PARIS, November 10 (Reuters) – Crédit Agricole (CAGR.PA) joined its French and European rivals in reporting stronger-than-expected third-quarter profits, driven mainly by higher business lending and consumer credit revenue that more than offset cash withdrawals at its fund manager. Amundi assets.
Credit Agricole’s third-quarter net profit was 1.35 billion euros ($1.35 billion), down 3.6% from a year ago but above an average forecast of 1.17 billion in a Refinitiv analyst survey, also thanks to certain one-off items such as the sale of La Médicale’s insurance business.
Amundi, majority-owned by the bank, last month recorded net outflows of 12.9 billion euros in the third quarter, hurt by weak markets and worries about the economic outlook after the war in Ukraine.
But Crédit Agricole, like most European banks, was able to take advantage of the rise in interest rates to post a sharp increase in business loans, up 15.4%, and consumer credit, which is progressing. 12.6% over the quarter.
Revenues from capital markets and investment banking, which boosted rivals by taking advantage of market volatility, fell 5.7% in the quarter, however.
“Overall, we have a lower risk profile than our competitors, which means we could benefit less from volatility,” said Xavier Musca, deputy chief executive of Credit Agricole.
In a separate statement, SAS La Boétie, the holding company that is Crédit Agricole SA’s main shareholder, said it would buy up to €1 billion of bank shares by the end of the month. first half of 2023 in a move that should likely help share prices. The bank said it would not increase the holding company’s stake in Credit Agricole above 65%.
($1 = 0.9992 euros)
Report by Matthieu Protard and Silvia Aloisi
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