Of Special Interest
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- Newslink Trends-The Global Strategic Perspective
- Juniper Research says digital wallet users to exceed 4.4 billion by 2025, as mobile drives digital payments’ revolution
- Criminals exploit COVID-19 pandemic with rise in scams targeting victims online
- Equifax says Open Banking proving pivotal to pandemic lending
- Consumer confidence in banks, credit card providers and investments remain stable as demand supercharges digital finance says Toluna research
- Mintos says Europeans are starting to embrace investing
- US banks see IT modernisation as a way to improve customer experience
- Risk mitigation in global trade depends on digitisation-Andrew Raymond, CEO, Bolero International comments
- Juniper Research new study says the volume of B2B payments facilitated by non-banks will exceed 53 billion in 2022, from a COVID-related low of 38 billion in 2020
- CMA issues fifth publication over 3 years of the service quality league table of personal and business current account providers
- Barclays says scammers take advantage of COVID-19, cashing in on nations’ uncertainty
- S&P Global report says financial market infrastructure sector's earnings likely to cool off In second half
- Global banking market capitalisation slumps by over 30% amid pandemic says Buyshares research
- Digital wallet spend in Europe & North America to increase by 40% in 2019, finds study
- Juniper forecasts mobile money transactions will exceed 200 billion by 2024
- Banks can save the world from climate change, says former UN climate chief
- Research by NatWest reveals gender divide over attitudes to saving
- Europe’s big bank problem: too much capital is trapped in the US, says Scope
- Later-Life lending market set to almost double in the next 10 years, finds report
- Barclays/Cebr report challenges nation to think differently about wealth
- Fifth of UK investors looking to debt investment, new research reveals
- Regtech will play a more important role in PSD2, says Mitek
- Banks turn to Fintech partnerships to improve customer experience, finds Fraedom
- New industry code to tackle fraud must deliver, says Which?
- New TTF report highlights loss of trust in financial services
- Arxan highlights financial app vulnerability epidemic
- SAS asks whether banks really need to choose between operations and innovation
- Which? raises alarm as almost 1,700 free ATMs become fee-charging
- Financial wellness affects half of peoples’ mental or physical health, finds report
- Study finds traditional financial institutions embrace Fintech disruption
- Grass is greener for environmentally friendly businesses, finds Barclays
- Prospective homeowners would consider a 40-year mortgage to escape renting, finds Santander
- Millennials’ needs are changing the face of banking industry, says new report
- FS is putting consumer data at risk by failing to protect mobile apps, says Arxan
- A lack of belief in their ability holds 28% women back in work, says Cambridge & Counties
- ‘Which?’ reveals Scotland has lost over a third of its bank branches in eight years
- Next downturn unlikely to be as bad as 2008, according to S&P
- FCA reveals findings from first cryptoassets consumer research
- US consumers favour single mobile app for banking and payments
- Banks suffering major IT shutdowns every day, ‘Which?’ reveals
- The US will be a key offshore centre in 2019, says GlobalData
- Debit industry changes markedly in 10 years of the Debit Issuer Study
- UK's ‘Big Five’ face ‘too big to compete’ as small challengers secure stellar returns
- Banks as vulnerable now as before crash, says new study
- Leverage ratio a constant conundrum for European and US banks, says SNL
26th August 2011
Credit Agricole S.A. profit up - underlying trend not so good
Opinion
Crédit Agricole S.A. (the listed part of the total group) reported first half net income attributable to the group of €1,339m (£1,174m $1,933m ¥148.0bn Y12,346m) UP 58%. For Credit Agricole Group the Q2 net attributable was €881m (£773m $1,272m ¥97.4bn Y8,123m) DOWN 1.8% and for the half year €2,408m (£2,112m $3,475m ¥266.1bn Y22,203m) UP 30%.
What appears a good result bears closer analysis. The Group's full accounts were not available. From the summary income statement for Crédit Agricole S.A., shown below, it can be seen that NII was up less than a half percent and commission income was down 10%. The net banking income line is only saved from showing a major decline because of the fall in other expense and a net benefit from fair value changes. Despite the 'net banking' description below, the other expense fall was due primarily to a significant fall in insurance claims and nothing to do with banking.
The bank was successful in almost holding expenses unchanged and benefited from lower loan impairments costs. It also wrote off €359m goodwill relating to Emporiki as well as increasing Emporiki's loan loss provisions by €148m.
Crédit Agricole S.A. Half Year income summary 2011 2010 Change
€m €m %
Interest income 17,348 16,164 7
Interest expense -9,857 -8,710 13
Commissions (income) 5,296 5,476 -3
Commissions (expense) -2,906 -2,829 3
Financial instruments at fair value change 1,342 661 103
Financial assets available for sale - change 631 2,322 -73
Income from other activities 14,520 16,666 -13
Other expense -15,539 -19,457 -20
_________________________
NET BANKING 10,835 10,293 5
Operating expenses -6,258 -6,216 1
Depreciation and impairment of tangible & Intangibles -348 -351 -1
GROSS OPERATING INCOME 4,229 3,726 13
Cost of risk -1,947 -2,054 -5
________________________
OPERATING INCOME 2,282 1,672 36
Profit from equity interests 710 709 0
Net gains or losses on other assets -7 -159 -96
Change in value of goodwill -359 -418 -14
_______________________
PROFIT BEFORE TAX 2,626 1,804 46
Income taxes -1,107 -729 52
Net profit from discontinued operations during 13 7 86
________________________
NET PROFIT 1,532 1,082 42
Minority interests 193 233 -17
_______________________
NET INCOME attributed to group 1,339 849 58