Credit Agricole 3Q Net Profit Beat Expectations -- Earnings Review
November 04 2020 - 3:53AM
Dow Jones News
By Pietro Lombardi
Credit Agricole SA released third-quarter results on Wednesday.
Here is what you need to know.
NET PROFIT: Quarterly net profit dropped roughly 19% on year to
977 million euros ($1.15 billion), beating analysts' expectations
of EUR747 million, according to a consensus provided by
FactSet.
REVENUE: Revenue rose 2.4% to EUR5.15 billion.
WHAT WE WATCHED:
-INVESTMENT BANK: The French bank joined other European peers
reporting strong results from market operations. Credit Agricole's
fixed-income revenue grew almost 27%.
-PROVISIONS: The lender set aside EUR605 million for potential
loan losses, an increase of almost 81% from a year earlier but less
than in the second quarter. "Cost of risk was better than
expected," Citi says.
-CAPITAL: The bank's core Tier 1 ratio --a key measure of
capital strength--increased to 12.4% at the end of September from
12% in June. This was "significantly stronger than expected, driven
by stronger earnings and lower RWAs," Jefferies says, referring to
risk-weighted assets, a measure of a bank's assets weighted by how
risky they are.
Write to Pietro Lombardi at pietro.lombardi@dowjones.com;
@pietrolombard10
(END) Dow Jones Newswires
November 04, 2020 03:38 ET (08:38 GMT)
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