Numbers beyond the estimates for the French banking giants Société Générale and Credit Agricole. The first institute announced today that it closed the first quarter of 2015 with profits of 868 million euros, more than four times the 169 million recorded in the same period last year, when the result was penalized by a heavy devaluation of assets in Russia. Analysts were expecting profits of 770 million.
As for revenues, they grew by 12%, to 6,35 billion, while the Common Equity Tier 1 ratio stood at 10,1%, unchanged compared to the previous three months. The numbers benefited from the positive result in investment banking and the reduction of losses in Russia (-91 million through the Rosbank branch).
Crédit Agricole instead, it closed the first quarter with a net profit up by 2,6%, at 784 million, while analysts' estimates did not go beyond 759 million. Turnover instead rose by 7,5%, to 4,36 billion, while the cost of risk decreased by 19,2%, to 477 million, and Common Equity Tier 1 stood at 10,2%, 120 basis points more than in the first three months of 2014.
Also in this case, the results are driven by investment banking profits (+22%), in addition to the weakening of the euro. However, the payment of 182 million euros to the new EU bailout fund weighed on the quarterly.
cariparma, the Italian subsidiary of Crédit Agricole, reported a 70% jump in profits to 39 million euros.
On the Paris Stock Exchange, one hour after the opening, the share of Société Générale dropped 2,12% (to 43,815 euros), while that of Crédit Agricole gained 0,3% (to 13,585).
