France's Credit Agricole sees 13% income development in Q3

09 Nov, 2023

France's Credit Agricole sees 13% income development in Q3

Credit Agricole records impressive Q3 results with a 13% revenue growth. However, the bank faces legal challenges as an NGO files criminal allegations over alleged links to illegal deforestation, accusing the bank of "money laundering and concealment.

However, this positive revelation was overshadowed by allegations of "money laundering and concealment" filed by an NGO on Wednesday. The accusations centered around the bank's purported support for companies involved in illegal deforestation.

Credit Agricole declared revenues of €6.343 million, with underlying results, excluding one-off gains/losses and non-recurring costs, reaching €6.060 million. The success was credited to ongoing partnerships, development projects, and the consolidation of European operations, as stated by Dominique Lefebvre, the chairman of Credit Agricole’s board.

Despite the bank's commitment to environmental goals and achieving net zero in its climate strategy for Q3, it faced a criminal complaint from the French NGO Sherpa. The complaint targeted Credit Agricole and three other banks for allegedly investing nearly $70 million (€65.6 million) between 2013 and 2021 in two companies, JBS and Marfrig, linked to illegal deforestation, land grabbing, and forced labor in their beef supply chains.

Sherpa asserted that the banks might have received interest from illicit funds and assisted in their investment, constituting a breach of anti-money laundering obligations. While Sherpa highlighted this as a groundbreaking complaint against banks, it emerged against a backdrop of increasing legal disputes related to environmental preservation.

As of the publication, Credit Agricole had not responded to Euronews' request for comment. The bank's share price responded positively, reaching €11.76 at noon CET, compared to €11.60 the previous day. Additionally, Credit Agricole's European portfolio, including control over Amundi and plans to acquire Degroof Percam for €1.5 billion, showcased its significant financial influence.