication of the 2025 fourth quarter and full year results
30 April 2026 Publication of the 2026 first quarter results
20 May 2026 2026 General Meeting
31 July 2026 Publication of the 2026 second quarter and the first half-year results
30 October 2026 Publication of the 2026 third quarter and first nine months results
Contacts
CREDIT AGRICOLE PRESS CONTACTS
CRÉDIT AGRICOLE S.A. INVESTOR RELATIONS CONTACTS
| Institutional investors | 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 |
| Debt 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 |
| Yury Romanov | + 33 1 43 23 86 84 | yury.romanov@credit-agricole-sa.fr |
See all our press releases at: www.credit-agricole.com – www.creditagricole.info
1 Closing at 4thof July
(2)Car, home, health, legal, all mobile phones or personal accident insurance.
(3)CA Auto Bank, automotive JVs and automotive activities of other entities
(4)Low-carbon energy exposures made up of renewable energy produced by the clients of all Crédit Agricole Group entities, including nuclear energy exposures for Crédit Agricole CIB.
(5)CAA outstandings (listed investments managed directly, listed investments managed under mandate and unlisted investments managed directly) and Amundi Transition Energétique.
(6)Crédit Agricole Group outstandings, directly or via the EIB, dedicated to the environmental transition according to the Group’s internal sustainable assets framework, as of 31/03/2025. Change of method on property compared with the outstandings reported at 30/09/2024: with the same method, the outstandings at 31/03/2025 would be €85.9 billion.
(7)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
(8)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
(9)Average rate of loans to monthly production for April to May 2025
(10)Equipment rate – Home-Car-Health policies, Legal, All Mobile/Portable or personal accident insurance
(11)Reversal of the provision for Home Purchase Saving Plans: +€16.3m in Q2-25 vs. +€22m in Q2-24 in revenues (+€12.1m in Q2-25 vs. +€17m in Q2-24 in net income Group share)
(12)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.
(13)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
(14)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
(15)See Appendixes for details on the calculation of the RoTE (return on tangible equity)
(16)The annualised net income Group share corresponds to the annualisation of the net income Group share (Q1x4; H1x2; 9Mx4/3) by restating each period for IFRIC impacts, the effects of the additional corporate tax charge and the capital gain related to the deconsolidation of Amundi US to linearise them over the year.
(17)In local standards
(18)Scope: property and casualty in France and abroad
(19)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: 97.4% (+0.1 pp over the year)
(20)Excluding assets under custody for institutional clients
(21)Amount of allocation of Contractual Service Margin (CSM), loss component and Risk Adjustment (RA), and operating variances net of reinsurance, in particular
(22)Amount of allocation of CSM, loss component and RA, and operating variances net of reinsurance, in particular.
(23)Net of reinsurance cost, including financial results
(24)Pro forma scope effect of deconsolidated Amundi US in Q2 2024: €89m in revenues and €51m in expenses.
(25)Excluding scope effect
(26)Indosuez Wealth Management scope
(27)Degroof Petercam scope effect April/May 2025: Revenues of €96m and expenses of -€71m
(28)Q2-25 Integration costs: -€22.5m vs -€5.4m in Q2-24
(29)Degroof Petercam scope effect over H1-25: reminder of figures for Degroof Petercam scope effect of Q1-25 revenues of €164m and expenses of -€115m
(30)Refinitiv LSEG
(31)Bloomberg in EUR
(32)ISB integration costs: -€5m in Q2-25 (vs -€24.4m in Q2-24)
(33)Net income becomes net income Group share following the purchase of minority shares in Santander by Crédit Agricole S.A.
(34)CA Auto Bank, automotive JVs and auto activities of other entities
(35)CA Auto Bank and automotive JVs
(36)Lease financing of corporate and professional equipment investments in France: -7.5% in Q1-25 (source: ASF)
(37)Increase in RWA of around +€7G primarily connected to the consolidation of the leasing activities in Q4-24
(38)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.
(39)Net of POCI outstandings
(40)Source: Abi Monthly Outlook, July 2025: +0.9% June/June for all loans
(41)At 30 June 2025 this scope includes the entities CA Italia, CA Polska, CA Egypt and CA Ukraine.
(42) Over a rolling four quarter period.
(43)At 30 June 2025, this scope corresponds to the aggregation of all Group entities present in Italy: CA Italia, CAPFM (Agos, Leasys, CA Auto Bank), CAA (CA Vita, CACI, CA Assicurazioni), Amundi, Crédit Agricole CIB, CAIWM, CACEIS, CALEF.
(44)Banco BPM stake -21 bps; Stake in Victory Capital: – 8 bps or –1 bp including capital gain from the deconsolidation of Amundi US; Additional threshold excess for other financial participations: -7 bps.
(48)
(49)
(54)This refers to the change between the value at 30 June 2025 and the value at 1 (or 2) January 2025; the latter is the value of the variable concerned at 30 June 2025.
(55)In March, Parliament approved the creation of a €500 billion infrastructure investment fund over 12 years. The first phase of the reform of the debt brake was also approved, allowing regions to run a structural deficit of up to 0.35% of GDP. Finally, defence spending above 1% of GDP will be exempt from the deficit calculation. The adoption of these measures has broken down barriers to financing infrastructure and defence investment that had previously seemed insurmountable.
(56)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 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
Source: Government of Sweden
Sweden and the majority of World Health Organization (WHO) Member States in the WHO European Region have decided to relocate the WHO European Office for the Prevention and Control of Noncommunicable Diseases from Moscow to Copenhagen. The decision was taken in support of Ukraine and enables the WHO to continue its work fighting noncommunicable diseases in Europe.
US Senate News:
Source: United States Senator for Mississippi Roger Wicker
WASHINGTON – U.S. Senators Roger Wicker, R-Miss., Chairman of the Senate Armed Services Committee, and James Risch, R-ID, Chairman of the Senate Foreign Relations Committee, announced they will introduce new legislation to support President Trump’s efforts to achieve peace in Ukraine, push back on Russian aggression, and ensure America’s allies are paying their fair share to end this conflict.
This new legislation, the PEACE Act, builds on the successful NATO summit this summer, which produced a historic agreement to increase NATO defense spending and revitalize alliance burden sharing. The PEACE Act creates a fund at the U.S. treasury that would allow allies to deposit money to replenish U.S. military equipment donated to Ukraine.
Upon introducing the bill, Chairman Wicker issued the following statement:
“President Trump has made clear that he will not tolerate Russian tyrant Vladimir Putin’s continued targeting of civilians in Ukraine. The death and destruction must end, but Putin will not stop unless it is made clear to him that there is no path to success and that continued war will lead to massive costs for him and Russia. Today, we are introducing the PEACE Act, which gives President Trump and our NATO allies an additional option to deliver military aid to Ukraine. The PEACE Act enables our European partners to finance replenishments so that the U.S. military can continue drawdown packages of weapons to Ukraine. This is the fastest way to arm Ukraine as well as to minimize the strategic and military threat posed by Russia to the U.S. and NATO. The PEACE Act, in conjunction with the purchase of new military equipment and the prospect of imposing a crippling sanctions regime, shows Putin that neither escalation nor attrition will allow him to achieve his war aims.”
Chairman Risch said: “Peace is only possible through strength. President Trump’s work with our NATO allies ensures they cover the cost of weapons for Ukraine, and this bill will give him the tool he needs to do so. Together, we will send a clear message to Putin that there are consequences for his refusal to negotiate in good faith.”
Background
Source: Government of India
Source: Government of India (4)
U.S. President Donald Trump on Wednesday imposed a 25% tariff on goods imported from India starting August 1, along with an unspecified penalty for buying Russian weapons and oil, potentially straining relations with the world’s most populous democracy.
The U.S. decision singles out India more severely than other major trading partners, and threatens to unravel months of talks between the two countries, undermining a key strategic partner of Washington’s and a counterbalance to China.
“While India is our friend, we have, over the years, done relatively little business with them because their Tariffs are far too high, among the highest in the World, and they have the most strenuous and obnoxious non-monetary Trade Barriers of any Country,” Trump wrote in a Truth Social post.
“They have always bought a vast majority of their military equipment from Russia, and are Russia’s largest buyer of ENERGY, along with China, at a time when everyone wants Russia to STOP THE KILLING IN UKRAINE — ALL THINGS NOT GOOD!”
The White House has previously warned India about its high average applied tariffs – nearly 39% on agricultural products – with rates climbing to 45% on vegetable oils and around 50% on apples and corn.
Russia continued to be the top oil supplier to India during the first six months of 2025, making up 35% of overall supplies.
The U.S. currently has a $45.7 billion trade deficit with India.
The news pushed the Indian rupee down 0.4% to around 87.80 against the U.S. dollar in the non-deliverable forwards market, from its close at 87.42 during market hours. Gift Nifty futures were trading at 24,692 points, down 0.6%.
CONTENTIOUS ISSUES
“Higher tariffs for India compared to countries it competes with, for exports to the U.S., are going to be challenging,” said Ranen Banerjee, a partner of economic advisory services at PwC India.
India’s commerce ministry, which is leading the trade talks, did not immediately respond to a request for comment.
U.S. and Indian negotiators had held multiple rounds of discussions to resolve contentious issues, particularly over market access into India for U.S. agricultural and dairy products.
Despite progress in some areas, Indian officials resisted opening the domestic market to imports of wheat, corn, rice and genetically modified soybeans, citing risks to the livelihood of millions of Indian farmers.
The U.S. had flagged concerns over India’s increasing and burdensome import-quality requirements, among its many barriers to trade, in a report released in March.
The new tariffs are expected to impact India’s goods exports to the U.S., estimated at around $87 billion in 2024, including labour-intensive products such as garments, pharmaceuticals, gems and jewelry, and petrochemicals.
India now joins a growing list of countries facing higher tariffs under Trump’s “Liberation Day” trade policy, aimed at reshaping U.S. trade relations by demanding greater reciprocity.
The setback comes despite earlier commitments by Prime Minister Narendra Modi and Trump to conclude the first phase of a trade deal by autumn 2025 and expand bilateral trade to $500 billion by 2030, from $191 billion in 2024.
Indian officials have previously indicated that they view the U.S. as a key strategic partner, particularly in counterbalancing China. But they have emphasized the need to preserve policy space on agriculture, data governance, and state subsidies.
HOPES FOR A DEAL
It was not immediately clear whether the announcement was a negotiating tactic. While Trump railed against Japan in a June 30 Truth Social post and said there would likely be no deal with the North Asian nation, a deal was agreed on July 22.
An Indian government official told Reuters that New Delhi continued to remain engaged with the United States to seal an agreement.
Economists, too, remained hopeful.
“While the negotiations seems to have broken down, we don’t think the trade-deal haggling between the two nations is over yet,” Madhavi Arora, an economist at Emkay Global.
(Reuters)
Source: European Parliament
Question for written answer E-002990/2025
to the Commission
Rule 144
Mathilde Androuët (PfE)
A recent report resulting from a dialogue involving experts, qualified representatives of agricultural sectors and NGOs[1] has once again warned about the consequences, for our livestock and arable farmers, of the and imbalances in our trading relations with other agricultural powers. The authors highlighted the instruments included in the European ‘toolbox’ of reciprocity measures.
Submitted: 17.7.2025
Source: European Parliament
Question for written answer E-002989/2025
to the Commission
Rule 144
Mathilde Androuët (PfE)
The issue of animal welfare on our farms has become a major source of concern for many consumers. The Commission itself, which takes note of the ethical demands voiced in this regard, was at the origin of Directives 2007/43/EC and 98/58/EC, which are applicable to European farmers. European farmers are, of course, required to comply with these directives, and must shoulder the economic consequences arising from this compliance.
At EU level, the maximum quota for poultry exports from Ukraine to the EU for 2024 was set at 132 000 tonnes. However, according to a statement from the Ukrainian Government based on customs data[1], actual poultry exports from Ukraine to the EU amounted to 373 800 tonnes (poultry and poultry products) from January to October 2024 alone.
Submitted: 17.7.2025
Source: Republic of China Taiwan
Details
2025-07-24
President Lai meets Somaliland Foreign Minister Abdirahman Dahir Adam
On the morning of July 24, President Lai Ching-te met with a delegation led by Republic of Somaliland Minister of Foreign Affairs and International Cooperation Abdirahman Dahir Adam. In remarks, President Lai thanked the Somaliland government for its longstanding, staunch support for Taiwan-Somaliland relations. The president mentioned that this year marks the fifth anniversary of Taiwan and Somaliland’s mutual establishment of representative offices and that our exchanges in various areas have yielded significant results. He expressed hope for continuing to deepen our partnership, advancing our bilateral friendship and fruitful cooperation. A translation of President Lai’s remarks follows: I warmly welcome all of our guests to Taiwan. This is the first visit to Taiwan for Minister Adam, Minister Khadir Hussein Abdi, and Admiral Ahmed Hurre Hariye. I thank you for your high regard and support for Taiwan. I also very much appreciate that Lead Advisor Mohamed Omar Hagi Mohamoud, who served as representative of Somaliland to Taiwan during the past five years, continues deepening Taiwan-Somaliland ties in his new role. Somaliland is renowned as a beacon of democracy in the Horn of Africa. I want to once again congratulate Somaliland on successfully holding presidential and political party elections last November, which garnered praise from the international community. At that time, I appointed Deputy Minister of Foreign Affairs François Chihchung Wu (吳志中) to serve as special envoy and lead a delegation to attend the inauguration of President Abdirahman Mohamed Abdullahi, demonstrating that Taiwan would work closely with Somaliland’s new government to write a new chapter in our friendship. Recently, authoritarian regimes have continued to apply new forms of coercion as they intensify suppression of Taiwan’s and Somaliland’s international participation. In response, our two sides must continue to deepen our partnership and demonstrate the resilience of democratic alliances, as well as our staunch commitment to defending our values. This year marks the fifth anniversary of Taiwan and Somaliland’s mutual establishment of representative offices. Through our joint efforts, we have continued to expand exchanges in various areas, yielding significant results. This afternoon, we will also sign an agreement on coast guard cooperation, launching bilateral cooperation in maritime affairs. Regarding President Abdullahi’s focus on maritime security, the blue economy, and other policy objectives, we can strengthen our bilateral partnership moving forward. In addition, we also hope to work together with like-minded countries such as the United States, and through trilateral or multilateral cooperation platforms, realize the strategic goal of a non-red Somaliland coastline. I want to thank the Somaliland government once more for its longstanding, staunch support for Taiwan-Somaliland relations. I look forward to working with all of you to continue to advance our bilateral friendship and fruitful cooperation. In closing, I once again welcome Minister Adam and the delegation. I have every confidence that, in addition to advancing bilateral cooperation, this trip will allow you to experience Taiwan’s natural beauty and diverse culture. Minister Adam then delivered remarks, thanking the government and people of Taiwan for the warm hospitality they have received since their arrival. He stated that Taiwan is a peaceful nation and that it shares with Somaliland the value of democracy. He stated that we also share the goal of obtaining recognition, so he is glad that the Taiwan-Somaliland relationship is growing by the day. Minister Adam pointed out that there is much pressure that we are both facing in our relationship, but he reassured President Lai that no amount of pressure can change Somaliland’s strong ties with Taiwan. He also thanked the Taiwan government for the help it has proffered to Somaliland, adding that our relationship will only get better. Minister Adam said that Taiwan and Somaliland can cooperate in many areas and that there is more opportunity in Somaliland than any other country, adding that Somaliland is open for investment from Taiwan. Noting that our countries can also collaborate in other areas such as education and maritime security, the minister said that he is glad they will be signing a cooperative agreement in maritime security with Taiwan. He then said he is looking forward to a better relationship in the future. The delegation was accompanied to the Presidential Office by Somaliland Representative to Taiwan Mahmoud Adam Jama Galaal.
Details
2025-07-22
President Lai meets cross-party Irish Oireachtas delegation
On the morning of July 22, President Lai Ching-te met with a cross-party delegation from the Oireachtas (parliament) of Ireland. In remarks, President Lai stated that Taiwan and Ireland are both guardians of the values of freedom and democracy. He indicated that Taiwan will continue to take action and show the world that it is a trustworthy democratic partner that can contribute to the international community, saying that we look forward to building an even closer partnership with Ireland as we work together for the well-being of our peoples and for global democracy, peace, and prosperity. A translation of President Lai’s remarks follows: Deputy Speaker John McGuinness is a dear friend of Taiwan who also chairs the Ireland-Taiwan Parliamentary Friendship Association. Thanks to his efforts over the years, support for Taiwan has grown stronger in the Oireachtas. I thank him and all of our guests for traveling such a long way to demonstrate support for Taiwan and open more doors for exchanges and cooperation. Europe is Taiwan’s third largest trading partner and largest source of foreign investment. Ireland is a European stronghold for technology and innovative industries. Just like Taiwan, Ireland is an export-oriented economy. Our industrial structures are highly complementary. We hope that Taiwan’s electronics manufacturing and machinery industries can explore deeper cooperation with Ireland’s ICT software and biopharmaceutical fields, creating win-win outcomes. In May, the Irish government launched its National Semiconductor Strategy, outlining a vision to become a global semiconductor hub. Taiwan is home to the world’s most critical semiconductor ecosystem, and our own industrial development closely parallels that of Ireland. Moreover, we aspire to build non-red technological supply chains with democratic partners. I believe that going forward, Taiwan and Ireland can bolster collaboration so as to upgrade the competitiveness of our respective semiconductor industries. Together, we can help build a values-based economic system for democracies. I was delighted to receive congratulations from Deputy Speaker McGuinness on my election. Taiwan and Ireland are both guardians of the values of freedom and democracy. This visit from our guests further attests to our common beliefs. As authoritarianism continues to expand, Taiwan will continue to take action and show the world that it is a trustworthy democratic partner that can contribute to the international community. We look forward to building an even closer partnership with Ireland as we work together for the well-being of our peoples and for global democracy, peace, and prosperity. Deputy Speaker McGuinness then delivered remarks, stating that he has been to Taiwan on many occasions and that it is a great honor to join President Lai and his staff at the Presidential Office. He said that Ireland has continued to build its strong relationship with Taiwan based on our democratic values and the interests that we have in trade throughout the world, strengthening this relationship based on culture, education, and more. Noting that he served with many other diplomats from Taiwan, he said all had the same goal, which was to further the interests of the Ireland-Taiwan friendship and to ensure that it grows and prospers. The deputy speaker then extended to President Lai the delegation’s best wishes for his term in office, stating that they commit to the same values as the previous friendship groups that have been visiting Taiwan. He went on to say that some members of the group are newly elected, representing the next generation of the association, and that they are committed to working together with Taiwan to stand strong in the defense of democracy. Deputy Speaker McGuinness also noted that the father of Deputy Ken O’Flynn, one of the delegation members, played an important role as a former chairman of the association, remarking that it is good to see such continuity taking place. Deputy Speaker McGuiness said that he believes the world is facing huge challenges and uncertainty in terms of our markets and trade with one another. He said we have to watch for what the United States will do next and be conscious of what China is doing, emphasizing that the European Union stands strong in the center of this, while Ireland plays a huge role in the context of democracy, trade, and the betterment of all things for the citizens that they represent. The deputy speaker then stated that while we focus on the development of AI that is extremely important for all of us, we can work together to ensure that we control AI rather than AI controlling us. He also remarked that we cannot lose sight of our traditional trading means, saying that we have to keep all of our trade together, expand on that trade, and then take on the new technologies that come before us. Deputy Speaker McGuinness concluded his remarks by thanking President Lai for receiving the delegation, stating that they commit to their continuation of support for Taiwan and for democracy. Also in attendance were Deputies Malcolm Byrne and Barry Ward, and Senator Teresa Costello.
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2025-07-22
President Lai meets official delegation from European Parliament’s Special Committee on the European Democracy Shield
On the morning of July 22, President Lai Ching-te met with an official delegation from the European Parliament’s Special Committee on the European Democracy Shield (EUDS). In remarks, President Lai thanked the committee for choosing to visit Taiwan for its first trip to Asia, demonstrating the close ties between Taiwan and Europe. President Lai emphasized that Taiwan, standing at the very frontline of the democratic world, is determined to protect democracy, peace, and prosperity worldwide. He expressed hope that we can share our experiences with Europe to foster even more resilient societies. A translation of President Lai’s remarks follows: Firstly, on behalf of the people of Taiwan, I extend a warm welcome to your delegation, which marks another official visit from the European Parliament. The Special Committee on the EUDS aims to strengthen societal resilience and counter disinformation and hybrid threats. Having been constituted at the beginning of this year, the committee has chosen to visit Taiwan for its first trip to Asia, demonstrating the close ties between Taiwan and Europe and the unlimited possibilities for deepening cooperation on issues of concern. I am also delighted to see many old friends of Taiwan gathered here today. I deeply appreciate your longstanding support for Taiwan. Taiwan and the European Union enjoy close trade and economic relations and share the values of freedom and democracy. However, in recent years, we have both been subjected to information manipulation and infiltration by foreign forces that seek to interfere in democratic elections, foment division in our societies, and shake people’s faith in democracy. Taiwan not only faces an onslaught of disinformation, but also is the target of gray-zone aggression. That is why, after taking office, I established the Whole-of-Society Defense Resilience Committee at the Presidential Office, with myself as convener. The committee is a platform that integrates domestic affairs, national defense, foreign affairs, cybersecurity, and civil resources. It aims to strengthen the capability of Taiwan’s society to defend itself against new forms of threat, pinpoint external and internal vulnerabilities, and bolster overall resilience and security. The efforts that democracies make are not for opposing anyone else; they are for safeguarding the way of life that we cherish – just as Europe has endeavored to promote diversity and human rights. The Taiwanese people firmly believe that when our society is united and people trust one another, we will be able to withstand any form of authoritarian aggression. Taiwan stands at the very frontline of the democratic world. We are determined to protect democracy, peace, and prosperity worldwide. We also hope to share our experiences with Europe and deepen cooperation in such fields as cybersecurity, media literacy, and societal resilience. Thank you once again for visiting Taiwan. Your presence further strengthens the foundations of Taiwan-Europe relations. Let us continue to work together to uphold freedom and democracy and foster even more resilient societies. EUDS Special Committee Chair Nathalie Loiseau then delivered remarks, saying that the delegation has members from different countries, including France, Germany, the Czech Republic, Poland, and Belgium, and different political parties, but that they have in common their desire for stronger relations between the EU and Taiwan. Committee Chair Loiseau stated that the EU and Taiwan, having many things in common, should work more together. She noted that we have strong trade relations, strong investments on both sides, and strong cultural relations, while we are also facing very similar challenges and threats. She said that we are democracies living in a world where autocracies want to weaken and divide democracies. She added that we also face external information manipulation, cyberattacks, sabotage, attempts to capture elites, and every single gray-zone activity that aims to divide and weaken us. Committee Chair Loiseau pointed out another commonality, that we have never threatened our neighbors. She said that we want to live in peace and we care about our people; we want to defend ourselves, not to attack others. We are not being threatened because of what we do, she emphasized, but because of what we are; and thus there is no reason for not working more together to face these threats and attacks. Committee Chair Loiseau said that Taiwan has valuable experience and good practices in the area of societal resilience, and that they are interested in learning more about Taiwan’s whole-of-society approach. They in Europe are facing interference, she said, mainly from Russia, and they know that Russia inspires others. She added that they in the EU also have experience regulating social media in a way which combines freedom of expression and responsibility. In closing, the chair said that they are happy to have the opportunity to exchange views with President Lai and that the European Parliament will continue to strongly support relations between the EU and Taiwan. The delegation also included Members of the European Parliament Engin Eroglu, Tomáš Zdechovský, Michał Wawrykiewicz, Kathleen Van Brempt, and Markéta Gregorová.
