BofA Expects 'Good' Q3, Potential Further M&A in Italy for Crédit Agricole

07:57 AM EDT, 10/19/2026 (MT Newswires) -- BofA Global Research expects Crédit Agricole (ACA.PA) to report a "good" third quarter on Oct. 30, supported by "solid" underlying profitability and tighter cost control. In an earnings preview note focused on French banks, the research firm said it forecasts an 18% year-over-year surge in net income group share to 1.99 billion euros, while net banking income is projected to rise 6% to 6.99 billion euros. "The CET1 ratio should improve to a still modest 11.4%, yet this clearly does not constrain capacity for further bolt-on acquisitions, as shown by the recent IKB deal, which consumes 20bp. Bolt-on M&A is key to lifting revenue growth above the 3.5% CAGR embedded in the plan. CAsa's growth prospects in Italy remain heavily dependent on M&A dynamics, which could accelerate in the coming months," analysts said. Against this backdrop, BofA increased its net profit estimates for the banking group by 4% for 2026, 1% for 2027 and 2% for 2028 on the back of higher revenue expectations. The neutral rating on the stock and price objective of 20 euros were reaffirmed.