Shares of Credit Agricole, the French bank, saw a significant increase on Friday following the release of its second-quarter earnings report. The bank’s record-high revenues contributed to the positive results.
Impressive Financial Performance
At 0821 GMT, shares of Credit Agricole were trading 5.9% higher at EUR11.83. According to a research note by RBC Capital Market analyst Anke Reingen, the bank delivered solid results, with its underlying net profit surpassing analysts’ expectations by 33%. This was largely driven by higher-than-anticipated revenue and effective cost controls.
Strong Profit Growth
Credit Agricole reported a net profit of 2.04 billion euros ($2.23 billion) for the second quarter, a significant increase from EUR1.64 billion in the previous year. The bank also experienced a 19% revenue growth, reaching EUR6.68 billion.
Record Revenues and Efficient Cost Control
Jefferies analysts Flora Bocahut and Theo Massing highlighted in a note that Credit Agricole achieved a record-breaking high in revenues and an all-time low in cost-to-income ratio. They further elaborated that the bank surpassed expectations in all profit and loss lines, with revenues exceeding consensus by 7% and costs coming in 5% lower than expected. Additionally, provisions were 10% lower than anticipated, leading to a pretax profit 27% higher than consensus.