Credit Agricole Releases Impressive Revenue Results For The Second Quarter

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Credit Agricole has announced its revenue results for the second quarter of 2022. The company realized a net income of €1.98 billion, joining other major rivals like Societe Generale and BNP Paribas to announce better-than-expected profits for the quarter.

According to Credit Agricole, the net income for the quarter is €800 million higher than the average estimate of analysts.

Investment Banking Takes The Lead

Although the bank recorded increased activities across several business lines, investment banking was the most attractive for investors and customers during the period.

According to the bank, its Corporate Banking and Investment Banking (CIB) division surged 22% to €1.58 billion. The bank stated that the performance is a reflection of “record commercial activities due to high customer hedging needs and high volatility.

On a similar note, Fixed income, currencies, and commodity (FICC) trading hit 37% while equity activities and “buoyant” investment increased by 12%. This growth comes when financial markets experienced one of the worst first halves in history.

The bank also stated that a notable drop in the cost of risk also aided in the increase in its profits. It means that the bank didn’t spend much on failing loans after provisions were set aside as compensation for the potential fallout f the war in Ukraine.

Credit Agricole Move To Expand Market

Credit Agricole recorded a disappointing reading in its capital ratios in the first quarter. But in June, the bank rolled out a strategic plan that targeted a net profit of over €6 billion by 2025. It is also considered a strong potential growth in Italy following its acquisition of smaller peer Credito Valtellinese. It has also acquired a 9.2% stake in Banco BPM (BAMI).

Recently, Banco BPM stated that it is considering a possible new insurance partnership French insurers AXA and Credit Agricole are both candidates.

While briefing the press, the management of /credit Agricole stated that they will make the “best offer”, but did not disclose how much is being proposed.

After the surprise announcement that Jacques Ripoll, the head of the Large Client division, was joining renewable energy group Eren, the group reshuffled its top management with some key appointments. It appointed Olivier Gavalda as head of the Paris region branch, and Jerome Grivet as the company’s Chief Financial Officer.