Crédit Mutuel recorded record net profit, at 4.57 billion euros (+8.4% year-on-year using comparable accounting standards) in 2023, supported by its commercial momentum and despite an increase in corporate defaults.
We have a net new historic result, welcomed the general director of the Confédération nationale du Crdit Mutuel (CNCM) Isabelle Ferrand, during a press conference.
Crdit Mutuel’s 2023 net profit is thus behind BNP Paribas and Crdit Agricole, but ahead of BPCE and Socit Générale.
Crdit Agricole: profits soar by more than 20% in the third quarter
Growth in the number of customers of 3.4%
This performance can be explained by three essential factors, according to the group: commercial dynamicswith a growth in the number of customers of 3.4% over a year, operational efficiency and use of technology.
The CNCM is the central body of the large Crdit Mutuel family, which brings together, among others, the two long-estranged brothers, Crdit Mutuel Alliance fédérale (14 regional banks out of 18 and the CIC, among others) and Crdit Mutuel Arka (2nd federation regional and Fortuneo, among others).
Net banking income (NBI), equivalent to turnover for the sector, is almost stable at 18.7 billion euros.
Crdit Mutuel insisted on its financial solidity, highlighting its core capital ratio (CET1), a key indicator which measures the capacity to overcome a possible crisis, 19.2% at the end of 2023.
The cost of risk (the sums set aside to deal with possible unpaid debts on loans granted) jumped by 46.6%, to 1.42 billion euros, reflecting the return to a pre-Covid level of borrower defaults with the end of massive aid schemes, explains the banking establishment.
There is damage, admitted Ms. Ferrand. The group also has before it a renewal of its governance after the surprise announcement last week of the upcoming departure of Nicolas Théry, current president and also president of the Federal Alliance.
The Crdit Mutuel group has 84,600 employees, 20,000 mutual members and 37.8 million individual, professional and business customers in France and Europe.
Crdit Mutuel Arka: the adverse economic context weighs down 2023 profit
Reproduction forbidden.