Credit Agricole SA

Latest Results (17.12.2024):

Revenue Growth

In the third quarter of 2024, Credit Agricole SA reported a revenue increase of +1.8%, driven by strong performance in the Asset Gathering division and the integration of Degroof Petercam. The Large Customers division also contributed significantly with high revenue levels across all business lines, including the integration of ISB. However, the International Retail Banking and Specialised Financial Services divisions experienced a slight decline in revenues due to lower interest rates.

Operating Expenses

Credit Agricole SA's underlying operating expenses rose by +5.5% in Q3 2024, reaching €5,556 million. This increase was attributed to scope effects, tax base effects, and investments in business line development. Consequently, the Group's underlying cost/income ratio increased moderately by +0.8 percentage points to 60.3% during the quarter.

Net Income

For the third quarter of 2024, Credit Agricole SA's underlying net income Group share was €2,100 million, marking a +1.5% increase compared to the same period in 2023. This growth was supported by a +2.0% rise in underlying net income before non-controlling interests, which reached €2,317 million.

Cost of Risk

The underlying cost of credit risk for Credit Agricole SA in Q3 2024 was -€801 million, reflecting a +15.6% year-on-year increase. This was primarily due to an increase in defaults in the corporate market and additional provisioning for specific corporate files. The cost of risk/outstandings reached 27 basis points on an annualized quarterly basis.

Outlook

Credit Agricole SA maintained its economic scenarios for the third quarter of 2024, with a favorable scenario projecting French GDP growth of +1.2% in 2024 and +1.5% in 2025, and an unfavorable scenario forecasting a contraction of -0.2% in 2024 and growth of +0.5% in 2025. The Group continues to focus on prudent risk management and business development to sustain its financial performance.