PARIS--Crédit Agricole SA said Wednesday that net profit grew
modestly in the first-quarter, as strong earnings at its investment
bank and the benefits of a weaker euro were partly offset by a
higher contribution to Europe's new bailout fund.
The Paris-based lender, France's second-largest listed bank by
assets, said net profit rose 3% to EUR784 million ($878.13 million)
in the three months to the end of March, from EUR764 million a year
earlier. Revenue was up 8% at EUR4.36 billion from EUR4.06
billion.
Like many banks in the U.S. and Europe, Crédit Agricole's
earnings were lifted in the first quarter by volatile markets and
higher trading, despite waves of new regulation in Europe.
Crédit Agricole's investment bank posted a 22% jump in net
profit in the quarter to EUR320 million, boosted by its fixed
income business.
The group's insurance and asset management business reported an
11% increase in net profit to EUR402 million.
In France, Crédit Agricole's regional retail lenders contributed
EUR363 million to the bank's total net profit, compared with EUR357
million a year earlier.
In Italy, where the French bank owns local lender Cariparma, net
profit rose by 70% to EUR39 million, as the country slowly exits
one of its most prolonged recessions.
Crédit Agricole's core tier-one ratio, which compares
top-quality capital such as equity and retained earnings with
risk-weighted assets, stood at 10.2% at the end of March, down from
10.4% on Jan. 14.
The bank paid EUR182 million into the European Union's
resolution fund, which was set up this year to ensure enough
funding is available for lenders if they need to restructure or be
wound down, and is designed to shield taxpayers from footing the
bill for bank failures.
Rival French lender BNP Paribas SA said last week that
first-quarter net profit rose 18% to EUR1.65 billion in the three
months through March, buoyed by its investment bank and a weakening
euro.
Write to Noemie Bisserbe at noemie.bisserbe@wsj.com
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