CREDIT AGRICOLE SA: Gruppo* Crédit Agricole - Secondo trimestre 2009 Utile netto - Quota gruppo: 663 milioni di E (in crescita del 55,3 % sul T1-09; in crescita di 2,4x sul T2-08) - Primo semestre 2009 - Utile netto - Quota gruppo: 1 . 090 milioni di E (in calo del 31,7% sul S1-08)Crédit Agricole Group*Second quarter 2009Net income - Group share: E663 million (up 55 . 3 % on Q1-09; up 2 . 4x on Q2-08)First half 2009Net income - Group share: E1,090 million (down 31 . 7% on H1-08)*Crédit Agricole S . A . and 100% of the Regional BanksCrédit Agricole S . A . Secondo trimestre 2009- Forte crescita negli utili dell attività: + 12,3% / T1-09- Costi correlati al rischio stabili: + 3,9% / T1-09Utile netto - Quota gruppo: 201 milioni di E(stabile nel T1-09, in crescita di 2,6x sul T2-08)Primo semestre 2009- Utili in netta crescita: +17,1% / S1-08- Costi rigorosamente controllati: - 6,3% / S1-08- Gross operating income up sharply: 2 . 7x / H1-08- Equivalent rise in risk-related costs: 2 . 7x / H1-08Net income - Group share: E403 million . - Net income per share for the first half: E0 . 18- A solid financial position: Tier One ratio: 9 . 2%Crédit Agricole S . A . s Board of Directors, chaired by René Carron, met on 26 August to review the accounts for the first half of 2009 . Net income - Group share was E403 million in the first half and E201 million in the second quarter . In a persistently difficult world economic climate, these results reflect the initial effects of the business model that the Group adopted a year ago . This model is based on a powerful retail bank that encompasses all banking and insurance businesses and on a corporate and investment bank that focuses on its core areas of expertise to serve the Group and its customers . The first step of the implementation of this business model was to refocus the Corporate and Investment bank with a strategy of significantly reduced risk profile . Structured credit operations and toxic products are being run off and their negative impact on earnings will gradually reduce in the future . As a result of these efforts, market risk declined by E8 billion in the first half to less than E20 billion at 30 June 2009 . Crédit Agricole S . A . has taken a number of measures to underpin its business model, to enhance the effectiveness of the businesses by achieving economies of scale and optimising management through stringent cost controls across all entities . These include combining the life, Property & Casualty and creditor insurance lines into the recently created Crédit Agricole Assurances; the combination of Sofinco and Finaref, after the one of Agos and Ducato in Italy; signature of the final CAAM-SGAM agreement to create the No . 4 asset manager in Europe, 75/25 owned by Crédit Agricole S . A . and Société Générale; the acquisition of an 85% controlling interest in CACEIS and the centralisation of Cariparma and FriulAdria s general services . All business lines sustained their momentum . Business for the Regional Banks and LCL remained high despite the economic downturn, with a 3 . 7% year-on-year rise in aggregate loans outstanding for the two entities in the first half of 2009 . Business was also robust for the Consumer finance subsidiaries . Likewise, momentum was brisk in asset management operations, as reflected primarily in the performance of the Insurance and Asset management lines, where inflows benefited from the market rebound . International retail banking registered a substantial increase in revenues in the second quarter 2009, reflecting good resilience year-on-year, excluding Emporiki . This momentum increased Crédit Agricole S . A . s net banking income sharply, with a 17 . 1% year-on-year jump in the first half of 2009, following the acceleration of this trend during the second quarter . Gross operating income was multiplied by 2 . 7 on tightly controlled operating expenses, which declined by 6 . 3% . This offset an equivalent increase in risk-related costs, which were also multiplied by 2 . 7 and stabilised at a high level in the second quarter . Operating income improved appreciably as a result of our new business model, which places the priority on generating solid, recurrent earnings . Lastly, the Group confirmed its financial strength . Core capital remained high at E63 . 