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Crédit Agricole Q4 profit misses expectations as rising setup costs offset asset management gains

Crédit Agricole Q4 profit misses expectations as rising setup costs offset asset management gains

格隆汇格隆汇2026/02/04 06:11
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Glonghui, February 4th|Crédit Agricole's fourth-quarter profit failed to meet analysts' expectations due to rising costs from restructuring its Italian business, while the bank also set aside more funds to cover bad loans and other risks. The bank's operating expenses rose by 4.7% to 4.1 billion euros, higher than analysts' expectations of 3.9 billion euros, mainly due to restructuring costs and the impact of the Italian deposit guarantee fund. In addition, provisions of 629 million euros also exceeded expectations, including funds reserved for legal risks related to UK auto loans and the recovery plan for Italy's Banca Progetto. These successive negative factors offset the strong performance of the asset management business and highlighted the challenges faced by CEO Olivier Gavalda as he emphasizes growth in overseas markets. Amid the wave of mergers and acquisitions sweeping through Italy, its second-largest market, Crédit Agricole has increased its stake in Banco to over 20%. The first-time consolidation of this stake led to a reduction of 607 million euros in fourth-quarter earnings, but it is expected to contribute about 100 million euros in recurring earnings per quarter in the future.
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