Net profit for the second quarter of 2006 was E1.3 billion, up from E960 million in the same period last year. The company said that it experienced steady growth in retail banking, robust growth in asset management, and remarkable performance in corporate and investment banking.
Analysts generally agree that the investment banking performance was impressive. However, some have expressed reservations about the group’s retail banking performance, which, according to Reuters, has been undermined by a need to cut prices in order to win customers.
Despite reservations, the group is generally thought to have outperformed expectations.
Meanwhile, the planned merger between the Italian banks Banca Intesa and Sanpaolo IMI threatens to undermine Credit Agricole’s position in the Italian market. The French lender has an approximately 18% stake in Intesa and is keen to safeguard its interests.
Credit Agricole’s approval of the final (merger) project will be subject to reaching an agreement which safeguards and enhances the value of Credit Agricole’s strategic interests in the Italian market, said the company in a statement.
Speculation has also recently linked the company with an attempt to boost its presence in the Italian market by acquiring the Northern Italy-based lender Banca Lombarda.