1 billion . Risk-weighted assets were down 4 . 1%, owing primarily to the reduced risk profile of Corporate and investment banking . Crédit Agricole S . A . s Tier 1 ratio is at 9 . 2% with a Core Tier 1 ratio of 8 . 6%, up from 8% at 1 January 2009 . ** *After the Board of Directors meeting, René Carron, Chairman of Crédit Agricole S . A . , commented:"The new model that Crédit Agricole S . A . adopted nearly a year ago now fully reflects our Group s original values: taking account of the human dimension of a situation; dedicating our resources to provide financing to the economy and support to our individual and business customers in this time of crisis" . Georges Pauget, Chief Executive Officer of Crédit Agricole S . A . , added:"Crédit Agricole S . A . has fully integrated the lessons learnt from the crisis and has adapted its business model to meet the needs of the real economy . This is not only a relevant but sound strategy for the Group . All our historic business lines are producing good results which allows us to deal with the impact of the current crisis . Retail banking, insurance, asset management and consumer finance delivered very good performances, despite the adverse economic climate . "10 November 2009 Publication of third quarter 2009 resultsCRÉDIT AGRICOLE S . A . CONSOLIDATED RESULTS
| (in millions of euros) | Q2-09 | Q2-08 | Change Q2/Q2 | Change Q2/Q1 | H1 2009 | H1 2008 | Change H1/H1 |
| Net banking income | 4,559 | 3,249 | + 40 . 3% | + 12 . 3% | 8,620 | 7,359 | + 17 . 1% |
| Operating expenses | (2,986) | (3,147) | (5 . 1%) | +0 . 3% | (5,964) | (6,365) | (6 . 3%) |
| Gross operating income | 1,573 | 102 | x15 . 4 | + 45 . 2% | 2,656 | 994 | x2 . 7 |
| Risk-related costs | (1,127) | (365) | x3 . 1 | +3 . 9% | (2,212) | (811) | x2 . 7 |
| Operating income | 446 | (263) | nm | nm | 444 | 183 | x2 . 4 |
| Equity affiliates | 43 | 205 | (79 . 0%) | (86 . 6%) | 364 | 548 | (33 . 6%) |
| Net income on disposal of other assets | 2 | 14 | (85 . 7%) | (33 . 3%) | 5 | 436 | (98 . 9%) |
| Tax | (230) | 231 | nm | x2 . 8 | (312) | 26 | nm |
| Net income (after tax) from discontinued operations | 5 | (2) | nm | (16 . 7%) | 11 | (2) | nm |
| Net income | 266 | 185 | +43 . 8% | +8 . 1% | 512 | 1,191 | (57 . 0%) |
| Net income - Group share | 201 | 76 | x2 . 6 | (0 . 5%) | 403 | 968 | (58 . 4%) |
In the first half of 2009, the Crédit Agricole S . A . Group s net banking income was E8,620 million, up 17 . 1% year-on-year . In 2008, net banking income included the E882 million gain on the disposal of Suez shares . This figure also includes the negative net banking income from discontinuing operations, which is a loss of E962 million in the first half of 2009 from a loss of E3,039 million in the first half of 2008 . Excluding discontinuing operations and the gain on Suez in 2008: The Group s net banking income increased by 0 . 7% to E9 . 6 billion . This moderate rise reflects the business lines ability to weather tough economic times . In retail banking, LCL s net banking income was up 2 . 3% . In Specialised financial services, the increase was 19 . 5% including the revenues of newly consolidated Ducato . In Corporate and investment banking, revenues for the ongoing activities grew 15 . 9% . In International retail banking, NBI dipped by a modest 5 . 0%[1], reflecting resilience to the economic downturn . Excluding Emporiki, the fall was confined to 3 . 2% . In Asset management, insurance and private banking, revenues were also down, with a 17 . 3% fall, owing to the markets deterioration over the year . Operating expenses were tightly controlled in all business lines and declined by 5 . 7% overall . Costs were stable at LCL, dipped moderately in International retail banking, and were cut by 4 . 9% in Specialised financial services (on a like-for-like basis), by 8 . 0% in Asset management, insurance and private banking, and by 13 . 2% in Corporate and investment banking s ongoing activities . Gross operating income jumped 13 . 1% to E3 . 7 billion . Risk-related costs were E1 . 