French Bank, Credit Agricole reported a 3.6% YoY fall in group net income to €2.9bn ($3bn) on revenues of €10.1bn ($10.3bn), up 8.8% YoY. The group’s arm Credit Agricole S.A. also posted an 8.8% revenue growth to €6.3bn ($6.3bn). Segment-wise, revenues in home loans grew 2.1% YoY, consumer finance rose by 9.0%, retail corporate lending increased by 19.8%, property and casualty insurance rose 10.2%, and personal protection revenues were higher by 7.8%. Corporate and investment banking (CIB) saw revenues rise by 22% YoY to €1.6bn ($1.6bn) on strong FICC revenue growth of 36.9%, and equities growth of 12.8%. While total managed assets for asset management, insurance, and wealth management rose 5.8% YoY to €2.4tn ($2.5tn), they fell 3.9% QoQ largely due to outflows of €107bn ($110bn) from market and forex-related effects. The lender added 1mn new customers in France, Italy, and Poland in H1 2022. Its cost of risk increased 30.8% YoY to €615mn ($627mn) on the back of provisioning for performing loans on all business lines to take into account the indirect impacts of the war, the rise in inflation, and anticipated effects on purchasing power. Cost-to-income ratio came down by 130bp to 58.2%. H1’s dividend accrual was €0.38 ($0.39)/share. For 2022, the bank has guided for a net income of more than €5bn ($5bn). The group’s CET1 ratio was at 17.5%, a 50bp up QoQ.
Credit Agricole’s USD 4.75% Perp was up 0.58 points 84.44, yielding 7.78%.