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Credit Agricole shares fall as rising costs and tax hit Q1 result

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Credit Agricole reported a drop in first-quarter profit on Wednesday as a one-off government tax hike, rising costs and retail weakness offset strength in its investment bank.
Credit Agricole's shares experienced a decline following the announcement of their first-quarter results, which were negatively impacted by increased costs and a significant tax charge. The French bank reported a 47% drop in net income to 444 million euros, largely due to a 375 million euro tax related to the European resolution fund. Despite these setbacks, the bank's underlying pre-tax profit rose by 6.3% to 2.45 billion euros, driven by strong performances in its corporate and investment banking divisions. However, the overall results fell short of analyst expectations, contributing to a 4.5% drop in share price to 11.34 euros.

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