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2025-07-17
President Lai meets President of Guatemalan Congress Nery Abilio Ramos y Ramos
On the morning of July 17, President Lai Ching-te met with a delegation led by Nery Abilio Ramos y Ramos, the president of the Congress of the Republic of Guatemala. In remarks, President Lai thanked Congress President Ramos and the Guatemalan Congress for their support for Taiwan, and noted that official diplomatic relations between Taiwan and Guatemala go back more than 90 years. As important partners in the global democratic community, the president said, the two nations will continue moving forward together in joint defense of the values of democracy and freedom, and will cooperate to promote regional and global prosperity and development. A translation of President Lai’s remarks follows: I recall that when Congress President Ramos visited Taiwan in July last year, he put forward many ideas about how our countries could promote bilateral cooperation and exchanges. Now, a year later, he is leading another cross-party delegation from the Guatemalan Congress on a visit, demonstrating support for Taiwan and continuing to help deepen our diplomatic ties. In addition to extending a sincere welcome to the distinguished delegation members who have traveled so far to be here, I would also like to express our concern and condolences for everyone in Guatemala affected by the earthquake that struck earlier this month. We hope that the recovery effort is going smoothly. Official diplomatic relations between Taiwan and Guatemala go back more than 90 years. In such fields as healthcare, agriculture, education, and women’s empowerment, we have continually strengthened our cooperation to benefit our peoples. Just last month, Guatemala’s President Bernardo Arévalo and the First Lady led a delegation on a state visit to Taiwan. President Arévalo and I signed a letter of intent for semiconductor cooperation, and also witnessed the signing of cooperation documents to establish a political consultation mechanism and continue to promote bilateral investment. This has laid an even sounder foundation for bilateral exchanges and cooperation, and will help enhance both countries’ international competitiveness. Taiwan is currently running a semiconductor vocational training program, helping Guatemala cultivate semiconductor talent and develop its tech industry, and demonstrating our determination to share experience with democratic partners. At the same time, we continue to assist Taiwanese businesses in their efforts to develop overseas markets with Guatemala as an important base, spurring industrial development in both countries and increasing economic and trade benefits. I want to thank Congress President Ramos and the Guatemalan Congress for their continued support for Taiwan’s international participation. Representing the Guatemalan Congress, Congress President Ramos has signed resolutions in support of Taiwan, and has also issued statements addressing China’s misinterpretation of United Nations General Assembly Resolution 2758. Taiwan and Guatemala, as important partners in the global democratic community, will continue moving forward together in joint defense of the values of democracy and freedom, and will cooperate to promote regional and global prosperity and development. Congress President Ramos then delivered remarks, first noting that the members of the delegation are not only from different parties, but also represent different classes, cultures, professions, and departments, which shows that the diplomatic ties between Guatemala and the Republic of China (Taiwan) are based on firm friendships at all levels and in all fields. Noting that this was his second time to visit Taiwan and meet with President Lai, Congress President Ramos thanked the government of Taiwan for its warm hospitality. With the international situation growing more complex by the day, he said, Guatemala highly values its longstanding friendship and cooperative ties with Taiwan, and hopes that both sides can continue to deepen their cooperation in such areas as the economy, technology, education, agriculture, and culture, and work together to spur sustainable development in each of our countries. Congress President Ramos said that the way the Taiwan government looks after the well-being of its people is an excellent model for how other countries should promote national development and social well-being. Accordingly, he said, the Guatemalan Congress has stood for justice and, for a second time, adopted a resolution backing Taiwan’s participation in the World Health Assembly. Regarding President Arévalo’s state visit to Taiwan the previous month, Congress President Ramos commented that this high-level interaction has undoubtedly strengthened the diplomatic ties between Taiwan and Guatemala and led to more opportunities for cooperation. Congress President Ramos emphasized that democracy, freedom, and human rights are universal values that bind Taiwan and Guatemala together, and that he is confident the two countries’ diplomatic ties will continue to grow deeper. In closing, on behalf of the Republic of Guatemala, Congress President Ramos presented President Lai with a Chinese translation of the resolution that the Guatemalan Congress proposed to the UN in support of Taiwan’s participation in international organizations, demonstrating the staunch bonds of friendship between the two countries. The delegation was accompanied to the Presidential Office by Guatemala Ambassador Luis Raúl Estévez López.
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2025-07-08
President Lai meets delegation led by Foreign Minister Jean-Victor Harvel Jean-Baptiste of Republic of Haiti
On the morning of July 8, President Lai Ching-te met with a delegation led by Minister of Foreign Affairs Jean-Victor Harvel Jean-Baptiste of the Republic of Haiti and his wife. In remarks, President Lai noted that our two countries will soon mark the 70th anniversary of diplomatic relations and that our exchanges have been fruitful in important areas such as public security, educational cooperation, and infrastructure. The president stated that Taiwan will continue to work together with Haiti to promote the development of medical and health care, food security, and construction that benefits people’s livelihoods. The president thanked Haiti for supporting Taiwan’s international participation and expressed hope that both countries will continue to support each other, deepen cooperation, and face various challenges together. A translation of President Lai’s remarks follows: I am delighted to meet and exchange ideas with Minister Jean-Baptiste, his wife, and our distinguished guests. Minister Jean-Baptiste is the highest-ranking official from Haiti to visit Taiwan since former President Jovenel Moïse visited in 2018, demonstrating the importance that the Haitian government attaches to our bilateral diplomatic ties. On behalf of the Republic of China (Taiwan), I extend a sincere welcome. Next year marks the 70th anniversary of the establishment of diplomatic ties between our two countries. Our bilateral exchanges have been fruitful in important areas such as public security, educational cooperation, and infrastructure. Over the past few years, Haiti has faced challenges in such areas as food supply and healthcare. Taiwan will continue to work together with Haiti through various cooperative programs to promote the development of medical and health care, food security, and construction that benefits people’s livelihoods. I want to thank the government of Haiti and Minister Jean-Baptiste for speaking out in support of Taiwan on the international stage for many years. Minister Jean-Baptiste’s personal letter to the World Health Organization Secretariat in May this year and Minister of Public Health and Population Bertrand Sinal’s public statement during the World Health Assembly both affirmed Taiwan’s efforts and contributions to global public health and supported Taiwan’s international participation, for which we are very grateful. I hope that Taiwan and Haiti will continue to support each other and deepen cooperation. I believe that Minister Jean-Baptiste’s visit will open up more opportunities for cooperation for both countries, helping Taiwan and Haiti face various challenges together. In closing, I once again offer a sincere welcome to the delegation led by Minister Jean-Baptiste, and ask him to convey greetings from Taiwan to Prime Minister Alix Didier Fils-Aimé and the members of the Transitional Presidential Council. Minister Jean-Baptiste then delivered remarks, saying that he is extremely honored to visit Taiwan and reaffirm the solid and friendly cooperative relationship based on mutual respect between the Republic of Haiti and the Republic of China (Taiwan), which will soon mark its 70th anniversary. He also brought greetings to President Lai from Haiti’s Transitional Presidential Council and Prime Minister Fils-Aimé. Minister Jean-Baptiste emphasized that over the past few decades, despite the great geographical distance and developmental and cultural differences between our two countries, we have nevertheless established a firm friendship and demonstrated to the world the progress resulting from the mutual assistance and cooperation between our peoples. Minister Jean-Baptiste pointed out that our two countries cooperate closely in agriculture, health, education, and community development and have achieved concrete results. Taiwan’s voice, he said, is thus essential for the people of Haiti. He noted that Taiwan also plays an important role in peace and innovation and actively participates in global cooperative efforts. Pointing out that the world is currently facing significant challenges and that Haiti is experiencing its most difficult period in history, Minister Jean-Baptiste said that at this time, Taiwan and Haiti need to unite, help each other, and jointly think about how to move forward and deepen bilateral relations to benefit the peoples of both countries. Minister Jean-Baptiste said that he is pleased that throughout our solid and friendly diplomatic relationship, both countries have demonstrated mutual trust, mutual respect, and the values we jointly defend. He then stated his belief that Haiti and Taiwan will together create a cooperation model and future that are sincere, friendly, and sustainable. The delegation was accompanied to the Presidential Office by Chargé d’Affaires a.i. Francilien Victorin of the Embassy of the Republic of Haiti in Taiwan.
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2025-05-20
President Lai interviewed by Nippon Television and Yomiuri TV
In a recent interview on Nippon Television’s news zero program, President Lai Ching-te responded to questions from host Mr. Sakurai Sho and Yomiuri TV Shanghai Bureau Chief Watanabe Masayo on topics including reflections on his first year in office, cross-strait relations, China’s military threats, Taiwan-United States relations, and Taiwan-Japan relations. The interview was broadcast on the evening of May 19. During the interview, President Lai stated that China intends to change the world’s rules-based international order, and that if Taiwan were invaded, global supply chains would be disrupted. Therefore, he said, Taiwan will strengthen its national defense, prevent war by preparing for war, and achieve the goal of peace. The president also noted that Taiwan’s purpose for developing drones is based on national security and industrial needs, and that Taiwan hopes to collaborate with Japan. He then reiterated that China’s threats are an international problem, and expressed hope to work together with the US, Japan, and others in the global democratic community to prevent China from starting a war. Following is the text of the questions and the president’s responses: Q: How do you feel as you are about to round out your first year in office? President Lai: When I was young, I was determined to practice medicine and save lives. When I left medicine to go into politics, I was determined to transform Taiwan. And when I was sworn in as president on May 20 last year, I was determined to strengthen the nation. Time flies, and it has already been a year. Although the process has been very challenging, I am deeply honored to be a part of it. I am also profoundly grateful to our citizens for allowing me the opportunity to give back to our country. The future will certainly be full of more challenges, but I will do everything I can to unite the people and continue strengthening the nation. That is how I am feeling now. Q: We are now coming up on the 80th anniversary of the end of World War II, and over this period, we have often heard that conflict between Taiwan and the mainland is imminent. Do you personally believe that a cross-strait conflict could happen? President Lai: The international community is very much aware that China intends to replace the US and change the world’s rules-based international order, and annexing Taiwan is just the first step. So, as China’s military power grows stronger, some members of the international community are naturally on edge about whether a cross-strait conflict will break out. The international community must certainly do everything in its power to avoid a conflict in the Taiwan Strait; there is too great a cost. Besides causing direct disasters to both Taiwan and China, the impact on the global economy would be even greater, with estimated losses of US$10 trillion from war alone – that is roughly 10 percent of the global GDP. Additionally, 20 percent of global shipping passes through the Taiwan Strait and surrounding waters, so if a conflict breaks out in the strait, other countries including Japan and Korea would suffer a grave impact. For Japan and Korea, a quarter of external transit passes through the Taiwan Strait and surrounding waters, and a third of the various energy resources and minerals shipped back from other countries pass through said areas. If Taiwan were invaded, global supply chains would be disrupted, and therefore conflict in the Taiwan Strait must be avoided. Such a conflict is indeed avoidable. I am very thankful to Prime Minister of Japan Ishiba Shigeru and former Prime Ministers Abe Shinzo, Suga Yoshihide, and Kishida Fumio, as well as US President Donald Trump and former President Joe Biden, and the other G7 leaders, for continuing to emphasize at international venues that peace and stability across the Taiwan Strait are essential components for global security and prosperity. When everyone in the global democratic community works together, stacking up enough strength to make China’s objectives unattainable or to make the cost of invading Taiwan too high for it to bear, a conflict in the strait can naturally be avoided. Q: As you said, President Lai, maintaining peace and stability across the Taiwan Strait is also very important for other countries. How can war be avoided? What sort of countermeasures is Taiwan prepared to take to prevent war? President Lai: As Mr. Sakurai mentioned earlier, we are coming up on the 80th anniversary of the end of WWII. There are many lessons we can take from that war. First is that peace is priceless, and war has no winners. From the tragedies of WWII, there are lessons that humanity should learn. We must pursue peace, and not start wars blindly, as that would be a major disaster for humanity. In other words, we must be determined to safeguard peace. The second lesson is that we cannot be complacent toward authoritarian powers. If you give them an inch, they will take a mile. They will keep growing, and eventually, not only will peace be unattainable, but war will be inevitable. The third lesson is why WWII ended: It ended because different groups joined together in solidarity. Taiwan, Japan, and the Indo-Pacific region are all directly subjected to China’s threats, so we hope to be able to join together in cooperation. This is why we proposed the Four Pillars of Peace action plan. First, we will strengthen our national defense. Second, we will strengthen economic resilience. Third is standing shoulder to shoulder with the democratic community to demonstrate the strength of deterrence. Fourth is that as long as China treats Taiwan with parity and dignity, Taiwan is willing to conduct exchanges and cooperate with China, and seek peace and mutual prosperity. These four pillars can help us avoid war and achieve peace. That is to say, Taiwan hopes to achieve peace through strength, prevent war by preparing for war, keeping war from happening and pursuing the goal of peace. Q: Regarding drones, everyone knows that recently, Taiwan has been actively researching, developing, and introducing drones. Why do you need to actively research, develop, and introduce new drones at this time? President Lai: This is for two purposes. The first is to meet national security needs. The second is to meet industrial development needs. Because Taiwan, Japan, and the Philippines are all part of the first island chain, and we are all democratic nations, we cannot be like an authoritarian country like China, which has an unlimited national defense budget. In this kind of situation, island nations such as Taiwan, Japan, and the Philippines should leverage their own technologies to develop national defense methods that are asymmetric and utilize unmanned vehicles. In particular, from the Russo-Ukrainian War, we see that Ukraine has successfully utilized unmanned vehicles to protect itself and prevent Russia from unlimited invasion. In other words, the Russo-Ukrainian War has already proven the importance of drones. Therefore, the first purpose of developing drones is based on national security needs. Second, the world has already entered the era of smart technology. Whether generative, agentic, or physical, AI will continue to develop. In the future, cars and ships will also evolve into unmanned vehicles and unmanned boats, and there will be unmanned factories. Drones will even be able to assist with postal deliveries, or services like Uber, Uber Eats, and foodpanda, or agricultural irrigation and pesticide spraying. Therefore, in the future era of comprehensive smart technology, developing unmanned vehicles is a necessity. Taiwan, based on industrial needs, is actively planning the development of drones and unmanned vehicles. I would like to take this opportunity to express Taiwan’s hope to collaborate with Japan in the unmanned vehicle industry. Just as we do in the semiconductor industry, where Japan has raw materials, equipment, and technology, and Taiwan has wafer manufacturing, our two countries can cooperate. Japan is a technological power, and Taiwan also has significant technological strengths. If Taiwan and Japan work together, we will not only be able to safeguard peace and stability in the Taiwan Strait and security in the Indo-Pacific region, but it will also be very helpful for the industrial development of both countries. Q: The drones you just described probably include examples from the Russo-Ukrainian War. Taiwan and China are separated by the Taiwan Strait. Do our drones need to have cross-sea flight capabilities? President Lai: Taiwan does not intend to counterattack the mainland, and does not intend to invade any country. Taiwan’s drones are meant to protect our own nation and territory. Q: Former President Biden previously stated that US forces would assist Taiwan’s defense in the event of an attack. President Trump, however, has yet to clearly state that the US would help defend Taiwan. Do you think that in such an event, the US would help defend Taiwan? Or is Taiwan now trying to persuade the US? President Lai: Former President Biden and President Trump have answered questions from reporters. Although their responses were different, strong cooperation with Taiwan under the Biden administration has continued under the Trump administration; there has been no change. During President Trump’s first term, cooperation with Taiwan was broader and deeper compared to former President Barack Obama’s terms. After former President Biden took office, cooperation with Taiwan increased compared to President Trump’s first term. Now, during President Trump’s second term, cooperation with Taiwan is even greater than under former President Biden. Taiwan-US cooperation continues to grow stronger, and has not changed just because President Trump and former President Biden gave different responses to reporters. Furthermore, the Trump administration publicly stated that in the future, the US will shift its strategic focus from Europe to the Indo-Pacific. The US secretary of defense even publicly stated that the primary mission of the US is to prevent China from invading Taiwan, maintain stability in the Indo-Pacific, and thus maintain world peace. There is a saying in Taiwan that goes, “Help comes most to those who help themselves.” Before asking friends and allies for assistance in facing threats from China, Taiwan must first be determined and prepared to defend itself. This is Taiwan’s principle, and we are working in this direction, making all the necessary preparations to safeguard the nation. Q: I would like to ask you a question about Taiwan-Japan relations. After the Great East Japan Earthquake in 2011, you made an appeal to give Japan a great deal of assistance and care. In particular, you visited Sendai to offer condolences. Later, you also expressed condolences and concern after the earthquakes in Aomori and Kumamoto. What are your expectations for future Taiwan-Japan exchanges and development? President Lai: I come from Tainan, and my constituency is in Tainan. Tainan has very deep ties with Japan, and of course, Taiwan also has deep ties with Japan. However, among Taiwan’s 22 counties and cities, Tainan has the deepest relationship with Japan. I sincerely hope that both of you and your teams will have an opportunity to visit Tainan. I will introduce Tainan’s scenery, including architecture from the era of Japanese rule, Tainan’s cuisine, and unique aspects of Tainan society, and you can also see lifestyles and culture from the Showa era. The Wushantou Reservoir in Tainan was completed by engineer Mr. Hatta Yoichi from Kanazawa, Japan and the team he led to Tainan after he graduated from then-Tokyo Imperial University. It has nearly a century of history and is still in use today. This reservoir, along with the 16,000-km-long Chianan Canal, transformed the 150,000-hectare Chianan Plain into Taiwan’s premier rice-growing area. It was that foundation in agriculture that enabled Taiwan to develop industry and the technology sector of today. The reservoir continues to supply water to Tainan Science Park. It is used by residents of Tainan, the agricultural sector, and industry, and even the technology sector in Xinshi Industrial Park, as well as Taiwan Semiconductor Manufacturing Company. Because of this, the people of Tainan are deeply grateful for Mr. Hatta and very friendly toward the people of Japan. A major earthquake, the largest in 50 years, struck Tainan on February 6, 2016, resulting in significant casualties. As mayor of Tainan at the time, I was extremely grateful to then-Prime Minister Abe, who sent five Japanese officials to the disaster site in Tainan the day after the earthquake. They were very thoughtful and asked what kind of assistance we needed from the Japanese government. They offered to provide help based on what we needed. I was deeply moved, as former Prime Minister Abe showed such care, going beyond the formality of just sending supplies that we may or may not have actually needed. Instead, the officials asked what we needed and then provided assistance based on those needs, which really moved me. Similarly, when the Great East Japan Earthquake of 2011 or the later Kumamoto earthquakes struck, the people of Tainan, under my leadership, naturally and dutifully expressed their support. Even earlier, when central Taiwan was hit by a major earthquake in 1999, Japan was the first country to deploy a rescue team to the disaster area. On February 6, 2018, after a major earthquake in Hualien, former Prime Minister Abe appeared in a video holding up a message of encouragement he had written in calligraphy saying “Remain strong, Taiwan.” All of Taiwan was deeply moved. Over the years, Taiwan and Japan have supported each other when earthquakes struck, and have forged bonds that are family-like, not just neighborly. This is truly valuable. In the future, I hope Taiwan and Japan can be like brothers, and that the peoples of Taiwan and Japan can treat one another like family. If Taiwan has a problem, then Japan has a problem; if Japan has a problem, then Taiwan has a problem. By caring for and helping each other, we can face various challenges and difficulties, and pursue a brighter future. Q: President Lai, you just used the phrase “If Taiwan has a problem, then Japan has a problem.” In the event that China attempts to invade Taiwan by force, what kind of response measures would you hope the US military and Japan’s Self-Defense Forces take? President Lai: As I just mentioned, annexing Taiwan is only China’s first step. Its ultimate objective is to change the rules-based international order. That being the case, China’s threats are an international problem. So, I would very much hope to work together with the US, Japan, and others in the global democratic community to prevent China from starting a war – prevention, after all, is more important than cure.
US Senate News:
Source: United States Senator for Iowa Chuck Grassley
WASHINGTON – Ahead of the Senate’s vote on the nomination of Emil Bove to be United States Circuit Judge for the Third Circuit, Senate Judiciary Committee Chairman Chuck Grassley (R-Iowa) released an exhaustive overview of his work to thoroughly vet Bove’s nomination in light of three whistleblower allegations made against the nominee.
In a speech on the Senate floor, Grassley outlined how his team ran into challenges while attempting to review each whistleblower disclosure in good faith: “any assertion that I or my staff was uninterested in the evidence is false.”
Grassley is a co-founder and co-chair of the Senate Whistleblower Protection Caucus.
Bove’s letter to the committee regarding the most recent whistleblower allegations is HERE.
Video and a transcript of Grassley’s floor remarks is below.
[embedded content]
Prepared Floor Remarks by Senator Chuck Grassley of Iowa
Chairman, Senate Judiciary Committee
“The Nomination of Emil Bove”
Tuesday, July 29, 2025
VIDEO
Soon, this body will proceed to a final vote on the nomination of Emil Bove to be a judge on the Third Circuit. As I said in my statements in Committee multiple times, I support the nomination of Mr. Bove. He has a strong legal background and has served his country honorably. I believe he will be a diligent, capable, and fair jurist. My Republican colleagues on Committee agreed, and that’s why he was reported out of Committee with every Republican supporting his nomination.
It’s no surprise to anyone who’s followed this nomination that I have serious concerns with how my Democratic colleagues have conducted themselves. The vicious rhetoric, unfair accusations and abuse directed at Mr. Bove by some on this Committee has crossed the line. I wish I could say that this posture has been limited to just this nomination, but unfortunately, it appears to be a pattern.
Since the very beginning of this Congress, Democrats have engaged in a relentless obstruction campaign for nearly every one of President Trump’s nominees. Their playbook has included maximum procedural obstruction, unfair media attacks, repeated attempts to allege misconduct and demands for delayed consideration, records and investigations.
This Congress alone, Democrats have sent at least 26 letters to 17 agencies or parties demanding records, delays or investigations into President Trump’s nominees just in the Judiciary Committee. Like clockwork, just before a hearing or vote, we get another breathless accusation that one of President Trump’s nominees needs to be investigated.
I’m afraid that what we’ve seen recently on the Bove nomination has been more of the same. My Democratic colleagues have tried to weaponize my respect for whistleblowers and the whistleblowing process against me and against Mr. Bove, and I’m going to set the record straight.
I take whistleblower complaints very seriously. During both Republican and Democratic administrations, I have spent over four decades defending patriotic whistleblowers.
My conduct in defending whistleblowers and running bipartisan investigations stands in stark contrast to the conduct of my Democratic colleagues.
During the first Trump administration, I defended the Ukraine whistleblower’s use of the whistleblower process—despite serious concerns about the substance of his complaint.
When I was last Chairman, I interviewed Donald Trump Jr. and other Republicans as part of my bipartisan investigation into alleged Russian collusion—conducted through the Senate Judiciary Committee.
But when it came to the Biden family and his Administration, despite serious allegations and overwhelming evidence of misconduct, Democrats made no effort to investigate or conduct similar interviews. In fact, they worked hard to thwart any attempt at oversight.
These weren’t fringe claims—they involved potential crimes squarely within the Judiciary Committee’s jurisdiction.
This administration has said Mr. Reuvini isn’t a whistleblower. I’ve publicly disagreed with that position.
That’s the opposite posture my Democratic colleagues took with the IRS whistleblowers who blew the whistle on the Biden administration. My Democratic colleagues tried to destroy them and used the press to falsely claim they weren’t whistleblowers.
No one can say that I don’t take whistleblower complaints seriously, or that I don’t investigate allegations in good faith. I’ve always said that my door is open to whistleblowers, and my efforts regarding the Bove nomination show this is true.
Mr. Reuveni first made allegations against Mr. Bove the morning before his nomination hearing. The allegations broke in a New York Times story, and the paper gleefully ran the unvetted accusations without so much as giving the Justice Department or the nominee the opportunity to respond.
The Deputy Attorney General flatly denied the allegations in a public statement, and the nominee denied them under oath both in the hearing and in response to written questions.
Then, my Democratic colleagues received additional records from the whistleblower on July 1 and July 7 but hid them from Republicans. I didn’t receive them until July 10—the same day that Mr. Bove was scheduled for his first markup.
The coordinated media strategy involved a New York Times exclusive about the files, and a Democratic press release containing a misleading summary of the documents—all designed to smear Mr. Bove.
