«Ukraineʼs recovery: we are working on immediate issues and developing a road map for the future», Carlos de Cordoue, Chairman of the Management Board at Credit Agricole

In the Q1 2024 ratings, assessing bank resilience and depositor confidence, the TOP-5 is represented by 4 foreign banks. How come? 

First of all, I have to say that most banks in Ukraine, despite the war and prodigious risks and losses, have shown qualitative progress, increasing liquidity indicators compared to the period before the full-scale invasion. This has been facilitated by the management of the National Bank of Ukraine aimed at strengthening the resilience of the banking system. In addition, banks constantly develop in the digital transformation direction. 

The presence of foreign banks in the Top 5 most resilient banks is influenced by several reasons:

• First of all, international banks are keeping strong capital base in Ukraine increased by the fact that dividend distribution in foreign currency have been suspended during the war.
• Secondly foreign banks are usually more cautious in their risk management models. Based on their history and international experience, they are trying to keep the right balance between risk and earnings. This approach makes them less vulnerable in crises time.
• Thirdly, people still perceive foreign banks as more reliable for depositing their savings. This is what we have experienced at Credit Agricole since the beginning of the war.

Please, tell us about the results that the bank has achieved over the years of operation in Ukraine

Credit Agricole Bank is the first foreign bank that entered the Ukrainian market. At the time, 31 years ago, our goal was to support foreign companies that started to operate here. This remains our strategic direction even now. The first achievement is leadership among foreign banks in Ukraine in the context of cooperation with agrarian customers. We singled out agribusiness as a strategic direction for us more than 15 years ago, and today more than 50% of our loan portfolio is concentrated in this field. In addition, almost half of our agrarian customers have stayed with us for more than 10 years.

The second achievement is a strong position among Ukrainian banks on the automotive lending market. Credit Agricole takes the second place with 27% of market share by number of deals. Since the beginning of the war bank issued UAH 3.8 billion of Car loans.

Our reputation is built on customer loyalty, and loyalty is based on quality service. We pay attention to each customer.

When the full-scale war began, we met or called all customers to find out what difficulties they are facing and how we can support them.

What has changed in the bank since the beginning of the full-scale war: attitude to customers, processes, management?

During hard times, people want to feel cared for. You must anticipate their needs to make them trust you. Hence, we have launched «Code of Trust», a project for IT customers, namely companies, developers, accountants in Ukraine and abroad. 

In 2023 Credit Agricole Bank launched online onboarding for IT PEs, as well as online card issuance; delivery of cards worldwide; improved CA+ Pro Internet banking for PEs and 1Swift service for crediting of remuneration to developers from non-resident companies.

By the way, I have to say that I was surprised by the discipline of Ukrainians in terms of loan repayment. It would seem, force majeure circumstances, war, and Ukrainians show impeccable payment discipline!

As for the bank, during the war we are more sensitive to our customers.

What are the bankʼs financial indicators during the full-scale war?

The bankʼs liquidity is stable. Nowadays, we have stronger position in terms of equity than before the beginning of the full-scale war, demonstrating increase. The bank remains profitable. First half 2024 Net result of Credit Agricole Ukraine is UAH 3.6 billion. Bank continues demonstrating stable results, thanks to a combination of customerʼs trust and adherence to the chosen strategy. And the question arose — what to do with the profit? Credit Agricole Group decided not to pay dividends, but to reinvest funds in the Ukrainian economy for the further recovery of Ukraine.

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Please, tell us about the current key bank offers and market segments the bank focuses on.

These are automotive lending, agrolending and products for the IT segment. In order to help farmers modernize their machinery, the bank provides financing for the purchase of equipment. We are launching services for IT professionals, such as deposits and loans for the purchase of real estate and vehicles.

Now Ukrainians gradually stop saving money and start consuming more. This invigorates, specifically, automotive lending market. Against this background, we are developing products for those who would like to buy a vehicle. We offer loans for a new car with a minimum down-payment and from 0.01% interest rate for the entire loan term; loans for electric cars and hybrid cars at reduced rates and commission fees, as well as loans for used cars.

How exactly does the bank participate in the recovery of Ukraine? 

There are two directions of such work: immediate needs and what we will need in the future. The first is difficulties in Ukraine due to blackouts. That is why we support companies and projects — there are about 50 of them — related to the creation of alternative energy sources. The budgets of these projects vary from EUR 1 million to EUR 5 million and more. 

At the same time, we must not forget about the road map for the future. In this realm, we are working on the «Go Ukraine» platform, which is aimed to meet the needs of Ukrainian IT customers living, say, in Poland, as well as of Polish companies interested in investing in Ukraine. We are a large bank both in Poland and Ukraine, thus, we should promote business development in both countries.

Does the bank cooperate with international financial organizations? If so, what does this cooperation imply? 

Certainly. We cooperate with the European Bank for Reconstruction and Development, the International Finance Corporation and United States Agency for International Development )USAID. The fact is that the banking system of Ukraine does not have enough capacity to finance the recovery of the country by itself. Complex support from public and private foreign institutions is needed. Therefore, two years ago, we started cooperating with the EBRD, concluding a risk sharing program. Currently, Credit Agricole Bank in Ukraine cooperates with the EBRD and the IFC within the framework of various programs, utilizing part of the EUR 150 million allocated by them to the benefit of Ukraine and we are already discussing a new tranche. Recently Credit Agricole Ukraine signs a $1.03 million co-Investment agreement with the USAID IBR Activity.

What reforms should be implemented in Ukraine in order to get foreign investments? 

Ukraine should adhere to the European vector, because this is what foreign investors look at, and this is a great value for them, they feel comfortable investing in a European country. Membership in the European community shows potential partners and investors that the country is reliable, stable, that it has overcome corruption and implemented many complex reforms. Poland did the same thing 20 years ago, and I believe that Ukraine has every chance to follow the same path and achieve EU membership.

Why is it crucial for the bank to support charity projects? 

Assistance in challenging times is a feature of our work. The international Group always supports local initiatives and social programs in the countries in which it operates. Since the first day of the war in Ukraine, we have been helping all our employees, we have separate budgets for that. Also, the bank has already allocated UAH 144 million to help those affected by the war within our We Care! program. Our efforts are aimed at supporting childrenʼs hospitals in Ukraine, purchasing high capacity diesel power generators for orphanages, geriatric institutions, purchasing houses for family-type homes, etc. For example, we purchased 2 intensive care ambulances of expert class worth over UAH 15 million in total for the children’s hospital in Dnipro and Emergency Medical Care and Disaster Medicine Center in Kharkiv region. Also we gave 2 houses worth over UAH 6 million in total to two families who lost their homes due to the war.

What development strategy does the bank have in Ukraine for the coming years?

We strive to constantly expand our horizons in Ukraine, devoting all our efforts and resources to achieving this goal. We will continue implementing projects for agrarian customers. Even in this realm, where we have a very strong position, we have room to move, because Ukraine is an agrarian country with a huge agricultural market. We are going to cooperate with small, medium and large companies. 

Moreover, many of our customers are located outside the country, where they make transactions in UAH, USD and EUR, so we are improving the digital service to enable them to keep and manage their funds safely. We are constantly improving digital products, but at the same time we maintain a balance between innovation and personal contact in the outlets throughout Ukraine. Also our objective is to support the entire IT industry, as we believe that it will promote the growth of the Ukrainian economy.