Credit Agricole Q3 profit rises on investment banking strength

Credit Agricole, a French bank, announced a rise in third-quarter earnings on Friday. The bank credited its investment banking and asset management divisions for the stronger performance. Net income attributable to shareholders increased 17.9% year-on-year to 1.99 billion euros in the three months ending September. Adjusted for non-recurring items, including a capital gain from the initial public offering of its Indian joint venture, the profit grew 11%.

Revenue climbed 7.5% to 7.09 billion euros. Operating expenses rose by 2.4%, but the cost-to-income ratio improved, dropping by 2.8 percentage points to 55.4%. Corporate and investment banking revenue expanded 10.4% to 1.748 billion euros, driven by investment banking and financing activities. Asset management saw strong client inflows, with assets under management increasing 10.9% year-on-year.

However, the cost of risk rose 19.6% to 585 million euros due to higher provisions, and net income from specialized financial services dropped sharply amid a challenging automotive market. For the first nine months, net income attributable to shareholders grew 1% to 5.718 billion euros, and revenue rose 5.3%. The bank emphasized its continued European expansion, including the launch of a German universal bank and plans to acquire German lender IKB.