Crédit Agricole reported a remarkable 27% increase in net profit for Q4 2024, reaching €1.69 billion, exceeding analyst expectations. Revenue for the quarter was €7.1 billion, marking a 17% rise. The bank achieved record annual net income over €7.1 billion and plans to pay a €1.10 per share dividend. While its asset management and insurance divisions thrived, Crédit Agricole clarified it has no immediate acquisition plans despite growing liquidity in European banks.
Crédit Agricole’s Impressive Year-End Results
Crédit Agricole is set to reap the rewards of the growing demand from clients eager to engage in global markets, particularly evident in the final quarter of 2024. In a notable announcement, rival BNP Paribas surpassed expectations, but Crédit Agricole has also made headlines by reporting a substantial net profit increase of 27% for the three months ending in December. This figure reached an impressive €1.69 billion ($1.8 billion), well above the average analyst projection of €1.32 billion.
The bank’s revenue for this period hit €7.1 billion, marking a 17% increase and outpacing the average forecast of €6.53 billion. Such robust performance in the fourth quarter has enabled Crédit Agricole to proclaim record revenue and net income for the entire year, with net income exceeding €7.1 billion. Analysts from the Royal Bank of Canada commended this ‘solid set of results’ in their communications with clients. Following this news, Crédit Agricole’s stock rose by 1.2% in early Paris trading, outperforming the French benchmark index CAC 40.
Strategic Developments and Future Outlook
Crédit Agricole’s asset management subsidiary, Amundi, which stands as Europe’s largest fund manager, reported a 14.5% increase in sales year-over-year. Meanwhile, the investment banking division also saw sales rise by 7.7%, achieving a record €1.57 billion. Although sales from trading fixed-income securities, currencies, and commodities increased by 17%, they fell short of BNP’s performance and the 26% annual increase noted among Wall Street firms, according to Jefferies.
In addition, the group’s insurance segment experienced a remarkable 37% sales increase, largely driven by growth in managed assets. The creditor has also announced a proposed dividend of €1.10 per share, reflecting a 5% rise from the previous year.
Crédit Agricole disclosed that it met its objectives for 2025 a year ahead of schedule, including achieving a return on tangible equity exceeding 12%. While the bank has not set new targets for 2025, exceptional profits have bolstered liquidity among European banks, motivating some CEOs to pursue takeover opportunities, particularly in Italy—Crédit Agricole’s largest market outside France.
Despite speculation, outgoing CEO Philippe Brassac clarified that the French lender has no intentions of acquiring Banco BPM, the third-largest Italian bank currently facing an unsolicited bid from UniCredit. After recently increasing its stake in BPM to 15.1%, Brassac emphasized, “Our only motivation is to defend our own interests, we have no bias.” Barclays noted that Crédit Agricole’s primary focus remains on Italian development plans and the new medium-term plan objectives under incoming CEO Olivier Gavalda.
In a separate announcement, SAS Rue La Boetie, the controlling entity of Crédit Agricole, revealed plans to buy up to €500 million worth of Crédit Agricole shares by the end of the third quarter, currently holding a 62.76% stake in the bank.