Credit Agricole SA, France’s third- largest bank, is targeting at least 4 billion euros ($5.5 billion) of annual net income by 2016, above analysts’ estimates, as its main European markets emerge from recession.
The biggest U.S. banks captured the highest share of global trading revenue in at least two years as their counterparts across the Atlantic reduced risk in the fourth quarter amid a worsening sovereign-debt crisis.
In 2006, Georges Pauget, then Credit Agricole SA Chief Executive Officer, bought Greece’s Emporiki Bank, calling it a “perfect fit.” Six years on, the purchase has put the French lender in the eye of a perfect storm.
European banks, including Deutsche Bank AG and Standard Chartered Plc, have less equity relative to assets than their U.S. peers, and will have to shrink or boost capital as regulators demand reduced leverage.
The biggest U.S. prime money-market funds cut their investments in Deutsche Bank AG by $8.1 billion in October, the largest drop among 35 of the largest banks in Europe, the U.S., Japan and Canada, Bloomberg analysis shows.
Europe’s banks may be on the point of a turnaround as economic growth returns to the continent and the European Central Bank prepares to review the industry’s assets, Citigroup Inc. and Morgan Stanley said.