Morningstar

France's Credit Agricole Profit Slides on Banco BPM Stake Consolidation

Provided by Dow Jones

By Elena Vardon 




  Credit Agricole S.A. posted a drop in fourth-quarter profit as an accounting charge linked to its stake in Italian peer Banco BPM overshadowed growth across its business lines. 



  The French lender on Wednesday reported net profit of 1.025 billion euros, equivalent to $1.21 billion, for the three months ended December, down 39% from the year-ago period but better than the 898.1 million euros estimated in a Visible Alpha poll. 



  Credit Agricole S.A. is the listed vehicle of the 39 French regional banks that make up Credit Agricole Group. Beyond its large footprint in France, it has built up a presence in Italy via acquisitions dating back three decades. Last year, it raised its stake in Banco BPM to 20.1% to protect its consumer credit and insurance agreements at a time when the Italian lender was targeted by UniCredit, a bid that the larger rival ultimately abandoned. 



  The first-time consolidation follows Credit Agricole's approval from the European Central Bank to cross the 20% "significant holding" threshold, allowing it to move the investment to equity-method accounting and resulting in a charge of 607 million euros in the quarter. The shift removes the bank's exposure to stock-market volatility and is expected to add roughly 100 million euros in recurring quarterly income. 





  Write to Elena Vardon at elena.vardon@wsj.com 





  (END) Dow Jones Newswires



  February 04, 2026 01:21 ET (06:21 GMT)


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