Crédit Agricole S.A. (ACA.PA) | Investment Case

1. Company Snapshot

1.a. Company Description

Crédit Agricole S.A. provides retail, corporate, insurance, and investment banking products and services worldwide.It operates through Asset Gathering; Large Customers; Specialised Financial Services; French Retail Banking - LCL; and International Retail Banking.The company offers banking products and services, including savings and current accounts and deposits, finance, payments, and flow management services; consumer finance products; and banking and specialized financial services.

It also provides wealth management services that allow individual customers to manage, protect, and transfer their assets, as well as other asset management services; and savings/retirement, death and disability/creditor/group, and property and casualty insurance products.In addition, the company offers financing solutions for property and equipment investment and renewal requirements; trade receivable financing and management solutions for corporates; and financing services for renewable energy and public infrastructure projects, as well as leasing services.Further, it provides investment banking, structured finance, international trade finance, commercial banking, capital market, and syndication services; and asset servicing solutions for investment products, as well as various asset classes, such as execution, clearing, forex, security lending and borrowing, custody, depositary bank, fund administration, middle-office outsourcing solutions, and fund distribution support and issuer services.

The company serves retail customers, corporates, banks and financial institutions, government agencies, and local authorities.Crédit Agricole S.A. was founded in 1894 and is headquartered in Montrouge, France.Crédit Agricole S.A. operates as a subsidiary of SAS Rue La Boétie.

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1.b. Last Insights on ACA

Crédit Agricole S.A.'s recent performance was negatively impacted by French market volatility, with the CAC40 index dropping 2% due to political uncertainty ahead of a no-confidence vote. The company's capital increase reserved for employees, completed on August 28, 2025, raised €294.5 million, but may be viewed as dilutive. Additionally, European banks, including Crédit Agricole, face potential hits to profits from trade tensions, according to S&P Global Ratings. The company's acquisition of Santander's 30.5% stake in CACEIS, completed in July 2025, may also weigh on short-term performance.

1.c. Company Highlights

Last Price	16.8
Change Percentage	-0.27%
Open	16.91
Previous Close	16.84
Market Cap ( Millions)	50801
Volume	2038620
Year High	17.77
Year Low	12.84
M A 50	16.33
M A 200	16.35

FCF Yield	102.27%
Dividend Yield	6.55%
ROE	10.12%
Debt / Equity	414.95%
Net Debt / EBIDTA	-2043.07%
Price To Book	0.67
Price Earnings Ratio	6.71
Price To FCF	0.98
Price To sales	2.82
EV / EBITDA	-16.6

2. Crédit Agricole's Q3 2025 Earnings: A Strong Performance

Crédit Agricole reported a robust Q3 2025, with net income reaching EUR 1.8 billion, a 10.2% increase from the previous quarter, and EUR 2.3 billion for the group, up 11.4%. Revenues grew by 5.6%, driven by strong asset gathering, particularly in savings and retirement revenues in insurance and asset management. The actual EPS came out at '0.79', beating estimates of '0.4789'. The cost-to-income ratio remained competitive at 54.6% over 9 months. The bank's ROTE ratio stood at 15.4%, and solvency was high, with a CET1 ratio of 11.7% for CASA and 17.6% for the group.

Publication Date: Dec -02

                                    📋 Highlights
                                    Net Income Growth::
                                                Q3 net income reached EUR 1.8 billion (+10.2% QoQ), with group net income at EUR 2.3 billion (+11.4%), driven by Santander stake acquisition impact of EUR 79 million.
Revenue Expansion::
                                                Revenues rose 5.6%, supported by strong asset gathering in insurance (savings/retirement) and asset management, with 522,000 new customers added.
Efficiency Metrics::
                                                Cost-to-income ratio held at 54.6% over 9 months, while ROTE reached 15.4%, and CET1 ratios remained robust at 11.7% (CASA) and 17.6% (group).
Strategic Partnerships::
                                                Agos (61%) and non-life insurance (65%) partnerships with Banco BPM extend to 2034 and 2043, with equity accounting planned for distribution partner stake.
Cost and Transformation::
                                                French retail IT investments will keep costs elevated, but the bank remains committed to a customer-focused digital transformation for mass market/professional clients.

