French Banks: Q2 2024 Results Mixed, but Underlying Revenue Trends are Positive Driven by CIB

Morningstar DBRS has released a commentary discussing the H1 2024 results on French banks (Crédit Agricole, BNP Paribas, Société Générale and BPCE). Summary highlights from the commentary include:

-- Sound underlying revenue generation was partly offset by expense increases.
-- Corporate and Investment Banking, Asset & Wealth Management, Insurance, and International Retail Banking were drivers of revenue growth. Domestic Retail Banking still lagged.
-- Asset quality remained sound.

"Given the recent volatility in capital markets we expect CIB to remain a driver of revenues going forward." said Sonja Förster, Senior Vice President from the Morningstar DBRS Global Financial Institutions team. "Towards the end of the year we also expect a gradual improvement in French Retail, while Asset Management could weaken if capital market valuation continue to soften."