Crédit Agricole SA Quarterly Results: Analysis, Performance, and Market Impact

2023-11-08 06:28:50

A Crédit Agricole agency, in Rezé

by Mathieu Rosemain

Crédit Agricole SA reported better-than-expected quarterly results on Wednesday, driven by the solid performance of its financing and investment division and retail banking activity.

The second French bank by market capitalization, following BNP Paribas, recorded over the July-September period a group share of net income up 33% year-on-year to 1.75 billion euros, while analysts expected average an amount of 1.37 billion euros according to a consensus reached by the group.

Its quarterly net banking income stood at 6.34 billion euros, an increase of 19% year-on-year, once more beating the consensus which stood at 5.99 billion euros.

The bank’s financing and investment activities increased by more than 9% in the third quarter, supported in particular by a 25.6% jump in activities on rates, currencies and raw materials (FICC), where Crédit agricole is better than its domestic rivals Société Générale and BNP Paribas, but also than competitors like Deutsche Bank and Barclays.

Its retail bank in France experienced almost stable sales over the July-September period, showing an increase of 0.4%, under the effect of the stabilization of the net interest margin this quarter.

The net interest margin in Italy jumped 48%, while rising interest rates are passed on to customers much more quickly than in France, where almost all loans are signed on a fixed rate basis.

Crédit Agricole controls Europe’s largest fund manager, Amundi, and recently announced plans to acquire Belgian wealth management company Degroof Petercam.

(Report by Mathieu Rosemain, with Augustin Turpin, written by Jean Terzian, edited by Kate Entringer)

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