9 billion in the first half, offsetting just over half of gross operating income . The bulk of these costs came from International retail banking (E540 million) and more specifically Emporiki, Specialised financial services (E576 million) and Corporate and investment banking (E552 million) . Overall, the Crédit Agricole S . A . Group s risk-related costs stand at 112 basis points of the Basel 1 RWA ; i . e . 2 . 2 billion in first half 2009 . Doubtful loans moved to E14 . 7 billion (a E1 . 6 billion increase from 31 December 2008), representing 3 . 3% of gross customer and interbank loans outstanding[2] (3 . 1% at 31 December 2008) . Including collective reserves, doubtful loans are covered at 71 . 1% . Income from equity affiliates came to E364 million, including a E206 million negative impact generated by the first equity-accounting of Intesa SanPaolo . The Regional Banks contribution was E427 million, underpinned by good commercial results . Aggregate gross operating income advanced by 16% year-on-year to E2 . 8 billion, driven by a solid performance, with a 5 . 5% rise in IAS net banking income restated for dividends and a 1 . 7% decline in operating expenses . In 2008, the net gain on disposal of other assets included the gain from the creation of Newedge, the brokerage subsidiary owned 50/50 with Société Générale . In 2009, net income from discontinued operations includes the impact of reclassifying African entities in the process of being sold into discontinued operations in the fourth quarter of 2008 . Crédit Agricole S . A . s net income - Group share was E403 million in the first half . In the second quarter of 2009, net income - Group share was E201 million, comparable to the first quarter . Excluding the impact of Intesa, which was equity-accounted for the first time, and of discontinuing operations in Corporate and investment banking (E465 million net loss - Group share), it amounts to E872 million . FINANCIAL POSITIONAt 30 June 2009, CRD risk-weighted assets stood at E324 . 6 billion, a decline of 4 . 1% in the first half, owing to the reduction in credit risk, particularly for Calyon and Crédit Agricole S . A . , and to the E8 . 3 billion fall in market risk resulting from the decrease in VaR . The change also includes an increase in risk-weighted assets in certain business lines, primarily due to the acquisition of control in CACEIS . In the area of funding, the Group uses an active asset and liability management policy, as reflected by its two successful offers to repurchase outstanding notes (Upper Tier 2 in the second quarter of 2009, Lower Tier 1 in the third quarter of 2009) . The bond issue programme, which was revised downwards from E35 billion to E24 billion, was fully completed at the end of the first half . The Group further diversified its sources of funding, primarily via issues of Lower Tier 1 notes in the second quarter and issues of CA Covered Bonds, to prepare for the decrease of SFEF issues . At 30 June 2009, Crédit Agricole S . A . s high capital adequacy ratios reflect the effectiveness of its asset and liability management policy . At 30 June 2009, the overall capital adequacy ratio was 10 . 0%, the Tier 1 ratio was 9 . 2%, and the Core Tier 1 ratio was 8 . 6% . Tier 1 Capital (before deductions) amounted to E63 . 1 billion . RESULTS BY BUSINESS LINE1 . FRENCH RETAIL BANKING1 . 1 . - CRÉDIT AGRICOLE REGIONAL BANKS
| (in millions of euros) | Q2-09 | Change Q2/Q2 | Change Q2/Q1 | H1 2009 | Change |
| | | | | | H1/H1 |
| | | | | | |
| Net income accounted for at equity (at 25%) | 166 | +40 . 9% | +24 . 0% | 301 | +3 . 1% |
| Change in share of reserves | (4) | (109 . 0%) | (103 . 4%) | 126 | (13 . 6%) |
| Share of income from equity affiliates | 162 | (2 . 9%) | (38 . 6%) | 427 | (2 . 5%) |
| Tax* | (5) | (79 . 5%) | (93 . 6%) | (92) | (4 . 7%) |
| Net income - Group share | 157 | +11 . 8% | (11 . 9%) | 335 | (1 . 9%) |
