(News Bulletin 247) – The listed structure of the green bank published accounts above expectations for the third quarter.

The last French bank to publish its quarterly accounts, Crédit Agricole has once again clearly succeeded in its meeting with investors. The action of the listed structure of the cooperative bank is progressing among the strongest increases in the CAC 40, gaining 1.3% in the morning, after announcing quarterly results above expectations before the opening of the Paris market.

Enough to further fuel the progress of Crédit Agricole on the stock market, which at this stage offers a good 2023 vintage. Its action has appreciated by 18.95% since January 1 where its reference index (the CAC 40) posted gains of 7.9%.

Because after already convincing publications in the first quarter and then in the first half, the bank was once again up to the task for this autumn meeting.

“Very good results”

Between July and the end of September 2023, Crédit Agricole SA published solid accounts, supported by its investment bank and its specialized financial services division. Over the period, the green bank recorded a net profit up sharply by 33% over one year to 1.75 billion euros, outperforming the market consensus which expected a net result of 1.37 billion euros. euros over the period.

Net banking income, equivalent to bank turnover, stood at 6.34 billion euros, up 19% in data published over one year. Here too, the banking establishment clearly exceeds analysts’ expectations, set at 5.99 billion euros for this indicator.

In the third quarter, the green bank’s activity was notably driven by its “specialized financial services” division, whose revenues increased by +26.2% (+26.3% in published view). The revenues of this division were driven by the integration of CA Auto Bank, its subsidiary specializing in vehicle financing and leasing, as well as the resumption of the activities of ALD / LeasePlan (partially purchased by Crédit Agricole with Stellantis to Société Générale) this quarter.

The “large customers” division is not to be outdone and contributes to the growth of Crédit Agricole’s activity in the third quarter. Revenues from this division were up 17.4%, thanks to a very good performance from corporate and investment banking (+9.2%), which itself was supported by a jump of 25%, 6% of activities on rates, currencies and commodities (FICC).

These are “once again very good results”, welcomed Philippe Brassac, Managing Director of Crédit Agricole SA

A much better copy than Société Générale

Quoted by Reuters, JP Morgan analysts appreciated this “solid third quarter”. The financial intermediary highlights in particular lower-than-expected provisions and higher results in corporate and investment banking, particularly in market activities.

The quality of the proposed quarterly copy contrasts with that delivered by Société Générale at the end of last week. The Banque de la Défense published contrasting results, with net banking income lower than expected, weighed down by retail banking in France. A little earlier, it was BNP Paribas which disappointed investors not for the entirety of its quarterly performance, but for a few details, namely a lower performance of retail banking in France and Italy.

Crédit Agricole was not the only European bank to reveal its quarterly accounts, Commerzbank, its sister bank across the Rhine, also announced a net profit higher than expectations in the third quarter.

The German bank that was rescued by the German government saw its quarterly profits more than triple, to 684 million euros, driven by higher interest rates. The company took advantage of this quarterly update to raise its annual objectives, which are now set at 2.2 billion euros for net profit, and to unveil its roadmap for 2027. Commerzbank intends to achieve net profitability of funds equity of 11%, after 7.5% forecast for this year and a net profit of 3.4 billion euros by 2027.