Crédit Agricole Q1 2020 Results Decline Due to Covid-19 Impact
Crédit Agricole Group reported a 31.6% year-on-year decrease in net income for the first quarter of 2020, attributing the decline to the impact of the Covid-19 pandemic, while revenue saw a slight increase.
Crédit Agricole Group announced its first-quarter 2020 results, with net income falling 31.6% to €981 million, while underlying revenues rose 0.7% to €8,378 million. The bank noted a strong start to the year across its business lines, though activity was impacted by the crisis in March.
Despite the challenging environment, loan outstandings increased, with retail loans growing 7% in France and Italy. Consumer finance and life insurance also showed positive momentum. However, the cost of risk surged to €930 million, a more than threefold increase from the previous year, driven primarily by provisioning on performing loans.
The bank maintained a strong solvency ratio, with its CET1 ratio at 15.5%, exceeding regulatory requirements. Crédit Agricole highlighted its mobilization efforts to support clients through the crisis, including processing €13.5 billion in state-guaranteed loans and granting loan moratoria to corporates.
Crédit Agricole also emphasized its social commitment, donating over €70 million to solidarity funds. The group is focused on supporting the economy and its clients during the ongoing crisis.