...Resilient 1H18 Results Put French Banks in a Good Position for Further Acquisitions The six major French banks reported resilient 1H18 results once again due to business diversification and continued benign economic conditions. This was despite political and monetary policy uncertainties in Europe, and muted market activity. Operating revenue and pre-tax profit for the six largest banks grew by about 2% yoy on a consolidated basis. French retail and commercial banking revenue shows signs of stabilisation, as Fitch Ratings expected. Total revenue still declined by about 1% yoy in 1H18 but grew by 2% at CM11 and 3% at LBP. There is continued pressure on net-interest income due to low interest rates but it is offset by loan-volume growth and strong fee income, notably from the cross-selling of insurance products. Buoyant domestic loan growth of about 6% yoy in 1H18 for the sector is not a significant concern at this stage. LBP is the fastest growing bank, particularly in corporate loans, while...
