(News Bulletin 247) – The listed structure of the green bank announced a decline in its net profit for the third quarter, and revealed contrasting performances in its various businesses. Credit Agricole SA nevertheless says it is well on its way to achieving its financial objectives initially set for 2025 this year.

Last week, Société Générale delivered performances above expectations while the performance by BNP Paribas was much more mixed. All that was missing was Crédit Agricole SA to complete the picture, since it is the last French bank to publish its quarterly accounts. And to the great dismay of investors, Crédit Agricole SA clearly missed its fall meeting.

The third quarter accounts were notably marked by a decline in net profit and less vibrant activity in retail banking in France.

The action of the bank’s listed structure shows the biggest drop in the CAC 40, dropping 5% in the morning, a drop which contrasts with a Parisian market which rose sharply after the almost certain victory of Donald Trump in the American presidential election.

Between July and the end of September 2024, the green bank recorded a net result down 4.7% over one year to 1.67 billion euros, but which exceeds the market consensus which expected a net result of 1 .58 billion euros over the period.

The group suffered from an unfavorable base effect. The bank recalls that it benefited last year from favorable non-recurring elements linked to the reversal of “housing savings” provisions.

A “record” performance for the BFI

Crédit Agricole SA’s net banking income, equivalent to bank turnover, stood at 6.49 billion euros, up 2.3% in published data over one year. The banking establishment did less than analysts’ expectations, placed at 6.56 billion euros for this indicator.

“Crédit Agricole presented solid results for the third quarter, largely in line with the pre-tax consensus,” explains Royal Bank of Canada while highlighting, nevertheless, “mixed trends in the different divisions”.

In detail, the corporate and investment bank stood out by recording this summer the “best third quarter, and the best cumulative result since the start of the year both in revenue and in results”, according to the group. The market and investment bank thus achieved growth of 8.2% in its underlying revenues to 1.528 billion euros, driven by an increase in revenues from the financing bank (+7.2%) and also by the dynamics of the FICC division (+6.2%) i.e. fixed rate products such as currencies, raw materials and bonds.

As for retail banking in France, which includes the activities of the LCL brand, revenues fell by 1.8% in the third quarter. Excluding the base effect linked to the resumption of “housing savings” provisions made in the third quarter of 2023, they would have increased by 3.7% over one year, “driven both by the net interest margin and the commissions,” explains the group.

On the insurance side, net banking income contracted by 1.2% year-on-year to reach 635 million euros, which can be explained in particular by the higher trend in claims for damage in the third quarter. 2024 in particular on crop insurance

“We expected insurance revenues to be a strong point of CASA’s third quarter results. This was not the case,” says Jefferies. “Similarly, we expected consumer credit revenues to improve more quickly, linked to better margins and lower rates,” continues Jefferies.

An indicator followed by the market and analysts, the CET 1 solvency ratio is, however, in line with the consensus noted by UBS, standing at 11.70%.

The listed entity of the Crédit Agricole group has indicated that it is well on its way to achieving its 2025 financial objectives one year in advance, with an expected underlying group net profit of more than six billion euros in 2024.

Alongside this publication, Crédit Agricole indicated that it had completed the acquisition of Nexity Property Management, a Nexity subsidiary specializing in the management of tertiary, residential and commercial assets. This operation was announced at the end of July and aims to reduce Nexity’s debt.