This timeline raises serious concerns, and it’s legitimate to raise them as a major problem. If my Democratic colleagues wanted to investigate allegations, they should have come to me and we could have vetted the allegations in good faith, together. They didn’t want this. They wanted to run a one-sided media campaign.
Regardless, I still did my job and investigated.
My staff reviewed the disclosures document-by-document and analyzed the facts. The result? Almost none of the material references Mr. Bove at all. More concerningly, the Democrat summary grossly mischaracterized the documents it purported to summarize. In short, the documents didn’t say what Democrats say they did.
My staff also interviewed multiple people who were present for the March 14 meeting described in the whistleblower disclosure. Four separate people other than Mr. Bove who were present in the meeting told us the following:
My staff also spoke to numerous other individuals, including many current or former Justice Department employees, who wanted to share information about the Bove nomination. All told, my staff interviewed or spoke with more than a dozen individuals who came forward to discuss the Bove nomination.
With respect to the initial whistleblower allegations, even if you accept most of the claims as true, there’s no scandal. Government lawyers aggressively litigating and interpreting court orders isn’t misconduct—it’s what lawyers do.
Concerningly, the Minority repeatedly recast discussion of litigation strategy as wrongdoing, even discussions that reflected the government’s official litigation positions, some of which prevailed on appeal.
The whistleblower alleged misconduct—but ten days after the key event he describes, he signed a brief stating—without qualification—that “the Government has complied with the Court’s orders in this case.”
If he believed the Department defied court orders, why sign a brief as an officer of the court saying it had complied?
During the hearing, Mr. Bove firmly denied the allegations. He testified under oath: “I did not advise any Justice Department attorney to violate court orders.”
Recent public reporting backs his account. Months before the whistleblower came forward, his former supervisor wrote in a letter that Mr. Bove advised our team that we must avoid a court order halting an upcoming operation to implement the Act at all costs. This statement confirms Mr. Bove advised his team to avoid triggering a court order, not defy one—that’s consistent with his testimony.
That was the initial allegation, but now, on the eve of Mr. Bove’s final vote, the Democrats and their media allies have launched yet another salvo against Mr. Bove.
On Friday, we learned from social media that two other whistleblowers allegedly have derogatory information about Mr. Bove.
One whistleblower said that they’ve filed a complaint with the Inspector General. My staff requested the complaint and to speak with the whistleblower. Their requests were declined.
Another group, called Justice Connection, publicly alleged that a whistleblower has evidence that Bove wasn’t truthful in his hearing, and that the whistleblower “has tried to share info with Republican senators for weeks and they haven’t responded.”
To the extent that anyone is suggesting that I haven’t been willing to receive and consider relevant evidence—this is plainly false. I’m the Chairman of the Judiciary Committee, and I represent Republicans on this nomination. Regarding this whistleblower, my office wasn’t proactively approached.
Indeed, since we saw these new reports on Friday, my staff proactively – and repeatedly – reached out to the whistleblower’s lawyers, asking to see the evidence that they apparently had already shared with multiple Democrats and the media.
My staff assured them that we would review the evidence in good faith, but all weekend, my staff was stonewalled and given the runaround. Any assertion that I or my staff was uninterested in the evidence is false.
It wasn’t until Monday morning that my staff received any information. Even then, it was bits and pieces of information created by the lawyers, not original information. My staff tried over and over to get all the information, only to be rejected.
My staff was not shown the underlying transcript of the meeting until this morning. They were shown what was represented to be a verbatim transcript of a meeting, but we still didn’t get access to the underlying source.
So, what did I do? I followed my usual process and asked Mr. Bove to respond to the allegations that his testimony was inconsistent with the evidence presented. And he sent me a letter doing just that. I’ll plan to make it public.
In his letter, Mr. Bove flatly denies the allegation that he misled the Committee. He explained that he testified truthfully in response to “compound yes/no questions that sought to attribute words to me that I did not use during the February 14, 2025 video meeting.” He also responds to the attacks on his character and rejects the allegations against him.
Viewed in light of the transcript, Bove’s responses to compound, hostile questions about specific words used a meeting that happened months before his hearing do not, to me, indicate deliberately false or misleading testimony.
And more importantly, the substance of the meeting itself does not reflect misconduct. It reflected a sympathetic tone during a turbulent time, and appropriately characterizes the role of a Justice Department attorney. In the meeting, Mr. Bove specifically acknowledges that being a Justice Department Attorney means “Following orders from the President and from the Attorney General, unless we view them as unlawful or unethical.” He apologized to the attorneys present for the tension and told them, “I don’t want to put pressure on you.”
This context is important.
I’m also curious at my Democratic colleagues’ newfound interest in candor to the Committee. During the last administration, Kristen Clarke unequivocally perjured herself before the Judiciary Committee in response to written questions.
When the information came to light after her confirmation, Democrats closed ranks and refused to join Republicans in their call to hold her accountable. Democrats likewise expressed no interest in evaluating the misleading or inconsistent testimony from numerous other Biden appointees.
When this Committee considered the nomination of Justice Kavanaugh, I criticized the tactics the Democrats employed.
I said:
“The Ranking Member sat on these allegations for nearly seven weeks, only to reveal them at the eleventh hour when it appeared Judge Kavanaugh was headed towards confirmation.”
With respect to the Bove nomination, as with other nominees this Congress, Democrats appear to have dusted off the playbook they devised against Justice Kavanaugh. They hid allegedly relevant information until a politically opportune time, and then used it as an ambush to hurt the nominee.
As I said about the Democrats conduct during Director Patel’s nomination:
“This is becoming a pattern, and I will not facilitate a campaign to undermine the results of the election by delaying the consideration of nominees.”
If anyone, including my colleagues, has information regarding a nominee that they believe is relevant to their fitness for office, I expect them to share it with me in a timely and candid manner so that the allegations can be fairly vetted. My door is always open to whistleblowers, and while I may not always agree with someone else’s conclusion, I’ll always fairly consider any information brought to my office.
My message to the three whistleblowers is this: just because I may disagree with the conclusions in a whistleblower disclosure, it doesn’t mean that I don’t support a whistleblower’s right to come forward.
Whether I agree or disagree with a whistleblower, I’ll defend whistleblower rights.
Reasonable minds can differ. And when I direct my staff to allocate resources away from other ongoing whistleblower projects to handle situations like Bove, their efforts ought to be respected and given good faith treatment.
But eleventh-hour media smears by my colleagues based on information that was hidden from the Committee are unacceptable, and I won’t stand for it as a delay and obstruction tactic.
This tactic didn’t work against Justice Kavanaugh, and it won’t work against Mr. Bove.
I look forward to supporting Mr. Bove and urge all of my colleagues to do the same.
-30-
Source: GlobeNewswire (MIL-OSI)
CALGARY, Alberta, July 30, 2025 (GLOBE NEWSWIRE) — Freehold Royalties Ltd. (Freehold or the Company) (TSX:FRU) announces second quarter results for the period ended June 30, 2025.
Second Quarter Highlights
President’s Message
Freehold’s second quarter production of 16,584 boe/d increased 2% compared to last quarter and 9% from the second quarter of 2024. Our U.S. assets delivered meaningful production growth of 7% over the first quarter of 2025. Supporting this growth has been improvements in well productivity where recent new well results in both the Permian and Eagle Ford basins have demonstrated production rates more than double those of the offsetting area type curves as operators continue to enhance drilling and completion approaches. Specific to our second quarter results, this productivity increase was paired with a series of higher royalty interest developments which magnified the production impact on the quarter. In Canada, we continue to see operators focusing capital on our oil weighted plays in Mannville heavy oil, the Clearwater and southeast Saskatchewan. These three oil plays represent approximately 30% of our Canadian production and volumes have grown 10% since the second quarter of 2024 through active drilling by multiple operators on our lands in these areas.
Our oil focused portfolio, underpinned by investment grade operators in premier basins across North America, delivered $57 million in funds from operations in the quarter, or $0.35/share(1)(2). Oil prices in the second quarter were at the lowest benchmark WTI oil price since the first quarter of 2021. For reference, our funds from operations in the first quarter of 2021 was $0.25/share – this quarter we are 40% higher, confirming the impact that Freehold’s strategic focus on growing its high quality, liquids weighted assets has had over the past four years.
Bonus and leasing revenue remained strong generating $1.9 million during the quarter and $5.8 million in the first half of 2025. This $5.8 million represents a 50% increase from the Company’s previous record levels of lease bonus which occurred over the full year in 2018. This record level of leasing revenue has been driven by active leasing of the mineral title lands we have been acquiring in the U.S. as well as continued leasing of our legacy mineral title lands in Canada.
In total, we paid $44 million in dividends to our shareholders this quarter while maintaining the strength of our balance sheet with net debt of $271 million, representing 1.1x trailing net debt to funds from operations(2)(5). We invested approximately $12 million in land acquisitions this quarter, purchasing undeveloped mineral title lands in the core of the Midland and Delaware basins.
David M. Spyker, President and Chief Executive Officer
Operating and Financial Highlights
| Three Months Ended | |||
| FINANCIAL ($ millions, except as noted) | Q2-2025 | Q1-2025 | Q2-2024 |
| West Texas Intermediate (US$/bbl) | 63.74 | 71.42 | 80.57 |
| AECO 5A Monthly Index (Cdn$/Mcf) | 1.69 | 2.17 | 1.18 |
| Royalty and other revenue | 78.3 | 91.1 | 84.5 |
| Funds from operations | 56.6 | 68.1 | 59.6 |
| Funds from operations per share, basic ($) (1)(2) | 0.35 | 0.42 | 0.40 |
| Dividends paid per share ($) (3) | 0.27 | 0.27 | 0.27 |
| Dividend payout ratio (%) (2) | 78% | 65% | 68% |
| Long-term debt | 292.6 | 294.3 | 228.0 |
| Net debt (5) | 270.6 | 272.2 | 199.1 |
| Net debt to trailing funds from operations (times) (5) | 1.1x | 1.1x | 0.8x |
| OPERATING | |||
| Total production (boe/d) (4) | 16,584 | 16,248 | 15,221 |
| Canadian production (boe/d)(4) | 9,104 | 9,278 | 9,622 |
| U.S. production (boe/d)(4) | 7,480 | 6,970 | 5,599 |
| Oil and NGL (%) | 67% | 65% | 64% |
| Petroleum and natural gas realized price ($/boe) (4) | 50.36 | 59.29 | 59.74 |
| Cash costs ($/boe) (2)(4) | 7.38 | 7.00 | 9.80 |
| Netback ($/boe) (2) (4) | 42.68 | 53.01 | 49.44 |
| ROYALTY INTEREST DRILLING (gross / net) | |||
| Canada | 45 / 1.1 | 92 / 3.9 | 65 / 2.1 |
| U.S. | 226 / 0.6 | 230 / 0.8 | 209 / 1.0 |
(1) Calculated based on the basic weighted average number of shares outstanding during the period
(2) See Non-GAAP and Other Financial Measures
(3) Based on the number of shares issued and outstanding at each record date
(4) See Conversion of Natural Gas to Barrels of Oil Equivalent (boe)
(5) Net debt and net debt to trailing funds from operations are capital management measures. See Non-GAAP and Other Financial Measures.
Dividend Announcement
The board of directors of Freehold has declared a monthly dividend of $0.09 per share to be paid on September 15, 2025, to shareholders of record on August 29, 2025. The dividend is designated as an eligible dividend for Canadian income tax purposes.
Drilling and Leasing Activity
In total, 271 gross wells (1.7 net wells) were drilled on Freehold’s royalty lands during the second quarter of 2025, a decrease of 16% compared to the previous quarter primarily due to the impact of spring break-up in Canada.
Drilling was oil focused with approximately 17% of gross wells drilled in Canada and 83% in the U.S.
| Three Months Ended | ||||||
| Q2-2025 | Q1-2025 | Q2-2024 | ||||
| Gross | Net (1) | Gross | Net (1) | Gross | Net (1) | |
| Canada | 45 | 1.1 | 92 | 3.9 | 65 | 2.1 |
| United States | 226 | 0.6 | 230 | 0.8 | 209 | 1.0 |
| Total | 271 | 1.7 | 322 | 4.7 | 274 | 3.1 |
(1) Equivalent net wells are aggregate of the numbers obtained by multiplying each gross well by our royalty interest percentage; U.S. wells on Freehold’s lands generally come on production at approximately 10 times the volume that of an average Canadian well in our portfolio.
Canada
Canadian drilling was down compared to the previous quarter primarily due to the impact of spring break-up and weaker AECO prices curtailing natural gas activity. Drilling during the second quarter was focused on our crude oil plays including the Clearwater (8 gross wells), southeast Saskatchewan (8 gross wells), and Mannville heavy oil (6 gross wells). Licencing activity remained consistent with 2024 on a year-to-date basis. In conjunction with improving sentiment on Canadian natural gas pricing with LNG Canada starting up, 22 wells have been licensed on our Deep Basin/Montney lands in the first half of 2025 (a significant increase from nine licenses in the first half of 2024).
During the second quarter of 2025, Freehold entered into 34 new leases with 10 counterparties totalling approximately $0.7 million in bonus and lease rental revenue. The majority of the new leasing was in southeast Saskatchewan.
U.S.
During the second quarter of 2025, 226 gross (0.6 net) wells were drilled on our U.S. lands. Approximately 86% of second quarter drilling was in the Permian basin and 13% in the Eagle Ford basin. At the end of the second quarter of 2025, Freehold had 2.2 net drilled but uncompleted wells and 2.4 net wells permitted but not yet drilled.
Initial production for U.S. wells is approximately ten times that of an average Canadian well in the Company’s portfolio, making equivalent net well additions much more meaningful in the U.S. compared to Canada. However, a U.S. well can take upwards of six to twelve months on average from initial permit to first production, compared to three to four months in Canada.
During the second quarter of 2025, Freehold entered into six new U.S. leases with four counterparties, totalling $1.2 million of bonus and lease rental revenue. Leasing activity was primarily in the Permian basin.
Conference Call Details
A webcast to discuss financial and operational results for the period ended June 30, 2025, will be held for the investment community on Thursday July 31, 2025, beginning at 7:00 AM MT (9:00 AM ET).
A live audio webcast will be accessible through the link below and on Freehold’s website under “Events & Presentations” on Freehold’s website at www.freeholdroyalties.com. To participate in the conference call, you can register using the following link: Live Audio Webcast URL: https://edge.media-server.com/mmc/p/6t37memx.
A dial-in option is also available and can be accessed by dialing 1-800-806-5484 (toll-free in North America) participant passcode is 8979321#.
For further information contact
Select Quarterly Information
| 2025 | 2024 | 2023 | ||||||
| Financial ($millions, except as noted) | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 |
| Royalty and other revenue | 78.3 | 91.1 | 76.9 | 73.9 | 84.5 | 74.3 | 80.1 | 84.2 |
| Net Income (loss) | 6.2 | 37.3 | 51.1 | 25.0 | 39.3 | 34.0 | 34.3 | 42.3 |
| Per share, basic ($) (1) | 0.04 | 0.23 | 0.33 | 0.17 | 0.26 | 0.23 | 0.23 | 0.28 |
| Cash flows from operations | 57.4 | 62.9 | 59.1 | 64.1 | 47.6 | 52.5 | 70.7 | 53.7 |
| Funds from operations | 56.6 | 68.1 | 61.3 | 55.7 | 59.6 | 54.4 | 62.8 | 65.3 |
| Per share, basic ($) (1)(3) | 0.35 | 0.42 | 0.40 | 0.37 | 0.40 | 0.36 | 0.42 | 0.43 |
| Acquisitions & related expenditures | 15.2 | 13.9 | 277.0 | 1.8 | 11.5 | 121.5 | 2.1 | 1.2 |
| Dividends paid | 44.3 | 44.3 | 40.7 | 40.7 | 40.7 | 40.7 | 40.7 | 40.7 |
| Per share ($) (2) | 0.27 | 0.27 | 0.27 | 0.27 | 0.27 | 0.27 | 0.27 | 0.27 |
| Dividends declared | 44.3 | 44.3 | 41.9 | 40.7 | 40.7 | 40.7 | 40.7 | 40.7 |
| Per share ($) (2) | 0.27 | 0.27 | 0.27 | 0.27 | 0.27 | 0.27 | 0.27 | 0.27 |
| Dividend payout ratio (%) (3) | 78% | 65% | 66% | 73% | 68% | 75% | 65% | 62% |
| Long-term debt | 292.6 | 294.3 | 300.9 | 205.8 | 228.0 | 223.6 | 123.0 | 141.2 |
| Net debt (5)(6) | 270.6 | 272.2 | 282.3 | 187.1 | 199.1 | 210.5 | 100.9 | 113.4 |
| Shares outstanding, period end (000s) | 164.0 | 164.0 | 164.0 | 150.7 | 150.7 | 150.7 | 150.7 | 150.7 |
| Average shares outstanding, basic (000s) (7) | 164.0 | 164.0 | 153.4 | 150.7 | 150.7 | 150.7 | 150.7 | 150.7 |
| Operating | ||||||||
| Light and medium oil (bbl/d) | 6,940 | 6,880 | 6,296 | 6,080 | 6,551 | 6,094 | 6,308 | 6,325 |
| Heavy oil (bbl/d) | 1,557 | 1,552 | 1,516 | 1,315 | 1,348 | 1,300 | 1,182 | 1,127 |
| NGL (bbl/d) | 2,550 | 2,203 | 2,066 | 1,972 | 1,902 | 1,884 | 1,878 | 1,678 |
| Total liquids (bbl/d) | 11,047 | 10,635 | 9,878 | 9,367 | 9,801 | 9,278 | 9,368 | 9,130 |
| Natural gas (Mcf/d) | 33,220 | 33,678 | 32,564 | 31,447 | 32,524 | 32,617 | 32,968 | 32,851 |
| Total production (boe/d) (4) | 16,584 | 16,248 | 15,306 | 14,608 | 15,221 | 14,714 | 14,863 | 14,605 |
| Oil and NGL (%) | 67% | 65% | 65% | 64% | 64% | 63% | 63% | 63% |
| Petroleum & natural gas realized price ($/boe) (4) | 50.36 | 59.29 | 53.80 | 54.36 | 59.74 | 54.81 | 57.94 | 61.55 |
| Cash costs ($/boe) (3)(4) | 7.38 | 7.00 | 5.93 | 5.42 | 9.80 | 7.19 | 4.73 | 5.10 |
| Netback ($/boe) (3)(4) | 42.68 | 53.01 | 47.25 | 47.78 | 49.44 | 46.62 | 52.59 | 55.63 |
| Benchmark Prices | ||||||||
| West Texas Intermediate crude oil (US$/bbl) | 63.74 | 71.42 | 70.27 | 75.09 | 80.57 | 76.96 | 78.32 | 82.26 |
| Exchange rate (Cdn$/US$) | 1.38 | 1.43 | 1.40 | 1.37 | 1.37 | 1.35 | 1.36 | 1.34 |
| Edmonton Light Sweet crude oil (Cdn$/bbl) | 84.25 | 95.32 | 94.90 | 97.85 | 105.29 | 92.14 | 99.69 | 107.89 |
| Western Canadian Select crude oil (Cdn$/bbl) | 73.96 | 84.30 | 80.75 | 83.95 | 91.63 | 77.77 | 76.96 | 93.05 |
| Nymex natural gas (US$/Mcf) | 3.57 | 3.79 | 2.86 | 2.24 | 1.96 | 2.33 | 2.98 | 2.64 |
| AECO 5A Monthly Index (Cdn$/Mcf) | 1.69 | 2.17 | 1.48 | 0.69 | 1.18 | 1.80 | 2.60 | 1.88 |
(1) Calculated based on the basic weighted average number of shares outstanding during the period
(2) Based on the number of shares issued and outstanding at each record date
(3) See Non-GAAP and Other Financial Measures
(4) See Conversion of Natural Gas to Barrels of Oil Equivalent (boe)
(5) The 2023 reported balances have been restated due to the retrospective adoption of IAS 1 (see note 3d of December 31, 2024 audited consolidated financial statements)
(6) Net debt is a capital management measures; see Non-GAAP and Other Financial Measures
(7) Weighted average number of shares outstanding during the period, basic
Forward-Looking Statements
This news release offers our assessment of Freehold’s future plans and operations as of July 30, 2025, and contains forward-looking statements that we believe allow readers to better understand our business and prospects. These forward-looking statements include our expectations for the following:
By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond our control, including general economic conditions, volatility in market prices for crude oil, NGL and natural gas, risks and impacts of tariffs (or other retaliatory trade measures) imposed by Canada or the U.S. (or other countries) on exports and/or imports into and out of such countries, inflation and supply chain issues, the impacts of the ongoing Middle-East conflicts, Russia-Ukraine war (and any associated sanctions) and actions taken by OPEC+ on the global economy and commodity prices, geopolitical instability, political instability, industry conditions, volatility of commodity prices, future production levels, future capital expenditure levels, currency fluctuations, imprecision of reserve estimates, royalties, environmental risks, taxation, regulation, changes in tax or other legislation, competition from other industry participants, inaccurate assumptions on supply and demand factors affecting the consumption of crude oil, NGLs and natural gas, inaccurate expectations for industry drilling levels on our royalty lands, the failure to complete acquisitions on the timing and terms expected, the failure to satisfy conditions of closing for any acquisitions, the lack of availability of qualified personnel or management, stock market volatility, our inability to come to agreement with third parties on prospective opportunities and the results of any such agreement and our ability to access sufficient capital from internal and external sources. Risks are described in more detail in our Annual Information Form for the year-ended December 31, 2024, available at www.sedarplus.ca.
With respect to forward-looking statements contained in this news release, we have made assumptions regarding, among other things, future commodity prices, future capital expenditure levels, future production levels, future exchange rates, future tax rates, future legislation, the cost of developing and producing our assets, the quality of our counterparties and the plans thereof, our ability and the ability of our lessees to obtain equipment in a timely manner to carry out development activities, our ability to market our oil and gas successfully to current and new customers, the performance of current wells and future wells drilled by our royalty payors, our expectation for the consumption of crude oil and natural gas, our expectation for industry drilling levels, our expectation for completion of wells drilled, our ability to obtain financing on acceptable terms, shut-in production, production additions from our audit function, our ability to execute on prospective opportunities and our ability to add production and reserves through development and acquisition activities. Additional operating assumptions with respect to the forward-looking statements referred to above are detailed in the body of this news release.
You are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Our actual results, performance, or achievement could differ materially from those expressed in, or implied by, these forward-looking statements. We can give no assurance that any of the events anticipated will transpire or occur, or if any of them do, what benefits we will derive from them. The forward-looking information contained in this document is expressly qualified by this cautionary statement. To the extent any guidance or forward-looking statements herein constitute a financial outlook, they are included herein to provide readers with an understanding of management’s plans and assumptions for budgeting purposes and readers are cautioned that the information may not be appropriate for other purposes. Our policy for updating forward-looking statements is to update our key operating assumptions quarterly and, except as required by law, we do not undertake to update any other forward-looking statements.
You are further cautioned that the preparation of financial statements in accordance with International Financial Reporting Standards (IFRS), which are the Canadian generally accepted accounting principles (GAAP) for publicly accountable enterprises, requires management to make certain judgments and estimates that affect the reported amounts of assets, liabilities, revenues, and expenses. These estimates may change, having either a positive or negative effect on net income, as further information becomes available and as the economic environment changes.
To the extent any guidance or forward-looking statements herein constitutes a financial outlook, they are included herein to provide readers with an understanding of management’s plans and assumptions for budgeting purposes and readers are cautioned that the information may not be appropriate for other purposes. You are further cautioned that the preparation of financial statements in accordance with IFRS requires management to make certain judgments and estimates that affect the reported amounts of assets, liabilities, revenues, and expenses. These estimates may change, having either a positive or negative effect on net income, as further information becomes available and as the economic environment changes.
