CRÉDIT AGRICOLE : Oddo BHF reiterates its recommendation
August 01, 2023 at 04:44 am EDT
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Crédit Agricole SA will publish its results for Q2 2023 on August 4.
Oddo BHF expects revenues of 5,891 ME, down 6.9% on a very high base in Q2 2022, with very strong revenues in Wholesale Banking. ' Our forecast is close to consensus (5,911 ME) '.
' By business line, we forecast: 1/ a 2.0% increase in asset gathering revenues, 2/ a 7.8% drop in revenues in French retail banking (LCL) 3/ a strong increase (+19.4%) in international retail banking revenues 4/ a 5.2% increase in revenues in specialized financial services; 5/ a 9.5% drop in revenues in Large Customers ' indicates Oddo BHF.
' We expect costs to fall by 4.3%, leading us to forecast gross operating income of 2,579 ME (-10.1%), marginally above consensus (2,561 ME) ' says Oddo BHF.
Overall, we forecast RO of 2,093 ME (-21.5%) in Q2 2023, very slightly above consensus (2,064 ME, -22.6%). We expect NI of 1,428 ME (-27.7%), also slightly above consensus (1,391 ME, -29.6%)' adds the analyst firm.
Oddo BHF reiterates its Outperform recommendation on the share, with a target price of E13.6.
The share's current valuation does not reflect the quality of the Group's business mix, and in particular its strong exposure to insurance and AM, which generate high profitability and retain attractive medium/long-term growth potential," explains the analyst.
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Crédit Agricole S.A. is one of the leading European banking groups and is the leading financial backer of the French economy. Net Banking Product breaks down by activity as follows:
- retail banking (30.1%): activities in France (Crédit Lyonnais) and abroad. Furthermore, the group is present in France via its 39 regional networks of branches (making it the biggest French banking network);
- finance, investment and market banking (30.1%): standard and specialized bank financing activities (financing for acquisitions, projects, aeronautical and maritime assets, etc.), stock operations, consulting in mergers and acquisitions, investment capital, etc.;
- asset management, insurance and private banking (25.9%);
- specialized financial services (13.9%): consumer loan, leasing and factoring (No. 1 in France).
At the end of 2023, Crédit Agricole S.A. managed EUR 835 billion in current deposits and EUR 516.3 billion in current credits.
NBP is distributed geographically as follows: France (46%), Italy (20%), European Union (14.3%), Europe (7.2%), North America (6%), Japan (1.3%), Asia and Oceania (3 .5%), Africa and Middle East (1.3%), Central America and South America (0.4%).
CRÉDIT AGRICOLE S.A. 