* Tax impact of dividends received from the Regional BanksIn the first half of 2009, the Regional Banks turned in a good performance . Their contribution to Crédit Agricole S . A . s net income - Group share came to E335 million and was virtually stable year-on-year (down 1 . 9%) . To support their business operations and to enhance their operational efficiency, during the first half, the Regional Banks initiated the project to roll out their centralised customer-focused IT system . They also launched a number of innovative, customer-focused services; the Double action card, first debit/credit card in France, which met with success with 649,000 cards sold at end of June 2009, the new national ca-mobile . com site that can be accessed by all customers, regardless of the operator they use, enhancements to the ca-mobile . com offer and the roll out of the zero-interest, government-subsidised "green-loan" . In terms of new inflows, interest-bearing deposits were driven up by solid growth in passbook accounts (up 14 . 2%) and in term accounts and deposits . Growth in off-balance sheet deposits resumed, with a 0 . 2% rise year-on-year in the first half, driven by the return to a positive trend in securities and by life insurance especially for high net worth customers . On the credit side, loans outstanding were up 3 . 4% year-on-year, underpinned by a 4 . 0% rise in the business customer segment, which reflects the Regional Banks commitment to support local and regional developments . Net banking income expanded by 5 . 5% year-on-year, driven primarily by the interest margin . Operating expenses remained tightly controlled, with a 1 . 7% year-on-year decline . As a result, gross operating income advanced by 16 . 0%, reflecting the Regional Banks high operating profitability . The cost/income ratio showed further improvement in the first half, down 4 points on its year-ago level . Risk-related costs remained high, reflecting the impact of deteriorating economic conditions . Even so, risks were tightly controlled and thoroughly covered . Risk-related costs amounted to 64 basis points of Basel 1 risk-weighted assets, a rise of 17 points on the first half of 2008 . The non-performing loan cover rate (including collective provisions) is particularly high, at 105% . 1 . 2 . - LCL
| (in millions of euros) | Q2-09 | Change Q2/Q2* | Change Q2/Q1 | H1 2009 | Change |
| | | | | | H1/H1* |
| | | | | | |
| Net banking income | 969 | +2 . 1% | +3 . 6% | 1,905 | +2 . 3% |
| Operating expenses | (615) | +0 . 2% | (5 . 0%) | (1,264) | +0 . 4% |
| Gross operating income | 354 | +5 . 2% | +23 . 2% | 641 | +6 . 2% |
| Risk-related costs | (102) | x2 . 6 | + 3 . 0% | (201) | x2 . 4 |
| Operating income | 252 | (15 . 2%) | +33 . 8% | 440 | (15 . 6%) |
| Net income - Group share | 167 | (14 . 9%) | +33 . 8% | 293 | (15 . 3%) |
*2008 figures under Basel IIDuring the first half, LCL again confirmed that it was on the right track, with a 6 . 2% year-on-year rise in gross operating income . This uptrend began in the first quarter of 2008 and has persisted over the past six quarters . Net banking income was E1,905 million, up 2 . 3% year-on-year in the first half, with an increase of 2 . 1% in the second quarter . This indicates that the growth component of the Crescendo 2 plan was effectively implemented: loans outstanding moved up, customer deposits were stable and margins widened . Fee income was adversely affected by persistent volatility in the capital markets . Costs remained under control and were held to nearly the same level as in the prior-year period . They edged up 0 . 4% (0 . 2% in the second quarter) and declined by 5 . 0% quarter-on-quarter, reflecting the success of the cost-cutting plan . The growth differential between net banking income and expenses remained at around 2 points . The cost/income ratio fell by 1 . 2 point year-on-year to 66 . 4% . In a difficult economic climate, risk-related costs increased . They were multiplied by 2 . 4, thereby offsetting the entity s solid performance in terms of operating income . Even so, risk-related costs were stable quarter-on-quarter (up 3 . 0%), representing 76 basis points of Basel 1 risk-weighted assets, similar to the first quarter . LCL s net income - Group share was E293 million, a year-on-year decline of 15 . 3% in the first half and of 14 . 9% in the second quarter . Net income was adversely affected by the increase in risk-related costs . The 33 . 