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Net income came in at 1.35 billion euros ($1.35 billion), down 3.6% from a year earlier but above a 1.17 billion euro average forecast in a Refinitiv analyst poll, helped by one-off items such as the sale of the La Medicale insurance business.
Amundi, majority owned by the bank, last month posted net outflows of 12.9 billion euros in the third quarter, hurt by weak markets and concern about the economic outlook due to the war in Ukraine.
But Credit Agricole (OTC:CRARY), like most European banks, managed to take advantage of rising interest rates to post a strong increase in corporate loans, up by 15.4%, and consumer finance, which rose 12.6%.
However, capital markets and investment banking revenue, which have boosted rivals as they benefited from market volatility, fell by 5.7% in the quarter.
“Globally we have a lower risk profile than rivals, which means we may profit less from volatility,” said Credit Agricole Deputy Chief Executive Xavier Musca.
The bank also said it was continuing negotiations with Italy’s Banco BPM SpA. It is competing with French insurer AXA SA (EPA:AXAF) to distribute non-life products through branches of Italy’s third-largest bank in a deal worth around 300 million euros, people familiar with the matter have said.
In a separate statement, SAS La Boetie, the main shareholder of Credit Agricole, said it would buy up to 1 billion euros worth of the bank’s shares by the end of the first half of 2023, likely pushing up the bank’s share price. It said it would not increase its stake in Credit Agricole beyond 65%.
($1 = 0.9996 euros)
