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Crédit Agricole S.A.Update of the 2011 registration document - A03Operating expenses remained contained between the first half of 2011 and 2012, decreasing by1.9% over the period. The cost/income ratio was 63.7%, a deterioration of 2.7 points compared with the firsthalf of 2011.Gross operating income reached 3.7 billion euros in the first half of 2012, a decrease of 12.6%compared with the first half of 2011.The cost of risk increased by more than 50% to 2.9 billion euros in the first half of 2012 comparedwith the first half of 2011. This increase is particularly marked in International retail banking, mainly in Greecedue to the impacts of the European support plan to Greece booked at Emporiki (-344 million euros at 30June 2012 compared with -71 million euros at 30 June 2011), as well as the recording on 30 June 2012 of abusiness sector and country risk provision for -314 million euros. The cost of risk also increased in theSpecialised financial services with an additional provision booked in consumer credit in Italy for -364 millioneuros at Agos.Excepting the impact of the European support plan to Greece, the cost of risk on loans outstandingrepresented 91 basis points for the half-year against 74 basis points one year ago. Restated for theadjustment plan, the impacts of the business sector and country risk provision and the additional provisionon Agos, the cost of risk on loans outstanding reached 74 basis points in the half-year, i.e. a level equivalentto the one of the first half of 2011. Moreover, the cost of risk represented 79% of gross operating income inthe first half of 2012 against 46% in the first half of 2011.Impaired loans (excluding lease finance transactions with customers) amounted to 23.8 billion eurosand represented 4.6% of gross customer and interbank loans outstanding, representing a level comparableto that of 31 December 2011. Impaired loans were covered by specific reserves up to 55.1%, compared with54.0% at 31 December 2011. Including collective reserves, the impaired loan cover rate was 70.7%, up 130basis points compared with the end of December 2011.Income from equity affiliates was 640 million euros in the first half of 2012, down by 9.9%compared to the first half of 2011. This fall reflects for the main part the decrease of the result of theRegional Banks which was adversely affected by a 67 million euro impairment of the securities of SACAMInternational, which is the entity carrying their interests in Emporiki and Cariparma.Net income on other assets and change in value of goodwill was a positive 36 million euros inthe first half of 2012, compared with a negative contribution of 366 million euros in the first half of 2011. Thiswas mainly attributable to the gain on the disposal of BES Vida shares to BES for 28 million euros in theInsurance business line. Note that the contribution in the first half of 2011 included the negative impact of theimpairment of the residual goodwill on Emporiki for an amount of -359 million euros.Overall, Crédit Agricole S.A. net income Group share amounted to 363 million euros in the firsthalf, an increase of 72.9% compared with the first half of 2011. Restated for the specific items of the halfyear,in particular the negative impact of Greece for -1,310 million euros, normalised net income Groupshare amounted to 1,801 million euros, decreasing by 22% compared with the normalised results of the firsthalf of 2011 (2,317 million euros).Page 73 sur 237