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Credit Agricole’s profits fall 15% to €1.22 bn in the second quarter

Credit Agricole profit

A weak performance from its corporate and investment unit is the reason behind the profit fall

Credit Agricole has announced that its profits fell in the second quarter by 15 percent to €1.22 billion, when compared to the same period last year. Credit Agricole, which is France’s second-largest bank in terms of market capitalisation, attributed the fall in profit to a weak performance at its corporate and investment unit.

Its revenues were also down by 0.4 percent to €5.15 billion when compared to the same quarter last year. The bank’s corporate and investment banking unit’s net profit fell 22 percent to €460 million from €589 million.

Speaking about Credit Agricole’s second quarter net profit, Phillippe Brassac, the bank’s chief executive told the media that, “Credit Agricole once again delivered a very high level of financial results, particularly illustrated by the 11 percent return on tangible equity ratio.” “The increase in Credit Agricole’s core equity tier one ratio this quarter further secures our dividend policy,” he added. 

According to reports, its core equity tier one ratio came in at 11.6 percent, 10 basis points above the last quarter and above its 11 percent target. French retail revenues increased to €886 million from €875 million in 2018.

Recently, the bank’s capital increase reserved for employees was successfully completed. The subscription period ran from June 21 to July 3, 2019. According to reports, 20,500 of the bank’s employees from France and 18 other countries subscribed for a total amount of €150.9 million.

The bank offered a 20 percent discount on subscription prices to its employees. The capital increase created 18,251,556 new shares, bringing the total number of shares to 2,884,688,712.

Earlier in, Credit Agricole and Santander signed a memorandum of understanding (MoU) with a view to combining their custody and asset servicing operations.

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