FRANKFURT--(BUSINESS WIRE)--DBRS Morningstar has released a commentary discussing large French banks’ Q2 2021 earnings, covering BNP Paribas SA, Société Générale S.A., Crédit Agricole Group and Groupe BPCE.
Key highlights:
• French banks' performance in Q2 2021 was solid, on lower provisions and strong revenue growth driven by all business lines.
• Cost base was up due to higher variable costs amidst business recovery, but all banks experienced positive jaws effect.
• Asset quality remained sound in Q2 2021 as new NPLs have not materialised yet.
“The large French banks reported solid Q2 results which were, as in Q1, driven by lower provisions and stronger revenue growth thanks to French banks’ high degree of revenue diversification. Notwithstanding growth in operating expenses year-on-year (YoY) in Q2 2021 against a backdrop of business recovery, French banks reported improved operating efficiency thanks to positive jaws effect..Q2 2021 has confirmed French banks’ continued recovery since Q2 2020 and we still expect profitability in 2021 to revert to 2019 levels thanks to lower levels of cost of risk and revenue growth, albeit depending on the pace of economic recovery amidst the low rate environment.” said Arnaud Journois, Vice President.
To view the full report, click here: https://www.dbrsmorningstar.com/research/382755/french-banks-further-normalisation-of-cost-of-risk-and-revenue-recovery-drive-q2-2021
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