Conversion of Natural Gas to Barrels of Oil Equivalent (BOE)
To provide a single unit of production for analytical purposes, natural gas production and reserves volumes are converted mathematically to equivalent barrels of oil (boe). We use the industry-accepted standard conversion of six thousand cubic feet of natural gas to one barrel of oil (6 Mcf = 1 bbl). The 6:1 boe ratio is based on an energy equivalency conversion method primarily applicable at the burner tip. It does not represent a value equivalency at the wellhead and is not based on either energy content or current prices. While the boe ratio is useful for comparative measures and observing trends, it does not accurately reflect individual product values and might be misleading, particularly if used in isolation. As well, given that the value ratio, based on the current price of crude oil to natural gas, is significantly different from the 6:1 energy equivalency ratio, using a 6:1 conversion ratio may be misleading as an indication of value.
Non-GAAP and Other Financial Measures
Within this news release, references are made to terms commonly used as key performance indicators in the oil and gas industry, which do not have any standardized means prescribed by Canadian generally accepted accounting principles (GAAP). We believe that net revenue, netback, dividend payout ratio, funds from operations per share and cash costs are useful non-GAAP financial measures and ratios for management and investors to analyze operating performance, financial leverage, and liquidity, and we use these terms to facilitate the understanding and comparability of our results of operations. However, these as terms do not have any standardized meanings prescribed by GAAP, such terms may not be comparable with the calculations of similar measures for other entities. This news release also contains the capital management measures net debt and net debt to trailing funds from operations, as defined in note 14 to the unaudited consolidated financial statements as at and for the three months ended June 30, 2025.
Net revenue, which is calculated as revenues less ad valorem and production taxes (as incurred in the U.S. at the state level, largely Texas, which do not charge corporate income taxes but do assess flat tax rates on commodity revenues in addition to property tax assessments) details the net amount Freehold receives from its royalty payors, largely after state withholdings.
The netback, which is also calculated on a boe basis, as average realized price less production and ad valorem taxes, operating expenses, general and administrative expense, cash-based management fees, cash-based interest charges and share-based payouts, represents the per boe netback amount which allows us to benchmark how changes in commodity pricing, net of production and ad valorem taxes, and our cash-based cost structure compare against prior periods.
Cash costs, which is calculated on a boe basis, is comprised by the recurring cash-based costs, excluding taxes, reported on the statements of operations. For Freehold, cash costs are identified as operating expense, general and administrative expense, cash-based interest charges, cash-based management fees and share-based compensation payouts. Cash costs allow Freehold to benchmark how changes in its manageable cash-based cost structure compare against prior periods.
The following table presents the computation of Net Revenue, Cash costs and the Netback:
| $/boe | Q2-2025 | Q1-2025 | Q2-2024 |
| Royalty and other revenue | 51.87 | 62.29 | 60.99 |
| Production and ad valorem taxes | (1.81) | (2.28) | (1.75) |
| Net revenue | $50.06 | $60.01 | $59.24 |
| Less: | |||
| General and administrative expense | (2.79) | (3.41) | (2.86) |
| Operating expense | (0.13) | (0.13) | (0.24) |
| Interest and financing cash expense | (2.95) | (3.31) | (2.87) |
| Management fee-cash settled | (0.01) | (0.05) | (0.05) |
| Cash payout on share-based compensation | (1.50) | (0.10) | (3.78) |
| Cash costs | (7.38) | (7.00) | ($9.80) |
| Netback | $42.68 | $53.01 | $49.44 |
Dividend payout ratios are often used for dividend paying companies in the oil and gas industry to identify dividend levels in relation to funds from operations that are also used to finance debt repayments and/or acquisition opportunities. Dividend payout ratio is a supplementary measure and is calculated as dividends paid as a percentage of funds from operations.
| ($000s, except as noted) | Q2-2025 | Q1-2025 | Q2-2024 |
| Dividends paid | $44,270 | $44,269 | $40,686 |
| Funds from operations | $56,600 | $68,050 | $59,569 |
| Dividend payout ratio (%) | 78% | 65% | 68% |
Funds from operations per share, which is calculated as funds from operations divided by the weighted average shares outstanding during the period, provides direction if changes in commodity prices, cash costs, and/or acquisitions were accretive on a per share basis. Funds from operations per share is a supplementary measure.
Source: United Nations 2
The cancellation of most US funding in January means many services to the most vulnerable people have been cut or put on hold.
Multiple political, security and socio-economic crises have led to 5.7 million people suffering from a lack of food and have forced 1.3 million people to flee their homes.
With a dramatic reduction in funding Haiti faces a crucial “turning point.”
UN News spoke to OCHA’s country director, Modibo Traore, about the current situation.
UN News: What is the current state of humanitarian funding in Haiti?
Humanitarian funding in Haiti is going through a critical phase, marked by a growing gap between the needs and available resources. As of 1 July, only around 8 per cent of the $908 million required had been mobilized.
This partial coverage only allows a fraction of the 3.6 million people targeted to be reached.
UN aid agencies continue to support Haitian people with humanitarian aid.
The sectors most affected are food security, access to drinking water, primary healthcare, education and protection.
This contraction in international support is part of a global context of multiple competing crises – Ukraine, Gaza, Sudan – but also reflects a loss of political interest in the Haitian issue.
UN News: What conditions in Haiti have led to such significant funding needs?
The growing humanitarian needs observed in Haiti are the result of an accumulation of structural and cyclical factors. On the socioeconomic front, multidimensional poverty affects a large part of the population.
Haiti’s exposure to natural hazards is an aggravating factor.
The country has experienced several major hurricanes that struck the southern region less than a week after an earthquake that severely affected the area, not to mention repeated droughts that have had a major impact on agriculture and livestock farming.
The downtown area of Port-au-Prince remains extremely dangerous due to gang activity.
Since 2019, a new dimension has emerged; chronic insecurity caused by the proliferation of armed groups, particularly in the capital, Port-au-Prince, and now in the Centre and Artibonite departments.
In 2024, the multidimensional crisis that has been shaking Haiti for years has become catastrophic.
The level of violence and insecurity remains high, with devastating consequences for the population, including massive displacement of people who were already in vulnerable situations.
UN News: How has the growing control of armed groups affected donor confidence?
The rise of armed groups in Haiti and their increasing control of strategic locations, particularly major roads and ports of entry to the capital, is a major obstacle to the safe and efficient delivery of humanitarian aid.
This dynamic has an impact on the risk perception of international donors, who now assess Haiti as a high-threat environment for intervention. Access to beneficiaries has become irregular in many areas.
The deterioration of the security situation represents a major challenge for mobilizing and maintaining financial commitments.
Donors have expressed concerns about operational risks, particularly regarding securing supply chains, preventing exploitation and ensuring accountability.
The operational cost of aid has also increased.
UN News: What is the impact of the new approach taken by the US administration?
On 20 January, 2025, President Donald Trump signed Executive Order 14169, which imposed an immediate suspension of all new foreign funding by US federal agencies, including humanitarian programs run by USAID and multilateral partners.
In the case of Haiti, the effects were felt through the sudden halt of approximately 80 per cent of US-funded programmes. NGO partner staff were laid off, payments were suspended, and supply chains were disrupted.
US food aid is prepared for delivery following floods in Haiti in 2022.
Beyond the structural effects, this suspension created profound uncertainty in the Haitian humanitarian system. This situation not only weakened the continuity of essential services but also affected trust between beneficiary communities and humanitarian actors.
UN News: To what extent is the current situation unprecedented?
The year 2025 marks a turning point in humanitarian aid in Haiti. This crisis is not the result of a single or isolated event, but rather a series of deteriorating situations in the context of gradually waning international attention.
The interruption of US programmes has acted as a catalyst for the crisis. USAID’s technical partners, many of whom managed community health programmes in vulnerable neighbourhoods, have ceased operations, depriving hundreds of thousands of people of vital services.
US-co-funded health centres have closed, leaving pregnant women and children without assistance.
The current crisis demonstrates the country’s growing isolation.
While previous crises had prompted rapid international solidarity, the humanitarian response to the situation in 2025 has been slow and partial.
UN News: What difficult decisions have had to be made regarding cutting aid?
The interruption of funding has forced humanitarian organizations to make ethically complex and often painful trade-offs.
In the area of protection, for example, safe spaces for women and girls have been drastically reduced.
The long-term development of Haiti is at risk as funding decreases.
Cash transfer programmes, widely used in urban areas since 2021, have also been suspended. These programmes enabled vulnerable households to maintain a minimum level of food security. Their suspension has led to a resurgence of coping mechanisms such as child labour, less food and children being taken out of school.
Resilience-building activities have also been affected. Programmes combining food security, urban agriculture, and access to water—often co-financed by USAID and UN funds—have been frozen.
This compromises not only the immediate response but also the development of medium-term solutions.
UN News: How are Haitians being affected?
Children are among the hardest hit. UNICEF and its partners have treated more than 4,600 children suffering from severe acute malnutrition, representing only 3.6 per cent of the 129,000 children expected to need treatment this year.
The proportion of institutional maternal deaths has also increased from 250 to 350 per 100,000 live births between February 2022 and April 2025.
A survivor of rape rests at a site for internally displaced people in Port-au-Prince.
In terms of security, the effects are equally worrying. Gender-based sexual violence (GBV) has increased in neighbourhoods controlled by armed groups.
In short, the withdrawal of US funding has led to a multidimensional regression in the rights of women and girls in Haiti, with consequences that are likely to last for several years.
UN News: How have people in Haiti reacted?
Beneficiaries expressed a sense of despair at the sudden suspension of the services.
In working-class neighbourhoods of Port-au-Prince as well as in remote rural areas, the cessation of food distributions, community healthcare, and cash transfers was experienced as a breach of the moral contract between communities and humanitarian institutions.
Humanitarian partners communicate transparently about the reduction of support, so communities are, to some extent, aware of the financial constraints.
Source: International Atomic Energy Agency (IAEA)
The IAEA team based at Ukraine’s Zaporizhzhya Nuclear Power Plant (ZNPP) carried out independent measurements today to confirm that there had been no increase in radiation levels at the site, contrary to some social media posts overnight, Director General Rafael Mariano Grossi said.
Using IAEA monitoring equipment, the team members measured only normal levels during a site walkdown. Their measurements confirmed other data collected separately at the site, as well as information provided by the plant itself.
“The team took immediate action after becoming aware of these social media reports, enabling us to provide assurances that radiation levels remained unchanged. Once again, this shows the importance of the IAEA’s presence at the Zaporizhzhya Nuclear Power Plant and Ukraine’s other nuclear power sites. Thanks to this presence, we can provide timely, factual and impartial technical information to the public about nuclear safety and security in Ukraine,” Director General Grossi said.
The general nuclear safety situation at the ZNPP remains precarious, however, with the plant continuing to rely on one single power line for the electricity it needs to cool its reactors and for other essential nuclear safety and security functions. Before the conflict, it had access to 10 external power lines.
In addition, the IAEA team reported hearing military activities almost every day over the past week, at different distances from the site, which is located on the frontline.
Earlier this week, the team members performed a walkdown of a turbine hall of one reactor unit where they were once again denied access to the western part of the hall.
The IAEA teams present at Ukraine’s operating nuclear power plants (NPPs) — Khmelnytskyy, Rivne and South Ukraine NPPs – and the Chornobyl NPP site reported hearing air raid alarms nearly every day over the past week. At Khmelnytskyy, the team had to shelter twice on 28 July.
Three of Ukraine’s nine operating reactor units continued to be in shutdown for refuelling and maintenance, including work on some of the off-site power lines.
As part of the IAEA’s comprehensive assistance programme to support nuclear safety and security in Ukraine, the Slavutych City Hospital this week received mobile radiography equipment and the Ukrainian Hydrometeorological Center and Hydrometeorological organizations of the State Emergency Service of Ukraine received laboratory equipment. These deliveries were funded by Australia, the European Union and Norway.
Source: GlobeNewswire (MIL-OSI)
LEAWOOD, Kan. and NORCROSS, Ga., July 30, 2025 (GLOBE NEWSWIRE) — Euronet (NASDAQ: EEFT), a global leader in payments processing and cross-border transactions, and CoreCard Corporation (NYSE: CCRD), a leading provider of innovative credit technology solutions and processing services to the financial technology and services market, today announced they have entered into a definitive agreement for Euronet to acquire CoreCard in a stock-for-stock merger transaction that values CoreCard at approximately $248 million, or $30 per share of CoreCard common stock. The exchange ratio and other terms of the transaction are described below.
The proposed transaction marks a pivotal step in accelerating Euronet’s strategic goal of a more diversified, future-ready revenue mix, that is anchored in scalable, modern platforms designed for the next generation of digital financial services across the globe.
Acquisition to Add a Proven Credit Card Platform and Marquee Clients to Fuel Euronet’s Growth Strategy
CoreCard’s platform is proven and trusted by some of the most respected names in finance and technology, and has been instrumental in launching one of the most successful co-branded credit card offerings in U.S. history in partnership with Goldman Sachs. This credibility, combined with CoreCard’s deep expertise in credit products, positions Euronet to compete in a sizeable market traditionally dominated by a few legacy providers.
The CoreCard modern architecture enables faster deployment, easier integrations, and the flexibility to support rapid innovation, which are key advantages in today’s world of payments, where banks and fintechs are looking to embed financial experiences in their customer journeys. This has enabled CoreCard to support diverse, bespoke use cases for fintech innovators such as Cardless, who has recently been chosen as the partner for the Coinbase credit card.
“More than a product expansion, this acquisition will be a catalyst for long-term growth, and we expect it to be accretive in the first full year post close,” said Michael J. Brown, Euronet’s Chairman and Chief Executive Officer. “By integrating CoreCard’s platform with our own Ren architecture and global distribution network, we will be positioned to become a leading modern card issuer and innovation partner for the next generation of digital finance. This acquisition is a natural extension of our strategy to invest in scalable, high-margin businesses that align with long-term market trends. We also value and respect the work of CoreCard’s employees, who we are eager to welcome to Euronet, and we look forward to their contributions to our company in the future.”
“Joining Euronet marks an exciting new chapter for CoreCard,” said Leland Strange, CEO of CoreCard. “Our team has built a modern, resilient credit card processing platform that serves some of the largest companies and financial institutions in the world. We’re excited to bring our capabilities to a global stage. We have spent a lot of time and diligence over the last year exploring the right ‘fit’ for what our team has built over many years, and we believe this is a great outcome for the team and our shareholders. We are joining with a company that has also been built on a strong foundation over many years that has kept a strong team and customer-focused culture with a focus on innovation.”
Time and Approvals
The transaction has been approved by the boards of directors of both Euronet and CoreCard, and is expected to close in late 2025, subject to approval by CoreCard shareholders and the satisfaction of certain other customary closing conditions, including the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
Transaction Details
Under the terms of the merger agreement, each share of CoreCard common stock will be exchanged for a number of shares of Euronet common stock equal to an exchange ratio between 0.2783 and 0.3142, calculated as $30 divided by the volume weighted average share price of Euronet common stock over the 15-trading day period ending on and including the second to last trading day prior to the closing date (the “Final Euronet Stock Price”), subject to a floor of $95.48 per share and a ceiling of $107.80 per share. CoreCard shareholders will receive 0.3142 Euronet shares for each of their CoreCard shares if the Final Euronet Stock Price is at or below $95.48, and 0.2783 Euronet shares for each of their CoreCard shares if the Final Euronet Stock Price is at or above $107.80.
Advisors
Stinson LLP is acting as outside counsel to Euronet. Kilpatrick Townsend & Stockton LLP is acting as outside counsel to CoreCard. Keefe, Bruyette & Woods, a Stifel Company, provided certain financial advice to the board of directors of CoreCard.
About CoreCard
CoreCard Corporation (NYSE: CCRD) provides a modern card issuing platform built for the future of global transactions in an embedded digital world. Dedicated to continual technological innovation in the ever-evolving payments industry backed by decades of deep expertise in credit card offerings, CoreCard helps customers conceptualize, implement, and manage all aspects of their issuing card programs. Keenly focused on steady, sustainable growth, CoreCard has earned the trust of some of the largest companies and financial institutions in the world, providing truly real-time transactions via their proven, reliable platform operating on private on-premise and leading cloud technology infrastructure.
About Euronet
A global leader in payments processing and cross-border transactions, Euronet moves money in all the ways consumers and businesses depend upon. This includes money transfers, credit/debit processing, ATMs, point-of-sale services, branded payments, currency exchange and more. With products and services in more than 200 countries and territories provided through its own brand and branded business segments, Euronet and its financial technologies and networks make participation in the global economy easier, faster and more secure for everyone. Visit the company’s website at www.euronetworldwide.com.
Cautionary Statement Regarding Forward-Looking Statements
This communication contains “forward-looking statements” within the United States Private Securities Litigation Reform Act of 1995. You can identify these statements and other forward-looking statements in this document by words such as “may,” “will,” “should,” “can,” “could,” “anticipate,” “estimate,” “expect,” “predict,” “project,” “future,” “potential,” “intend,” “plan,” “assume,” “believe,” “forecast,” “look,” “build,” “focus,” “create,” “work,” “continue,” “target,” “poised,” “advance,” “drive,” “aim,” “forecast,” “approach,” “seek,” “schedule,” “position,” “pursue,” “progress,” “budget,” “outlook,” “trend,” “guidance,” “commit,” “on track,” “objective,” “goal,” “strategy,” “opportunity,” “ambitions,” “aspire” and similar expressions, and variations or negative of such terms or other variations thereof. Words and terms of similar substance used in connection with any discussion of future plans, actions, or events identify forward-looking statements.
Forward-looking statements by their nature address matters that are, to different degrees, uncertain, such statements regarding the transactions contemplated by the Agreement and Plan of Merger (the “Merger Agreement’), dated as of July 30, 2025, by and among CoreCard, Euronet and Genesis Merger Sub Inc. (the “Transaction”), including the expected timing of the closing of the Transaction; future financial and operating results; benefits and synergies of the Transaction; future opportunities for the combined company; the conversion of equity interests contemplated by the Merger Agreement; the issuance of common stock of Euronet contemplated by the Merger Agreement; the expected filing by Euronet with the SEC of the Registration Statement and the proxy statement/prospectus; the ability of the parties to complete the proposed Transaction considering the various closing conditions and any other statements about future expectations that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All such forward-looking statements are based upon current plans, estimates, expectations and ambitions that are subject to risks, uncertainties and assumptions, many of which are beyond the control of Euronet and CoreCard, that could cause actual results to differ materially from those expressed in such forward-looking statements. Key factors that could cause actual results to differ materially include, but are not limited to, the expected timing and likelihood of completion of the Transaction, including the timing, receipt and terms and conditions of any required governmental and regulatory approvals of the Transaction; the occurrence of any event, change or other circumstances that could give rise to the termination of the definitive agreement; the possibility that CoreCard’s shareholders may not approve the Transaction; the risk that the parties may not be able to satisfy the conditions to the Transaction in a timely manner or at all; risks related to disruption of management time from ongoing business operations due to the Transaction; the risk that any announcements relating to the Transaction could have adverse effects on the market price of Euronet’s common stock; the risk that the Transaction and its announcement could have an adverse effect on the parties’ business relationships and business generally, including the ability of CoreCard or Euronet to retain customers and retain and hire key personnel and maintain relationships with their suppliers and customers, and on their operating results and businesses generally; the risk of unforeseen or unknown liabilities; customer, shareholder, regulatory and other stakeholder approvals and support; the risk of potential litigation relating to the Transaction that could be instituted against CoreCard or its directors and/or officers; the risk associated with third party contracts containing material consent, anti-assignment, transfer or other provisions that may be related to the Transaction which are not waived or otherwise satisfactorily resolved; the risk of rating agency actions and Euronet’s ability to access short- and long-term debt markets on a timely and affordable basis; the risk of various events that could disrupt operations, including: conditions in world financial markets and general economic conditions; inflation; the war in Ukraine and the related economic sanctions; and military conflicts in the Middle East.
These risks, as well as other risks related to the proposed Transaction, will be described in the Registration Statement that will be filed with the SEC in connection with the proposed Transaction. While the list of factors presented here and the list of factors to be presented in the Registration Statement are considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Additional factors that may affect future results are contained in each company’s filings with the SEC, including each company’s most recent Annual Report on Form 10-K, as it may be updated from time to time by quarterly reports on Form 10-Q and current reports on Form 8-K, all of which are available at the SEC’s website http://www.sec.gov. Euronet regularly posts important information to the investor relations section of its website. Any forward-looking statements made in this release speak only as of the date of this release. Except as may be required by law, neither Euronet nor CoreCard intends to update these forward-looking statements and undertakes no duty to any person to provide any such update under any circumstances.
Important Information for Investors and Stockholders
In connection with the proposed transaction, Euronet plans to file with the SEC a registration statement on Form S-4 (the “Registration Statement”), which will include a proxy statement of CoreCard that also constitutes a prospectus of Euronet, and any other documents in connection with the transaction. After the Registration Statement has been declared effective by the SEC, the definitive proxy statement/prospectus will be sent to the holders of common stock of CoreCard. INVESTORS AND SHAREHOLDERS OF CORECARD AND EURONET ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS AND ANY OTHER DOCUMENTS FILED OR TO BE FILED WITH THE SEC IN CONNECTION WITH THE TRANSACTION WHEN THEY BECOME AVAILABLE, AS THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT EURONET, CORECARD, THE TRANSACTION AND RELATED MATTERS. The registration statement and proxy statement/prospectus and other documents filed by Euronet or CoreCard with the SEC, when filed, will be available free of charge at the SEC’s website at www.sec.gov. Alternatively, investors and stockholders may obtain free copies of documents that are filed or will be filed with the SEC by Euronet, including the registration statement and the proxy statement/prospectus, on Euronet’s website at https://ir.euronetworldwide.com/for-investors, and may obtain free copies of documents that are filed or will be filed with the SEC by CoreCard, including the proxy statement/prospectus, on CoreCard’s website at https://investors.CoreCard.com/. The information included on, or accessible through, Euronet’s or CoreCard’s website is not incorporated by reference into this press release.
No Offer or Solicitation
This press release is not intended to and shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to appropriate registration or qualification under the securities laws of such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
Participants in the Solicitation
Euronet and CoreCard and their respective directors, executive officers and other employees may be deemed to be participants in the solicitation of proxies from CoreCard’s shareholders in connection with the proposed Transaction. A description of participants’ direct or indirect interests, by security holdings or otherwise, will be included in the proxy statement/prospectus relating to the proposed Transaction when it is filed with the SEC. Information regarding Euronet’s directors and executive officers is contained in the definitive proxy statement, dated April 4, 2025, for its 2025 annual meeting of stockholders, and in Euronet’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024. Information regarding CoreCard’s directors and executive officers is contained in CoreCard’s definitive proxy statement, dated April 14, 2025, for its 2025 annual meeting of shareholders, and CoreCard’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024. Additional information regarding ownership of Euronet’s securities by its directors and executive officers, and of ownership of CoreCard’s securities by its directors and executive officers, is included in each such person’s SEC filings on Forms 3 and 4. These documents and the other SEC filings described in this paragraph may be obtained free of charge as described above under the heading “Important Information for Investors and Stockholders.”
Source: International Atomic Energy Agency (IAEA) –
The IAEA team based at Ukraine’s Zaporizhzhya Nuclear Power Plant (ZNPP) carried out independent measurements today to confirm that there had been no increase in radiation levels at the site, contrary to some social media posts overnight, Director General Rafael Mariano Grossi said.
Using IAEA monitoring equipment, the team members measured only normal levels during a site walkdown. Their measurements confirmed other data collected separately at the site, as well as information provided by the plant itself.
“The team took immediate action after becoming aware of these social media reports, enabling us to provide assurances that radiation levels remained unchanged. Once again, this shows the importance of the IAEA’s presence at the Zaporizhzhya Nuclear Power Plant and Ukraine’s other nuclear power sites. Thanks to this presence, we can provide timely, factual and impartial technical information to the public about nuclear safety and security in Ukraine,” Director General Grossi said.
The general nuclear safety situation at the ZNPP remains precarious, however, with the plant continuing to rely on one single power line for the electricity it needs to cool its reactors and for other essential nuclear safety and security functions. Before the conflict, it had access to 10 external power lines.
In addition, the IAEA team reported hearing military activities almost every day over the past week, at different distances from the site, which is located on the frontline.
Earlier this week, the team members performed a walkdown of a turbine hall of one reactor unit where they were once again denied access to the western part of the hall.
