Analyst Note| Johann Scholtz, CFA |
No-moat Credit Agricole reported net attributable profits of EUR 2 billion for the second quarter of its 2021 fiscal year, more than double the EUR 954 million it reported for the second quarter of 2020 and 58% higher than the EUR 1.2 billion the consensus of analysts collected by Credit Agricole itself predicted. Revenue grew by 19% year on year, due to especially robust growth in the asset-gathering business of insurance and asset management. Revenue came in 9% ahead of consensus expectations. Operating cost growth was contained to 7%, leading to a 39% increase in preprovision profit. Loan-loss provisions declined by 67%, coming in 43% lower than consensus expectations. We maintain our EUR 15 per share fair value estimate and no-moat rating.