2023-05-10 05:23:35
Credit Agricole logo illustration
PARIS (Archyde.com) – Crédit Agricole SA on Wednesday reported better-than-expected results in the first quarter, driven by the fall in its cost of risk and trading activities boosted by market volatility.
The second French bank by market capitalization, following BNP Paribas, indicates in a press release that it has generated net profit multiplied by 2.1 to 1.23 billion euros over the past quarter, where analysts expected an average of 816 million euros. euros according to a consensus established by the group.
Over the January-March period, its revenues increased by nearly 10% while its cost of risk, which measures the level of provision for bad debts, was halved.
Market activities posted revenues up 36.8% to 941 million euros, supported by activities on rates, currencies and commodities (FICC) where the bank is doing better than its competitors such as BNP Paribas, Deutsche Bank or Goldman Sachs.
The bank underlines the “recovery of the primary credit market and the performance of hedging products”.
However, it expects a slowdown in trading in the second quarter with the drop in volatility.
“I think there will obviously be a form of slowdown. (…) With market volatility decreasing, the hedging needs of our customers are also decreasing,” said Xavier Musca, Deputy CEO of Crédit Agricole SA in charge of large clientele, during a press conference.
The bank confirmed its objectives for 2025.
(Report Mathieu Rosemain, French version Matthieu Protard, edited by Jean Terzian)
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