Robust Revenue Trends Boost French Banks' Profitability in 2024

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

-- Corporate and investment banking, asset and wealth management, and insurance drove 2024 revenue growth for French Banks. Domestic retail banking has started to recover.
-- Cost of risk increased at low levels, as asset quality remained stable and operating expenses remained well controlled.
-- With notable deals announced by BNP Paribas SA and BPCE, French banks continue to build leading positions in European asset management.

"We expect French banks to continue to perform well, driven by organic growth and a favorable interest rate environment", said Sonja Förster, Senior Vice President, European Financial Institution Ratings. "French banks will also benefit from the fact that they derive a high proportion of their revenues from fees, which benefit from solid underlying dynamics", she continued.