The accounts of Crédit Agricole, the French banking giant that controls Cariparma in Italy, are doing better than expected. Data for the second quarter were presented this morning in Paris, significantly better than analysts' forecasts, despite the group's strong exposure to Greece.
The April-June period was closed by Crédit Agricole with a net profit of 339 million euros, down 10,6% on an annual basis, after the group had to make provisions of 653 million due to the crisis in Greece, where CA controls the Emporiki bank. These provisions, however, were expected to amount to 850 million: at the end of July, the top management of the credit giant had put their hands forward, launching a profit warning for the second quarter. As indicated this morning, at the end of July Crédit Agricole could count on liquidity reserves of 120 billion euros, which is also an encouraging figure.
As far as Emporiki is concerned, however, CA's top management has admitted that they will not be able to bring their accounts back into balance in 2012 as promised. No new deadlines have been indicated. Things also went well for the Cariparma Crédit Agricole group, the Italian branch of the French giant, with a net profit of 120 million euros in the first half. This result, net of integration costs, amounting to 26 million, would register an increase of 14,5% on an annual basis. The performance of the Italian group was good, particularly in the second quarter of the year, despite an unfavorable economic context.
This morning on the Paris Stock Exchange, around 10 am, Crédit Agricole shares gained 6,17%. However, it remains down by more than 26% compared to a month ago.
