Credit Agricole beats Q2 profit forecasts as customers numbers grow

(Sharecast News) - Shares in Crédit Agricole rose on Friday after the French lender beat analysts' forecasts with its second-quarter results, which showed an unexpected gain in adjusted profits. The company reported net income attributable to shareholders of €2.05bn for the three months to 30 June, down 11.9% year-on-year on a reported basis, but 1.4% higher when excluding a one-off €304m gain recognised the previous year.

This was comfortably ahead of the €1.90bn expected by a consensus of analysts.

The top line also beat forecasts, with revenues rising 7.7% to €7.36bn, with the bank citing strong commercial activity across all business lines "with a very dynamic pace of new customer capture".

The group gained 580,000 new retail banking customers in the second quarter alone, including 420,000 in the domestic French market.

Meanwhile, retail banking on-balance sheet deposits rose 1.1% to €846bn, while outstanding loans increased 2.1% to €904bn.

The company also reported "highly dynamic activity" in the savings and insurance arms, while corporate and investment banking results were bolstered by a strong equity market, and assets servicing was boosted by market volatility.

"Crédit Agricole is publishing high results this quarter, with a very dynamic activity across all business lines and retail banking networks. These results demonstrate the strength and relevance of its diversified universal banking model," said chair Erica Vial.

The stock was nearly 3% higher at €19.33 by 1222 BST.