--Credit Agricole's first-quarter net profit fell 11%, missing analysts' expectations

--Capital-markets revenue rose 1.7% on year to EUR472 million

--Its core Tier 1 ratio was stable at 11.5% in March

 
   By Pietro Lombardi 
 

Shares in Credit Agricole SA (ACA.FR) fell in morning trade after the French bank's first quarter net profit fell 11%, undershooting analysts' expectations.

The results came as the bank gears up for a new set of targets in its medium-term plan, which is due to be presented in June, after it achieved the main targets of its plan through 2019 a year ahead of schedule.

Net profit for the period was 763 million euros ($856.3 million) compared with EUR856 million a year earlier, France's second-largest listed bank by assets said Wednesday.

On an underlying basis, which excludes exceptional items, net profit rose 1% on year.

The net profit fell short of analysts' expectations of EUR794 million, according to a consensus forecast provided by FactSet.

Shares in the bank were trading 2.2% lower at 0720 GMT.

The profit miss was "mainly due to higher costs and higher taxes, with revenues broadly in-line and better provisions," Citi said.

"Results showed mixed trends, and we expect some pressure initially until management clarify the various moving parts".

Revenue dropped 1.1% to EUR4.86 billion.

Credit Agricole's corporate-and-investment bank reported a 2.9% increase in profit. Capital-markets revenue rose 1.7% on year to EUR472 million.

Profit rose at the bank's insurance and asset-management business, at its French and international retail-banking operations and at its specialized financial-services division.

Credit Agricole's core Tier 1 ratio, a key measure of capital strength, was stable at 11.5% in March.

"These performances demonstrate once again the relevance of our strategy fully focused on organic growth, internal synergies and consolidation of business lines," Chief Executive Philippe Brassac said.

"These very good performances allow confidence in our future medium-term plan that will be unveiled next June."

 

Write to Pietro Lombardi at pietro.lombardi@dowjones.com

 

(END) Dow Jones Newswires

May 15, 2019 03:38 ET (07:38 GMT)

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