by Mathieu Rosemain
PARIS (Reuters) – Crédit Agricole SA reported solid quarterly results on Friday, hailed on the stock market, and announced a plan to buy Degroof Petercam in a transaction valuing the Belgian wealth manager at 1.5 billion euros. euros.
The second French bank by market capitalization reported on Friday better-than-expected net banking income and net income in the second quarter, thanks to a solid performance in insurance and financial services activities.
On the Paris Bourse, the Crédit Agricole share gained more than 5% at 11:15 a.m. CET, leading the CAC 40 which gained 0.56% at the same time.
Another favorable factor, the group declared that SAS Rue La Boétie, its parent company, planned to purchase Crédit Agricole SA shares on the market for a maximum amount of one billion euros.
SAS Rue La Boétie currently holds 60.2% of the capital of Crédit Agricole SA and does not intend to exceed the 65% threshold.
Over the April-June period, net income group share jumped 24.7% year-on-year to 2.04 billion euros, where analysts expected an average of 1.39 billion euros. , according to a consensus of analysts established by the group. Quarterly net banking income rose 18.8% to 6.68 billion euros, also beating the consensus.
According to analysts at Royal Bank of Canada, the group published solid results, driven by higher-than-expected revenues and good cost control.
NEW AMBITIONS
Crédit Agricole plans to acquire Degroof Petercam via its subsidiary Indosuez, the size of which would thus increase by 50%.
Degroof Petercam had around €71 billion in assets under management, administration and custody at the end of 2022 while Indosuez claimed €130 billion in assets under management at the same period.
The operation, which should be finalized in 2024, is carried out at a price of 148.03 euros per share for the purchase of a 60% stake, which values Degroof Petercam at 1.54 billion euros, according to a financial document released on Friday.
The takeover of Degroof Petercam will see one of the most famous names in Belgian finance come under foreign control, after several takeovers of Belgian financial institutions in recent years. This will make KBC the last major private Belgian institution in the sector.
During a presentation to journalists, Xavier Musca, deputy managing director of Crédit Agricole SA, said that the group aimed to hold 80% of Degroof Petercam following the acquisition of family stakes.
The Cigrang family would retain 20% as part of the acquisition plan, which includes a partnership, Xavier Musca said.
(Report Mathieu Rosemain; with the contribution of Piotr Lipinski and Geert de Clercq; written by Augustin Turpin; edited by Blandine Hénault)
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