Credit Agricole 2Q Net Profit Jumps on Lower Costs, Strong Retail Banking
03 Août 2017 - 7:29AM
Dow Jones News
By Noemie Bisserbe
PARIS--French lender Credit Agricole SA (ACA.FR) reported
Thursday an unexpected jump in second-quarter net profit, boosted
by lower costs and a strong retail banking business.
The Paris-based lender, France's second-largest listed bank by
assets, said net profit rose to 1.35 billion euros ($1.6 billion)
from EUR1.16 billion a year earlier. That beat analysts'
expectations for a profit of EUR995.5 million, according to data
provider FactSet.
Revenue was, however, down 1% at EUR4.71 billion. In the
year-earlier quarter, the sale of its shares in Visa Europe gave
Credit Agricole a gain of EUR328 million.
The bank's second-quarter earnings highlight a pickup in the
eurozone economy after years of crisis and a slow recovery.
Net profit at its retail lender LCL more than doubled to EUR186
million from EUR82 million a year ago, while its international
retail-banking business posted a 5% increase in net profit to EUR81
million.
Credit Agricole's corporate and investment bank also reported a
19% increase in net profit to EUR431 million, driven mainly by its
fixed income business.
Its insurance and asset-management business reported a 12%
increase in net profit to EUR466 million, while net profit for its
specialized financial-services business rose 22% to EUR188
million.
Strong earnings this quarter helped increase the bank's capital
buffers. Credit Agricole's core Tier One ratio, which compares
top-quality capital such as equity and retained earnings with
risk-weighted assets, stood at 12.4% in June, compared with 11.9%
in March.
The bank's leverage ratio, which measures capital held by the
bank against its total assets, was stable at 4.7% in June.
-- Write to Noemie Bisserbe at noemie.bisserbe@wsj.com
(END) Dow Jones Newswires
August 03, 2017 01:14 ET (05:14 GMT)
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