The factors in favour of a rise in the Crédit Agricole share price:
For you to better understand the way in which the Crédit Agricole share price is likely to evolve in the short as well as in the long term, it is of course important to know the strengths and the weaknesses of the company. So, get more insight with some explanations about the advantages along with the flaws of the group.
Above all, the Crédit Agricole group enjoys a strong reputation, whether in France or in Europe. Bear in mind that it is the leading retail bank as well as the leading insurer in the country with regard to household deposits for which it holds more than 25% of the market share. Crédit Agricole is also the European leader in terms of banking income, particularly due to its various subsidiaries including the Crédit Agricole branches of course, but also LCL formerly Crédit Lyonnais and the online bank BforBank. Finally, the group is a leader in terms of collective management in France and in Europe through the Amundi brand.
The particular organization of Crédit Agricole in different divisions is also an asset. The group includes the regional banks, the LCL, the local bank on an international scale and primarily in Italy, its savings and insurance division as well as some specific financial services such as leasing or factoring. It also offers corporate banking activities.
Over the past few years, Crédit Agricole has shown its ability to be profitable with interesting results, in particular its retail banking activities which alone generate more than 35% of net profit. It offers investors perfect transparency and excellent visibility on its profits.
Crédit Agricole's financial structure is another major asset of the group because it is particularly solid and has been rewarded as such by the major rating agencies. Recently, Crédit Agricole also simplified its capital structure, which should have a positive effect on the financial soundness of the company as well as on the company's net income for the end of 2017. Finally, the payment of the cash dividend of € 0.60 with a redistribution rate of 50% made a big comeback in 2017.