Credit Agricole, in a recent report, registered a significant growth in quarterly profit. This growth is partly due to improvements in the state of the economy which has made it possible for Credit Agricole to earmark less funds to cover defective loans.
This growth balances out the slip in shares brought on by the comparatively less impressive performance of the firm’s corporate and investment banking operations.
Additionally, several customers have been able to make their loan repayments due to a remarkable of government aids and supports released to the public to help cushion the effect of the pandemic on their personal economy. This has also made it possible for the for lenders to protect their profits and also reduce provisions.
Renowned as France’s second largest listed lender, Credit Agricole announced that its net income grew to 1.97 billion euros (US$2.33 billion) in the second quarter from 954 million euros the previous year.
Credit Agricole’s corporate and investment banking (CIB) operations did not perform so well as revenue slid 13.7%, brought on primarily by a 28.3% dip in fixed income, currency and commodities trading on lower volatility in the market.
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