Credit Agricole Shares Fall After 1Q Net Profit Missed Expectations
May 15 2019 - 3:53AM
Dow Jones News
--Credit Agricole's first-quarter net profit fell 11%, missing
analysts' expectations
--Capital-markets revenue rose 1.7% on year to EUR472
million
--Its core Tier 1 ratio was stable at 11.5% in March
By Pietro Lombardi
Shares in Credit Agricole SA (ACA.FR) fell in morning trade
after the French bank's first quarter net profit fell 11%,
undershooting analysts' expectations.
The results came as the bank gears up for a new set of targets
in its medium-term plan, which is due to be presented in June,
after it achieved the main targets of its plan through 2019 a year
ahead of schedule.
Net profit for the period was 763 million euros ($856.3 million)
compared with EUR856 million a year earlier, France's
second-largest listed bank by assets said Wednesday.
On an underlying basis, which excludes exceptional items, net
profit rose 1% on year.
The net profit fell short of analysts' expectations of EUR794
million, according to a consensus forecast provided by FactSet.
Shares in the bank were trading 2.2% lower at 0720 GMT.
The profit miss was "mainly due to higher costs and higher
taxes, with revenues broadly in-line and better provisions," Citi
said.
"Results showed mixed trends, and we expect some pressure
initially until management clarify the various moving parts".
Revenue dropped 1.1% to EUR4.86 billion.
Credit Agricole's corporate-and-investment bank reported a 2.9%
increase in profit. Capital-markets revenue rose 1.7% on year to
EUR472 million.
Profit rose at the bank's insurance and asset-management
business, at its French and international retail-banking operations
and at its specialized financial-services division.
Credit Agricole's core Tier 1 ratio, a key measure of capital
strength, was stable at 11.5% in March.
"These performances demonstrate once again the relevance of our
strategy fully focused on organic growth, internal synergies and
consolidation of business lines," Chief Executive Philippe Brassac
said.
"These very good performances allow confidence in our future
medium-term plan that will be unveiled next June."
Write to Pietro Lombardi at pietro.lombardi@dowjones.com
(END) Dow Jones Newswires
May 15, 2019 03:38 ET (07:38 GMT)
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