Is your bank making money? A recent report from ratings firm Fitch Ratings shows that French banks are in trouble: many of them are in deficit. So who are the bad students in the French banking sector?
French banks have been struggling in recent months
The performance of French banks is “bad, there is no other word“, according to a recent report from Fitch RatingThe analysis notes that these are lagging behind their European neighbours, with incomes having plunged in recent months.
The situation can be explained by several factors: First of all, the real estate crisis, which caused a sharp drop in the number of mortgage applications. But also the higher remuneration of savings plans, which has reduced margins.
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Hence a rather unjoyful estimate: Fich Ratings estimates that French banks will lag in terms of profitability until the end of 2025. And some will suffer more than others.
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Mutual and listed banks still in difficulty
According to the Fitch Ratings report, mutual banks are recovering but are still struggling. The Caisses d'Épargne saw their results fall by 21% over one year in the first half of 2024, with a comparable fall at Banque Populaire (-19%).. On the Crédits Mutuels side, the drop in revenues is estimated at -11.7%.
The same scenario applies to listed banks, like Société Générale, which posted a 64% drop in profits over one year, despite a small profit in the first quarterAt LCL, the fall is more measured, at -4% over the year. While at BNP Paribas, the pre-tax results are poor: -28% over one year.
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Online banks are holding up
Online banks and neobanks are holding up better according to the reported data. With a very aggressive initial development strategy, they are sometimes even profitable. This is the case of Fortuneo or Revolut for example..
But the real bad student of the season is La Banque Postale. Although its results for the first half of the year are not known, it had lost 707 million euros in 2023Its situation at the start of the 2024 school year therefore continues to be precarious.
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French commercial banks are therefore at the time of choices,with strategies that will have to change in depth in order to regain profitability.
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Source: MoneyVox
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A journalist at Cryptoast since 2017, I am passionate about the issues of decentralization, privacy and regulation. I specialize in traditional economics and finance, analyzing how news from this sector influences the cryptocurrency sector, offering a unique and informed perspective to Cryptoast readers.
Marine Debelloir
3116 articles
