By Mathieu Rosemain
PARIS (Reuters) – Credit score Agricole, France’s second-largest listed financial institution, posted better-than-expected quarterly outcomes on Wednesday, pushed by a powerful efficiency of its funding financial institution and retail actions.
Third-quarter internet revenue jumped 33% from a 12 months earlier to 1.75 billion euros ($1.87 billion), above the 1.37 billion-euro common of analyst estimates compiled by the corporate.
Group revenues for the interval got here in at 6.34 billion euros, up 19% from a 12 months earlier and likewise above expectations of 5.99 billion euros. The quantity put aside by the financial institution for failing loans was additionally beneath expectations, at 439 million euros, boosting its backside line.
The listed entity of Credit score Agricole Group, managed by 39 French mutual banks, stated revenues from its company and funding financial institution division rose by greater than 9% over the interval, propelled notably by a 25.6% bounce in buying and selling in fixed-income, currencies and commodities (FICC).
Credit score Agricole efficiency on that entrance was higher than that of its two French rivals, Societe Generale and BNP Paribas, in addition to of Deutsche Financial institution and Barclays, as much less unstable monetary markets dented funding banks’ earnings.
Gross sales from the French retail banking division remained nearly steady, edging up 0.4% within the third quarter, because it gained extra clients, stabilised internet curiosity margin and benefited from hedging contracts.
The web curiosity margin generated in Italy jumped by 48%, as larger rates of interest are extra shortly handed on to clients than in France, the place nearly all mortgages are signed on a hard and fast fee foundation and the place the federal government determines the remuneration of the nation’s hottest financial savings account, thus squeezing margins for banks.
Credit score Agricole controls Europe’s largest fund supervisor Amundi and not too long ago introduced its plan to amass Belgium’s wealth administration agency Degroof Petercam.
($1 = 0.9361 euros)
(Reporting by Mathieu Rosemain; Extra reporting by Augustin Turpin; Enhancing by Silvia Aloisi)
