The profit for the period at France's third-largest listed bank fell to 1.03 billion euros, slightly above analysts' expectations of 996 million. Revenues declined by 1.8% to 6.97 billion euros, surpassing the consensus forecast of 6.78 billion.
The bank had to book a charge of 607 million euros to raise its stake in Banco Bpm to over 20%, a holding now accounted for using the equity method. This adjustment is non-recurring and does not involve any cash outflow.
Like other European lenders, Credit Agricole has benefited from higher interest rates and resilient loan demand, particularly in its international and corporate businesses, although retail margins in France remain under pressure.
Credit Agricole is also focused on protecting and strengthening its position in the Italian banking sector, amid a wave of consolidation in a market that is crucial for the group.
CEO Olivier Gavalda stated that the bank will seek greater influence in Banco Bpm. "We are requesting a position on the board that reflects our 20% stake (...) therefore a 20% representation on the Bpm board," Gavalda told reporters.
The new Banco Bpm bylaws, to be voted on at the shareholders' meeting on February 23, provide for strengthened minority representation on the board of directors, increasing the number of seats available to minorities from three to up to six, on a 15-member board.
(Translated by Claudio Leonel Piacquadio, editing by Andrea Mandala)
