Credit Agricole rallies after beating Q2 estimates

Credit Agricole credit default swaps have edged off the month’s wides after the bank beat estimates for the quarter. Five-year senior CDS is 3bp tighter at 138bp. This is against a backdrop of flattish corporate credit spreads and a slightly wider iTraxx Europe Senior Financials basket.

Credit Agricole’s overall profit rose by 89% over the quarter. The corporate and investment banking arm cushioned losses on Greece exposure and reported a 27.3% rise in banking income, despite recognising a 21.1% fall in capital markets revenues. Much of the growth came from financing activities, which were up 42.1%.