Credit Agricole Earnings: Severe Weather Hits Results; but Remains on Track to Achieve Targets

Credit Agricole's fourth-quarter 2023 net profit declined year on year and quarter on quarter. Results also fell short of consensus estimates. Adverse weather conditions significantly hit its insurance operations, leading to a 47% year-on-year decline in revenue in its insurance division and depressing overall revenue growth. Certain charges Credit Agricole views as nonrecurring led to higher expenses. It remains on track to achieve 2025 growth and profitability targets. Our fair value estimate remains steady at EUR 14.50 per share and we retain our no moat rating.