8% jump from the first quarter to the second shows that the trend shifted during the first half of 2009 . Business remained healthy, with a 5 . 0% year-on-year advance in loans outstanding driven by lending to SMEs and small businesses (up 8 . 9%), which reflects LCL s medium to long term commitment to business customers . Conversely, while the decline in the property market moderated appreciably in the second quarter, it continued to hold down home loan production and outstandings . Nonetheless, these advanced by 3 . 0%, in line with the market trend . Consumer loan production remained robust, with a 9% rise year-on-year . The customer base continues to expand and to be rejuvenated, with the launch of innovative products such as LCL à la carte, Contrat de reconnaissance, a loyalty and client-recognition program and Solution trésorerie, a solution to help individuals manage their budget (including cash advances) . LCL opened 69,000 net new individual accounts and 5,900 small business accounts in the first half . In addition, LCL continues to modernise its network by automating its branches to optimise service to customers . It is also implementing a "paperless branch" project to eliminate physical records in the branches and replace them with digitalised documents . 2 . INTERNATIONAL RETAIL BANKINGNote: The figures for the business line presented below are adjusted for the reclassification of African entities in the process of being sold into discontinued operations in the fourth quarter of 2008 . Excluding Emporiki, International retail banking made a significant contribution to Group results: E199 million net income - Group share for the first half (down 9 . 9% year-on-year) and E105 million for the second quarter (up 7 . 7% quarter-on-quarter) . Gross operating income dipped by a moderate 2 . 4% compared with the same year-ago period but it moved up in the second quarter of 2009 (up 9 . 5% quarter-on-quarter) . Risk-related costs rose by 77 . 4% year-on-year in the first half but declined by 11 . 2% between the first and second quarter of 2009 . Operating income came to E265 million in the first half . Crédit du Maroc and Crédit Agricole Egypte generated robust growth, with a 14 . 9% year-on-year jump in their contribution to net income - Group share . In all, during the second quarter of 2009, International retail banking staged a recovery in its operating performance . Net banking income was E755 million, up 7 . 8% on the first quarter of 2009 . Restored margins at Emporiki, the steady rise in Cariparma FriulAdria s net banking income and the upturn in the contribution from Lukas produced a positive impact . Owing to the favourable scissors effect on expenses, the business line s gross operating income advanced by 16 . 2% . Risk-related costs registered a moderate 2 . 3% rise over the quarter . Overall, the business line contribution is a loss of E71 million in the first half, including a loss of E50 million in the second quarter .
| (in millions of euros) | Q2-09 | Change | Change Q2/Q1 | H1 2009 | Change H1/H1 | Change H1/H1* |
| | | Q2/Q2 | | | | |
| | | | | | | |
| Net banking income | 755 | (3 . 3%) | +7 . 8% | 1,456 | (5 . 0%) | (3 . 2%) |
| Operating expenses | (508) | +1 . 0% | +4 . 1% | (997) | (0 . 6%) | (3 . 8%) |
| Gross operating income | 247 | (11 . 1%) | +16 . 2% | 459 | (13 . 3%) | (2 . 4%) |
| Risk-related costs | (273) | x3 . 0 | +2 . 3% | (540) | x2 . 8 | +77 . 4% |
| Operating income | (26) | nm | nm | (81) | nm | (25 . 2%) |
| Equity affiliates | 40 | x28 . 6 | (12 . 9%) | 86 | x2 . 2 | x2 . 2 |
| Pre-tax income | 14 | (92 . 7%) | nm | 5 | (98 . 6%) | (10 . 7%) |
| Tax | (81) | +23 . 8% | x2 . 9 | (109) | (4 . 5%) | (13 . 4%) |
| Net income from discontinued operations | 5 | nm | (16 . 7%) | 11 | (26 . 2%) | (32 . 9%) |
| Net income - Group share | (50) | nm | nm | (71) | nm | (9 . 9%) |
