Credit Agricole (CAGR.PA)on Thursday reported a doubling in second-quarter profit, as an improving economy prompted it to set aside less money for bad loans, but the French bank’s shares fell as its performance lagged rivals in corporate and investment banking.
Unprecedented government support across Europe has helped borrowers keep up repayments despite the problems caused by the health crisis, allowing banks to shield profits and lower bad debt provisions.
Credit Agricole, France’s second-largest listed bank, said its net income rose to 1.97 billion euros ($2.33 billion) in the second quarter from 954 million euros a year earlier.
Its cost of risk – a reflection of provisions against loan loss – was down by 66.8%, while revenue rose 18.8%.
However, the corporate and investment banking (CIB) business was a sore spot as revenue fell 13.7% in the quarter, led by a 28.3% drop in fixed income, currency and commodities trading on lower volatility in the market.