Bank of America just raised its EUR/USD forecast
Investing.com -- Credit Agricole SA (EPA:CAGR) on Thursday reported mixed Q2 2025 results with a 25% net profit beat primarily driven by lower credit costs, better tax outcomes, and a one-off gain from the deconsolidation of Victory Capital.
The French banking group achieved a return on tangible equity (ROTE) of 16.6% for the first half of 2025, maintaining a low cost-to-income ratio of 53.9%.
The CET1 capital ratio beat expectations by 10 basis points, reaching 11.9%, with the pro-forma ratio (including CACEIS minority interests) at 11.6%, which stands 290 basis points above regulatory requirements.
By division, French retail banking (LCL) outperformed expectations with a 19% beat on net profit, supported by stronger revenues from insurance activities and improved net interest margin. The net interest income at LCL reached €497 million, up 8% quarter-over-quarter.
International banking exceeded forecasts by 14%, with positive contributions from both Italian operations and other international retail banking units. CA Italia posted a 2% quarterly increase in net interest income to €433 million.
Consumer Finance was the underperformer, missing consensus estimates by 18% due to higher credit costs and lower contributions from equity affiliates. The division saw a slight deterioration in credit costs to 135 basis points, up 5 basis points from Q1, mainly in international activities.
Asset Gathering activities beat expectations by 21%, boosted by asset management (including the capital gain on Victory Capital) and insurance operations.
Assets under management at Amundi reached a new record of €2,267 billion, with inflows of €20.5 billion and positive market effects of €9.2 billion, partially offset by the Amundi US deconsolidation impact of -€9.7 billion.
The bank’s tangible book value per share increased to €16.1, up 4% year-over-year, with risk-weighted assets remaining flat quarter-over-quarter at €406 billion.Credit Agricole SA (EPA:CAGR)