Published by Global Banking & Finance Review®
Posted on February 4, 2026
3 min readLast updated: February 4, 2026
Add as preferred source on GoogleCredit Agricole's Q4 profit fell 39% due to a Banco BPM charge, higher costs, and car-leasing losses. The bank aims to strengthen its position in Italy.
By Mathieu Rosemain
PARIS, Feb 4 (Reuters) - Credit Agricole reported a 39% fall in fourth-quarter profit on Wednesday, hit by a one-off charge related to the French bank's increased stake in Italy's Banco BPM, rising costs and losses at its car-leasing business.
France's third-largest listed lender said net income dropped to 1.03 billion euros ($1.22 billion), narrowly above analyst expectations of 996 million euros. Revenue fell 1.8% to 6.97 billion euros, beating the 6.78 billion euro consensus.
The bank had to book a 607 million euro accounting charge after raising its stake in Banco BPM above 20%, triggering a change in how it accounts for the investment. The adjustment is non-recurring and does not involve any cash outflow.
Like several European lenders, Credit Agricole has benefited from higher interest rates and resilient loan demand, particularly in its international and corporate businesses, even as French retail margins have remained under pressure.
Credit Agricole is also focused on trying to protect and strengthen its position in Italy's banking industry amid a wave of consolidation in a market crucial for the lender.
CEO Olivier Gavalda stated that the bank would seek greater influence at BPM. "We demand to have a position on the board that equals our 20%... so 20% representation on BPM's board," Gavalda told reporters.
Banco BPM is set to strengthen minority shareholders' representation by doubling to six the maximum number of board seats they can secure, documents showed earlier this month.
INVESTMENT BANKERS UNDERPERFORM RIVALS
Credit Agricole's investment banking unit posted record fourth-quarter, though growth in its fixed income, currencies and commodities business was weaker than at Deutsche Bank and Wall Street rivals JPMorgan and Goldman Sachs.
Operating expenses rose 4.7% to 4.1 billion euros, exceeding analyst expectations of 3.9 billion euros. The increase was partly due to 65 million euros in restructuring costs in Italy aimed at boosting the bank's "digital dimension," Chief Financial Officer Clotilde L'Angevin said.
L'Angevin said the bank would eventually cut staff numbers in Italy by 500 to 11,500.
Credit Agricole's car-leasing joint venture with automaker Stellantis, Leasys, recorded a 111 million euro loss in the fourth quarter after writing down the value of secondhand cars.
Credit Agricole proposed a dividend of 1.13 euros per share for 2025, up 3% year-on-year and in line with expectations.
($1 = 0.8462 euros)
(Reporting by Mathieu Rosemain; Editing by Tommy Reggiori Wilkes)
Net income is the total profit of a company after all expenses, taxes, and costs have been deducted from total revenue. It is a key indicator of a company's profitability.
An accounting charge is an expense that a company records on its financial statements, which reduces its net income. It can be a one-time event or recurring.
Operating expenses are the costs required to run a business's core operations, excluding the cost of goods sold. They include rent, utilities, salaries, and other administrative expenses.
Investment banking is a division of banking that helps companies raise capital by underwriting or acting as an agent in issuing securities. It also provides advisory services for mergers and acquisitions.
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