Credit Agricole backs guidance despite third-quarter profit fall

Credit Agricole SA reported favorable results across most business areas in the third quarter on Wednesday, but it was not enough to prevent a decline in both profit and income.

Credit Agricole backs guidance despite third-quarter profit fall

The Montrouge-based bank said net income dropped by 12% to €2.29 billion, down from €2.59 billion in the same period last year. Pretax profit fell 15% to €2.88 billion from €3.40 billion. Revenue edged down 1.5% to €9.21 billion, compared to €9.25 billion a year earlier. Despite these declines, the bank highlighted that the quarter was bolstered by "favorable" results across many of its business lines. French Retail Banking saw a 1.8% rise in underlying revenue, while the Asset Gathering division benefited from strong business momentum and the integration of Degroof Petercam. The Large Customers division also enjoyed high revenues across all of its sectors.

New customers number increases

During the quarter, the group added 482,000 new customers in retail banking, growing its customer base by 104,000. Specifically, Retail Banking in France gained 383,000 new customers, while International Retail Banking in Italy and Poland gained 99,000. As of September 30, retail banking deposits on the balance sheet totaled €830 billion, a 2.8% increase year-on-year in France and Italy. Outstanding loans reached €876 billion, up 0.4% year-on-year in both countries. In asset management, the firm saw solid inflows of €14.4 billion, excluding an €11.6 billion insurance mandate withdrawal. Medium- and long-term assets, excluding joint ventures, saw strong performance, and the commercial momentum within JVs was described as "solid." In the Savings and Retirement segment, gross inflows rose by 56% year-on-year, reaching €7.2 billion. The bank's CET1 capital ratio remained stable, increasing slightly to 17.4% at the end of September, compared to 17.3% at the end of June. Looking forward, Credit Agricole reaffirmed its target of €6 billion in net income for the year.