... Weakness Major French banks' revenue growth in insurance, specialised financial services and corporate banking offset weak investment banking in 2018. Asset management fees held up well despite adverse market effects towards the end of year and, in some cases, net client outflows. Operating revenue of the major banks increased by 1% in 2018 but pre-tax profit fell (-2%) due to higher regulatory and transformation costs as well as IT investments. Fitch Ratings expects French retail and commercial banking revenue to rebound modestly in 2019, driven by normalised prepayments and renegotiations on housing loans, as well as loan growth. Revenue in this business declined by another 1% in 2018 (broadly similar to 2017) except for CM AF and CM Arkea, which grew by 1% and 3%, respectively. Annual domestic loan growth of close to 6% for the sector is not a concern at this stage as it primarily relates to higher demand from households and increased...
