Analyst Note
| Johann Scholtz, CFA |No-moat Credit Agricole reported pretax profits of EUR 2.1 billion for the third quarter of 2021, a 27% year-on-year increase and 14% higher than the EUR 1.9 billion the consensus collected by Credit Agricole had penciled in for the quarter. Loan loss provisions came in 40% lower than expected, and this was the main driver of the earnings beat. The 56% year-on-year decline in loan loss provisions was also the main driver of earnings growth. Expenses grew at 9% year on year, outstripping revenue growth of 7%. We maintain our EUR 15 per share fair value estimate and our no-moat rating.