The IAEA teams present at Ukraine’s operating nuclear power plants (NPPs) — Khmelnytskyy, Rivne and South Ukraine NPPs – and the Chornobyl NPP site reported hearing air raid alarms nearly every day over the past week. At Khmelnytskyy, the team had to shelter twice on 28 July.
Three of Ukraine’s nine operating reactor units continued to be in shutdown for refuelling and maintenance, including work on some of the off-site power lines.
As part of the IAEA’s comprehensive assistance programme to support nuclear safety and security in Ukraine, the Slavutych City Hospital this week received mobile radiography equipment and the Ukrainian Hydrometeorological Center and Hydrometeorological organizations of the State Emergency Service of Ukraine received laboratory equipment. These deliveries were funded by Australia, the European Union and Norway.
Source: International Atomic Energy Agency – IAEA
The IAEA team based at Ukraine’s Zaporizhzhya Nuclear Power Plant (ZNPP) carried out independent measurements today to confirm that there had been no increase in radiation levels at the site, contrary to some social media posts overnight, Director General Rafael Mariano Grossi said.
Using IAEA monitoring equipment, the team members measured only normal levels during a site walkdown. Their measurements confirmed other data collected separately at the site, as well as information provided by the plant itself.
“The team took immediate action after becoming aware of these social media reports, enabling us to provide assurances that radiation levels remained unchanged. Once again, this shows the importance of the IAEA’s presence at the Zaporizhzhya Nuclear Power Plant and Ukraine’s other nuclear power sites. Thanks to this presence, we can provide timely, factual and impartial technical information to the public about nuclear safety and security in Ukraine,” Director General Grossi said.
The general nuclear safety situation at the ZNPP remains precarious, however, with the plant continuing to rely on one single power line for the electricity it needs to cool its reactors and for other essential nuclear safety and security functions. Before the conflict, it had access to 10 external power lines.
In addition, the IAEA team reported hearing military activities almost every day over the past week, at different distances from the site, which is located on the frontline.
Earlier this week, the team members performed a walkdown of a turbine hall of one reactor unit where they were once again denied access to the western part of the hall.
The IAEA teams present at Ukraine’s operating nuclear power plants (NPPs) — Khmelnytskyy, Rivne and South Ukraine NPPs – and the Chornobyl NPP site reported hearing air raid alarms nearly every day over the past week. At Khmelnytskyy, the team had to shelter twice on 28 July.
Three of Ukraine’s nine operating reactor units continued to be in shutdown for refuelling and maintenance, including work on some of the off-site power lines.
As part of the IAEA’s comprehensive assistance programme to support nuclear safety and security in Ukraine, the Slavutych City Hospital this week received mobile radiography equipment and the Ukrainian Hydrometeorological Center and Hydrometeorological organizations of the State Emergency Service of Ukraine received laboratory equipment. These deliveries were funded by Australia, the European Union and Norway.
Source: GlobeNewswire (MIL-OSI)
CALGARY, Alberta, July 30, 2025 (GLOBE NEWSWIRE) — Gran Tierra Energy Inc. (“Gran Tierra” or the “Company”) (NYSE American:GTE) (TSX:GTE) (LSE: GTE) announced the Company’s financial and operating results for the quarter ended June 30, 2025 (the “Quarter”) and provided an operational update. All dollar amounts are in United States (“U.S.”) dollars and all production volumes are on an average working interest before royalties (“WI”) basis unless otherwise indicated. Production is expressed in barrels (“bbl”) of oil equivalent (“boe”) per day (“boepd” or “boe/d”) and are based on WI sales before royalties. For per boe amounts based on net after royalty (“NAR”) production, see Gran Tierra’s Quarterly Report on Form 10-Q filed July 30, 2025.
Message to Shareholders
Gary Guidry, President and Chief Executive Officer of Gran Tierra, commented: “Gran Tierra delivered record-setting production this quarter, reflecting the strength of our diversified portfolio and consistent operational execution across Colombia, Ecuador, and Canada.
In Ecuador, we are building on the momentum of our Iguana Block discoveries with the planned drilling of two high-impact exploration wells in the Charapa Block later this year. In Colombia, the successful development drilling at Costayaco and Cohembi, along with the strong early waterflood response in Cohembi’s north area, underscores the ongoing potential of our core assets and validates our disciplined approach to reservoir management. In Acordionero, our proactive waterflood management, surface facility upgrades, pump upsizes and ongoing improvement in electrical submersible pump run lives continue to mitigate base decline.
In Canada, our Montney and Clearwater assets are delivering encouraging results, with three gross-wells (1.2 net) brought on stream in the Quarter, outperforming expectations. These outcomes further reinforce our strategy of disciplined capital allocation and balanced growth as we focus on generating long-term value for our stakeholders.
We continue to optimize our portfolio with the signed disposition of the UK North Sea assets, which is expected to close in the third quarter of 2025.”
Operational Update:
Enhanced Liquidity:
Key Highlights of the Quarter:
Additional Key Financial Metrics:
Financial and Operational Highlights (all amounts in $000s, except per share and boe amounts)
| Consolidated Financial Data | Three Months Ended June 30, | Three Months Ended March 31, | Six Months Ended June 30, | ||||
| 2025 | 2024 | 2025 | 2025 | 2024 | |||
| Net (Loss) Income | $(12,741) | $36,371 | $(19,280) | $(32,021) | $36,293 | ||
| Per Share – Basic and Diluted | $(0.36) | $1.16 | $(0.54) | $(0.90) | $1.15 | ||
| Oil, Natural Gas and NGL Sales | $152,481 | $165,609 | $170,533 | $323,014 | $323,186 | ||
| Operating Expenses | (55,855) | (47,035) | (67,354) | (123,209) | (95,501) | ||
| Transportation Expenses | (7,618) | (5,690) | (6,911) | (14,529) | (10,274) | ||
| Operating Netback (1)(3) | $89,008 | $112,884 | $96,268 | $185,276 | $217,411 | ||
| G&A Expenses Before Stock-Based Compensation | $14,460 | $10,967 | $12,143 | $26,603 | $21,749 | ||
| G&A Stock-Based Compensation Expense (Recovery) | 546 | 6,160 | (517) | 29 | 9,521 | ||
| G&A Expenses, Including Stock Based Compensation | $15,006 | $17,127 | $11,626 | $26,632 | $31,270 | ||
| Adjusted EBITDA (1) | $76,987 | $103,004 | $85,162 | $162,149 | $197,796 | ||
| EBITDA (1) | $84,908 | $101,187 | $79,710 | $164,618 | $193,078 | ||
| Net Cash Provided by Operating Activities | $34,677 | $73,233 | $73,230 | $107,907 | $134,060 | ||
| Funds Flow from Operations (1) | $53,906 | $46,167 | $55,344 | $109,250 | $120,474 | ||
| Capital Expenditures (Before Changes in Working Capital) | $51,170 | $61,273 | $94,727 | $145,897 | $116,604 | ||
| Free Cash Flow (1) | $2,736 | $(15,106) | $(39,383) | $(36,647) | $3,870 | ||
| Average Daily Production (boe/d) | |||||||
| WI Production Before Royalties | 47,196 | 32,776 | 46,647 | 46,923 | 32,509 | ||
| Royalties | (7,396) | (6,774) | (8,084) | (7,738) | (6,586) | ||
| Production NAR | 39,800 | 26,002 | 38,563 | 39,185 | 25,923 | ||
| Decrease (Increase) in Inventory | (1,469) | (811) | 461 | (509) | (288) | ||
| Sales | 38,331 | 25,191 | 39,024 | 38,676 | 25,635 | ||
| Royalties, % of WI Production Before Royalties | 16% | 21% | 17% | 16% | 20% | ||
| Cash Netback ($/boe )(1) | |||||||
| Average Realized Price before Royalties | 43.71 | 72.24 | 48.55 | 46.14 | 69.27 | ||
| Royalties | (7.07) | (15.31) | (8.33) | (7.69) | (14.16) | ||
| Average Realized Price | 36.64 | 56.93 | 40.22 | 38.45 | 55.11 | ||
| Transportation Expenses | (1.83) | (1.96) | (1.63) | (1.73) | (1.75) | ||
| Average Realized Price Net of Transportation Expenses | 34.81 | 54.97 | 38.59 | 36.72 | 53.36 | ||
| Operating Expenses | (13.42) | (16.17) | (15.89) | (14.67) | (16.29) | ||
| Operating Netback (1)(3) | 21.39 | 38.80 | 22.70 | 22.05 | 37.07 | ||
| G&A Expenses Before Stock-Based Compensation | (3.48) | (3.77) | (2.86) | (3.17) | (3.71) | ||
| Realized Foreign Exchange (Loss) Gain | (0.14) | 0.37 | (0.51) | (0.33) | (0.06) | ||
| Cash Settlement on Derivative Instruments | 0.39 | — | 0.10 | 0.25 | — | ||
| Interest Expense, Excluding Amortization of Debt Issuance Costs | (4.87) | (5.38) | (4.58) | (4.72) | (5.24) | ||
| Interest Income | 0.06 | 0.35 | 0.10 | 0.08 | 0.29 | ||
| Other Gain | 0.09 | — | — | 0.04 | — | ||
| Net Lease Payments | 0.04 | 0.02 | 0.04 | 0.04 | 0.07 | ||
| Current Income Tax Expense | (0.53) | (14.54) | (1.95) | (1.25) | (7.88) | ||
| Cash Netback (1) | $12.95 | $15.85 | $13.04 | $12.99 | $20.54 | ||
| Share Information (000s) | |||||||
| Common Stock Outstanding, End of Period | 35,289 | 31,022 | 35,524 | 35,289 | 31,022 | ||
| Weighted Average Number of Shares of Common Stock Outstanding – Basic and Diluted | 35,335 | 31,282 | 35,777 | 35,555 | 31,547 | ||
| South American Operational Information | Three Months Ended June 30, | Three Months Ended March 31, | Six Months Ended June 30, | ||||
| 2025 | 2024 | 2025 | 2025 | 2024 | |||
| Operating Netback (1)(3) | |||||||
| Oil Sales | $118,187 | $165,609 | $138,671 | $256,858 | $323,186 | ||
| Operating Expenses | (42,554) | (47,035) | (50,827) | (93,381) | (95,501) | ||
| Transportation Expenses | (4,176) | (5,690) | (4,304) | (8,480) | (10,274) | ||
| Operating Netback (1)(3) | $71,457 | $112,884 | $83,540 | $154,997 | $217,411 | ||
| Capital Expenditures (Before Changes in Working Capital) | $49,327 | $60,806 | $64,984 | $114,311 | $116,137 | ||
| Average Daily Production (boe/d) | |||||||
| WI Production Before Royalties | 29,700 | 32,776 | 29,686 | 29,693 | 32,509 | ||
| Royalties | (5,209) | (6,774) | (5,844) | (5,525) | (6,586) | ||
| Production NAR | 24,491 | 26,002 | 23,842 | 24,168 | 25,923 | ||
| Decrease (Increase) in Inventory | (1,469) | (811) | 461 | (509) | (288) | ||
| Sales | 23,022 | 25,191 | 24,303 | 23,659 | 25,635 | ||
| Royalties, % of WI Production Before Royalties | 18% | 21% | 20% | 19% | 20% | ||
| Operating Netback ($/boe) (1)(3) | |||||||
| Brent | $66.71 | $85.03 | $74.98 | $70.81 | $83.42 | ||
| Quality and Transportation Discount | (10.30) | (12.79) | (11.58) | (10.82) | (14.15) | ||
| Royalties | (10.41) | (15.31) | (12.29) | (11.36) | (14.16) | ||
| Average Realized Price | 46.00 | 56.93 | 51.11 | 48.63 | 55.11 | ||
| Transportation Expenses | (1.63) | (1.96) | (1.59) | (1.61) | (1.75) | ||
| Average Realized Price Net of Transportation Expenses | 44.37 | 54.97 | 49.52 | 47.02 | 53.36 | ||
| Operating Expenses | (16.56) | (16.17) | (18.73) | (17.68) | (16.29) | ||
| Operating Netback (1)(3) | $27.81 | $38.80 | $30.79 | $29.34 | $37.07 | ||
| Canadian Operational Information (4) | Three Months Ended June 30, | Three Months Ended March 31, | Six Months Ended June 30, | ||||
| 2025 | 2024 | 2025 | 2025 | 2024 | |||
| Operating Netback (1)(3) | |||||||
| Oil Sales | $23,196 | $— | $21,269 | $44,465 | $— | ||
| Natural Gas Sales | 6,894 | — | 7,561 | 14,455 | — | ||
| NGL Sales | 6,364 | — | 7,997 | 14,361 | — | ||
| Royalties | (2,158) | — | (4,966) | (7,124) | — | ||
| Oil, Natural Gas and NGL Sales After Royalties | $34,296 | $— | $31,861 | $66,157 | $— | ||
| Operating Expenses | (13,301) | — | (16,527) | (29,828) | — | ||
| Transportation Expenses | (3,442) | — | (2,607) | (6,049) | — | ||
| Operating Netback (1)(3) | $17,553 | $— | $12,727 | $30,280 | $— | ||
| Capital Expenditures (Before Changes in Working Capital) | $1,796 | $— | $29,360 | $31,156 | $— | ||
| Average Daily Production | |||||||
| Crude Oil (bbl/d) | 4,335 | — | 3,623 | 3,981 | — | ||
| Natural Gas (mcf/d) | 50,124 | — | 49,860 | 49,992 | — | ||
| NGLs (bbl/d) | 4,807 | — | 5,029 | 4,917 | — | ||
| WI Production Before Royalties (boe/d) | 17,496 | — | 16,961 | 17,230 | — | ||
| Royalties (boe/d) | (2,187) | — | (2,240) | (2,213) | — | ||
| Production NAR (boe/d) | 15,309 | — | 14,721 | 15,017 | — | ||
| Sales (boe/d) | 15,309 | — | 14,721 | 15,017 | — | ||
| Royalties, % of WI Production Before Royalties | 13% | —% | 13% | 13% | —% | ||
| Benchmark Prices | |||||||
| West Texas Intermediate ($/bbl) | 63.81 | 80.82 | 71.47 | 67.60 | 78.95 | ||
| AECO Natural Gas Price (C$/GJ) | 1.60 | 1.12 | 2.05 | 1.82 | 1.74 | ||
| Average Realized Price | |||||||
| Crude Oil ($/bbl) | 58.80 | — | 65.23 | 61.71 | — | ||
| Natural Gas ($/mcf) | 1.51 | — | 1.69 | 1.60 | — | ||
| NGLs ($/bbl) | 14.55 | — | 17.67 | 16.14 | — | ||
| Operating Netback ($/boe) (1)(3) | |||||||
| Average Realized Price | $22.90 | $— | $24.12 | $23.50 | $— | ||
| Royalties | (1.36) | — | (3.25) | (2.28) | — | ||
| Transportation Expenses | (2.16) | — | (1.71) | (1.94) | — | ||
| Operating Expenses | (8.35) | — | (10.83) | (9.56) | — | ||
| Operating Netback (1)(3) | $11.03 | $— | $8.33 | $9.72 | $— | ||
(1) Funds flow from operations, operating netback, net debt, cash netback, earnings before interest, taxes and depletion, depreciation and accretion (“DD&A”) (“EBITDA”) and EBITDA adjusted for non-cash lease expense, lease payments, foreign exchange gains or losses, stock-based compensation expense, other gains or losses, transaction costs and financial instruments gains or losses (“Adjusted EBITDA”), cash flow and free cash flow are non-GAAP measures and do not have standardized meanings under generally accepted accounting principles in the United States of America (“GAAP”). Cash flow refers to funds flow from operations. Free cash flow refers to funds flow from operations less capital expenditures. Refer to “Non-GAAP Measures” in this press release for descriptions of these non-GAAP measures and, where applicable, reconciliations to the most directly comparable measures calculated and presented in accordance with GAAP.
(2) Gran Tierra’s third quarter-to-date 2025 total average differentials and average production are for the period from July 1 to July 30, 2025.
(3) Operating netback as presented is defined as oil sales less operating and transportation expenses. See the table titled Financial and Operational Highlights above for the components of consolidated operating netback and corresponding reconciliation.
(4) Gran Tierra entered Canada with the acquisition of i3 Energy which closed October 31, 2024, therefore no comparative data is provided for the corresponding periods of 2024.
Conference Call Information:
Gran Tierra will host its second quarter 2025 results conference call on Thursday, July 31, 2025, at 9:00 a.m. Mountain Time, 11:00 a.m. Eastern Time. Interested parties may access the conference call by registering at the following link: https://register-conf.media-server.com/register/BId33e377f2b494c3c95a7fbd1df59627e. The call will also be available via webcast at www.grantierra.com.
Corporate Presentation:
Gran Tierra’s Corporate Presentation has been updated and is available on the Company website at www.grantierra.com.
Contact Information
For investor and media inquiries please contact:
Gary Guidry
President & Chief Executive Officer
Ryan Ellson
Executive Vice President & Chief Financial Officer
+1-403-265-3221
info@grantierra.com
About Gran Tierra Energy Inc.
Gran Tierra Energy Inc., together with its subsidiaries is an independent international energy company currently focused on oil and natural gas exploration and production in Canada, Colombia and Ecuador. The Company is currently developing its existing portfolio of assets in Canada, Colombia and Ecuador and will continue to pursue additional new growth opportunities that would further strengthen the Company’s portfolio. The Company’s common stock trades on the NYSE American, the Toronto Stock Exchange and the London Stock Exchange under the ticker symbol GTE. Additional information concerning Gran Tierra is available at www.grantierra.com. Except to the extent expressly stated otherwise, information on the Company’s website or accessible from our website or any other website is not incorporated by reference into and should not be considered part of this press release. Investor inquiries may be directed to info@grantierra.com or (403) 265-3221.
Gran Tierra’s Securities and Exchange Commission (the “SEC”) filings are available on the SEC website at http://www.sec.gov. The Company’s Canadian securities regulatory filings are available on SEDAR+ at http://www.sedarplus.ca and UK regulatory filings are available on the National Storage Mechanism website at https://data.fca.org.uk/#/nsm/nationalstoragemechanism.
Forward Looking Statements and Legal Advisories:
This press release contains opinions, forecasts, projections, and other statements about future events or results that constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and financial outlook and forward looking information within the meaning of applicable Canadian securities laws (collectively, “forward-looking statements”). All statements other than statements of historical facts included in this press release regarding our business strategy, plans and objectives of our management for future operations, capital spending plans and benefits of the changes in our capital program or expenditures, our liquidity and financial condition, and those statements preceded by, followed by or that otherwise include the words “expect,” “plan,” “can,” “will,” “should,” “guidance,” “forecast,” “budget,” “estimate,” “signal,” “progress”, “anticipates” and “believes,” derivations thereof and similar terms identify forward-looking statements. In particular, but without limiting the foregoing, this press release contains forward-looking statements regarding: : the Company’s expectations regarding committed funding (including but not limited to the signing of a mandate for prepayment structure backed by crude oil deliveries), liquidity and its leverage ratio target, the Company’s plans regarding strategic investments, acquisitions, dispositions, synergies, and growth, the Company’s drilling program and capital expenditures and the Company’s expectations of commodity prices, exploration and production trends and its positioning for 2025. The forward-looking statements contained in this press release reflect several material factors and expectations and assumptions of Gran Tierra including, without limitation, that Gran Tierra will continue to conduct its operations in a manner consistent with its current expectations, pricing and cost estimates (including with respect to commodity pricing and exchange rates), the general continuance of assumed operational, regulatory and industry conditions in Canada, Colombia and Ecuador, and the ability of Gran Tierra to execute its business and operational plans in the manner currently planned.
Among the important factors that could cause our actual results to differ materially from the forward-looking statements in this press release include, but are not limited to: our ability to successfully integrate the assets and operations of i3 Energy Plc (“i3Energy”) and realize the anticipated benefits and operating synergies expected from the 2024 acquisition of i3 Energy; certain of our operations are located in South America and unexpected problems can arise due to guerilla activity, strikes, local blockades or protests; technical difficulties and operational difficulties may arise which impact the production, transport or sale of our products; other disruptions to local operations; global health events; global and regional changes in the demand, supply, prices, differentials or other market conditions affecting oil and gas, including inflation and changes resulting from actual or anticipated tariffs and trade policies, global health crises, geopolitical events, including the conflicts in Ukraine and the Middle East, or from the imposition or lifting of crude oil production quotas or other actions that might be imposed by OPEC and other producing countries and the resulting company or third-party actions in response to such changes; changes in commodity prices, including volatility or a prolonged decline in these prices relative to historical or future expected levels; the risk that current global economic and credit conditions may impact oil prices and oil consumption more than we currently predict, which could cause further modification of our strategy and capital spending program; prices and markets for oil and natural gas are unpredictable and volatile; the effect of hedges; the accuracy of productive capacity of any particular field; geographic, political and weather conditions can impact the production, transport or sale of our products; our ability to execute our business plan, which may include acquisitions, and realize expected benefits from current or future initiatives; the risk that unexpected delays and difficulties in developing currently owned properties may occur; the ability to replace reserves and production and develop and manage reserves on an economically viable basis; the accuracy of testing and production results and seismic data, pricing and cost estimates (including with respect to commodity pricing and exchange rates); the risk profile of planned exploration activities; the effects of drilling down-dip; the effects of waterflood and multi-stage fracture stimulation operations; the extent and effect of delivery disruptions, equipment performance and costs; actions by third parties; the timely receipt of regulatory or other required approvals for our operating activities; the failure of exploratory drilling to result in commercial wells; unexpected delays due to the limited availability of drilling equipment and personnel; volatility or declines in the trading price of our common stock or bonds; the risk that we do not receive the anticipated benefits of government programs, including government tax refunds; our ability to access debt or equity capital markets from time to time to raise additional capital, increase liquidity, fund acquisitions or refinance debt; the risk that we are unable to successfully negotiate final terms and close an anticipated prepayment structure backed by crude oil deliveries, our ability to comply with financial covenants in our indentures and make borrowings under our credit agreements; and the risk factors detailed from time to time in Gran Tierra’s periodic reports filed with the Securities and Exchange Commission, including, without limitation, under the caption “Risk Factors” in Gran Tierra’s Annual Report on Form 10-K for the year ended December 31, 2024 filed February 24, 2025 and its other filings with the SEC. These filings are available on the SEC website at http://www.sec.gov and on SEDAR+ at www.sedarplus.ca.
The forward-looking statements contained in this press release are based on certain assumptions made by Gran Tierra based on management’s experience and other factors believed to be appropriate. Gran Tierra believes these assumptions to be reasonable at this time, but the forward-looking statements are subject to risk and uncertainties, many of which are beyond Gran Tierra’s control, which may cause actual results to differ materially from those implied or expressed by the forward looking statements. The risk that the assumptions on which the 2025 outlook are based prove incorrect may increase the later the period to which the outlook relates. All forward-looking statements are made as of the date of this press release and the fact that this press release remains available does not constitute a representation by Gran Tierra that Gran Tierra believes these forward-looking statements continue to be true as of any subsequent date. Actual results may vary materially from the expected results expressed in forward-looking statements. Gran Tierra disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law. In addition, historical, current and forward-looking sustainability-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future.
The forecasts of expected liquidity to address bond amortization in the fourth quarter of 2026 and that Gran Tierra’s credit facilities would have a zero balance by the end of the year may be considered to be future-oriented financial information or a financial outlook for the purposes of applicable Canadian securities laws. Financial outlook and future-oriented financial information contained in this press release about prospective financial performance, financial position or cash flows are provided to give the reader a better understanding of the potential future performance of the Company in certain areas and are based on assumptions about future events, including economic conditions and proposed courses of action, based on management’s assessment of the relevant information currently available, and to become available in the future. In particular, this press release contains projected operational and financial information for the end of 2025 and the fourth quarter of 2026. These projections contain forward-looking statements and are based on a number of material assumptions and factors set out above. Actual results may differ significantly from the projections presented herein. The actual results of Gran Tierra’s operations for any period could vary from the amounts set forth in these projections, and such variations may be material. See above for a discussion of the risks that could cause actual results to vary. The future-oriented financial information and financial outlooks contained in this press release have been approved by management as of the date of this press release. Readers are cautioned that any such financial outlook and future-oriented financial information contained herein should not be used for purposes other than those for which it is disclosed herein. The Company and its management believe that the prospective financial information has been prepared on a reasonable basis, reflecting management’s best estimates and judgments, and represent, to the best of management’s knowledge and opinion, the Company’s expected course of action. However, because this information is highly subjective, it should not be relied on as necessarily indicative of future results.
