Four of the largest French banks. (© BNP Paribas / Credit Agricole / Natixis / Societe Generale)
The three major listed French banks posted quarterly performances in dispersed order. Scissor effects, evolution of risk, Russian-Ukrainian war, increased contribution to European banking solidity, etc. How to take advantage of good and bad surprises from CAC 40 financials?
It is rare for CAC 40 bankers to post divergent quarterly performances. The accounts unveiled last week by BNP Paribas, Crédit Agricole and Société Générale are however part of it.
While BNP Paribas had opened the ball with a very good net profit, at 2.1 billion euros, up 19.2%, Société Générale and Crédit Agricole each surprised in their own way.
Societe Generale generated net income of 842 million euros, stable from one year to the next (+3.2%). However, many investors expected a loss this quarter after the decision, announced on April 11, to sell its subsidiary Rosbank to the Russian group Interros. The bank assessed the loss caused by this withdrawal at 3.1 billion euros. But Societe Generale will wait for the completion of the operation “in the coming weeks” to register it in its next accounts.
Crédit Agricole also surprised with a net profit of 552 million euros, halved (-47.5%) and below expectations. A disappointment put on the account of a massive effort of provisions and a revival of investments. Several salient points emerge from these quarterly accounts.
Revenues are growing
The first point is cause for satisfaction. French banks’ revenue growth is at