Macron-economic driver

11 May 2017 By Neil Unmack, George Hay Follow @unmack1

Both Credit Agricole and UniCredit beat first-quarter expectations and have more to come. Yet the French bank trades above tangible book value, while its Italian peer languishes. If the new president reforms both France and Europe, UniCredit’s shareholders could get more upside.

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Credit Agricole announced underlying revenue for the first quarter of 2017 of 4.8 billion euros, 4.7 percent higher than analysts’ consensus estimates. The French bank’s 1 billion euros of earnings was 21 percent higher than forecasts.

Credit Agricole’s French retail bank and its corporate and investment bank both beat pre-tax profit consensus, but asset management slightly missed analyst forecasts on the same metric. Group costs were 62.7 percent of income.

As of 0945 BST, Credit Agricole’s shares were trading at 14.22 euros, down 0.7 percent.

UniCredit reported earnings in the first quarter of 907 million euros, well above analysts’ forecasts of 612 million euros, and up 41 percent from a year earlier . Revenues rose 3.4 percent to 4.8 billion euros versus a year earlier.

At 1005 BST UniCredit shares were trading at 16.70 euros, up 3.8 percent.

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