Non-GAAP Measures
This press release includes non-GAAP financial measures as further described herein. These non-GAAP measures do not have a standardized meaning under GAAP. Investors are cautioned that these measures should not be construed as alternatives to net income or loss, cash flow from operating activities or other measures of financial performance as determined in accordance with GAAP. Gran Tierra’s method of calculating these measures may differ from other companies and, accordingly, they may not be comparable to similar measures used by other companies. Each non-GAAP financial measure is presented along with the corresponding GAAP measure so as to not imply that more emphasis should be placed on the non-GAAP measure.
Operating netback, as presented, is defined as oil sales less operating and transportation expenses. See the table entitled Financial and Operational Highlights above for the components of consolidated operating netback and corresponding reconciliation.
Cash netback as presented is defined as net income or loss adjusted for DD&A expenses, deferred tax expense or recovery, stock-based compensation expense or recovery, amortization of debt issuance costs, non-cash lease expense, lease payments, unrealized foreign exchange gain or loss, other gain or loss and unrealized derivative instruments gain or loss. Management believes that operating netback and cash netback are useful supplemental measures for investors to analyze financial performance and provide an indication of the results generated by Gran Tierra’s principal business activities prior to the consideration of other income and expenses. A reconciliation from net income or loss to cash netback is as follows:
| Three Months Ended June 30, | Three Months Ended March 31, | Six Months Ended June 30, | |||||||||||||||
| Cash Netback – (Non-GAAP) Measure ($000s) | 2025 | 2024 | 2025 | 2025 | 2024 | ||||||||||||
| Net (Loss) Income | $ | (12,741 | ) | $ | 36,371 | $ | (19,280 | ) | $ | (32,021 | ) | $ | 36,293 | ||||
| Adjustments to reconcile net loss or income to cash netback | |||||||||||||||||
| DD&A expenses | 68,635 | 55,490 | 72,202 | 140,837 | 111,640 | ||||||||||||
| Deferred tax expense (recovery) | 2,453 | (51,361 | ) | (4,712 | ) | (2,259 | ) | (37,882 | ) | ||||||||
| Stock-based compensation expense (recovery) | 546 | 6,160 | (517 | ) | 29 | 9,521 | |||||||||||
| Amortization of debt issuance costs | 4,082 | 2,760 | 3,833 | 7,915 | 6,066 | ||||||||||||
| Non-cash lease expense | 1,725 | 1,381 | 1,736 | 3,461 | 2,794 | ||||||||||||
| Lease payments | (1,545 | ) | (1,311 | ) | (1,567 | ) | (3,112 | ) | (2,369 | ) | |||||||
| Unrealized foreign exchange loss (gain) | 3,114 | (3,323 | ) | 1,687 | 4,801 | (5,589 | ) | ||||||||||
| Other loss | 38 | — | 52 | 90 | — | ||||||||||||
| Unrealized derivative instrument (gain) loss | (12,401 | ) | — | 1,910 | (10,491 | ) | — | ||||||||||
| Cash netback | $ | 53,906 | $ | 46,167 | $ | 55,344 | $ | 109,250 | $ | 120,474 | |||||||
EBITDA, as presented, is defined as net income or loss adjusted for DD&A expenses, interest expense and income tax expense or recovery. Adjusted EBITDA, as presented, is defined as EBITDA adjusted for non-cash lease expense, lease payments, foreign exchange gain or loss, stock-based compensation expense or recovery, other gain or loss and unrealized derivative instruments gain or loss. Management uses this supplemental measure to analyze performance and income generated by our principal business activities prior to the consideration of how non-cash items affect that income, and believes that this financial measure is useful supplemental information for investors to analyze our performance and our financial results. A reconciliation from net income or loss to EBITDA and adjusted EBITDA is as follows:
| Three Months Ended June 30, | Three Months Ended March 31, | Six Months Ended June 30, | Twelve Month Trailing June 30, | ||||||||||||||||||
| EBITDA – (Non-GAAP) Measure ($000s) | 2025 | 2024 | 2025 | 2025 | 2024 | 2025 | |||||||||||||||
| Net (Loss) Income | $ | (12,741 | ) | $ | 36,371 | $ | (19,280 | ) | $ | (32,021 | ) | $ | 36,293 | $ | (65,098 | ) | |||||
| Adjustments to reconcile net loss or income to EBITDA and Adjusted EBITDA | |||||||||||||||||||||
| DD&A expenses | 68,635 | 55,490 | 72,202 | 140,837 | 111,640 | 259,816 | |||||||||||||||
| Interest expense | 24,366 | 18,398 | 23,235 | 47,601 | 36,822 | 91,245 | |||||||||||||||
| Income tax expense (recovery) | 4,648 | (9,072 | ) | 3,553 | 8,201 | 8,323 | 41,267 | ||||||||||||||
| EBITDA | $ | 84,908 | $ | 101,187 | $ | 79,710 | $ | 164,618 | $ | 193,078 | $ | 327,230 | |||||||||
| Non-cash lease expense | 1,725 | 1,381 | 1,736 | 3,461 | 2,794 | 6,590 | |||||||||||||||
| Lease payments | (1,545 | ) | (1,311 | ) | (1,567 | ) | (3,112 | ) | (2,369 | ) | (5,778 | ) | |||||||||
| Foreign exchange loss (gain) | 3,716 | (4,413 | ) | 3,838 | 7,554 | (5,228 | ) | 3,974 | |||||||||||||
| Stock-based compensation expense (recovery) | 546 | 6,160 | (517 | ) | 29 | 9,521 | 215 | ||||||||||||||
| Other loss | 38 | — | 52 | 90 | — | 90 | |||||||||||||||
| Unrealized derivative instrument (gain) loss | (12,401 | ) | — | 1,910 | (10,491 | ) | — | (7,117 | ) | ||||||||||||
| Adjusted EBITDA | $ | 76,987 | $ | 103,004 | $ | 85,162 | $ | 162,149 | $ | 197,796 | $ | 325,204 | |||||||||
Funds flow from operations, as presented, is defined as net income or loss adjusted for DD&A expenses, deferred tax expense or recovery, stock-based compensation expense or recovery, amortization of debt issuance costs, non-cash lease expense, lease payments, unrealized foreign exchange gain or loss, other gain or loss and unrealized gain or loss on derivative instruments. Management uses this financial measure to analyze performance and income or loss generated by our principal business activities prior to the consideration of how non-cash items affect that income or loss, and believes that this financial measure is also useful supplemental information for investors to analyze performance and our financial results. Free cash flow, as presented, is defined as funds flow from operations adjusted for capital expenditures. Management uses this financial measure to analyze cash flow generated by our principal business activities after capital requirements and believes that this financial measure is also useful supplemental information for investors to analyze performance and our financial results. A reconciliation from net income or loss to both funds flow from operations and free cash flow is as follows:
| Three Months Ended June 30, | Three Months Ended March 31, | Six Months Ended June 30, | Twelve Month Trailing June 30, | ||||||||||||||||||
| Funds Flow From Operations – (Non-GAAP) Measure ($000s) | 2025 | 2024 | 2025 | 2025 | 2024 | 2025 | |||||||||||||||
| Net (Loss) Income | $ | (12,741 | ) | $ | 36,371 | $ | (19,280 | ) | $ | (32,021 | ) | $ | 36,293 | $ | (65,098 | ) | |||||
| Adjustments to reconcile net loss or income to funds flow from operations | |||||||||||||||||||||
| DD&A expenses | 68,635 | 55,490 | 72,202 | 140,837 | 111,640 | 259,816 | |||||||||||||||
| Deferred tax expense (recovery) | 2,453 | (51,361 | ) | (4,712 | ) | (2,259 | ) | (37,882 | ) | 7,735 | |||||||||||
| Stock-based compensation expense (recovery) | 546 | 6,160 | (517 | ) | 29 | 9,521 | 215 | ||||||||||||||
| Amortization of debt issuance costs | 4,082 | 2,760 | 3,833 | 7,915 | 6,066 | 14,767 | |||||||||||||||
| Non-cash lease expense | 1,725 | 1,381 | 1,736 | 3,461 | 2,794 | 6,590 | |||||||||||||||
| Lease payments | (1,545 | ) | (1,311 | ) | (1,567 | ) | (3,112 | ) | (2,369 | ) | (5,778 | ) | |||||||||
| Unrealized foreign exchange loss (gain) | 3,114 | (3,323 | ) | 1,687 | 4,801 | (5,589 | ) | 2,497 | |||||||||||||
| Other loss | 38 | — | 52 | 90 | — | 90 | |||||||||||||||
| Unrealized derivative instrument (gain) loss | (12,401 | ) | — | 1,910 | (10,491 | ) | — | (7,117 | ) | ||||||||||||
| Funds flow from operations | $ | 53,906 | $ | 46,167 | $ | 55,344 | $ | 109,250 | $ | 120,474 | $ | 213,717 | |||||||||
| Capital expenditures | $ | 51,170 | $ | 61,273 | $ | 94,727 | $ | 145,897 | $ | 116,604 | $ | 285,471 | |||||||||
| Free cash flow | $ | 2,736 | $ | (15,106 | ) | $ | (39,383 | ) | $ | (36,647 | ) | $ | 3,870 | $ | (71,754 | ) | |||||
Net debt as of June 30, 2025, was $746 million, calculated using the sum of the aggregate principal amount of 7.75% Senior Notes, 9.50% Senior Notes outstanding and amount drawn on credit facilities, excluding deferred financing fees, totaling $807 million, less cash and cash equivalents of $61 million. Management believes that net debt is a useful supplemental measure for management and investors in order to evaluate the financial sustainability of the Company’s business and leverage. The most directly comparable GAAP measure is total debt.
Presentation of Oil and Gas Information
Boes have been converted on the basis of six thousand cubic feet (“Mcf”) natural gas to 1 boe of oil. Boes may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf: 1 boe is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. In addition, given that the value ratio based on the current price of oil as compared with natural gas is significantly different from the energy equivalent of six to one, utilizing a boe conversion ratio of 6 Mcf: 1 boe would be misleading as an indication of value.
References to a formation where evidence of hydrocarbons has been encountered is not necessarily an indicator that hydrocarbons will be recoverable in commercial quantities or in any estimated volume. Gran Tierra’s reported production is a mix of light crude oil and medium heavy crude oil, tight oil, conventional natural gas, shale gas and natural gas liquids for which there is no precise breakdown since the Company’s sales volumes typically represent blends of more than one product type. Well test results should be considered as preliminary and not necessarily indicative of long-term performance or of ultimate recovery. Well log interpretations indicating oil and gas accumulations are not necessarily indicative of future production or ultimate recovery. If it is indicated that a pressure transient analysis or well-test interpretation has not been carried out, any data disclosed in that respect should be considered preliminary until such analysis has been completed. References to thickness of “oil pay” or of a formation where evidence of hydrocarbons has been encountered is not necessarily an indicator that hydrocarbons will be recoverable in commercial quantities or in any estimated volume.
This press release contains certain oil and gas metrics, including operating netback and cash netback, which do not have standardized meanings or standard methods of calculation and therefore such measures may not be comparable to similar measures used by other companies and should not be used to make comparisons. These metrics are calculated as described in this press release and management believes that they are useful supplemental measures for the reasons described in this press release.
Such metrics have been included herein to provide readers with additional measures to evaluate the Company’s performance; however, such measures are not reliable indicators of the future performance of the Company and future performance may not compare to the performance in previous periods.
US Senate News:
Source: United States Senator for Kentucky Mitch McConnell
WASHINGTON, D.C. – U.S. Senator Mitch McConnell (R-KY), Chairman of the Senate Appropriations Defense Subcommittee, delivered opening remarks at a McCain Institute event “Highlighting Policy Recommendations for Post-War Russia.” Below are his remarks as prepared for delivery:
It’s hard to think of a more appropriate home for the Task Force’s important work than the McCain Institute, or a more fitting ringleader than a proud McCain alumnus like Dan Twining.
My good friend, John McCain, was so unapologetic and clear-eyed about the scope of America’s interests. And he relished being the speck in Vladimir Putin’s eye through his solidarity with the free peoples of eastern Europe…
He supported the expansion of the greatest military alliance in the history of the world… And stood for the right of sovereign nations to choose their destiny.
When Putin called the fall of the Soviet Union the “greatest political catastrophe of the 20th century,” John understood that he meant it, and urged our colleagues to take Russia’s neo-Soviet ambitions seriously.
In the not-so-distant past, that sort of clarity – acknowledging that Russia still threatened America’s interests – could invite public scorn…
…Like the sort of sanctimonious condemnation a certain former colleague of mine received from President Obama during a prime-time debate.
We heard that Putin would moderate… That his ambitions were limited… And that anyone who suggested otherwise was a dusty Cold Warrior past his prime.
Well, to that I say: It is so good to be among friends!
***
Needless to say, the importance of grappling with Russia’s behavior and motivations can no longer be laughed away.
Wake-up call is perhaps the most tired phrase of the past three years.
And yet that’s exactly what Putin’s escalation in 2022 was: an urgent, overdue, uncomfortable, and undeniable alarm.
It was a reminder that the realities of geopolitics don’t care which region we’d rather prioritize or what we’d rather spend our treasure on. The bravery of Ukraine’s defenders and the suffering of its civilians press us to remember that our enemies get a vote.
There are, of course, promising signs that the West has managed to free itself from the delusion that hegemonic aggressors can be appeased.
Reports of our European allies’ rebuilding their military strength are not exaggerated.
Nearly all NATO members today are striving toward the Baltics’ example of investment and readiness… And those who are not should hear from all of us.
In the process, allies are making overdue sacrifices to stamp out dependency on Russian energy…
They’re placing enormous investments in cutting-edge American-made weapons…
And they’re proving willing to break domestic political china – even changing a Constitution or two – to unlock deeper and more sustained commitments to collective defense.
This transformation is real. It’s well underway. And it’ll be essential to securing America’s interests in the coming decades.
What about here at home? As friends of Ukraine, we may be tempted to dwell on the ways we drag behind this progress… and overlook the ways we underpin it.
We may rightly be frustrated by years of murky commitments, slow-walked assistance, fear of escalation, and confusion about who the aggressor is.
But I would suggest that, on this, America has much to be proud of.
Just consider the cascading benefits of U.S. assistance to Ukraine: a small fraction of our defense budget has helped Ukraine resist and degrade a more powerful military aggressor.
After years of talk and little action to address the shortcomings of our own arsenal and defense industrial base, we’ve spurred massive investments in replenishing stocks and producing deterrent capabilities faster.
By partnering with the world’s most experienced practitioners of drone warfare, we’ve tapped into a wealth of knowledge about the changing nature of the modern battlefield. Ukraine’s expertise is teaching America today what our forces will need to prevail tomorrow.
And as NATO’s biggest spender, America has encouraged much of our allies’ transformation.
***
Of course, I don’t mean to suggest that we’ve escaped the gravitational pull of complacency and short-sightedness for good. Our allies’ progress is not assured forever. European security – and trans-Atlantic security – is not some clock to be wound once and left alone.
Perhaps the biggest lesson of 2022 – even bigger than the need to invest urgently today – is the importance of long-term commitments, and steady, annual investments in defense.
And on this front, America must continue to lead by our example. We simply cannot expect allies to reach and sustain five percent if we’re only willing to spend three-and-a-half, ourselves.
A strategy to lead from behind is no strategy at all. And as the Task Force makes perfectly clear, this goes beyond spending targets – it’s about presence, too.
Even as our allies and partners build more lethal forces, there’s still no more credible deterrent than American commitment.
No wonder European allies generously support rotational deployments of U.S. troops and invest in state-of-the-art training ranges for joint exercises. These commitments improve our collective readiness and interoperability, and they’re worth sustaining.
The task of illustrating the strategic importance of Europe to America’s security interests is not ours, alone. In fact, for years now, there’s been no more effective communicator of what’s at stake in Ukraine – strategically and morally – than Putin, himself.
As he continues to throw a generation into the meat-grinder of combat and target Ukrainian mothers and children at will, Putin is sending a clear message.
And in the face of his brutal aggression and public revisionism, overwhelming majorities of Americans recognize Russia as our adversary… and see that the outcome of Putin’s war of conquest matters immensely to us.
Much to the dismay of restrainers and isolationists who thought they’d get to freelance American foreign policy, the President of the United States increasingly sees Putin’s signals for what they are.
The President has been right to recognize Putin’s play for time. He’s been right to entertain proposals for new, secondary sanctions. Most importantly, he’s been right to green-light further lethal assistance to Ukraine.
I’ve said this before: Stopping the killing is a noble goal, but the price of peace matters. And there will be no enduring peace unless Ukraine is equipped to credibly deter further aggression from Russia.
***
The appetite of neo-Soviet imperialism does not end with Ukraine. How do we know?
Because Putin’s predecessors subjugated far wider swaths of Europe…
Because he invaded Georgia…
And because, as we speak, his troops are in Moldova, too!
Nations that have spent centuries in Russia’s shadow do not stumble westward by accident.
Finland and Sweden did not join NATO out of symbolic solidarity with Ukraine.
They did it because they know that Putin wants more.
So the Task Force is right to take the long view and grapple seriously with what comes next.
What comes next for the trans-Atlantic alliance?
What comes next for the increasingly aligned authoritarians working to undermine U.S. interests and influence?
What comes next for America and our ability to defend these interests and preserve this influence?
As you put it, our deterrence is not divisible. And I would add: this is because our credibility is not divisible.
No U.S. ally in the Indo-Pacific has time to waste on the notion that the implications of deterrence in Europe are confined to a separate sphere of influence.
No ally in Europe can afford to miss the crystal-clear connection between Russian aggression and support from China, North Korea, and Iran.
The consequences of America’s strategic decisions still ripple across oceans and continents with equal speed.
And a headline that reads “Russia Wins, America Loses” will read as clearly in Beijing, Tehran, and Pyongyang as it does here in Washington.
Avoiding that outcome will take more work from all of us. Thank you for all you’re doing.
Source: Government of India
Source: Government of India (4)
Russian strikes on a penal colony in the frontline region of Zaporizhzhia in southwestern Ukraine overnight killed 16 people and injured at least 35, regional Ukrainian military and Zaporizhzhia’s governor said on Tuesday
Zaporizhzhia governor Ivan Fedorov, writing on the Telegram messaging app, said that the correctional facility’s buildings were destroyed, and nearby private homes were also damaged.
Ukrainian President Volodymyr Zelenskiy’s chief of staff, Andriy Yermak, condemned the strikes as “another war crime” committed by Russia.
“(Russian President Vladimir) Putin’s regime, which also issues threats against the United States through some of its mouthpieces, must face economic and military blows that strip it of the capacity to wage war,” Yermak said on X.
Moscow forces have regularly attacked Zaporizhzhia, using drones, missiles and aerial bombs, since the start of the war that Russia started with a full-scale invasion of Ukraine in 2022.
Russia unilaterally declared early in the war its annexation of parts of Zaporizhzhia and areas in and around three other Ukrainian regions. Kyiv and its Western allies called the move an illegal land grab.
Fedorov said that Russian forces launched eight strikes on the Zaporizhzhia district, reportedly using high-explosive aerial bombs.
Reuters could not independently verify Fedorov’s report. There was no immediate comment from Russia.
Both sides deny targeting civilians in their strikes, but thousands of civilians have been killed in the conflict, the vast majority of them Ukrainian.
(Reuters)
Source: APO
An estimated 8.2 percent of the global population, or about 673 million people, experienced hunger in 2024, down from 8.5 percent in 2023 and 8.7 percent in 2022. However, progress was not consistent across the globe, as hunger continued to rise in most subregions of Africa and western Asia, according to this year’s The State of Food Security and Nutrition in the World (SOFI 2025) report published today by five specialized agencies of the United Nations.
Launched during the Second UN Food Systems Summit Stocktake (UNFSS+4) in Addis Ababa, SOFI 2025 indicates that between 638 and 720 million people faced hunger in 2024. Based on the point estimate* of 673 million, this represents a decrease of 15 million people from 2023 and of 22 million from 2022.
While the decline is welcome, the latest estimates remain above pre-pandemic levels, with the high food inflation of recent years contributing to the slow recovery in food security.
Notable improvements are seen in southern Asia and Latin America. The prevalence of undernourishment (PoU) in Asia fell from 7.9 percent in 2022 to 6.7 percent, or 323 million people, in 2024. Additionally, Latin America and the Caribbean as a region saw the PoU fall to 5.1 percent, or 34 million people, in 2024, down from a peak of 6.1 percent in 2020.
Unfortunately, this positive trend contrasts sharply with the steady rise in hunger across Africa and western Asia, including in many countries affected by prolonged food crises. The proportion of the population facing hunger in Africa surpassed 20 percent in 2024, affecting 307 million people, while in western Asia an estimated 12.7 percent of the population, or more than 39 million people, may have faced hunger in 2024.
It is projected that 512 million people could be chronically undernourished by 2030. Almost 60 percent of those will be in Africa. This highlights the immense challenge of achieving SDG 2 (Zero Hunger), warned the Food and Agriculture Organization of the United Nations (FAO), the International Fund for Agricultural Development (IFAD), the United Nations agency for children (UNICEF), the UN World Food Programme (WFP), and the World Health Organization (WHO).
Tracking nutrition targets
Food inflation
SOFI 2025 also examines the causes and consequences of the 2021–2023 food price surge and its impact on food security and nutrition.
The report highlights that the global policy response to the COVID-19 pandemic – characterized by extensive fiscal and monetary interventions – combined with the impacts of the war in Ukraine and extreme weather events, contributed to recent inflationary pressures.
This food price inflation has hindered the post-pandemic recovery in food security and nutrition. Since 2020, global food price inflation has consistently outpaced headline inflation. The gap peaked in January 2023, with food inflation reaching 13.6 percent, 5.1 percentage points above the headline rate of 8.5 percent.
Low-income countries have been particularly hit hard by rising food prices. While median global food price inflation increased from 2.3 percent in December 2020 to 13.6 percent in early 2023, it climbed even higher in low-income countries, peaking at 30 percent in May 2023.
Despite rising global food prices, the number of people unable to afford a healthy diet fell from 2.76 billion in 2019 to 2.60 billion in 2024. However, the improvement was uneven. In low-income countries, where the cost of a healthy diet rose more sharply than in higher-income countries, the number of people unable to afford a healthy diet increased from 464 million in 2019 to 545 million in 2024. In lower-middle-income countries (excluding India), the number rose from 79 million in 2019 to 869 million over the same period.
The report recommends a combination of policy responses to food price inflation. They include targeted and time-bound fiscal measures, such as social protection programs, to safeguard vulnerable households; credible and transparent monetary policies to contain inflationary pressures; and strategic investments in agrifood R&D, transport and production infrastructure, and market information systems to improve productivity and resilience.
What they said
FAO Director-General, QU Dongyu: “While it is encouraging to see a decrease in the global hunger rate, we must recognize that progress is uneven. SOFI 2025 serves as a critical reminder that we need to intensify efforts to ensure that everyone has access to sufficient, safe, and nutritious food. To achieve this, we must work collaboratively and innovatively with governments, organizations, and communities to address the specific challenges faced by vulnerable populations, especially in regions where hunger remains persistent.”
IFAD President, Alvaro Lario: “In times of rising food prices and disrupted global value chains, we must step up our investments in rural and agricultural transformation. These investments are not only essential for ensuring food and nutrition security – they are also critical for global stability.”
