PARIS--(MARKET WIRE)--Aug 28, 2008 -- First half 2008

Net income - Group share: EUR 968m

Tier 1 ratio: 8.9%

Good performance from the Group's traditional business lines

Corporate and investment banking activities still affected by the crisis

Crédit Agricole S.A.'s Board of Directors, chaired by René Carron, met on 27 August 2008 to review the accounts for the first half of 2008. Crédit Agricole S.A. generated net income (Group share) of EUR 968 million, after a EUR 1,339 million negative impact in Corporate and investment banking due to the worldwide financial crisis.

Net income (Group share) was EUR 76 million in the second quarter. It was severely impacted by the deterioration of the monolines' financial strength. Excluding Corporate and investment banking and restated for the LCL competitiveness plan, for which charges were booked in the second quarter of 2007, the drop in net income (Group share) was limited to 18.9% compared to the same year-ago period.

Against a background of serious financial crisis in the first half, Crédit Agricole S.A.'s traditional business lines - French and international retail banking and specialised business lines - turned in a performance which can generally be seen as amongst the best in the market. Combined net banking income for these business lines grew by 6.5% year-on-year in the first half, while pre-tax income was up 0.9% and net income (Group share) was nearly stable (down 0.8%).

In retail banking, net banking income increased by 16.1% year-on-year in the first half, reflecting a robust business performance both in France and abroad as well as strong organic growth internationally.

The small decrease in net banking income in the Specialised business lines was confined to just 1.4% on a high basis of comparison in the first half of 2007, demonstrating their resilience in a deteriorating market environment.

In keeping with the announcements made in the spring, cost-cutting measures brought down expenses by 2% year-on-year (by 0.5% on an unchanged consolidation basis).

excluding Corporate and investment banking, which registered an increase in collective provisions and impairment charges for counterparty risks, risk-related costs remained low, up by a modest 6.1%, on a like-for-like basis.

The effects of the ongoing crisis were, this quarter, concentrated on monolines, which saw further deterioration in their financial situation which had an impact of EUR 693 million on net income in Corporate and investment Banking in the second quarter and EUR 1,339 million in the first half, including impairment charges for CDOs recognised in the first quarter. Further to analysing the effects of 12 months of ongoing international financial crisis on the structure of Calyon's recurring Corporate and investment banking operations, a refocusing plan has been developed and will be unveiled on 10 September 2008.

In June, Crédit Agricole S.A. successfully carried out a EUR 5.9 billion capital increase to strengthen its solvency ratios and to take into account the risks inherent in the current troubled economic environment. The rights issue was a resounding success with both institutional investors and retail shareholders and the free float was 130% over-subscribed. The capital increase enhanced the bank's financial strength, lifting shareholder's equity (Group share) to EUR 41.9 billion. Crédit Agricole S.A. is now one of the leading European banks, ranked by Tier 1 ratio (8.9%) and Core Tier 1 ratio (6.5%).

In keeping with the commitments it made at the time of the rights issue, Crédit Agricole S.A. has immediately begun to implement the announced measures and is already seeing the first results with expenses down by 0.5% on a like-for-like basis, disposal of the stake in MasterCard in July as one of the first transactions under the active portfolio management policy, and refocusing of Calyon business activities under way.

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At the end of the Board of Directors meeting, Chief Executive Officer Georges Pauget said: " Crédit Agricole S.A. confirmed the strength of its business model and the good performance delivered by our traditional business lines should be underlined. In Corporate and investment banking, which is still suffering from the impact of the worldwide financial crisis, as announced at the time of our capital increase, we have initiated important steps to cut costs and to refocus the business. We will present the Calyon transformation and development plan on 10 September 2008."

René Carron, Chairman, noted: "The Group is underpinned by solid fundamentals. We are seeing healthy business momentum, both in France and abroad. The French retail banking line, which signed up 260,000 new customers, is a perfect example of this. I would like to take this opportunity to commend and thank all Group employees for their dedication and our shareholders for their loyalty. Their involvement was instrumental in making our capital increase a success, thereby further enhancing our Group's financial strength. "

2008 financial calendar

10 September 2008 Calyon Investor Day

13 November 2008 Third quarter results

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