French banks are doing properly in a fragile yr 2023 | EUROtoday

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Nearly 11 billion euros in annual web revenue for BNP Paribas, a file; greater than 8.2 billion euros for the Crédit Agricole group, at its highest; greater than 4.1 billion for Crédit Mutuel Alliance Fédérale, a “historic” outcome: 2023 was yr for these three main French banking teams.

The image is extra combined for Société Générale, which reveals a fall of seven.6% in its revenues however a web revenue of two.5 billion euros, up 36.6% in comparison with that of 2022, weighed down by distinctive expenses linked to the group's exit from the Russian market. The financial institution, which seeks to enhance its profitability, took care to announce on February 5 its intention to remove 947 positions at its Paris headquarters to scale back its prices.

For its half, BPCE reveals a 25% decline in its annual income, to 2.8 billion euros. The group which brings collectively the Popular Banks and the Savings Banks was in actual fact essentially the most affected in 2023 by the unfavorable impression of the rise in rates of interest from the European Central Bank (ECB) on the margins of credit score actions .

Also learn the outcomes of our barometer: Article reserved for our subscribers Banks: costs rising in 2024, however not on the degree of inflation

The 5 principal gamers within the French banking sector thus submit 28.6 billion euros in cumulative income in 2023, an quantity up nearly 8% over one yr. A greater than honorable efficiency, which they owe partly to the great efficiency of their financing actions for big firms and markets, which compensated for the deterioration of curiosity margins in credit score to people and small companies.

Increased prices

The drawback has been recognized for a very long time: the domination of mounted fee loans prevents credit score establishments from absolutely passing on the rise of their financing prices, a mechanism that’s solely amplified by the rise in curiosity to be paid on mortgage merchandise. regulated financial savings, Livret A in thoughts.

“French banks are today a little “stuck” by portfolios of dwelling loans granted at low mounted charges and for very lengthy phrases, which generate little or no curiositysummarizes Simon Outin, director of credit score analysis within the monetary sector at Allianz Global Investors. The development will likely be barely higher in 2024, however we should always not anticipate a spectacular rebound. » The prospect of a fee reduce by the ECB certainly provides hope for an enchancment within the sector. Nicolas Namias, Chairman of the BPCE Management Board, confirms that he’s relying on a “inflection” web curiosity margins in the summertime of 2024.

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