UNICEF Executive Director, Catherine Russell: “Every child deserves the chance to grow and thrive. Yet over 190 million children under the age of 5 are affected by undernutrition, which can have negative consequences for their physical and mental development. This robs them of the chance to live to their fullest potential. The State of Food Security and Nutrition in the World report for 2025 underscores the need to act urgently for the world’s youngest and most vulnerable children, as rising food prices could deepen nutrition insecurity for millions of families. We must work in collaboration with governments, the private sector and communities themselves to ensure that vulnerable families have access to food that is affordable and with adequate nutrition for children to develop. That includes strengthening social protection programs and teaching parents about locally produced nutritious food for children, including the importance of breastfeeding, which provides the best start to a baby’s life.
WFP Executive Director, Cindy McCain: “Hunger remains at alarming levels, yet the funding needed to tackle it is falling. Last year, WFP reached 124 million people with lifesaving food assistance. This year, funding cuts of up to 40 percent mean that tens of millions of people will lose the vital lifeline we provide. While the small reduction in overall rates of food insecurity is welcome, the continued failure to provide critical aid to people in desperate need will soon wipe out these hard-won gains, sparking further instability in volatile regions of the world.”
WHO Director-General, Dr Tedros Adhanom Ghebreyesus: “In recent years, the world has made good progress in reducing stunting and supporting exclusive breastfeeding, but there is still much to be done to relieve millions of people from the burdens of food insecurity and malnutrition. This report provides encouraging news, but also shows where the gaps are and who is being left behind, and where we must direct our efforts to ensure that everyone has access to a healthy and nutritious diet.”
Distributed by APO Group on behalf of World Health Organization (WHO).
Source: United Kingdom – Executive Government & Departments
The Lord Chancellor has approved the reappointments of Robert Paterson and Alexander Wood as solicitor members of the Insolvency Rules Committee.
The Lord Chancellor has approved the reappointments, for a second term of Robert Paterson and Alexander Wood as Solicitor Members of the Insolvency Rules Committee for four years. Robert Paterson second term will commence on 26 June 2026. Alexander Wood’s second term will commence on 30 September 2026.
Robert Paterson is a partner at Wedlake Bell LLP and specialises in all aspects of restructuring and insolvency law. He acts for officeholders, lenders, directors and creditors. He has recently advised on several cross-border insolvencies. Robert spent six months on secondment to the Policy Unit of the Insolvency Service. He is also a licensed insolvency practitioner.
He has not declared any political activity.
Alexander Wood is a partner at McDermott Will & Emery. He has over 25 years’ experience working on some of the most complex insolvency and restructuring matters including Westinghouse, MF Global, the Lehman Bros cases and the sovereign debt restructures of Ukraine and Argentina. He is also an Honorary Professor of Practice at UCL where he teaches corporate restructuring and insolvency at post-graduate level.
He has not declared any political activity.
The reappointment of Solicitor members of the Insolvency Rules Committee are made, by the Lord Chancellor after consulting the Lady Chief Justice, under Section 413 of the Insolvency Act 1986.
The appointment of non-judicial members of the Insolvency Rules Committee are regulated by the Commissioner for Public Appointments and recruitment and reappointment processes comply with the Governance Code on Public Appointments.
Source: United Kingdom – Executive Government & Departments
The new partnership with International Defence Esports Games will improve Armed Forces digital talent, while an annual summit will focus on education, recruitment and skills, including AI.
UK military personnel will improve their digital and cyber skills through a new esports collaboration, which will include a focus on AI and drone operation.
The Ministry of Defence has appointed the British Esports Federation to deliver a new first-of-its-kind defence and industry esports tournament through UK Strategic Command, soon to be Cyber and Specialist Operations Command.
Improving the digital skills of military personnel will help boost the country’s warfighting readiness, with the UK at the cutting edge of defence AI and technology, supporting the government’s Plan for Change. Lessons from Ukraine, including Ukrainian’s producing their own drone simulator games to improve hand-eye coordination, have shown how esports can be used to successfully train drone operators and cyber security specialists.
Through the Strategic Defence Review, defence is enhancing its warfighting capability by developing critical cyber skills, and Esports can provide an accessible environment to improve digital literacy and cyber understanding.
The International Defence Esports Games (IDEG) will help members of the Armed Forces develop cyber, digital and wider military skills. Initially open to service personnel, including reservists, IDEG will expand to eventually include cadets, veterans, civil servants and anyone working in the defence industry.
Esports will help attract, develop, and retain top cyber and digital talent, while fostering this government’s Plan for Change. Our people must now be as adept with code, cybersecurity and a games controller as they are with traditional combat skills.
From drone operations to data analysis, modern defence and deterrence needs agile minds that can navigate both physical and digital battlegrounds.
The International Defence Esports Games is an exciting initiative that will help foster exactly these skills in a fun, collaborative way, and overcome many traditional boundaries between our international partners.
The inaugural IDEG finals – where competitions would be held – will be organised in partnership with British Esports and a leading esports production company, and be held in the UK in late 2026.
The event is being supported by Defence suppliers, including BAE Systems, as well as several smaller military technology companies.
Military esports has been steadily growing in recent years, and today we’re delighted to announce a first-of-its-kind tournament for military personnel around the world.
The UK’s armed forces have recognised video games as a positive activity that can improve personnel welfare and morale, foster digital and cyber skills, and strengthen relations across the armed forces and beyond.
We’re happy to announce the International Defence Esports Games and support the future of the military.
Recently the Royal Navy partnered with British Esports to launch an esports facility aboard UK aircraft carrier HMS Prince of Wales, featuring gaming gear from the likes of Alienware, NVIDIA and Intel. Those in attendance included members of the Singapore Armed Forces, Singapore Esports Association (SGEA), the national body British Esports, and Deputy Commander UK Strategic Command, Lt Gen Sir Tom Copinger-Symes, who has been championing esports across UK Defence.
Esports and serious games can contribute to our warfighting readiness. As competition and conflict increasingly play out in cyberspace and the digital arena, these games equip our people to think, operate and innovate across both the physical and virtual worlds, developing team coordination and rapid decision-making under pressure.
We’ve learned from our Ukrainian partners about how esports can train drone operators and cyber security specialists. People are quickly grasping how esports can change perspectives and enhance skills, as well as reaching across borders with our international allies and partners.
For centuries we’ve used ball games like rugby and football to develop teamwork, hone mental and physical fitness and build resilience. Esports perfectly complement these games in preparing us for 21st Century security challenges.
To address additional needs for cyber security specialists in Defence, the Ministry of Defence announced the Cyber Direct Entry Scheme, a bespoke entry route for aspiring cyber professionals and those with existing digital skills, which will see new recruit basic training reduced from 10 weeks to around one month, after which recruits will undergo 3 months’ specialist training in the field.
The news comes just over a year after the MOD recognised esports as an official military sport, ensuring funding and opportunities for personnel to compete. Today’s announcement also represents a deepening relationship between British Esports and the MOD.
ENDS
Source: GlobeNewswire (MIL-OSI)
MAHWAH, N.J., July 29, 2025 (GLOBE NEWSWIRE) — Radware® (NASDAQ: RDWR), a global leader in application security and delivery solutions for multi-cloud environments, today announced it signed managed security service provider (MSSP) agreements with Epcom World Industries, Inc., GLESEC, North Atlantic Networks and Tech Pro. The four U.S. based companies are adding Radware’s Cloud Application Protection Services to their managed services portfolios to scale their businesses and expand their security offerings for customers. North Atlantic Networks is also offering Radware’s Cloud DDoS Protection Services.
“MSSPs are constantly looking for more innovative ways to defend customers as they deal with growing budget constraints, limited in-house security staff, and bigger more complex cyber threats,” said John Eisenbarger, vice president of carriers and service providers for Radware. “Applications are facing increasing exposure from bots, API abuse, web-layer DDoS attacks and credential misuse. To enable MSSPs to respond where customer risk is expanding fastest, Radware offers a fully managed AppSec-as-a-Service platform that is ready to quickly deploy, scale, and monetize, without having to build a backend.”
Epcom World Industries, GLESEC, North Atlantic Networks, and Tech Pro add to the growing list of MSSPs that have chosen Radware’s cloud network and application security solutions to speed time to market, scale their businesses, and deliver high-value services.
“We selected Radware as our partner because of its comprehensive offering, overall excellent product design, support, and customer first approach. The partnership process with Radware has been seamless. They listened, understood, and supported our needs. Together we are equipping clients—whether they be in healthcare, finance, pharmaceutical, non-profit, or government—with mission-critical security tools that not only defend networks, web assets, and environments, but also comply with strict regulatory requirements.”
– Rudy V. Pancaro, CEO, Epcom World Industries
“Becoming an MSSP partner is a natural extension of our long-standing collaboration with Radware and a key milestone in delivering our SKYWATCH™ Cybersecurity Operating System. By fully integrating Radware’s industry-leading application protection into our Device-Centric Model and real-time risk management workflows, we deliver a unified, fully managed solution that reduces exposure, accelerates remediation, and ensures compliance. This partnership enables us to protect mission-critical environments—especially in healthcare, finance, and government—with the agility, intelligence, and depth of defense they require.”
– Sergio Heker, CEO and founder, GLESEC
“Our mission is to deliver best-in-class managed security services that are both proactive and adaptive. By integrating Radware’s solutions into our MSSP stack, we’re able to offer our clients deeper protection against increasingly complex cyber threats—especially in the areas of DDoS attacks, application-layer security, and zero-day threats. This partnership enhances our ability to deliver scalable, intelligent protection without compromising performance, helping our clients stay ahead of the threat landscape while supporting their digital transformation and cloud migration goals.”
– Carolyn Smith, senior vice president, strategic accounts, North Atlantic Networks
“Radware’s technology aligns with our commitment to deliver secure, resilient, and high-performing digital experiences to our clients, especially in today’s increasingly complex threat landscape. By integrating Radware’s solutions into our offering, we increase the value proposition to our customers: stronger protection, smarter automation, and peace of mind. Together, we bring a synergistic approach that helps organizations not only defend against threats but also accelerate their growth safely and confidently.”
– Lidia Israyelyan, CEO, Tech Pro
Radware offers a variety of cloud network and application security solutions and services that cater to the needs of pure play MSSPs and ISPs. This includes a fully branded and managed AppSec-as-a-Service platform that can be deployed without added infrastructure investment, operational lift, or headcount requirements. The platform offers:
Radware has been recognized by numerous industry analysts for its application and network security solutions. This includes Aite-Novarica Group, Forrester, Gartner, KuppingerCole, and QKS Group.
About Radware
Radware® (NASDAQ: RDWR) is a global leader in application security and delivery solutions for multi-cloud environments. The company’s cloud application, infrastructure, and API security solutions use AI-driven algorithms for precise, hands-free, real-time protection from the most sophisticated web, application, and DDoS attacks, API abuse, and bad bots. Enterprises and carriers worldwide rely on Radware’s solutions to address evolving cybersecurity challenges and protect their brands and business operations while reducing costs. For more information, please visit the Radware website.
Radware encourages you to join our community and follow us on: Facebook, LinkedIn, Radware Blog, X, and YouTube.
©2025 Radware Ltd. All rights reserved. Any Radware products and solutions mentioned in this press release are protected by trademarks, patents, and pending patent applications of Radware in the U.S. and other countries. For more details, please see: https://www.radware.com/LegalNotice/. All other trademarks and names are property of their respective owners.
Radware believes the information in this document is accurate in all material respects as of its publication date. However, the information is provided without any express, statutory, or implied warranties and is subject to change without notice.
The contents of any website or hyperlinks mentioned in this press release are for informational purposes and the contents thereof are not part of this press release.
Safe Harbor Statement
This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements made herein that are not statements of historical fact, including statements about Radware’s plans, outlook, beliefs, or opinions, are forward-looking statements. Generally, forward-looking statements may be identified by words such as “believes,” “expects,” “anticipates,” “intends,” “estimates,” “plans,” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” “may,” and “could.” For example, when we say in this press release that applications are facing increasing exposure from bots, API abuse, web-layer DDoS attacks and credential misuse, we are using forward-looking statements. Because such statements deal with future events, they are subject to various risks and uncertainties, and actual results, expressed or implied by such forward-looking statements, could differ materially from Radware’s current forecasts and estimates. Factors that could cause or contribute to such differences include, but are not limited to: the impact of global economic conditions, including as a result of the state of war declared in Israel in October 2023 and instability in the Middle East, the war in Ukraine, tensions between China and Taiwan, financial and credit market fluctuations (including elevated interest rates), impacts from tariffs or other trade restrictions, inflation, and the potential for regional or global recessions; our dependence on independent distributors to sell our products; our ability to manage our anticipated growth effectively; our business may be affected by sanctions, export controls, and similar measures, targeting Russia and other countries and territories, as well as other responses to Russia’s military conflict in Ukraine, including indefinite suspension of operations in Russia and dealings with Russian entities by many multi-national businesses across a variety of industries; the ability of vendors to provide our hardware platforms and components for the manufacture of our products; our ability to attract, train, and retain highly qualified personnel; intense competition in the market for cybersecurity and application delivery solutions and in our industry in general, and changes in the competitive landscape; our ability to develop new solutions and enhance existing solutions; the impact to our reputation and business in the event of real or perceived shortcomings, defects, or vulnerabilities in our solutions, if our end-users experience security breaches, or if our information technology systems and data, or those of our service providers and other contractors, are compromised by cyber-attackers or other malicious actors or by a critical system failure; our use of AI technologies that present regulatory, litigation, and reputational risks; risks related to the fact that our products must interoperate with operating systems, software applications and hardware that are developed by others; outages, interruptions, or delays in hosting services; the risks associated with our global operations, such as difficulties and costs of staffing and managing foreign operations, compliance costs arising from host country laws or regulations, partial or total expropriation, export duties and quotas, local tax exposure, economic or political instability, including as a result of insurrection, war, natural disasters, and major environmental, climate, or public health concerns; our net losses in the past and the possibility that we may incur losses in the future; a slowdown in the growth of the cybersecurity and application delivery solutions market or in the development of the market for our cloud-based solutions; long sales cycles for our solutions; risks and uncertainties relating to acquisitions or other investments; risks associated with doing business in countries with a history of corruption or with foreign governments; changes in foreign currency exchange rates; risks associated with undetected defects or errors in our products; our ability to protect our proprietary technology; intellectual property infringement claims made by third parties; laws, regulations, and industry standards affecting our business; compliance with open source and third-party licenses; complications with the design or implementation of our new enterprise resource planning (“ERP”) system; our reliance on information technology systems; our ESG disclosures and initiatives; and other factors and risks over which we may have little or no control. This list is intended to identify only certain of the principal factors that could cause actual results to differ. For a more detailed description of the risks and uncertainties affecting Radware, refer to Radware’s Annual Report on Form 20-F, filed with the Securities and Exchange Commission (SEC), and the other risk factors discussed from time to time by Radware in reports filed with, or furnished to, the SEC. Forward-looking statements speak only as of the date on which they are made and, except as required by applicable law, Radware undertakes no commitment to revise or update any forward-looking statement in order to reflect events or circumstances after the date any such statement is made. Radware’s public filings are available from the SEC’s website at www.sec.gov or may be obtained on Radware’s website at www.radware.com.
###
Source: Government of India
Source: Government of India (4)
The Kremlin said on Tuesday that it had “taken note” of a statement by U.S. President Donald Trump that he was shortening his deadline for Moscow to sign up to a ceasefire in Ukraine or face sanctions.
Trump set a new deadline on Monday of 10 or 12 days for Russia to make progress toward ending the war in Ukraine or face consequences, underscoring frustration with President Vladimir Putin over the 3-1/2-year-old conflict.
Asked about Trump’s statement on Tuesday during a conference call with reporters, the Kremlin kept its remarks short.
“We have taken note of President Trump’s statement yesterday. The special military operation continues,” said Kremlin spokesman Dmitry Peskov, employing the term that Moscow uses for its war effort in Ukraine.
“We remain committed to a peace process to resolve the conflict around Ukraine and to ensure our interests in the course of this settlement.”
Trump threatened on July 14 to impose new sanctions on Russia and buyers of its exports within 50 days, a deadline which would have expired in early September.
But on Monday, during a visit to Britain, he shortened that deadline and said:
“There’s no reason in waiting… We just don’t see any progress being made.”
Trump, who has held half a dozen calls with the Kremlin leader since returning to the White House in January, also said he was “not so interested in talking any more”.
Peskov declined to comment on that remark.
(Reuters)
Source: United States House of Representatives – Congressman Steny H Hoyer (MD-05)
WASHINGTON, DC – Today, Congressman Steny H. Hoyer (MD-05), Ranking Member of the House Appropriations Subcommittee on Financial Services and General Government (FSGG), delivered opening remarks at the House Appropriations Full Committee Markup of the Fiscal Year 2026 National Security, Department of State, and Related Agencies Bill. Below is a transcript of his remarks:
“Thank you very much, Mr. Chairman. There are many ways to sound retreat. Silence is one of them. Failure to articulate the principles of democracy and defense. Failing to fund properly the defense of democracy here and around the world. The chairman of this subcommittee and I have voted almost exactly alike over a long period of time, ensuring that we opposed communist dictatorship in a little island not too far from our shores.
“Some of you perhaps saw my statement the day after we bombed Iran’s nuclear capacity in support of that action. I fully subscribe to the remarks of the Subcommittee Chairman in articulating the deficiencies of this bill, in articulating, in sounding a clear trumpet again here and around the world of America’s willingness to stand against dictators, despots, and war criminals. I also will take no second spot in my defense of Israel. And I thank the gentleman for – and the gentlelady for assuring that our intent to defend Israel and oppose those who want to kill Jews.
“A few months ago, when DOGE eliminated [the] Near Eastern Regional Democracy Fund – which supported pro-democracy Iranian activists – the Ayatollah’s regime celebrated. An Iranian newspaper affiliated with Khomeini’s government praised the decision, writing, and I quote, ‘Trump, who was expected to undermine Iran, has instead disrupted the opposition.’ I think perhaps they’ve changed their views as a result of the Administration’s action in Iran just a few days ago. China was similarly elated when the Trump Administration gutted Voice of America early this year. Reacting to that news, the former head of the Chinese Communist Party’s flagship newspaper said, ‘How truly gratifying.’ He said that China was thrilled to see the program and, I quote, ‘crumble from within, scattering like a flock of startled birds.’ The reaction was similar in Russia, where the head of one of Vladimir Putin’s state media agencies said, and again, I quote, ‘Today is a holiday for me and my colleagues.’ These are Russian colleagues. ‘This is an awesome decision by Trump.’ ‘We couldn’t shut them down,’ the spokesman continued, ‘unfortunately, but America did so itself.’ The axis of aggression will have the same reaction to this bill.
“Russia, China, Iran, and others are already working to fill in the vacuum the bill would help create on the global stage. China, Russia, and other adversaries are pouring money into foreign initiatives to expand their influence around the world. They’re training more diplomats and analysts. They are forging closer economic ties with developing nations, as the Chair Lady [Frankel] said. Investing in diplomacy and foreign aid is not simply the right thing to do, it is also the smart thing to do. It builds goodwill toward the United States. It helps stop humanitarian crises that would otherwise put additional strain on our broken immigration system. It helps stop the spread of dangerous diseases from HIV to Ebola to Covid. Crucially, investing in these programs enhances our national security without endangering our military service members.
“I echo what Marco Rubio said in 2017: ‘Foreign aid is not charity. We must make sure it is well spent, but it is less than 1% of our budget and critical to our national security.’ That was the Secretary of State who said that in 2017. How sad to see him rationalize disinvestment, contradicting his own words. In just the past few weeks, we’ve seen the Administration purge over 1,300 employees from the State Department, allegedly to improve efficiency and perhaps because our foreign challenges have become less complicated. I had two separate constituents who were dismissed. They’re concerned that the purge will undermine the State Department’s ability to process American passports.
“I will yield, and I would hope somebody would yield to me to continue my statement.”
(Rep. Jim Clyburn yields for Mr. Hoyer to continue his remarks.)
“I thank the gentleman for yielding. Mr. Alford is one of my better friends on the Republican side. I respect him. I respect his remarks, and we are pleased, as the gentleman observed, that PEPFAR has been saved. It was saved from DOGE, it was saved from the Trump Administration. And yes, we support that effort, and we applaud the Chairman of the Subcommittee for doing that. However, when the gentleman talks about limited resources, there are limited resources. I care a great deal about the debt. We need to deal with $37 trillion of debt or my great grandchildren are going to be in real trouble. My grandchildren are going to be in trouble. Maybe my children won’t be in so much trouble. But we need to deal with that debt.
“But a Republican former vice president who was governor of our state once said: ‘The cost of failure far exceeds the price of progress.’ That was Spiro Agnew. The cost of failure exceeds the price of progress. On your side, you made a determination. You were going to raise our debt by $5 trillion. Some people who had never voted to raise debt before voted to raise the debt by $5 trillion, and then you spent that additional debt, giving $3.4 trillion to some of the wealthiest people in America. Now, there were some who were not so wealthy [who] also got some small relief. So yes, this bill does some good things, but it is silent, and I think one of the biggest challenges to which John Kennedy was speaking, that, ‘we will pay any price, bear any burden to defend freedom here and around the world.’
“And we have a dictator, despot, anti-democrat – with a small ‘d’ – attacking a democratic country, an ally of ours. We have had 12 votes on supporting Ukraine. There’s not a single Democrat [that] voted against Ukraine in those, and the overwhelming majority of Republicans voted for these 12 votes. An average of 79% of us in the Congress of the United States supported defending and helping Ukraine defend itself. Yet, as I understand it, there’s not a single word in this national security bill about Ukraine. I think the gentleman from Illinois has an amendment that may deal tangentially with Ukraine, but this bill is essentially silent. That’s what I mean about sounding retreat.
“Now, we won’t know the full scope of the damage of this bill for a long time to come. I hope it’s a long time. It maybe sooner. We talk about China. We talk about Taiwan and supporting that $500 million. I guarantee you the message we send to China if Ukraine loses will be louder than anything this bill says. Many of those forced out of [the Department of State] were intelligence analysts specializing in Russia and China. Others focused on counterterrorism, on stopping drug trafficking. Some were tasked with ensuring America’s energy dominance. Maintaining America’s security and influence around the world is not a partisan issue. It has not been for me a single day I’ve been in this institution. I supported almost all of Ronald Reagan’s buildup, and I think it led directly to the ability of Gorbachev to look his industrial complex in the eye and say, ‘We can’t compete with America.’
“We ought to put this legislation aside and act on the bipartisan consensus that I believe still exists on these priorities. I pray it still exists. If America retreats, our adversaries will inevitably advance. Are there some good things in this bill? There are. But they are woefully inadequate in so many other ways. I urge the defeat of this bill and yield back the balance of my time.”
Source: United Kingdom – Government Statements
The Prime Minister will travel to Scotland today to meet the President for talks.
The strength of the UK-US relationship will be on display again today (Monday 28 July) as the Prime Minister meets US President Donald Trump in Scotland for wide-ranging talks.
The Prime Minister will travel to the President’s golf course in Turnberry during the course of his private visit, ahead of the President’s landmark second State Visit to the UK in September.
Over the course of the visit, the leaders are expected to talk one-on-one about advancing implementation of the landmark Economic Prosperity Deal so that Brits and Americans can benefit from boosted trade links between their two countries.
The Prime Minister is also expected to welcome the President’s administration working with partners in Qatar and Egypt to bring about a ceasefire in Gaza. He will discuss further with him what more can be done to secure the ceasefire urgently, bring an end to the unspeakable suffering and starvation in Gaza and free the hostages who have been held so cruelly for so long.
Securing peace in Ukraine will also be high on the agenda, with the Prime Minister and President set to talk about their shared desire to bring an end to the barbaric war. It is expected they will reflect on progress in their 50-day drive to arm Ukraine and force Putin to the negotiating table.
After their meeting they will travel on together to a private engagement in Aberdeen.
The UK and the US have one of the closest, most productive alliances the world has ever seen, working together to cooperate on defence, intelligence, technology and trade.
The UK was the first country to agree a deal with the US that lowered tariffs on key sectors and has received one of the lowest reciprocal tariff rates in the world.
Businesses in the aerospace and autos sectors are already benefitting from the strong relationship the UK has with the US and the deal agreed on 8 May.
