Crédit Agricole SA closes the French banking season in style

The last major French listed bank to present its accounts for the second quarter, Crdit Agricole SA has revealed a performance better than expected, like its competitors, BNP Paribas and Socit Gnrale. Net income group share increased by 0.4% to 1.976 billion euros, clearly exceeding the consensus of 1.18 billion euros. Revenues increased by 8.8% to 6.33 billion euros for operating expenses (excluding contribution to the Single Resolution Fund) up by 6.1%.

The market anticipated only 5.75 billion euros. In underlying data, their growth is 6.2% and 5.2% respectively, which represents a positive jaws effect of 1 point.

In addition to this positive jaws effect, the results of Crdit Agricole SA benefited from the 27.5% fall in the cost of risk to 203 million euros.

They were also supported by record activity at the Corporate and Investment Bank (BFI). Underlying revenue jumped 22% to 1.58 billion euros. Markets and investment banking in particular stood out (+32.1% to 814 million euros) in a context of high volatility and customer hedging needs. Within the latter, the FICC activities (rates, credit, foreign exchange and commodities) achieved a solid performance: +36.9%.

The listed subsidiary of the Crdit Agricole group ended the quarter with an improved equity ratio of 30 basis points, to 11.3%. It is 3.4 percentage points higher than the regulatory requirements.