Credit Agricole Q4 profits fall on Banco BPM charge
By Josh White
Date: Wednesday 04 Feb 2026
(Sharecast News) - Crédit Agricole shares were in the red on Wednesday after a sharp drop in fourth-quarter profit, as a one-off accounting charge linked to its increased stake in Italy's Banco BPM overshadowed record revenues and solid underlying business momentum.
The French lender said fourth-quarter net income fell 39% year on year to around €1bn, slightly above market expectations, after booking a €607m non-cash charge triggered by the first-time consolidation of its Banco BPM holding above the 20% threshold.
Revenues in the quarter slipped 1.8% to €6.97bn, but exceeded forecasts, while operating expenses rose 4.7% to €4.1bn, partly reflecting restructuring costs in Italy and higher provisions.
For the full year, Crédit Agricole posted net profit of just over €7bn at Crédit Agricole S.A. and €8.75bn at group level, supported by record revenues of €28.1bn and a return on tangible equity of 13.5%.
The bank said strong performances across all business lines helped absorb an additional €147m corporate income tax charge at the listed entity level.
It said its cost of risk remained broadly stable at 35 basis points for Crédit Agricole S.A., while the non-performing loan ratio held at 2.4%.
Business momentum remained solid across divisions.
Retail banking in France recovered, with home loan production up 21%, while international and corporate lending activity stayed strong.
Insurance delivered record annual revenues and net inflows, and asset management posted high inflows, supported by growth at Amundi.
Corporate and investment banking reported record revenues for both the quarter and the year, with fixed income, currencies and commodities trading performing particularly well.
The Banco BPM consolidation weighed on quarterly results but was expected to provide a longer-term earnings uplift.
Crédit Agricole said the stake should contribute around €100m per quarter in recurring income from 2026.
Chief executive Olivier Gavalda said the group would seek board representation in line with its 20% holding as it strengthens its position in the Italian market, which it had expanded through acquisitions over the past three decades.
Elsewhere, losses at Leasys, the car-leasing joint venture with Stellantis, also hit quarterly performance after a €111m write-down on used car values.
Credit provisions increased as repayment conditions became more uncertain, while operating costs rose amid restructuring and digital investment.
Despite the mixed quarterly picture, the board proposed a dividend of €1.13 per share for 2025, up 3% on the previous year, signalling confidence that the Banco BPM impact was temporary.
The group ended the year with strong capital buffers, with phased-in CET1 ratios of 17.4% at group level and 11.8% for Crédit Agricole S.A., and said it had already completed 32% of its 2026 refinancing programme in January.
"With this rolling start, 2026 will mark the realisation of several strategic initiatives, such as the deployment of the universal bank in Germany and the acceleration of our development in Asia," Gavalda said.
At 1145 CET (1045 GMT), shares in Credit Agricole were down 2.72% in Paris at €18.24.
Reporting by Josh White for Sharecast.com.
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