                                

Business Highlights and Outlook

The group continues to finance the environmental transition, with a strong focus on renewables and low-carbon energy financing. Crédit Agricole remains committed to being a partner beyond the UniCredit-Amundi partnership milestone in July 2027. A new medium-term plan will integrate a financial trajectory that considers the uncertainty of UniCredit's contribution and Amundi's solid dynamics. CEO Clotilde L'Angevin emphasized the bank's commitment to reaching its financial targets, regardless of uncertainties, stating that if Amundi experiences an earnings loss, Crédit Agricole is committed to its targets.

Valuation and Dividend Yield

With a P/B Ratio of 0.66 and a Dividend Yield of 6.63%, Crédit Agricole's valuation appears attractive. Analysts estimate next year's revenue growth at 1.8%. The bank's strong capital position, liquidity, and track record of revenue growth and efficiency improvements position it for continued top performance in Europe. The proposed tax on dividends and banking fees in France may impact Crédit Agricole, but the bank includes buffers in its medium-term plan projections to account for fiscal policy uncertainties.

Segment Performance and Challenges

Crédit Agricole's Specialized Financial Services (SFS) segment faced challenges, particularly in China and leases. However, the bank's production in China has almost doubled since Q1, and it aims to improve its capacity to remarket leases through a cross-European strategy. In Italian M&A, Crédit Agricole's strategy remains unchanged, with a focus on building partnerships with Banco BPM, including a 61% stake in Agos and a 65% stake in a non-life insurance partnership.

Regulatory Matters and Future Plans

L'Angevin discussed changes in CET1 reporting principles, aiming to simplify calculations and bring them closer to market standards. The bank is preparing for a transformation to enhance customer solutions, particularly for mass market and professional clients, which will involve investing in IT and may cause costs to remain elevated in the short term.

3. NewsRoom

CACEIS Strengthens U.S. Presence with Appointment of Antoinette Behan as Director

Dec -04

Source:

France’s Credit Agricole Looks to Europe to Boost Earnings

Nov -18

Source:

CREDIT AGRICOLE SA: CréditAgricoleS.A. unveils its strategic plan ACT 2028 - A conquering bank, leader in Europe, leader in transitions and leader in new technologies

Nov -18

Source:

CREDIT AGRICOLE SA: Crédit Agricole S.A. announces the reduction of its share capital through the cancellation of treasury shares purchased under a share repurchase program

Nov -14

Source:

Is Crédit Agricole Still an Opportunity After a 19% Rally in 2025?

Nov -10

Source:

CREDIT AGRICOLE S.A. ANNOUNCES REDEMPTION OF ¥17,700,000,000 Japanese Yen Callable Senior Non-Preferred Bonds issued on December 7, 2022 (ISIN: JP525022CNC9)

Nov -06

Source:

Inter-American Development Bank Issues First US$100 Million Social Amazonia Bond Under Inaugural Sustainable Debt Framework with Crédit Agricole CIB as Sole Sustainable Structuring Agent

Nov -06

Source:

CREDIT AGRICOLE SA: Capital: notification of the level of Pillar 2 additional requirement

Oct -31

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.54%)

6. Segments

Large Customers (LC)

Expected Growth: 3.5%

Crédit Agricole’s corporate banking segment will benefit from increasing demand for cash management services and trade finance, driving growth. The bank’s strong presence in Europe and expanding operations in Asia will also support growth.

International Retail Banking (IRB)

Expected Growth: 5.3%

Crédit Agricole S.A.'s International Retail Banking segment is expected to grow driven by increasing demand for digital banking services, expansion in emerging markets, and strategic partnerships.

French Retail Banking (FRB) - LCL

Expected Growth: 4.5%

LCL, Crédit Agricole’s French retail banking segment, is expected to grow driven by increasing digitalization, expansion of online banking platforms, and a strong brand reputation, thereby attracting more customers.

Asset Gathering (AG)

Expected Growth: 8.6%

Crédit Agricole’s asset gathering segment is expected to grow driven by increasing demand for wealth management and investment solutions, expansion into new markets, and strategic partnerships, as well as the group’s digital transformation and client-centric approach.

Specialised Financial Services (SFS)

Expected Growth: 4.5%

Crédit Agricole’s Specialised Financial Services segment is expected to grow driven by increasing demand for consumer credit, expansion into new markets and strategic partnerships, contributing to a positive outlook for the segment.

Corporate Centre (CC)

Expected Growth: 3.5%

Crédit Agricole S.A’s Corporate Centre is expected to grow due to increasing demand for digital banking services, expansion of mobile payment solutions, and focus on sustainable development initiatives.

7. Detailed Products

Retail Banking

Personal banking services for individuals, including current accounts, savings accounts, credit cards, personal loans, and mortgages.

