The Strategist

Credit Agricole, Commerzbank report profit growth in Q1 2018

05/15/2018 - 12:51

The first quarter of this year turned out to be quite profitable for two banking giants from Europe.

The net profit of the second largest German bank, Commerzbank AG, attributable to shareholders in the first quarter of 2018, increased by 9.2% compared to the same period last year, up to € 250 million, according to the financial institution.

Profit before taxes and operating profit amounted to € 289 million, which is 14.1% less in annual terms. Earnings per share were € 0.2 versus € 0.18 in the first quarter of 2017. Net interest income decreased by 0.4% and amounted to € 1.045 billion.

"We are succeeding in the main direction of our strategy - to expand the service of private and corporate customers, as well as to digitize our activities," said Martin Zielke, Chairman of the Board of Managing Directors of Commerzbank, in the release.

Commerzbank AG, originally Commerz und Disconto Bank, was founded in 1870 in the German city of Hamburg by merging several small private banking enterprises. In 1905 the merger of Commerz und Disconto Bank and Berliner Bank occurred, after which the bank's headquarters moved to Berlin. Eventually, Commerzbank AG settled in Frankfurt am Main.

At the same time, the net profit of the French bank giant Credit Agricole SA in the first quarter of 2018 grew by 7.1% in annual terms - to € 1.028 billion, according to the financial statements of the credit institution.

The profit of Credit Agricole, attributable to shareholders, increased by 1.2% in annual terms, up to € 856 million. Earnings per share remained at the level of last year at € 0.25.

The gross operating profit of the bank for the reporting period in annual terms increased by 2.5%, to € 1.508 billion. The proceeds of Credit Agricole for the first three months increased by 4.4% compared to the same period in 2017, to € 4.909 billion.

Credit Agricole originates from the establishment of regional agricultural credit institutions in France in the late 19th century. The final design of the bank in a single structure was completed in 1926, and at the moment the bank is one of the largest in France. The headquarters is located in Paris.