The quarterly data of the French banks Société Générale and Crédit Agricole could not be more different.
The former reported a 13,3% decline in net income in the first quarter of the year, due to a significant depreciation of its assets in Russia. At March 31, the group's net profit amounted to 315 million euros.
The French Bank attributes this decline to the devaluation of the ruble, the slowdown in growth in Russia and the country's rising risk premium, linked to the ongoing tensions in Ukraine.
Crédit Agricole closed the first quarter with a 29,6% increase in net profit to 868 million euros, benefiting from cost cutting and the recovery of the Italian joint venture in consumer credit. The increase in profit takes into account, specifies the third largest French bank, non-recurring items and the sale of assets in Belgium.
Operating expenses decreased 1,2% in the quarter, while loan loss provisions decreased 20%. In terms of capital ratios, Tier 1 rose to 9% at the end of March from 8,5% in January.
Among the factors that supported the result for the period, the institute also mentions the good results of the joint venture with Banco Popolare Agos Ducato after the restructuring and capital injection carried out by the two partners.
Crédit Agricole has announced the finalization of the sale to Société Générale of its stake in the brokerage firm Newedge. It also reached an agreement to sell its 50% stake in Belgian bank Crelan.
