Reports
Profits Up At Crédit Agricole's Private Banking Business
Paris-listed Crédit Agricole reported an increase in private banking net income of 42.4 per cent year-on-year for the first quarter of this year, fuelled by growth in net banking income, which was up 10.1 per cent year-on-year and 4.0 per cent quarter-on-quarter.
The bank said that its private banking profits benefited from the continued market upturn, which generated a favourable impact on commissions and fee income.
The bank did not specify an absolute number for its private banking income in its press information and was not available for clarification when contacted by WealthBriefing. It did, however, offer absolute numbers for the combined business line of asset management, insurance and private banking.
Crédit Agricole said that during the first quarter this business line was bolstered by the external growth transactions initiated in 2009, the creation of Amundi and the integration of HSBC France’s assets as of 1 January, as well as the takeover of Caceis in mid-2009.
At the end of the first quarter 2010, the business line had assets under management of €1.04 trillion ($1.31 trillion). Meanwhile, net banking income was at €1.18 billion. This represents an increase of 54.1 per cent year-on-year and 13.1 per cent compared to the previous quarter. The net income - group share was €349 million, up 43.3 per cent year-on-year, but down 3.4 per cent compared to the previous quarter.
Assets under management in private banking were €117.5 billion at the end of the quarter, up from the previous quarter’s €115.0 billion. This represents an increase of AuM in private banking of 2.2 per cent.
New inflows in private banking, however, fell by €100 million. The bank said they were positive in France but slowed in other countries.
The overall results of Crédit Agricole Group, which includes Crédit Agricole SA and all the regional banks, saw a net income of €949 million, in increase by a factor of 2.2 year-on-year.
Net banking income was €8.34 billion in the first quarter of 2010, up 15.8 per cent over the past year.
Net income fell by 0.5 per cent compared to the last quarter of 2009 to €1.06 billion.
