French bank
The lender registered net income of €1.4bn in the second quarter of 2021, up sharply from a €1.2bn loss in the same period in the year before.
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The French bank’s strong performance was driven by improved activity levels in its retail banking operations as the global economic rebound from the Covid crisis increases demand for credit among households and businesses.
Revenue for the period climbed 18.2 per cent to €6.2bn, much higher than analysts’ expectations.
International retail banking & financial services registered a 17 per cent increase in revenues compared to the second quarter of 2020, underpinned by the excellent momentum of financial services, the bank said.
Oudéa pointed to the contribution that the release of loan-loss provisions has had on the French bank’s resurgence to profitability.
The bank’s cost of risk – its internal measure of loan-loss provisions – in the second quarter fell to €142m, down significantly from €1.2bn in the same period the year before.
After a more positive second quarter,
“Second quarter was marked by the strong revenue momentum, continued cost discipline and a very low cost of risk resulting from very few loan defaults” Oudéa added.
“The results for H1 2021 are the best for 5 years, illustrating the strength of the business model and the Group’s capacity to rebound.”
Read more: First-half profits double at
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© City AM, source