Investing.com-- French bank Credit Agricole (EPA:CAGR) reported stronger third-quarter earnings on Friday as robust investment banking and asset management activity lifted revenue, while rising credit provisions and weakness in consumer finance weighed on performance.
Net income attributable rose 17.9% year-on-year to 1.99 billion euros ($2.3 billion) in the three months to September, the bank said on Friday. Adjusted for one-off items, including a capital gain linked to the initial public offering of its Indian joint venture SBI Funds Management (NSE:SBIA), profit increased 11%.
Revenue rose 7.5% to 7.09 billion euros. Operating expenses increased 2.4%, improving the cost-to-income ratio by 2.8 percentage points to 55.4%.
Corporate and investment banking revenue grew 10.4% to 1.748 billion euros, supported by investment banking and financing activities. Asset management benefited from strong client inflows, while assets under management across the bank's asset-gathering division rose 10.9% year-on-year.
However, the cost of risk increased 19.6% to 585 million euros, reflecting higher provisions, while net income from specialised financial services fell sharply amid an unfavourable automotive market.
For the first nine months, net income attributable to shareholders edged up 1% to 5.718 billion euros, while revenue increased 5.3%.
The bank highlighted continued European expansion, including the launch of its German universal bank and plans to acquire German lender IKB.
Original Article
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