* Excluding EmporikiIn Greece, Emporiki continued its restructuring, in keeping with the actions defined by Credit Agricole S . A . On 25 June 2009, new measures to turn the bank around and to lay the groundwork for its future success were announced . The target is to restore profitability by 2011, via three main drivers: operating expenses reduced, tighter risk controls and restructuring of the branch network . Management of the loan portfolio was also adjusted to economic conditions . In-depth, periodic reviews of the portfolio in force continued and the centralised loan approval process was finalised . In addition, the deposit-taking policy was overhauled and savings accounts bearing premium interest rates were discontinued . As a result of this policy, the first signs of improvement began to appear at the end of the first half, with the stabilisation of loans and the success of the new Yperecho term account offering progressive rates (E1 billion of inflows in the second quarter of 2009) . Contribution to net banking income recovered in the second quarter, with an 7 . 8% quarter-on-quarter advance, and gross operating income moved positive, rising to E14 million in the second quarter after reaching breakeven in the first three months . The interest margin increased by E13 million during the second quarter, in line with the rebound in the lending margin, which widened from 1 . 6% to 1 . 8% between the first quarter and the second, while fee income was stable . Emporiki s contribution to net income - Group share was a loss of E271 million in the first half . In Italy, Cariparma FriulAdria sustained the same momentum as in the previous quarters despite the difficult climate . Loans outstandings and on-balance sheet deposits rose by 9 . 5% and 7 . 3% respectively year-on-year . Moreover, during the first half, the bank rolled out a death insurance policy for mortgage holders that met with significant success . Net banking income remained on the uptrend that began at the end of 2008, and growth was higher in the second quarter than in the first (4 . 3%) . Net banking income was E741 million in the first half . The year-on-year decline was confined to 3 . 5% . Expenses were tightly controlled and 1 . 2% lower than in the same year-ago period . Risk-related costs, calculated on Basel 1 risk-weighted assets, registered a moderate increase and amounted to 75 basis points in the first half compared with 49 basis points in the first half of 2008 . Cariparma FriulAdria contributed E113 million to net income - Group share in the first half . The bank continued its solidarity initiatives, with the roll-out of Cariparma Sipuò for individuals in financial difficulty, product which includes reduced-fee accounts, flexible repayment schedules and cash advances . Cariparma FriulAdria s commitment to employees is also a strong point: it is one of two banks that "Top Employers Italy 2009" ranked among the 28 best . 3 . SPECIALISED FINANCIAL SERVICES
| (in millions of euros) | Q2-09 | Change Q2/Q2 | Change Q2/Q1 | H1 2009 | Change |
| | | | | | H1/H1 |
| | | | | | |
| Net banking income | 903 | +21 . 4% | +5 . 9% | 1,756 | +19 . 5% |
| Operating expenses | (409) | +1 . 8% | (5 . 0%) | (840) | +5 . 2% |
| Gross operating income | 494 | +44 . 4% | +16 . 9% | 916 | +36 . 5% |
| Risk-related costs | (311) | x2 . 4 | +17 . 1% | (576) | x2 . 2 |
| Operating income | 183 | (14 . 8%) | +16 . 6% | 340 | (15 . 8%) |
| Equity affiliates | 2 | (29 . 2%) | nm | 3 | (22 . 7%) |
| Net income on disposal of other assets | 0 | nm | nm | 1 | (11 . 1%) |
| Pre-tax income | 185 | (14 . 9%) | +15 . 9% | 344 | (15 . 8%) |
| Net income - Group share | 104 | (23 . 0%) | + 15 . 1% | 194 | (23 . 4%) |
During the first half of 2009, Specialised financial services demonstrated its ability to adapt to difficult economic conditions . The business line delivered a handsome performance, with a 19 . 5% advance in net banking income in the first half . On a like-for-like basis, the rise was 4 . 7%, owing to resilience in loans outstanding and to a lower cost of funds . The cost reduction plan remained on track and expenses were cut by 4 . 9%[3] year-on-year in the first half . Gross operating income moved up 16 . 2% on a like-for-like basis, reflecting the business line s operational efficiency . On a reported basis, the rise was 36 . 5%, with gross operating income of E916 million including Ducato, which has been consolidated since the first quarter of 2009 . The cost/income ratio was 47 . 8% in the first half, down 6 . 