Among the elements likely to boost the banking group's activities, are the efforts to diversify Crédit Agricole's products and services, particularly in the direction of rapidly expanding segments. This particularly relates to the group's increasingly strong orientation towards digital and online banking services.
Similarly, before buying or selling Crédit Agricole stocks, investors should keep a close eye on the health of the French and European economies, which may or may not be favourable to growth in the banking sector.
The competition in this industry is also very strong and should therefore be carefully analysed. You'll also need to follow the large European banking groups as well as online banks which are currently booming and could gain more and more market shares.
Overall, the decisions of the European Central Bank will also have an impact on the stock price and should be the subject of your attention.
Finally, as with all other European banks, the group's ability to meet the requirements of the Basel III agreements regarding its solvency should be carefully monitored.
Crédit Agricole is one of the leading banking groups in the European market, with several areas of activity including retail banking, as well as asset management, insurance, private banking, financing and even various specific financial services.
Currently, this banking group weighs no less than 597.2 billion euros in deposits and 369 billion euros in outstanding loans. Its activity extends of course mainly in France, but also throughout Europe, Asia, Africa and on most continents.
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Before buying or selling the Crédit Agricole share, we now propose to find out who the Crédit Agricole Group's main competitors are, i.e. the main banks active on the French market, by means of a quick presentation:
First of all, BNP Paribas is the leading French bank in terms of activity and profitability and the 10th largest in the world. It is present in 71 countries and is listed on the Euronext Paris market as well as on the CAC 40 index. It was created in 2000 following the merger between Banque Nationale de Paris and Paribas and is one of the most valuable French brands with over €12 billion in 2020. BNP Paribas employs over 200,000 people and has almost 30 million customers with retail banking activities in France but also in Belgium, Luxembourg and Italy. Retail banking activities are also developed in the Mediterranean basin, Turkey, Poland and the western United States.
The Société Générale group is one of the largest French banks and one of the oldest as well with LCL and BNP Paribas. It currently employs over 133,000 people of 137 different nationalities and is present in over 61 countries around the world. It should also be noted that Société Générale is a universal bank and that its activity is broken down into three main pillars supported by two business lines.
Another major competitor of Crédit Agricole, BPCE is actually the joint body between Banque Populaire and the French Caisse d'Epargne. The group was created in 2009 following the merger of the Caisse Nationale des Caisses d'Epargne and the Banque Fédérale des Banques Populaires. The BPCE group is currently the world's second largest cooperative banking institution behind Crédit Agricole and incorporates all the companies that made up the two banking groups as well as their own and joint subsidiaries.
The Crédit Mutuel group is another major French banking group operating in the fields of banking, insurance, electronic banking, telephony, home monitoring and media. It is a mutualist company made up of 2,100 local cooperative and mutualist banks grouped into 18 regional federations and constituted into a national confederation. The group currently employs more than 83,000 people and operates more than 5,535 sales outlets, 4 branches and 34 representative offices.
Of course, another competitor to Crédit Agricole is Banque Postale which is a French public bank created in 2006 and a wholly owned subsidiary of the La Poste group for which it provides financial services. The group's distribution network is based on post offices throughout the country and this bank is the transformed successor to the former CCP (Centre de chèques postaux) created by the law of 7 January 1918.
Finally, the HSBC group through its subsidiary HSBC Continental Europe is also a serious competitor on the French market and is an international network and a local banking service grouping together all the banks of the former CCF group, i.e. UBP, Banque Hervet, Banque Brière, Banque de Baecque Beau.
The Crédit Agricole Group has forged interesting relationships with certain large French and international groups through targeted partnerships which have enabled it to enhance its brand image and access certain strategic markets.
Recently, in January 2017, Crédit Agricole became a partner of the Engie group aimed at reducing the over-indebtedness of the number one wind energy company in France.
Crédit Agricole also signed a partnership agreement with BNP Paribas to ensure the management and continuity of Crédit Agricole's equity derivatives portfolio in 2013.
Finally, Crédit Agricole has also been a partner of various sporting events such as Euro 2016, which has enabled it to benefit from better visibility and gain market shares more strategically. It is also a partner of numerous French and European communities and small businesses.
More recently, the Crédit Agricole group has set up an extension of its existing partnership with the FCA Italy group through its subsidiary Crédit Agricole Consumer Finance until December 31st 2022. This agreement relates to the joint venture created between the two parties, which will therefore continue to benefit from financial support from Crédit Agricole until this deadline, unless there is a future renewal.
In 2019, the group also signed a partnership agreement with fintech Orwel aimed at launching a new service called Globan'Go consisting of an account opening application software in the United Kingdom in pound sterling or in Spain and in Italy in euros. The app will first be tested for 35,500 Crédit Agricole passenger customers residing in Ile de France.
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.
But of course, the Crédit Agricole group does not only have strengths, it also has its weaknesses, among which we can you'll find the climate of doubt among investors regarding the European banking system because of European regulation that consumes capital and low interest rates charged.
The boom in online banking which offer more appreciable rates and which are gaining a little more ground every day is also a threat to the Crédit Agricole group as are the banks which are preparing to invade the market, created by telecom or Internet companies.
The insurance activities of the Crédit Agricole Group could also be affected by the rise in interest rates. Remember that this is over 30% of the group's operating income. In addition, the many early repayments as well as loan renegotiations are currently weighing on the margins generated by this segment.
Finally, the group's other assets such as regional bank assets are not highly valued.
Several key dates should be remembered to fully understand the history of the Crédit Agricole Group. It was created in 1885 but it was in 1920 that the National Office of Credit Agricole was born. The Fédération Nationale du Crédit Agricole (FNCA) was created in 1948. In 1991, Crédit Agricole became a universal bank. The first IPO of this group was in 2001. Finally, during 2003, Crédit Agricole became closer to Crédit Lyonnais.
Currently, the Crédit Agricole share price as well as the cooperative investment certificates of 15 regional banks are listed on the French stock exchange or on the Euronext Paris market. But the Crédit Agricole group is also part of several stock market indices including the Dow Jones index, the Euro Stoxx 50 index, the SBF 120, Euronext 100, ASPI Eurozone as well as FTSE4good.
Since Crédit Agricole operates in the banking sector, it is prudent to follow certain financial data about this group, as part of your analyses of this value. You should of course consider the evolution of turnover and its market capitalization, along with the data regarding its debt or its own funds because it is this data that will determine the level of confidence attributed to its securities.
Crédit Agricole's share price can fluctuate for a number of reasons, including if Crédit Agricole's financial results do not meet investors' expectations, this can cause the share price to fall. Fluctuations in the stock market may also have an impact on Crédit Agricole's share price. If the market as a whole experiences a period of decline, this may also affect the bank's share price. Economic events, such as changes in interest rates or exchange rate fluctuations, may have an impact on Crédit Agricole's financial results, which may influence the share price. Finally, announcements relating to mergers and acquisitions, restructuring plans, management changes, etc., may also have an impact on the share price.
Crédit Agricole's share price may vary considerably depending on various factors such as the company's financial results, new product announcements and general stock market trends. Crédit Agricole's share price can also vary depending on general economic conditions, geopolitical factors and competition in the market. Currently, and as has been the case for many years, the Crédit Agricole share price on the Paris stock exchange (Euronext) is fluctuating below €20, which makes it an accessible share. However, it is important to note that prices can fluctuate rapidly, so the Crédit Agricole share price could be different by the time you read this. It is therefore important to check the current Crédit Agricole share price before buying one.
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