Credit Agricole: Q1 stained by Russian provisions
(CercleFinance.com) - On Thursday Crédit Agricole SA reported Q1 results that are slightly above expectations, during which the green bank said it had opted for "prudent" provisioning for its exposure to Russia.
The listed subsidiary of the mutualist group said that it had posted a 19% drop in underlying net income, group share, to 756 million euros over the first three months of the year.
According to RBC analysts, the consensus was expecting net profit of 722 million euros, i.e. slightly less.
CASA said it had booked 389 million euros in provisions for its Russian exposure, plus a 195 million euro charge for equity risks in Ukraine.
However, Philippe Brassac, its CEO, stresses that the level of proven risks remains "low" and that the group has finally achieved a good first quarter, with dynamic momentum in all business lines.
However, RBC remains concerned about higher-than-expected costs announced by the bank and a lower-than-expected CET 1 capital ratio.
In Paris, the share is currently down over 2% following this publication.
Crédit Agricole plans to unveil its medium and long-term ambitions on 22 June.
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