Credit Agricole Sets Higher 2028 Profit Target and Signals Interest in More Deals

Post by : Saif

Credit Agricole, one of Europe’s biggest banking groups, has announced a bold new profit target for 2028. The French lender now expects to earn more than €8.5 billion by that year, a number higher than what most analysts had predicted. Many experts had expected the bank to aim for around €8.2 billion, but Credit Agricole surprised the market with a stronger and more confident forecast.

The bank also aims to achieve a return on tangible equity (ROTE) above 14% by 2028. For comparison, analysts had expected around 13.1%. This shows that Credit Agricole believes its growth strategy and investment plans will help it perform better than many of its European competitors.

The French lender said it would keep its cost-to-income ratio below 55%, meaning it plans to operate more efficiently by using automation, modern IT systems, and better internal processes. The bank’s strategy focuses on stronger European investments, expanding its customer base, and improving overall efficiency across its operations.

Speaking to reporters, CEO Olivier Gavalda said Europe needs to invest more to remain competitive in the world and to maintain its strategic independence. He believes Credit Agricole can play a major role in this effort by expanding its financial activities and supporting more European projects.

Credit Agricole also noted that it reached its earlier 2025 goals one year ahead of schedule. Analysts often say the bank sets modest goals and then exceeds them, which has helped build its strong reputation in financial markets.

As the bank boosts its profit expectations, it has also shown interest in new business deals. Deputy CEO Jerome Grivet said the bank will likely build up more capital than it needs for its regular business growth. If Credit Agricole does not make any acquisitions, this extra capital could reach €6–7 billion by 2028. This gives the bank a lot of flexibility to pursue new mergers or partnerships.

One area of special interest is Italy, which is Credit Agricole’s largest market outside France. The bank already owns just over 20% of Italian lender Banco BPM and has asked regulators for permission to increase its stake to 29.9%. This move has led to growing speculation about a possible merger.

Banco BPM’s CEO, Giuseppe Castagna, has already called a merger with Credit Agricole’s Italian division the “clearest opportunity” among all available choices. When asked about this possibility, Gavalda said the bank views a potential deal with BPM “very positively,” but added that Credit Agricole remains focused on its own growth plan in Italy for now.

Overall, Credit Agricole’s new targets show confidence in its future direction. With ambitious profit goals, a strong presence in Europe and Italy, and an openness to new deals, the bank is positioning itself as a key player in Europe’s financial landscape. If it achieves these goals, it could outperform many of its European rivals and strengthen its influence across the region.

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