The lender—which met previous key targets ahead of schedule—is seeking to increase net income to EUR 5 billion and boost its return on tangible equity, a key measure of profitability.
Monday 05, August 2019
Credit Agricole followed competitor Societe Generale in strengthening its capital buffers, even though slower investment banking activity weighed on second-quarter earnings, reported Bloomberg.
Philippe Brassac, the Chief Executive Officer of Credit Agricole, said that profit at the large clients business that houses the securities unit fell 20 per cent after the bank saw a continued drop in margins in a sluggish market.
Brassac is betting on corporate banking and asset management to bolster revenue and boost net income after unveiling a new strategic plan in June.
The CEO has reorganised the bank’s structure and sold less-strategic holdings over the past four years while pledging to secure more partnerships with other companies.
While the lender is less dependent than crosstown rivals BNP Paribas and Societe Generale on trading, the CEO boosted some targets while rivals have cut theirs. European banks are facing an extended era of low or negative interest rates and ever-rising capital requirements.
The lender posted EUR 5.15 billion ($5.7 billion) of revenue, slightly ahead of analyst estimates, after giving out more loans to homeowners and businesses.
The bank is one of the few in Europe that has also grown through deal-making. In April, it agreed to take over Banco Santander’s main custody and asset-servicing activities to scale up in a business dominated by US firms.