# Credit Agricole beats estimates on insurance, consumer finance Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-08-04 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Credit Agricole Q2 earnings surpass estimates on strong Meta Description: Credit Agricole SA, France's 2nd largest bank, reported strong results driven by insurance and consumer finance. Also acquiring Belgian wealth manager URL: https://financedigest.com/credit-agricole-beats-estimates-on-insurance-consumer-financehtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-08-04t050352z1lynxmpej73055rtroptp4creditagricole-agm-1736813696576-compressed.jpg) # Credit Agricole beats estimates on insurance, consumer finance By Mathieu Rosemain PARIS (Reuters) – Credit Agricole SA, France’s second-largest listed bank, reported better-than-expected quarterly earnings on Friday, driven by strong insurance and consumer finance performances. The listed entity of Credit Agricole Group, which is controlled by 39 French mutual banks, also said it had agreed to buy a majority stake in Belgian wealth manager Degroof Petercam for an undisclosed amount in a move that would increase the scope of its Indosuez Wealth Management division by around 50%. Credit Agricole’s second quarter net income rose 25% from a year earlier to 2.04 [billion euros](https://www.financedigest.com/axa-unilever-to-join-new-1-billion-euro-regenerative-agriculture-fund.html "AXA, Unilever to join new 1 billion euro regenerative agriculture fund") ($2.23 billion), above the 1.39 billion euro bank compiled average of analyst estimates. Quarterly [sales rose by 19% to 6.68 billion euros](https://www.financedigest.com/mexicos-femsa-launches-second-3-billion-euro-sale-of-heineken-shares.html "Mexico’s FEMSA launches second 3 billion euro sale of Heineken shares"), also beating the consensus of 5.9 billion euros for the period. “(It) reported a solid set of results … driven by higher-than-expected revenues and good [cost control,” Royal Bank of Canada said](https://www.financedigest.com/naturgys-profit-rises-on-lng-gains-soothing-shareholders-by-pietro-lombardi-madrid-reuters-spanish-power-utility-naturgy-reported-on-monday-an-88-jump-in-profit-for-the-first-six-months-of.html "Naturgy’s profit rises on LNG gains, soothing shareholders By Pietro Lombardi MADRID (Reuters) – Spanish power utility Naturgy reported on Monday an 88% jump in profit for the first six months of the year, boosted by strong earnings at its liquefied natural gas (LNG) business, which could help it to win over restive investors. Earlier this month, the company said it would increase its dividend floor through 2025 while trimming expected investment, as it sought to make rewarding shareholders a priority. Pleasing them has become a focus as Naturgy considers changes that could reshape the company and after arguments over the potential appointment of a chief executive. Naturgy’s first-half net profit jumped to 1.05 billion euros (.16 billion), boosted by its liquefied natural gas (LNG) business. Shares were down 0.2% in mid-morning trading, bucking deeper declines, in particular for Spain’s blue-chip banks and utilities after a general election on Sunday produced no clear winner. Renta 4 Banco analyst Angel Perez Llamazares said Naturgy performed better than expected, adding “cash flows also beat our expectation,” and debt fell more than expected. After natural gas prices hit record levels last year, Naturgy said a fall in procurement costs this year and hedging gains had boosed profits. In the first half of the year, the company “exceeded the objectives of operating efficiency, cash generation, investment materialisation and debt reduction,” Executive Chairman and CEO Francisco Reynes said. After rival Iberdrola named a separate CEO last year, Naturgy is the only large energy company in Spain to combine the roles of executive chairman and CEO. Earlier this month, the company raised the dividend floor to 1.40 euros a share, from 1.20 euros. Operating profit (earnings before interest, tax, depreciation and amortisation) is expected to reach 5.1 billion euros, compared with a previous guidance of 4.8 billion euros. It said it was targeting net profit of 1.8 billion euros in 2025. Naturgy also relaunched its plan to split regulated infrastructure operations and liberalised energy businesses into two listed companies. The project had been suspended after the Ukraine war disrupted energy markets and analysts are still sceptical. “We believe it is unlikely that Naturgy will be able to implement its asset split in the short term and it is also unlikely that a big change in the shareholding of the company would occur,” said RBC analyst Fernando Garcia. ( = 0.8986 euros) (Reporting by Pietro Lombardi, editing by Inti Landauro and Barbara Lewis)") in a note. Both sales and earnings reached record highs in the second quarter, the bank said, driven by the [insurance business and its so-called special financial](https://www.financedigest.com/revolutionising-finance-exploring-the-impact-of-omnichannel-insurance-on-customer-experience.html "Revolutionising Finance: Exploring the Impact of Omnichannel Insurance on Customer Experience") services (SFS) unit. Xavier Musca, head of [Credit Agricole’s investment bank](https://www.financedigest.com/credit-suisse-appoints-investment-banking-management-committee-memo.html "Credit Suisse appoints investment banking management committee -memo"), told reporters the lender aimed to own 80% of Degroof Petercam after the acquisition of a number of family-held stakes. Flemish family Cigrang would retain [20% under the plan](https://www.financedigest.com/jlr-parent-tata-motors-surges-nearly-20-on-tpg-fundraise-ev-plans.html "JLR parent Tata Motors surges nearly 20% on TPG fundraise, EV plans"), Musca said. Degroof Petercam has “client [assets” of 71 billion euros](https://www.financedigest.com/orpea-slides-to-annual-loss-of-4-billion-euros-on-asset-depreciation.html "Orpea slides to annual loss of 4 billion euros on asset depreciation"), Indosuez, which is a subsidiary of Credit Agricole, and Degroof said in a joint statement. This is roughly [half of the assets under management of 130 billion](https://www.financedigest.com/norways-wealth-fund-loses-174-billion-in-first-half-of-2022.html "Norway’s wealth fund loses 4 billion in first half of 2022") euros at end 2022 cited on Indosuez’s website. The deal, expected to close in 2024, will cut about 30 basis points from Credit Agricole SA’s Common Equity Tier 1 ratio (CET1) – a [key gauge](https://www.financedigest.com/japans-inflation-stays-above-bojs-target-key-gauge-hits-four-decade-high.html "Japan’s inflation stays above BOJ’s target, key gauge hits four-decade high") of financial strength – Indosuez said in a statement. Separately, Credit Agricole said SAS Rue La Boetie, the investment vehicle of Credit Agricole Group’s 39 regional banks, planned to further [invest 1 billion euros](https://www.financedigest.com/amazon-com-to-invest-over-1-billion-euros-in-european-electric-van-truck-fleet.html "Amazon.com to invest over 1 billion euros in European electric van, truck fleet") in the listed entity, increasing its stake from 60.2%. The investment vehicle has no intention to own more than 65% of Credit Agricole SA, it said in a separate statement. ($1 = 0.9131 euros) (Reporting by Mathieu Rosemain; Additional reporting by Piotr Lipinski; Editing by Ingrid Melander, Augustin Turpin and Alexander Smith) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---