Side-by-side credit pricing comparison from Pillar 3 disclosures.
On a representative BBB+ EUR 25M 5-year term loan, Credit Agricole is the cheaper lender by 3bp in minimum spread. For a EUR 25M facility, that's EUR 6,846 per year.
| Metric | Societe Generale France |
Credit Agricole France |
|---|---|---|
| IRB approach | Mixed | Mixed |
| Cost-to-income | 63.6% | 55.7% |
| Effective tax rate | 20.1% | 24.0% |
| Avg corporate PD | 3.21% | 2.14% |
| Avg LGD unsecured | 34.8% | 40.0% |
| Avg LGD secured | 20.9% | 24.0% |
| Funding spread (bp) | 20bp | 12bp |
| Corporate EAD | EUR 176bn | EUR 184bn |
Both banks priced on the exact same deal — 150bp spread, 20bp commitment fee, 60-month maturity. Higher RAROC means the bank earns more from this deal. Lower min-spread means the borrower gets a better rate.
| Component | Societe Generale | Credit Agricole |
|---|---|---|
| Annual revenue | EUR 385,000 | EUR 385,000 |
| Operating cost | EUR 154,000 | EUR 154,000 |
| Expected loss | EUR 28,750 | EUR 28,750 |
| Capital required (FPE) | EUR 2,451,320 | EUR 2,451,320 |
| RAROC (after tax) | 7.31% | 7.67% |
| Min spread for 12% RAROC | 246bp | 243bp |
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