Credit Agricole 2Q Beat Expectations as Markets Revenue Jumps -- Update

   By Ed Frankl 
 

Credit Agricole SA said Thursday that profit and revenue beat expectations in the second quarter in its capital markets and investment banking business, despite macroeconomic uncertainties.

Net profit at the French bank came to 1.98 billion euros ($2.01 billion) in the three months to the end of June, ticking up on the EUR1.97 billion of the same period last year.

Revenue rose 8.8% to EUR6.33 billion, amid strong activity in capital markets and investment banking, where revenue rose 29% excluding foreign exchange impact, and at its wealth-management operations.

The results beat expectations of EUR1.26 billion for net profit and EUR5.64 billion for revenue, according to analysts' consensus provided by FactSet.

Credit Agricole said it reduced its exposure to Russia by around EUR400 million between March and June, though it didn't add extra provisions to the EUR584 million it set aside for the impact of the war in Ukraine in the first quarter.

Cost of risk, however, was EUR203 million in the period, around 20% down on the second quarter of 2021.

The Paris-based company also said it had robust activity at its home-loans business and consumer-finance operations.

Underlying revenue was also helped by the acquisition of Italian bank Creval and asset manager Lyxor, it said, both of which were completed in 2021.

Net inflows at its asset-management business came to EUR1.8 billion, despite what the company called unfavorable market conditions.

"In an opaque and uncertain environment, the Group continues to grow steadily, thanks to its universal customer-focused banking model," Chief Executive Philippe Brassac said.

The lender added it had taken on one million new customers in the year to in France, Italy and Poland.

Write to Ed Frankl at [e-mail]

(END) Dow Jones Newswires

August 04, 2022 01:50 ET (05:50 GMT)

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