Credit Agricole 1Q Profits Dropped as Provisions Rose -- Earnings Review
May 06 2020 - 8:34AM
Dow Jones News
By Pietro Lombardi
Credit Agricole SA reported first-quarter results on Wednesday.
Here is what you need to know.
NET PROFIT: France's second-largest listed bank by assets posted
a 16% drop in quarterly net profit to 638 million euros ($693.3
million). Analysts had expected a net profit of EUR479 million,
according to a consensus forecast provided by FactSet.
REVENUE: Revenue grew 7.1% to EUR5.20 billion. Analysts had
forecast revenue of EUR4.97 billion.
WHAT WE WATCHED:
-PROVISIONS: The bank set aside EUR621 million to cover
potential soured loans, up from EUR225 million a year earlier.
-CAPITAL: Credit Agricole's core Tier 1 ratio, a key measure of
capital strength, was 11.4% at the end of March, from 12.1% in
December. While the cancellation of the dividend for last year
boosted the bank's capital position, capital in the quarter was hit
by the partial unwinding of the Switch guarantee mechanism, under
which Credit Agricole transfers part of the regulatory requirements
related to its insurance operations to the regional banks of the
group, paying in return a fixed fee.
Write to Pietro Lombardi at pietro.lombardi@dowjones.com
(END) Dow Jones Newswires
May 06, 2020 08:19 ET (12:19 GMT)
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