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	16.32
Change Percentage	-1.12%
Open	16.32
Previous Close	16.51
Market Cap ( Millions)	49392
Volume	4130843
Year High	19.14
Year Low	14.1
M A 50	17.81
M A 200	16.75

FCF Yield	36.23%
Dividend Yield	6.74%
ROE	10.37%
Debt / Equity	746.90%
Net Debt / EBIDTA	2922.84%
Price To Book	0.71
Price Earnings Ratio	6.99
Price To FCF	2.76
Price To sales	0.44
EV / EBITDA	33.33

2. Crédit Agricole's Strong 2025 Results: A Closer Look

Crédit Agricole's financial performance in 2025 was robust, with revenues reaching a record EUR 52.4 billion, a 3.9% increase for the group and a 3.3% increase for CASA. The bank's net income group share was EUR 7.1 billion, a testament to its solid results. The actual EPS came out at '0.79', beating estimates at '0.4789'. The bank's cost-to-income ratio is well-managed at 55.7% for CASA and 59.6% for the group, indicating efficient operations.

Publication Date: Feb -05

                                    📋 Highlights
                                    Strong Net Income Growth:
                                                Net income group share rose to EUR 7.1 billion in 2025, up from EUR 6.9 billion in 2024.
Record Insurance Premiums:
                                                Insurance premium income hit a record EUR 52 billion, driven by robust performance across all lines.
Amundi Net Inflows Surge:
                                                Amundi’s net inflows multiplied by 1.6x to EUR 88 billion, reflecting strong investor demand.
Strategic Acquisitions:
                                                Increased stake in Banco BPM (EUR 100M quarterly profit contribution) and partnerships with Crelan and Victory Capital.
Cost Efficiency Maintained:
                                                CASA cost-to-income ratio at 55.7%, with gross operating income up 1.3% in 2025 despite exceptional costs.

                                

Revenue Growth Drivers

The bank's revenues were driven by sustained activity in all business lines, with loan production increasing by 15% to EUR 140 billion and insurance premium income reaching a record EUR 52 billion. Amundi's net inflows multiplied by 1.6 to reach EUR 88 billion, and CACIB reached record results across all business lines.

Valuation Metrics

Crédit Agricole's valuation metrics indicate a relatively attractive price. The Price-to-Tangible Book Value (P/TBV) is around 0.73, suggesting the stock is not overvalued. The Dividend Yield is 6.01%, making it an attractive option for income-seeking investors. Analysts estimate next year's revenue growth at 2.6%, indicating a stable outlook.

Outlook and Challenges

The bank expects to continue its commercial momentum in 2026, driven by the rollout of new strategic initiatives and the integration of recent acquisitions. However, the bank faces challenges, including uncertainties in the automobile market and potential headwinds in Italy, CACEIS, and wealth management. As Clotilde L'Angevin, Deputy General Manager of Crédit Agricole, noted, "We're cautious about the cost of risk in LCL, but have strong provisions accumulated over the past year."

Conclusion on Financial Health

Crédit Agricole's financial health is robust, with a high CET1 ratio of 11.8% for CASA and 17.4% for the group. The bank's liquidity position is comfortable, with a high level of liquidity reserves at EUR 485 billion. The bank's transition plan is organized around three pillars, including accelerating the development of financing to renewables and low-carbon energy sources.

3. NewsRoom

Crédit Agricole seals deal to acquire Ukraine-based Bank Lviv

Mar -13

Source:

CREDIT AGRICOLE SA: Crédit Agricole Ukraine has signed an agreement to acquire Bank Lviv

Mar -11

Source:

How Recent Analyst Moves Are Reframing The Crédit Agricole (ENXTPA:ACA) Investment Story

Feb -06

Source:

Credit Agricole Misses Q4 Profit as Costs Rise, Shares Slide Up to 5%

Feb -04

Source:

Credit Agricole SA (CRARF) Full Year 2025 Earnings Call Highlights: Strong Client Acquisition ...

Feb -04

Source:

Credit Agricole SA (CRARY) Is Up 4.66% in One Week: What You Should Know

Feb -04

Source:

Financial Services Roundup: Market Talk

Feb -04

Source:

Crédit Agricole Q4 profit drops 24% on Banco BPM charge despite record revenues

Feb -04

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

Crédit Agricole

A-Score: 7.5/10

Value: 8.4

Growth: 3.7

Quality: 6.9

Yield: 9.4

Momentum: 8.0

Volatility: 8.7

1-Year Total Return ->

CaixaBank

A-Score: 7.2/10

Value: 4.0

Growth: 6.9

Quality: 6.9

Yield: 8.1

Momentum: 10.0

Volatility: 7.3

1-Year Total Return ->

DNB Bank

A-Score: 7.0/10

Value: 5.5

Growth: 5.7

Quality: 5.1

Yield: 9.4

Momentum: 7.5

Volatility: 9.0

1-Year Total Return ->

Intesa Sanpaolo

A-Score: 6.9/10

Value: 4.7

Growth: 5.2

Quality: 5.7

Yield: 9.4

Momentum: 9.0

Volatility: 7.3

1-Year Total Return ->

Erste Bank

A-Score: 6.4/10

Value: 5.1

Growth: 5.4

Quality: 5.4

Yield: 6.9

Momentum: 9.5

Volatility: 6.3

1-Year Total Return ->

Commerzbank

A-Score: 5.4/10

Value: 5.2

Growth: 6.2

Quality: 4.9

Yield: 3.1

Momentum: 10.0

Volatility: 3.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-0.77%

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 Strong 2025 Results: A Closer Look

Revenue Growth Drivers

Valuation Metrics

Outlook and Challenges

Conclusion on Financial Health

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