French bank, Credit Lyonnais, in the midst of a takeover bid by bigger rival Credit Agricole, beat forecasts when it posted a 5 per cent rise in 2002 net profit today.
Chief executive Mr Dominique Ferrero said in a statement: "This new earnings growth reflects a good performance in all business segments."
The trend "will continue within the proposed combination with Credit Agricole," he added. The bank reported a 2002 net profit of €853 million ($924 million) compared with €812 million in the previous year.
The result was above analysts' expectations which had ranged from €804 million to €831 million.
The 2002 result sets Credit Lyonnais apart from other European banks which have seen their profits shrink or even slide into loss owing to the slumping global economy and weak stock markets.
It said net banking income rose 0.5 per cent last year to €6.762 billion while operating earnings surged 12.5 per cent to €1.427 billion.
The bank posted provisions, or charges for potential risks, of €563 million, higher than analyst's expectations ranging from €253 million to €507 million, but 16.9 per cent lower than in 2001.
Credit Agricole made a €19.5-billion cash-and-share bid for Credit Lyonnais in December 2002 after BNP Paribas had indicated it had similar designs for Credit Lyonnais.
AFP