Crédit Agricole Receives ECB Approval to Increase Stake in Banco BPM to 20.1%

Increased Stake and Strategic Intentions

Crédit Agricole S.A. now holds 20.1% of the capital of Banco BPM, the group reports. In the third quarter of 2025, the French bank concluded instruments related to the shares of the Italian bank and holds an additional position of 0.3% of the capital in the form of derivative products. Crédit Agricole S.A. announced its intention to exercise its right to the physical delivery of the underlying shares of this position. The group specified that it does not intend to acquire or exercise control over Banco BPM and will maintain its participation below the mandatory public offer threshold.

Accounting Consolidation and Influence

Crédit Agricole S.A.'s stake in Banco BPM is consolidated by equity method under the significant influence regime in the fourth quarter of 2025, according to the statement. This method is consistent with the role of long-term shareholder and partner of Banco BPM claimed by the French group. This accounting change results in Crédit Agricole S.A.'s income statement no longer being exposed to the volatility induced by the fluctuation in Banco BPM's stock price.

Financial Impact of the Consolidation

The accounting impact of the first consolidation of Banco BPM represents about 600 million euros, excluding Purchase Price Allocation, the group indicates. This amount is recorded on the line share of net income of companies accounted for using the equity method in the income statement for the fourth quarter of 2025. For the full year 2025, the impact on earnings from the stake in Banco BPM, taking into account fair value revaluations through profit and dividends received, is overall positive by about 200 million euros. The impact of the first consolidation on solvency is about 5 basis points on the CET1 ratio of Crédit Agricole S.A.