The French bank Crédit Agricole recorded a decline in net profit of nearly 10% over one year in the third quarter, to all the same 2 billion euros and after a historic year 2021, according to the results published Thursday.
Over the first nine months of 2021, the bank recorded a net profit of more than six billion euros (-12.1% over one year), slightly less than the 8 billion of its rival BNP Paribas, but more than the 858 million from Socit Generale, boosted by the sale of its Russian subsidiary in the spring.
And compared to 2019, i.e. before the Covid-19 pandemic broke out, net profit is up around 20%.
Net banking income, equivalent to turnover for the sector, for its part showed in the third quarter a slight drop of 0.5%, to 8.9 billion euros.
Despite the very significant environmental shocks (…), the group is once again presenting very good levels of results, and the drop is explained by the record achieved in 2021, welcomed at a conference of press Philippe Brassac, CEO of Crdit Agricole SA, the group’s listed entity.
In detail, the regional mutuals suffered a more significant drop in their profits (-21.1% to 623 million euros), due in particular to the rise in the Livret A rate, which rose from 1% to 2% on August 1, and the increase by the European Central Bank in the cost of cheap and cheap loans granted to banks in recent years.
These effects were not completely offset by the very good performance of the different types of commissions, and in particular commissions on means of payment, noted Jrme Grivet, Deputy Chief Executive Officer.
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The cost of risk, ie the sums provisioned to deal with any unpaid debts on the loans granted, increased by more than 50%, to 636 million euros.
Over nine months, we could say that we have a risk that has risen to the level of the pre-Covid period, i.e. before stimulus packages and state-guaranteed loans to companies came to support activity, however. relativis M. Brassac.
In addition, SAS Rue de La Botie, the parent company of the listed entity and which is 100% owned by the regional mutuals, has announced its intention to acquire up to one billion euros in securities by the end of in the first half of 2023 without exceeding 65% participation. It currently owns around 55%.