Crédit Agricole’s third quarter profit beat expectations for corporate lending growth

Paris, November 10 (Reuters) – Credit Agricole SA (CAGR.PA) Joining French and European peers, it was driven primarily by corporate and consumer lending, offsetting the exit of asset manager Amundi and lower trading income.

Net income was €1.35 billion ($1.35 billion), down 3.6% from the prior-year quarter, but supported by one-off items such as the sale of the La Medical insurance business, above Refinitiv analyst research. Exceeded the average forecast of €1.17 billion. .

Bank-majority-owned Amundi posted net outflows of €12.9 billion in the third quarter last month. This was hit by weak markets and concerns over the economic outlook due to the war in Ukraine.

However, Crédit Agricole, like most European banks, took advantage of higher interest rates to increase corporate lending by 15.4% and consumer lending by 12.6%.

However, capital markets and investment banking revenues were down 5.7% in the fourth quarter, benefiting from market volatility and buoying competitors.

“Globally, we have a lower risk profile than our rivals, so we may benefit less from volatility,” said Xavier Musca, deputy CEO of Crédit Agricole.

The bank also said it is continuing negotiations with Italy’s Banco BPM SpA (Bamimi)Competing with French insurer AXA SA (AXAF.PA) It will sell non-life insurance products through a branch of Italy’s third-largest bank for a contract valued at around 300 million euros, according to people familiar with the matter.

In a separate statement, Crédit Agricole’s major shareholder, SAS La Boetie, said it was likely to purchase up to €1 billion worth of bank shares by the end of the first half of 2023, boosting the bank’s share price. rice field. The company said he would not increase its stake in Crédit Agricole beyond 65%.

($1 = 0.9996 Euro)

Reported by Matthieu Protard and Silvia Aloisi.Edited by Christopher Cushing

Our criteria: Thomson Reuters Trust Principles.

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