(Bloomberg) -- Credit Agricole SA’s corporate and investment bank helped the group soar above expectations in the second quarter after traders made double-digit gains during heightened volatility.

The Paris-based bank said revenue at its CIB unit rose by more than a quarter to almost 2 billion euros ($2 billion), making it the busiest quarter on record. Underlying revenue from financing activities increased 12.8% despite a global slowdown in deals after Russia’s invasion of Ukraine. The group also set aside far less than predicted for struggling loans, even as inflation spiked across Europe. 

“This very opaque and very uncertain context has in no way limited” Credit Agricole’s development, Chief Executive Officer Philippe Brassac said in a conference with reporters.

Last June, Credit Agricole adopted a cautious stance in its new medium-term financial objectives, amid Russia’s war and its impact on global inflation and growth. The bank said Thursday it was on track for its goals. It also has growth ambitions in Europe, as it eyes insurance operations in Italy and banking assets in Poland.

While Credit Agricole’s markets unit is smaller than some of its peers, its traders more than measured up to other global banks as clients sought to protect themselves from asset price swings and resurgent inflation. The bank’s markets arm reported sales up 32% from a year earlier as fixed income, currencies and commodities income rose 36.9% “in the context of high volatility and clients’ hedging needs.”

Revenue from financing activities rose 12.8% to 765 million euros, which the bank credited to growth in its international trade and transaction services, as well as favorable currency movements. Credit Agricole has weathered a quarter where Wall Street banks saw corporate banking revenue more than halve due to wary clients avoiding risky moves.

The lender set aside 203 million euros to cover potentially souring loans, smaller than last year despite the unsettled outlook and about a third of what analysts anticipated. Brassac told reporters the bank did not need to book much more provisions after taking a larger one earlier in the year.

This more upbeat stance came as rising interest rates boosted the bank’s retail operations. Its international unit, a key driver of growth for Brassac, saw its revenue gain 1.4% to 812 million euros, above analyst expectations. In France, the bank’s retail unit LCL saw its income jump 8.7% to 1.01 billion euros, also above the average estimate. 

Italian Growth

The bank, which acquired Credito Valtellinese SpA last year, has further ambitions in Italy. Credit Agricole bought a 9.2% stake in Banco BPM SpA earlier this year, and is now looking to acquire a stake in the Italian lender’s insurance business. On Wednesday, Banco BPM said it would aim to conclude its search for possible partnerships in bancassurance by the end of the year. 

Deputy CEO Xavier Musca said he didn’t have “any particular worry” about the Italian economy. “Italy enjoys this year a growth rate that remains relatively robust,” he said in a call with reporters. While rising gas prices and an election loom, Musca pointed to Italy’s commitment to European Union budget rules and the region’s solidarity in the face of the war as reasons to be optimistic. 

The turbulent markets of the past quarter have had one downside for the bank. Amundi SA, Credit Agricole’s investment arm, last week posted surprise inflows, though its assets under management fell 4.8% compared to the previous quarter to 1.93 trillion euros because of adverse market and foreign exchange effects. 

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