Credit Agricole beats forecasts on strong investment bank boost

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Credit Agricole beats forecasts on strong investment bank boost

© Reuters. FILE PHOTO: A Credit Agricole logo?is reflected in a window of a bank office in Nantes, France, May 10, 2023. REUTERS/Stephane Mahe/File Photo), France's second-largest listed bank, posted better-than-expected quarterly results on Wednesday, driven by a strong performance of its investment bank and retail activities.

Group revenues for the period came in at 6.34 billion euros, up 19% from a year earlier and also above expectations of 5.99 billion euros. The amount set aside by the bank for failing loans was also below expectations, at 439 million euros, boosting its bottom line. The net interest margin generated in Italy jumped by 48%, as higher interest rates are more quickly passed on to customers than in France, where almost all mortgages are signed on a fixed rate basis and where the government determines the remuneration of the country's most popular savings account, thus squeezing margins for banks.

 

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