Corporate Banking

Financial services for businesses, including cash management, trade finance, and corporate lending.

Investment Banking

Advisory and capital markets services for corporations, including mergers and acquisitions, equity and debt capital markets, and leveraged finance.

Asset Management

Investment management services for individuals, companies, and institutions, including mutual funds, exchange-traded funds, and alternative investments.

Insurance

Life insurance, non-life insurance, and health insurance products for individuals and businesses.

Private Banking

Wealth management services for high net worth individuals, including investment advice, portfolio management, and wealth planning.

Leasing and Factoring

Financial solutions for businesses, including leasing, factoring, and invoice discounting.

8. Crédit Agricole S.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Crédit Agricole S.A. operates in a highly competitive market, with many substitutes available to customers. However, the company's strong brand reputation and wide range of financial services help to mitigate the threat of substitutes.

Bargaining Power Of Customers

Crédit Agricole S.A. has a large customer base, but individual customers have significant bargaining power due to the availability of alternative financial services. The company must therefore focus on providing high-quality services to retain customers.

Bargaining Power Of Suppliers

Crédit Agricole S.A. has a diverse supplier base, which reduces the bargaining power of individual suppliers. The company's large scale of operations also gives it significant negotiating power with suppliers.

Threat Of New Entrants

The financial services industry has significant barriers to entry, including regulatory requirements and the need for significant capital investment. This reduces the threat of new entrants to Crédit Agricole S.A.'s market share.

Intensity Of Rivalry

The financial services industry is highly competitive, with many established players competing for market share. Crédit Agricole S.A. must therefore focus on differentiating its services and providing high-quality customer experiences to maintain its market position.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	88.51%
Debt Cost	10.24%
Equity Weight	11.49%
Equity Cost	10.24%
WACC	10.24%
Leverage	770.05%

11. Quality Control: Crédit Agricole S.A. passed 2 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

CaixaBank

A-Score: 7.5/10

Value: 5.8

Growth: 6.6

Quality: 7.4

Yield: 8.1

Momentum: 10.0

Volatility: 7.0

1-Year Total Return ->

Crédit Agricole

A-Score: 7.5/10

Value: 8.4

Growth: 3.7

Quality: 6.9

Yield: 10.0

Momentum: 7.5

Volatility: 8.3

1-Year Total Return ->

DNB Bank

A-Score: 7.2/10

Value: 6.2

Growth: 4.9

Quality: 5.5

Yield: 9.4

Momentum: 8.5

Volatility: 9.0

1-Year Total Return ->

Intesa Sanpaolo

A-Score: 6.9/10

Value: 6.2

Growth: 4.6

Quality: 5.7

Yield: 9.4

Momentum: 8.5

Volatility: 7.3

1-Year Total Return ->

Erste Bank

A-Score: 6.8/10

Value: 6.4

Growth: 4.6

Quality: 6.2

Yield: 7.5

Momentum: 9.5

Volatility: 6.3

1-Year Total Return ->

Commerzbank

A-Score: 5.4/10

Value: 7.0

Growth: 4.4

Quality: 5.1

Yield: 2.5

Momentum: 10.0

Volatility: 3.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-18.19%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

10.24%

Crédit Agricole S.A. - FR0000045072

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on ACA

1.c. Company Highlights

Lower Quality

Higher Yield

Medium Volatility

Earnings Beats

Revenues Miss

Average Growth

Average Quality

Fairly Valued

Revenues Beats

Average Yield

Cheaper

Stable Momentum

Less Volatile

Earnings Miss

2. Crédit Agricole's Q3 2025 Earnings: A Strong Performance

Business Highlights and Outlook

Valuation and Dividend Yield

Segment Performance and Challenges

Regulatory Matters and Future Plans

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.54%)

6. Segments

Large Customers (LC)

Expected Growth: 3.5%

International Retail Banking (IRB)

Expected Growth: 5.3%

French Retail Banking (FRB) - LCL

Expected Growth: 4.5%

Asset Gathering (AG)

Expected Growth: 8.6%

Specialised Financial Services (SFS)

Expected Growth: 4.5%

Corporate Centre (CC)

Expected Growth: 3.5%

7. Detailed Products

Retail Banking

Corporate Banking

Investment Banking

Asset Management

Insurance

Private Banking

Leasing and Factoring

8. Crédit Agricole S.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Crédit Agricole S.A. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

12.e Scoring ^Insights

12.f DCF ^BETA