The Government is working at pace with the US to go further to deliver benefits to working people on both sides of the Atlantic and to give UK industry the security it needs, protect vital jobs, and put more money in people’s pockets through the Plan for Change.
Source: Government of India
Source: Government of India (4)
During a pivotal push by Ukraine to retake territory from Russia in late September 2022, Elon Musk gave an order that disrupted the counteroffensive and dented Kyiv’s trust in Starlink, the satellite internet service the billionaire provided early in the war to help Ukraine’s military maintain battlefield connectivity.
According to three people familiar with the command, Musk told a senior engineer at the California offices of SpaceX, the Musk venture that controls Starlink, to cut coverage in areas including Kherson, a strategic region north of the Black Sea that Ukraine was trying to reclaim.
“We have to do this,” Michael Nicolls, the Starlink engineer, told colleagues upon receiving the order, one of these people said. Staffers complied, the three people told Reuters, deactivating at least a hundred Starlink terminals, their hexagon-shaped cells going dark on an internal map of the company’s coverage. The move also affected other areas seized by Russia, including some of Donetsk province further east.
Upon Musk’s order, Ukrainian troops suddenly faced a communications blackout, according to a Ukrainian military official, an advisor to the armed forces, and two others who experienced Starlink failure near the front lines. Soldiers panicked, drones surveilling Russian forces went dark, and long-range artillery units, reliant on Starlink to aim their fire, struggled to hit targets.
As a result, the Ukrainian military official and the military advisor said, troops failed to surround a Russian position in the town of Beryslav, east of Kherson, the administrative center of the region of the same name. “The encirclement stalled entirely,” said the military official in an interview. “It failed.”
Ultimately, Ukraine’s counteroffensive succeeded in reclaiming Beryslav, the city of Kherson and some additional territory Russia had occupied. But Musk’s order, which hasn’t previously been reported, is the first known instance of the billionaire actively shutting off Starlink coverage over a battlefield during the conflict. The decision shocked some Starlink employees and effectively reshaped the front line of the fighting, enabling Musk to take “the outcome of a war into his own hands,” another one of the three people said.
The account of the command counters Musk’s narrative of how he has handled Starlink service in Ukraine amid the war. As recently as March, in a post on X, his social media site, Musk wrote: “We would never do such a thing.”
Musk and Nicolls didn’t respond to requests from Reuters for comment.
A SpaceX spokesperson said by email that the news agency’s reporting is “inaccurate” and referred reporters to an X post earlier this year in which the company said: “Starlink is fully committed to providing service to Ukraine.” The spokesperson didn’t specify any inaccuracies in this report or answer a lengthy list of questions regarding the incident, Starlink’s role in the Ukraine war, or other details regarding its business.
The office of Ukrainian President Volodymyr Zelenskiy and the country’s Ministry of Defence didn’t respond to requests for comment. Starlink still provides service to Ukraine, and the Ukrainian military relies on it for some connectivity. Zelenskiy as recently as this year has publicly expressed gratitude to Musk for Starlink.
It isn’t clear what prompted Musk’s command, when exactly he gave it, or precisely how long the outage lasted. The three people familiar with the order said they believed it stemmed from concerns Musk expressed later that Ukrainian advances could provoke nuclear retaliation from Russia. One of the people said the shutoff transpired on September 30, 2022. The two others said it was around then, but didn’t recall the exact date. Some senior U.S. officials shared Musk’s concerns that Russia would make good on threats to escalate, one former White House staffer told Reuters.
Musk’s order was an early glimpse of the power the magnate now wields in geopolitics and global security because of Starlink, a fast-growing satellite internet service that barely existed early this decade and now provides connectivity even in remote areas of the world. Even before his brief role as financial backer and advisor to U.S. President Donald Trump, the success of Starlink – and the unrivaled connectivity it offers across the planet – had given Musk increasing influence with political leaders, governments and militaries worldwide.
Musk’s sway in military affairs in Washington and beyond – through Starlink’s dominance in satellite communications and SpaceX’s clout in space launches – has reached a dimension previously limited to sovereign governments, alarming some regulators and lawmakers. “Elon Musk’s current global dominance exemplifies the dangers of concentrated power in unregulated domains,” Martha Lane Fox, a member of Britain’s upper house of parliament, said during a debate earlier this year. The parliamentarian is a businesswoman and former board member at Twitter, the social media site that Musk acquired in 2022 and rebranded as X.
“Its control,” Lane Fox said of Starlink, “rests solely with Musk, allowing his whims to dictate access to vital infrastructure.”
Musk’s political influence, and his massive business with the U.S. federal government, are now being put to the test. Since leaving his role advising Trump, Musk has publicly feuded with the president, announced plans to create a new political party, and criticized a signature spending bill that he said will expand the budget deficit and destroy jobs. Trump, for his part, has threatened to end government contracts and subsidies for Musk’s companies, including lucrative new defense projects.
Whatever the reason for Musk’s decision, the shutoff over Kherson and other regions surprised some involved with the Ukraine war – from troops on the ground to U.S. military and foreign policy officials, who after Russia’s full-scale invasion that February had worked to secure Starlink service for Ukrainian forces. Panicked calls by Ukrainian officials during the outage to seek information from Pentagon counterparts, five people familiar with the incident said, were met with few explanations for what could have caused it.
The U.S. Department of Defense declined to comment. Reuters couldn’t determine whether White House or Pentagon officials after the shutdown had any exchanges with Musk over the outage.
The Kherson episode is distinct from an earlier report of an incident that purportedly occurred that same September, involving Crimea just to the south, and raised concerns about Musk’s ability to influence the conflict in Ukraine.
In his 2023 biography of Musk, author Walter Isaacson reported that the tycoon had ordered Starlink to disable coverage in Crimea, which Russia had annexed from Ukraine after a 2014 invasion that the international community condemned as illegal. Musk, Isaacson wrote, believed a planned Ukrainian attack on Russian vessels in the Crimean port of Sevastopol could prompt nuclear retaliation.
After the book was published, Musk denied a shutdown, saying that there had never been coverage in Crimea to begin with. He said he had, rather, rejected a Ukrainian request to provide service ahead of Kyiv’s planned attack. Isaacson later conceded his account was flawed. A spokesperson at Isaacson’s publisher declined to comment or make him available for an interview.
SpaceX also said in 2023 that it had taken unspecified steps to prevent Ukraine from using Starlink for certain activities, including drone attacks. “Our intent was never to have them use it for offensive purposes,” Gwynne Shotwell, the company’s president, said at a conference in Washington in February of that year. “There are things that we can do, and have done” to prevent it, she added, without providing further detail.
Reuters couldn’t determine if the shutdown affecting Kherson was among the steps she was referring to. Shotwell didn’t respond to requests for comment for this article.
Following the start of the Kherson shutdown, word of an outage emerged in some media reports. At the time, it wasn’t clear to those who lost connectivity whether a technical problem, sabotage or some other factor was responsible. Early in the war, Russia had orchestrated a large cyberattack that disrupted service of another satellite operator, Western officials have said, creating suspicions around any outage and leaving a void quickly filled by Starlink. Russia has denied it conducts offensive cyberattacks.
As of April 2025, according to Ukrainian government social media posts, Kyiv has received more than 50,000 Starlink terminals. Easily transported and deployed, the pizza-box-sized devices communicate with thousands of SpaceX satellites now circling the globe. An initial batch of terminals was provided to Ukraine by SpaceX itself. Further terminals have arrived from donors including Poland, the United States and Germany.
This account of the outage, and the growing dependence on Musk by governments and militaries worldwide, is based on interviews with more than three dozen people with knowledge of SpaceX’s operations and the company’s technology. These people included current and former employees, U.S. and European military officials, and senior politicians and diplomats.
The reporting puts a spotlight on Musk’s control of services now critical to countries including the U.S., which has about $22 billion in contracts with SpaceX. Underscoring the point himself during his recent dispute with Trump, Musk threatened to decommission a SpaceX spacecraft the U.S. now relies upon to transport astronauts and critical cargo.
His threat, later retracted, unnerved attorneys at the National Aeronautics and Space Administration, who felt forced to explore whether Musk’s warning could be considered a notice of contract termination, according to two people familiar with the matter. NASA didn’t respond to Reuters’ requests for comment.
“There needs to be some contractual assurances” that Musk won’t cut off services to the U.S. government, said Lori Garver, a former deputy administrator of the agency. “We will need to consider how comfortable the U.S. will be at putting SpaceX in the critical path on national security.”
As countries increasingly rely on tech companies for everything from cyber defense to data storage, the question of dependence on one or a few dominant service providers will apply to other nations, too. “Governments have to think through what that means,” said Marcus Willett, former deputy head of Britain’s Government Communications Headquarters intelligence agency and now a senior adviser to the International Institute for Strategic Studies, a London-based think tank.
“WE NEED ASSURANCES”
SpaceX is the first company to establish an extensive network of communication satellites in low-Earth orbit, a region of space that is closer to the planet than areas where such satellites historically reside. The proximity of satellites that now make up the company’s constellation allows Starlink to offer space-based wireless connectivity that is faster than any previously available.
Starlink on Thursday suffered a rare global outage of several hours, the company said, because of an internal software problem. A Ukrainian military commander in a social media post said “Starlink is down across the entire front,” updating the post two and a half hours later to say connectivity had returned.
With more than 7,900 satellites now in orbit, SpaceX has become the world’s largest satellite operator. Its devices, which relay signals among each other to create a network that communicates with the ground, account for about two-thirds of all active satellites in space, according to Jonathan McDowell, an astronomer at the Center for Astrophysics, Harvard & Smithsonian.
Starlink began rolling out service in 2020 and now has more than six million customers in over 140 countries, territories and markets, according to a June Starlink social media post. Novaspace, a consulting firm near Paris, estimates that Starlink in 2025 will generate about $9.8 billion in revenue for SpaceX, or about 60% of the company’s income. SpaceX is privately held and doesn’t disclose financial information, but Musk recently said he expects the rocket company to post revenues of about $15.5 billion this year.
Rivals are scrambling to get in on the market.
OneWeb, a European service owned by Eutelsat, a French company, is the furthest along, boasting about 650 satellites in low-Earth orbit. Amazon this year launched its first satellites for Project Kuiper, a $10 billion effort to compete. China is developing multiple networks, including a state-backed venture known as SpaceSail.
Still, Starlink has made much of its first-mover advantage. Its terminals, priced as low as a few hundred dollars for standard models, are known for being affordable and easy to use. “There is no existing system right now to replace Starlink,” said Grace Khanuja, an analyst at Novaspace, the consultancy near Paris.
Compared to the geostationary satellites historically used for communications, the sheer number of SpaceX satellites helps make Starlink less vulnerable to jamming and attacks. Its far reach makes it valuable in remote and hostile terrain – from battlefields to airspace to high seas. In Ukraine, it has facilitated activities including communications, intelligence and drone piloting.
Some Western militaries not engaged in conflict are also using the service. Britain’s armed forces, for instance, three years ago began using Starlink for “welfare purposes,” including personal communications for troops, the Ministry of Defence said in response to a freedom of information request. The ministry said it has fewer than 1,000 Starlink terminals and doesn’t employ them for sensitive military communications. Spain’s navy is also using Starlink, but only for recreation and leisure of troops, a spokesperson said.
“That will change,” said Chris Moore, a retired air vice-marshal in the British military, speaking about high-speed space-based connectivity. Moore also worked as a OneWeb executive and is now a defense industry consultant. Satellites in low-Earth orbit, he said, offer too many advantages for militaries to ignore, especially for modern developments such as drone warfare, a signature element of the Ukraine conflict.
Some leaders are leery.
In Taiwan, ever wary of conflict with China, officials have expressed concern about Musk’s extensive business interests on the mainland, including a major factory for Tesla, the electric vehicle company he controls. Eager for communications backups in the event of war, Taiwan is developing its own low-Earth orbit satellite network. Taiwanese officials have said the government could partner with Amazon’s Kuiper, too.
Spokespersons for the Taiwanese government said it welcomes international satellite providers but that Starlink hasn’t applied for a license in Taiwan. They didn’t respond to questions about Taipei’s relationship with Musk.
In Italy, the government is evaluating whether to employ Starlink for secure communications among the government, defense and other officials. But some officials, including President Sergio Mattarella, remain unconvinced by SpaceX’s assurances that its service would be secure and free from meddling by Musk. “More than Musk’s word, we need assurances that we can’t be shut down, and especially that he can’t access the data,” said a person familiar with the views of the president, who is an influential figure with the armed forces.
Poland, a major donor to Ukraine, told Reuters it employs Starlink as well as other military and commercial satellite systems. A mix of providers, Polish officials have said, offers the most security, even if at high cost.
“In peacetime, you want the best product at the best price,” Foreign Minister Radoslaw Sikorski said in response to a question from Reuters at a press conference in April. “In wartime, you want redundancy. You want security. You want duplicated systems, so that if one fails, you can still use the other.”
“THERE WAS NOT A CONNECTION”
Even before the conflict began, documents reviewed by Reuters show, SpaceX had already been in discussions with the U.S. government about providing Starlink in Ukraine. Rollout began after Russian troops crossed the border on February 24, 2022.
Two days later, Mykhailo Fedorov, a deputy prime minister in Ukraine, requested Musk’s help. “We ask you to provide Ukraine with Starlink stations,” he wrote on Twitter.
Musk responded in 10 hours. “Starlink service is now active in Ukraine,” he tweeted. “More terminals en route.”
Poland was also instrumental in the early days of the war, shipping thousands of terminals to Ukraine shortly after the invasion. Warsaw this year said it has purchased about 25,000 Starlink terminals for the effort – roughly half the total now in Ukraine – and that it is paying the subscription costs to keep them connected. So far, it has spentabout $89 million on Starlink for Ukraine.
The equipment has made a critical difference for Ukraine.
Day-to-day bureaucracy has also benefited. Early in the conflict, Ukraine stored state data in the cloud and relied on Starlink to access it, helping keep some government operations running. “We wouldn’t be anywhere without Starlink,” said Vadym Prystaiko, Ukraine’s ambassador to Britain until 2023. “The whole state was preserved.”
On the battlefield, Ukraine quickly deployed Starlink to enable front-line troops to communicate with commanders. The service also allowed drone operators to transmit surveillance video streams and locate and attack Russian targets. Reuters couldn’t establish just when such attacks may have become a concern for Musk or SpaceX.
By September 2022, a major Ukrainian counteroffensive was underway. Kyiv’s forces were pushing back into territories, including Kherson, that Russia had captured. The drive threatened Russian supply lines, prompting Moscow to threaten the West, including oblique references to Starlink.
That month, in a statement to the United Nations, Russia noted the use of “elements of civilian, including commercial, infrastructure in outer space for military purposes.” It warned that “quasi-civilian infrastructure may become a legitimate target for retaliation.”
It isn’t clear whether Russia has tried to attack any Starlink facilities. Musk has said, however, that Moscow has repeatedly sought to block its connectivity. “SpaceX is spending significant resources combating Russian jamming efforts,” Musk wrote on X last year. “This is a tough problem.”
The Kremlin declined to comment on whether it has sought to interfere with Starlink. The Ministry of Defence didn’t respond to a request for comment. Starlink isn’t licensed for either civilian or military use in Russia.
As Ukraine’s counterattack intensified, Russian President Vladimir Putin on September 21, 2022, ordered a partial mobilization of reservists, Russia’s first since World War II. He also threatened to use nuclear weapons if Russia’s own “territorial integrity” were at risk.
Around this time, Musk engaged in weeks of backchannel conversations with senior officials in the administration of President Joe Biden, according to three former U.S. government officials and one of the people familiar with Musk’s order to stop service. During those conversations, the former White House staffer told Reuters, U.S. intelligence and security officials expressed concern that Putin could follow through on his threats. Musk, this person added, worried too, and asked U.S. officials if they knew where and how Ukraine used Starlink on the battlefield.
Soon after, he ordered the shutdown.
Reuters couldn’t ascertain the full geographic extent of the outage, but the three people familiar with the stoppage said that it covered regions that had recently been taken by Russia. Starlink coverage prior to the order, they said, had been active up to what had been Ukraine’s border with Russia before the full-scale invasion.
Taras Tymochko, a Ukrainian military signals specialist stationed in the Kherson region at the time, said an outage disrupted communications for troops, including colleagues on the front, for several hours. “If you were using Starlink to provide surveillance of the front line, you pretty much would be blind,” said Tymochko, who is now a consultant to Come Back Alive, a non-governmental organization that procures military equipment for Ukraine’s armed forces.
Maryna Tsirkun, a drone expert at Aerorozvidka, an aerial reconnaissance organization that works closely with the Ukrainian military, was also in southern Ukraine at the time. Starlink signals failed as Ukrainian troops began to push toward terrain seized by Russia, she told Reuters. “When we started to proceed there was not a connection,” she said. The outage she and colleagues experienced lasted several days.
On October 3, Musk angered Zelenskiy and other Ukrainian officials by tweeting a suggestion that locals in regions annexed by Russia vote on whether they should remain a part of Ukraine. A day later, Musk tweeted his concern about the conflict spiraling. “I still very much support Ukraine,” he tweeted, “but am convinced that massive escalation of the war will cause great harm to Ukraine and possibly the world.”
Three days later, following one media report about a Starlink outage, Musk tweeted that “what’s happening on the battlefield, that’s classified.” He added that SpaceX by the end of 2022 was on track to spend $100 million on Ukraine. Although the Polish and U.S. governments by then had begun donations of their own, the billionaire complained about the cost of the equipment and services SpaceX was providing.
SpaceX “cannot fund the existing system indefinitely,” Musk wrote in a mid-October post. The next day, in another tweet, he reversed course. “To hell with it,” he wrote, “we’ll just keep funding Ukraine govt for free.”
After the outage, Kyiv worked to charm Musk.
In November 2022, Fedorov, the government minister, publicly expressed trust in the service. Months later – just after Shotwell, the SpaceX president, said the company had taken steps to prevent Ukraine from using Starlink for drone attacks – Fedorov in an interview with a Ukrainian news site recognized Starlink’s ability to “geofence” coverage, selectively limiting signals in some areas.
By February 2023, however, Starlink was fully functional in Ukraine, he said. “All the Starlink terminals in Ukraine work properly,” Fedorov told Ukrainska Pravda, the news site. Fedorov, who recently assumed the title of first deputy prime minister, didn’t respond to a request for comment about Ukraine’s use of Starlink in the war.
In mid-2023, the U.S. Department of Defense signed an agreement with SpaceX to pay for Starlink coverage in Ukraine. Terms of the contract weren’t disclosed, but Quilty Space, a Florida-based research firm, said the Pentagon has an ongoing $537 million agreement with SpaceX to provide satellite communications to Ukraine. It’s not clear whether SpaceX is still footing the bill for any equipment or connectivity.
As the war has evolved, so has Ukraine’s use of Musk’s technology.
Ukrainian drone specialists and Prystaiko, the former ambassador to Britain, said some attack devices, including maritime and bomber drones, now have Starlink antennas fitted to them. The antennas, in the case of sea drones, help operators guide the devices and view video feeds to classify targets, said Sidharth Kaushal, a senior research fellow at Royal United Services Institute, a London-based defense think tank.
It’s uncertain whether such use contravenes SpaceX’s desire that Starlink not be employed for offense.
Ukraine continues to explore alternatives that could complement or back up Starlink if the service became unavailable, a senior government official told Reuters. Ukraine’s government has expressed interest in European satellite projects, European Commission spokesperson Thomas Regnier told Reuters. That includes GOVSATCOM, an EU project to pool satellite resources from member states and industry to provide services to governments, he said.
Privately, though, some Ukrainian officials say the existing alternatives to Starlink have limitations. “It takes time, it takes money,” the senior government official told Reuters. With Starlink, he added, “we have a working system.”
Musk himself has boasted of Starlink’s importance to Kyiv. “My Starlink system is the backbone of the Ukrainian army,” he wrote on X in March. “Their entire front line would collapse if I turned it off.”
(Reuters)
Translation. Region: Russian Federal
Source: People’s Republic of China in Russian – People’s Republic of China in Russian –
An important disclaimer is at the bottom of this article.
Source: People’s Republic of China – State Council News
UNITED NATIONS, July 26 (Xinhua) — China’s Deputy Permanent Representative to the United Nations Geng Shuang on Friday called for continued efforts to promote a political settlement to the crisis in Ukraine.
Russia and Ukraine have recently continued to implement the consensus reached during previous rounds of talks and facilitated the exchange of prisoners of war and remains of fallen soldiers. A few days ago, they also held a third round of direct talks, during which new consensus was reached on continuing the exchange of prisoners of war and other humanitarian issues, he said.
“China welcomes these positive developments and calls on relevant parties to maintain the momentum of peace talks, continue to seek consensus and enhance mutual trust with a view to achieving a comprehensive, lasting and durable peace agreement,” Geng Shuang told the Security Council.
However, in the past few days, Russia and Ukraine have continued to exchange large-scale drone and missile strikes, causing numerous casualties, infrastructure damage and destruction. China is deeply concerned and saddened by this, he said.
China once again calls on the parties to the conflict to exercise maximum restraint, effectively abide by international humanitarian law, and refrain from targeting civilians and civilian infrastructure under any circumstances. It is imperative that both sides make joint efforts to achieve early de-escalation on the battlefield, Geng Shuang added. –0–
Please note: This information is raw content obtained directly from the source of the information. It is an accurate report of what the source claims and does not necessarily reflect the position of MIL-OSI or its clients.
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Source: People’s Republic of China – State Council News
Chinese President Xi Jinping delivers a speech after receiving the credentials of 16 new ambassadors to China at the Great Hall of the People in Beijing, capital of China, July 25, 2025. (Xinhua/Li Xiang)
President Xi Jinping, who received the credentials of 16 new ambassadors to China on Friday, welcomed the envoys to their new posts in Beijing and sent a clear signal that China will resolutely expand its high-level opening-up.
During a group meeting with the ambassadors, Xi also voiced optimism about China’s economic prospects, saying that the nation will share “the dividends of its supersized market”.
Currently, China is advancing the building of a strong nation and the great cause of national rejuvenation on all fronts through the Chinese path to modernization, while its economy “continues its upward momentum amid steadfastness”, Xi said.
The nation will turn its new development into new opportunities for various countries, and “inject more certainty into global economic growth”, he added.
On Friday morning, as welcoming bugles sounded and honor guards of the People’s Liberation Army stood solemnly in formation outside the north gate of the Great Hall of the People, the new ambassadors of Vietnam, Panama, the Dominican Republic, Albania, New Zealand, Papua New Guinea, Angola, Egypt, Nicaragua, Iran, Chile, Ukraine, Benin, the United States, Israel and South Sudan arrived one by one to meet the president.
Xi accepted the credentials presented by the envoys and also posed for photos with each of them. He also met with Nurlan Yermekbayev, secretary-general of the Shanghai Cooperation Organization.
After the ceremony, Xi delivered a speech welcoming the envoys and asked them to convey his best wishes to the leaders and the people of their respective countries.
Xi expressed his hope that the envoys will gain a comprehensive and in-depth understanding of China, and make earnest contributions to deepening China’s friendship with various countries and enhancing its exchanges with the rest of the world.
This year marks the 80th anniversary of the victory in the Chinese People’s War of Resistance Against Japanese Aggression (1931-45) and the World Anti-Fascist War, as well as the 80th anniversary of the founding of the United Nations.
China stands ready to work with all countries to firmly safeguard the international system with the UN at its core and the international order underpinned by international law, Xi said.
China is willing to work with all countries to practice friendly cooperation, promote mutual learning among civilizations, build a community with a shared future for humanity, and “join hands to create a better future for this planet”, he added.
Xi emphasized that amid accelerating global changes and a turbulent international landscape, countries around the world need to enhance solidarity and cooperation more than ever before. They should embrace a broad vision to rise above divisions and conflicts, and bear in mind the future of all humanity, he said.
China always cherishes its friendship with people across the globe, and stands ready to strengthen all-around cooperation and exchanges with other countries on the basis of mutual respect, equality, mutual benefit and win-win cooperation, Xi said.