--- title: "Crédit Agricole (ENXTPA:ACA) Margins Hold Near 25% Net Level Testing Efficiency Narratives" type: "News" locale: "en" url: "https://longbridge.com/en/news/284969919.md" description: "Crédit Agricole (ENXTPA:ACA) has reported Q1 earnings for 2026, with revenue of €6.8b and a net profit margin of 24.8%. The bank's cost to income ratio stands at 55.7%, and analysts expect digital investments to improve efficiency. The current share price of €16.60 is below the analyst target of €20.23, raising concerns about loan quality and risk exposure. While bulls highlight fee growth and cost control, bears caution against potential strains from non-performing loans and high-risk funding sources. The debate centers on whether current profitability can close the valuation gap." datetime: "2026-05-02T14:03:40.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/284969919.md) - [en](https://longbridge.com/en/news/284969919.md) - [zh-HK](https://longbridge.com/zh-HK/news/284969919.md) --- # Crédit Agricole (ENXTPA:ACA) Margins Hold Near 25% Net Level Testing Efficiency Narratives Crédit Agricole (ENXTPA:ACA) has just opened its 2026 earnings season with Q1 numbers that sit against a recent run of solid headline figures, capped by Q4 2025 revenue of €6.8b and basic EPS of €0.30 on net income of €901m. Over the last few quarters, the bank has seen revenue move between €6.1b and €6.8b while basic EPS ranged from €0.30 to €0.75, giving investors a clear view of how earnings track alongside a revenue base consistently above €6b. With net profit margins recently reported at 24.8% versus 25.1% a year earlier, the focus now is on how well Crédit Agricole is holding that profitability line as new results land. See our full analysis for Crédit Agricole. With the latest figures on the table, the next step is to set these numbers against the most common stories investors tell about Crédit Agricole and see which narratives hold up and which start to look out of date. See what the community is saying about Crédit Agricole ENXTPA:ACA Earnings & Revenue History as at May 2026 ## Cost discipline and DCF fair value point to efficiency upside - On a trailing basis, Crédit Agricole reports a cost to income ratio of 55.7% and net profit margin of 24.8%, which sits alongside €26.6b of revenue and €6.6b of net income over the last twelve months. - Consensus narrative expects digital and fintech investment to help bring that cost to income ratio down over time. However, the current 55.7% level shows those efficiency gains are still being paid for upfront, which means: - Analysts’ view that margins can improve is being tested against a margin profile that is only slightly different versus last year’s 25.1% net margin. - At the same time, a P/E of 7.6x and a DCF fair value of €19.24 compared with a €16.60 share price suggest investors are being asked to weigh near term cost pressure against a valuation that already prices in some improvement. Bulls point to fee growth, digital projects and cost control as reasons the current P/E and margin profile may not tell the whole story about future profitability, especially with an analyst price target of €20.23 sitting above today’s price of €16.60. That debate sits at the heart of the more optimistic case for this bank. **🐂 Crédit Agricole Bull Case** ## Loan book quality and 72% bad loan coverage keep risks in focus - Total loans of about €698.9b sit against non performing loans of €13.8b and a 72% allowance for bad loans, alongside the fact that 54% of liabilities come from higher risk external borrowing. - Bears argue that exposure to areas like mobility finance, auto leasing and sensitive sectors in France could strain this risk profile, and the current data leaves a few key pressure points: - Non performing loans have stayed in a band between €12.6b and €13.8b over the last five reported quarters, so the low 72% coverage ratio means any stress that pushes this higher could feed quickly into the income statement. - With more than half of funding sourced from higher risk external borrowing and earnings growth over the last year at 3.8%, skeptics worry that a tougher credit or funding backdrop would hit both the cost of risk and profitability at the same time. ## Valuation gap against €20.23 target and 7.6x P/E - The shares trade at €16.60, about 18% below the €20.23 analyst price target and below a DCF fair value of €19.24, on a P/E of 7.6x versus European banks at 11.1x and peers at 10.9x. - Consensus narrative frames this as a mix of moderate growth and supportive pricing, yet the numbers present a more balanced picture: - Forecast revenue growth of 3.9% per year and earnings growth of about 8% per year are both described as sitting below the wider French market, which helps explain why the P/E trades at a discount even with high earnings quality. - At the same time, a 12.4% five year earnings CAGR and 3.8% earnings growth over the last twelve months line up with that lower multiple, so readers need to decide whether the gap to the €20.23 target and €19.24 DCF fair value fairly reflects these growth and risk trade offs. Skeptics point out that slower forecast growth and a relatively low bad loan allowance could justify some of the discount to peers, so the key question is whether current profitability and capital strength are enough to close that valuation gap over time. **🐻 Crédit Agricole Bear Case** ## Next Steps To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Crédit Agricole on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves. After weighing both the upbeat and cautious angles around Crédit Agricole, do not sit on the fence; check the numbers yourself and see what stands out. To get a quick sense of how the trade off between concerns and optimism looks in one place, start with these 5 key rewards and 3 important warning signs ## See What Else Is Out There Crédit Agricole’s relatively low 72% bad loan coverage, dependence on higher risk external funding and modest recent earnings growth keep its risk profile in the spotlight. If you are uneasy about that mix of credit and funding pressure, compare it with companies screened for sturdier funding and safer profiles through 300 resilient stocks with low risk scores _This article by Simply Wall St is general in nature. **We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.** It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned._ ### **New:** AI Stock Screener & Alerts Our new AI Stock Screener scans the market every day to uncover opportunities. • Dividend Powerhouses (3%+ Yield) • Undervalued Small Caps with Insider Buying • High growth Tech and AI Companies Or build your own from over 50 metrics. Explore Now for Free ## Related News & Research - [Arcosa's (NYSE:ACA) Solid Profits Have Weak Fundamentals](https://longbridge.com/en/news/286114872.md) - [Orecap Announces Interest Free, Unsecured Loan Transaction | ORFDF Stock News](https://longbridge.com/en/news/287343801.md) - [Obamacare Meltdown? 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