French co-operative bank Crédit Agricole has performed well in spite of tax-related challenges. The mutual, which is the largest co-operative in the world by turnover, has witnessed a 33% jump in its quarterly profit.
The most recent report from the co-op shows its fourth quarter net income has increased to €387m (£343.85m) from €291m (£258.55m) last year.
Changes to taxation both in France and the USA led to €384m (£341.18m) hit. However, the bank’s total revenue increased to €4.65bn (£4.13bn), up 1.6% compared to the same period last year.
“Business momentum remained strong in all Crédit Agricole SA’s business lines and distribution networks, as well as the Regional Banks which distribute the products of its specialised business lines,” said the bank in a statement.
“The acceleration of the economic recovery has led to improved demand for corporate credit and strong savings flows in the countries where the Group is active. These trends have been amplified by cross selling in line with the customer-focused universal banking model, a core component of the Strategic Ambition 2020 plan.”
Particular increases were reported in investment banking revenue, which was up by 4.9%, and asset management revenues, which grew more than 20%.
Revenue from property and casualty insurance also rose by 4.8% year-on-year in the fourth quarter while in life insurance, net inflows amounted to over €1.1bn (£0.98) in the fourth quarter of 2017.
Another area of growth for the bank were specialised Financial Services, which saw a 6.9% growth in the managed loan book in consumer finance compared to 31 December 2016.
Dominique Lefebvre, chair of SAS Rue La Boétie and Credit Agricole’s board of directors, said: “The Crédit Agricole Group, with the quality of its results, once again demonstrates the relevance of its business model, which knows how to take advantage of its unity, but also the diversity of its skills at the service of its customers and the financing of the economy which it is the leader in France.”