Credit Agricole 4Q Net Profit Soars, Beating Expectations
14 Février 2019 - 07:36AM
Dow Jones News
By Pietro Lombardi
Credit Agricole SA's (ACA.FR) fourth-quarter net profit rose
substantially, supported by higher revenue and lower tax expense,
beating analysts' expectations.
Net profit for the period was 1.01 billion euros ($1.14 billion)
compared with EUR387 million a year earlier, the bank said
Thursday. In the final quarter of 2017 the results were hit by
exceptional charges related to tax.
Revenue for the quarter increased 4.3% on year to EUR4.85
billion while tax expense fell 68%.
The profit result beat analysts' expectations of EUR886 million,
according to a consensus forecast provided by FactSet.
On an underlying basis, which excludes exceptional items, net
profit rose almost 22%.
The results were achieved "despite a much less favorable
environment than in fourth quarter 2017 and in the first three
quarters of 2018, especially for activities related to capital
markets, and in particular for asset- and wealth-management and for
capital markets and investment banking," the bank said.
"These are the only business lines that saw their contribution
decline from fourth quarter 2017," it added.
Amundi's revenue for the quarter declined 18% on year while the
capital-markets and investment-banking operations reported a 29%
decline in revenue.
For the full year, the French bank reported a 21% increase in
net profit to EUR4.40 billion.
Credit Agricole's core Tier 1 ratio, a key measure of capital
strength, was stable at 11.5% in December.
"In 2018, Credit Agricole SA's business lines surpassed the main
objectives of the medium-term plan one year ahead of schedule,"
Chief Executive Philippe Brassac said.
The bank's medium-term plan was presented in 2016 and set
financial targets until 2019. Credit Agricole will present a new
plan through 2022 in June.
The French bank said it would pay a cash dividend of EUR0.69 per
share, a 9.5% increase from the previous year.
Write to Pietro Lombardi at pietro.lombardi@dowjones.com
(END) Dow Jones Newswires
February 14, 2019 01:21 ET (06:21 GMT)
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