Credit Agricole 1Q Net Profit Rose; French Retail, Market Revenue Fall -- Earnings Review
15 Maggio 2018 - 2:47PM
Dow Jones News
By Pietro Lombardi
Credit Agricole SA (ACA.FR) Tuesday released its results for the
first quarter of the year. Here's what you need to know:
PROFIT: France's second-largest listed bank by assets reported a
net profit of 856 million euros ($1.02 billion) compared with
EUR845 million a year earlier. Analysts had expected a net profit
of 769 million euros, according to a consensus provided by
FactSet.
REVENUE: The bank reported revenue of EUR4.91 billion, up from
EUR4.70 billion in the same period last year. Analysts saw the
bank's revenue at about EUR4.97 billion, according to a
FactSet-provided consensus.
WHAT WE WATCHED
FRENCH RETAIL BANKING: The performance of its French retail
banking and corporate and investment banking operations weighed on
Credit Agricole results for the period. As expected, revenue at the
bank's French retail business fell 5.1%, while net profit decreased
24% to EUR106 million.
CORPORATE AND INVESTMENT BANK: Credit Agricole's corporate and
investment bank reported a 6.3% fall in revenue to EUR1.33 billion,
while net profit declined 32% to EUR206 million. Underlying
revenues in its market activities declined 24%, the bank said.
"This quarter wasn't very generous in revenues for the CIB
businesses. The year 2018 looks nothing like 2017, which was very
strong in the first few months, but looks a lot like 2016, which
began very weakly and then improved," said Jean-Yves Hocher, head
of major clients at Credit Agricole.
STOCK REACTION: The bank reported "a dull set of results,"
according to Kepler Cheuvreux. "There is so much 'deja vu' versus
the other two French banks that we believe that the market will not
care that much and will be reassured by: 1) the transparency of the
results with few one-offs; and 2) the very good capital numbers,"
it said.
At 1159 GMT shares in traded 2.1% higher at EUR13.70.
Write to Pietro Lombardi at pietro.lombardi@dowjones.com
(END) Dow Jones Newswires
May 15, 2018 08:32 ET (12:32 GMT)
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