5 percentage points year-on-year . In line with the deterioration of the environment, risk-related costs moved up sharply (by 2 . 2x year-on-year in the first half), both in France and internationally . The quarter-on-quarter increase in the second quarter was more moderate at 17 . 1% . Risk-related costs amounted to 191 basis points of Basel 1 risk-weighted assets, among the lowest in the market . Owing to this know-how in terms of risk control, the intermediation ratio was 80 . 7% in the first half, among the best in the sectorIn all, the business line reported net income - Group share of E194 million in the first half (down 23 . 4%) . In Consumer finance, gross operating income also increased significantly, by 41 . 8% to E827 million (by 19 . 3% on a like-for-like basis) owing to resilient net banking income and persistently tight cost controls . Even so, due to the upturn in risks, which remained below the market average at 217 basis points of Basel 1 risk-weighted assets in the first half, operating income receded by 11 . 9% to E294 million . Growth in loans outstanding was solid, with a 5% increase in France driven by the development of partnerships with the branch networks . Internationally, the business line generated 27 . 3% growth year-on-year owing to the consolidation of Ducato s loan book following the merger with Agos in Italy . The breakdown of consumer loans outstanding by region is favourable, with 89 . 3% of outstandings in low-exposure countries (Western Europe, including Italy) . In Lease finance, the Group maintained its leadership position . Outstandings were 16 . 1% higher than at 30 June 2008 . Growth was driven by international operations and primarily by the expansion of CALIT in Italy . In France, the business line outperformed the market, with new business in equipment and property leasing holding up extremely well . Gross operating income amounted to E62 million in the first half . It moved up 20 . 4% between the first and second quarters, underpinned by persistently solid net banking income, and controlled costs . This covered the substantial upturn in risk-related costs, both in the first half (2 . 8x increase year-on-year, E33 million) and in the second quarter (66 . 9% rise quarter-on-quarter, E21 million) . In Factoring, the business line weathered the downturn in the economy better than its competitors, with a 4 . 1% fall in factored receivables compared with a 6 . 4% decline for the market[4] . Eurofactor confirmed its leading position, with a 60 basis point year-on-year rise in market share to 23 . 1% in the second quarter of 2009 . Gross operating income was E34 million in the first half, down 19 . 8% owing to the decline in business . In the second quarter, however, it moved up to E19 million . Risk-related costs advanced but remained low at E10 million in the first half . 4 . ASSET MANAGEMENT, INSURANCE AND PRIVATE BANKINGAsset management, insurance and private banking turned in a good performance over the period . Net new inflows amounted to E14 . 5 billion in the first half, lifting assets under management to E775 . 5 billion at 30 June 2009 with growth of 3 . 2% in the second quarter . This solid level of business was coupled with enhanced operational efficiency . In the second quarter, gross operating income was E557 million, i . e . close to its pre-crisis level . Operating expenses were 8 . 3% lower than in the second quarter of 2008 . In the second quarter, the Group finalised the agreement for acquiring majority control over CACEIS and signed the final agreement to create CAAM/SGAM, the joint asset management subsidiary to be held 75% by Crédit Agricole S . A . and 25% by Société Générale . Under the agreement, E160 billion[5] of assets will be transferred to the new entity, which will bolster the position as a market leader in France and in Europe .
| (in millions of euros) | Q2-09 | Change Q2/Q2 | Change Q2/Q1 | H1 2009 | Change |
| | | | | | H1/H1 |
| | | | | | |
| Net banking income | 988 | (6 . 6%) | +24 . 4% | 1,782 | (17 . 3%) |
| Operating expenses | (431) | (8 . 3%) | (3 . 6%) | (878) | (8 . 0%) |
| Gross operating income | 557 | (5 . 3%) | +60 . 4% | 904 | (24 . 7%) |
| Risk-related costs | (5) | nm | nm |
|
