Crédit Agricole announces earnings jump while rival’s profits plummet

Credit Agricole (CA) announced a 55% year-on-year increase in first-quarter net profits on Friday.

Earnings came in at €1.9 billion, outperforming the €1.48 billion average predicted by analysts.

In the previous quarter, CA’s sales climbed 11% to €6.81 billion, also beating analysts’ expectation of €6.47 billion.

The cost of risk, meaning capital set aside to cover potential losses from loans, was €400 million, €105 million less than expected.

The lender said it now plans to meet its 2025 financial targets a year early, boosted by strong performances in its corporate and investment banking divisions.

This would include hitting an underlying net income target of more than €6 billion.

CA also aims to make a return on tangible equity – meaning its physical capital – of more than 12%.

Higher interest rates have allowed European banks to charge greater fees on loans, boosting profits.

However, not all lenders have fared as well as CA.

France’s third-biggest bank, Société Générale, announced on Friday a 22% year-on-year slide in first quarter net profit, which came in at €680 million.

This beat analysts’ estimate of €463 million, but is still unlikely to cheer investors.

Revenues in the quarter also surpassed forecasts but were down 0.4% year-on-year.

Under the leadership of CEO Slawomir Krupa, who took over nearly a year ago, the bank has embarked on a major cost-cutting programme.

SocGen announced that first quarter operating expenses came to €4.98 billion, down 1.5% compared to the same period last year.

A ray of hope for the lender lay in its equities trading division.

It recorded revenues of €870 million for the first three months of the year, up 3.1% year-on-year.