|Bid||12.27 x 0|
|Ask||12.28 x 0|
|Day's range||12.27 - 12.30|
|52-week range||4.01 - 12.38|
|Beta (5Y monthly)||2.64|
|PE ratio (TTM)||9.75|
|Earnings date||09 Feb 2021|
|Forward dividend & yield||0.23 (1.87%)|
|Ex-dividend date||26 Apr 2021|
|1y target est||0.11|
(Bloomberg) -- Credit Agricole SA’s profits jumped in the first quarter, as the bank joined European peers in posting a strong trading performance and lower-than-anticipated charges to cover potential loan losses.Net income rose 64% from a year ago to 1.05 billion euros ($1.27 billion), after Credit Agricole provided 384 million euros against the possibility of souring loans, below the 564.5 million euros estimated by analysts polled by Bloomberg. The bank had been expected to post net income of 729.1 million euros.The Paris-based lender’s capital markets and investment banking revenue rose 17% to 708 million euros, beating the highest analyst estimate. Credit Agricole’s asset gathering unit, which houses its asset and wealth management operations as well as its insurance business, saw revenues grow by a fifth to 1.58 billion euros, slightly above what analysts anticipated.Credit Agricole shares rose as much as 1.3% in early Paris trading on Friday and were trading 0.6% higher as of 9:17 a.m. local time.The results make Credit Agricole the latest beneficiary of a brightening pandemic outlook and busy markets, which have seen all the major European banks beat analyst expectations so far this earnings season.Europe’s banks set aside billions of euros last year to brace for an expected wave of defaults as large swathes of the economy were shut down to stem the spread of Covid-19. But massive relief from governments and central banks has shielded companies from the impact so far and many now expect the ultimate level of defaults to be lower than previously feared.“Unless the macroeconomic scenario changes dramatically, we are not going to need to book significant additional provisions on performing loans,” Chief Financial Officer Jerome Grivet said in an interview with Bloomberg TV on Friday.The need to provision against non performing loans, which was lower in the first quarter than last year, is not expected to pick up either as the bank doesn’t “see any sign of deterioration of credit quality of our counterparts,” Grivet said.“We expect the cost of risk across 2021 to be lower than the one we had globally to book last year”, he said.Under Chief Executive Officer Philippe Brassac, Credit Agricole has been betting on corporate banking and asset management to counter weak consumer margins, meaning the bank relies less than domestic peers on its trading business. Last year, the bank avoided the dividend-related equity trading hits that engulfed rivals like BNP Paribas SA and Societe Generale SA.The Paris-based lender’s corporate and investment banking division saw underlying revenues rise 13.6% to 1.37 billion euros. Revenue from fixed income products, which faltered last quarter, grew 13.5% year-on-year.Creval BuyLast month, Credit Agricole gained control of Italian bank Credito Valtellinese SpA in a bid to increase its presence in Italy. The bank overcame resistance from Creval’s board and some investors by sweetening its offer twice, with 90.9% of Creval shareholders tendering their shares.The successful bid doubles Credit Agricole’s market share in Lombardy, which includes Milan, and consolidates its position as the sixth-biggest retail bank in Italy.Amundi SA, Credit Agricole’s investment arm, last week reported its highest quarterly profit since the firm’s trading debut in 2015 as rising equity markets fueled an increase in fees. The firm saw assets under management rise to a record 1.76 trillion euros at the end of March, even as investors pulled a net 12.7 billion euros out of its funds.Other highlights from Credit Agricole’s earnings:Net revenue 5.49 billion euros; analyst estimate was 5.22 billion eurosCET1 12.7%; estimate was 12.67%French retail banking revenue 893 million euros; estimate was 899.1 million eurosInternational retail banking revenue 693 million euros; estimate was 666.7 million euros(Updates with shares in fourth paragraph, CFO comments)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Credit Agricole Italia secured majority support for a $1 billion takeover of rival bank Creval on Wednesday, after agreeing to pay the maximum price regardless of acceptance levels for its offer. A low take-up had threatened to thwart plans by France's second-largest bank Credit Agricole to cement its presence in Italy's consolidating banking sector, which is its biggest foreign market. Credit Agricole Italia had upped the bid price to 12.20 euros a share from an initial 10.50 euros, a level which Creval shares had been consistently trading above.
(Bloomberg) -- Credit Agricole SA raised its bid for Italian lender Credito Valtellinese SpA by about 120 million euros ($144 million), indicating that the French bank is determined to win over investors who’d rejected its previous offer.Credit Agricole boosted its offer to 12.20 euros a share from 10.50 euros, according to a statement late Wednesday. The new bid values Creval at about 856 million euros versus a previous bid of 737 million euros. Credit Agricole said that if it wins over investors holding 90% of the shares, it will pay an additional 0.30 euros a share.Italy’s economic outlook has improved and growth estimates have been revised up, so “we have deemed it appropriate to increase our offer to generate benefits for all stakeholders,“ Giampiero Maioli, head of Credit Agricole Italy, said in a statement. “This is our final offer.“In November, the Paris-based bank offered to buy Creval to build on its already extensive business in Italy and strengthen its position in the wealthy north of the country. Euro-area regulators are seeking to foster more merger and acquisition activity in the region, which is suffering from a fragmented banking market and the effects of long-term low interest rates.“The new price Credit Agricole is paying gives a fair valuation for the bank’s shareholders and I believe it is sufficient to lure previously skeptical investors,” said Stefano Girola, a portfolio manager at Alicanto Capital SGR in Milan.Wednesday’s sweetened offer followed requests by several shareholders, including the French tycoon Denis Dumont, Creval’s second-biggest investor, for a higher price. Investors with a combined control of almost a third of the shares had publicly opposed Credit Agricole’s offer as inadequate. Creval’s board has also said the initial offer was too low, while executives at the French bank had repeatedly said their offer was fair and that they didn’t intend to increase it.While the initial offer represented a 21% premium on the last closing price, the shares subsequently have risen much higher. The stock closed at 12.34 euros in Milan on Wednesday before the revised bid was made.Creval rose to 12.48 euros on Thursday trading as of 9:16 a.m. Credit Agricole declined 0.8% in Paris trading.Credit Agricole’s businesses in the country include retail, corporate and investment banking. It has expanded with acquisitions in asset management and retail banking. A successful bid for Creval would double its market share in Lombardy, and consolidate its role as the sixth-biggest retail bank in Italy, with 3 million clients.Ahead of the tender, the bank bought shares that take its holding to about 17%. The lender received authorization to increase its stake to up to 20%, a move that narrows the gap toward the 50% plus 1 share threshold set by the bank to consider the bid successful.The public offer is due to run through April 21.(Updates with Credit Agricole Italy CEO comments in third paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.