Credit Agricole SA net profit tops estimates, sending shares higher

Investing.com -- Shares in Credit Agricole SA (EPA:CAGR) were higher in European trading on Friday after France's second-largest listed lender reported better-than-anticipated net profit in the first quarter.

Buoyed by strong corporate and investment banking (CIB) sales, the listed entity of Credit Agricole Group also said in a statement that it now expects to achieve its 2025 targets "a year ahead" of schedule.

In a note to clients, analysts at UBS said that Credit Agricole has benefitted from "tailwinds" like "business momentum, acquisitions, growth in mobility and the CIB" that have offset headwinds facing French retail trading margins.

Increased costs of deposits in France have hit retail operations in many of the country's banks, mitigating a boost provided by persistently elevated interest rates in the euro zone.

Even still, net profit in the January to March period edged up to 1.9 billion euros, ahead of analysts' estimates of 1.48 billion euros, according to forecasts compiled by the company and cited by Reuters. Sales jumped by 11% to 6.81 billion euros, also beating projections.

Dominique Lefebvre, Chairman of the Credit Agricole SA Board of Directors, described the results as "solid."