* Q2 net profit 201 million euros, vs forecast 125 million
* Gross operating profit up to 1.57 bln euros, from 102 million
* Says well placed despite difficult environment
* Tier 1 ratio 9.2 percent
* Shares up 6 percent, vs flat sector index
(Adds further analyst comment, background)
By Sudip Kar-Gupta
PARIS, Aug 27 (Reuters) - Credit Agricole, France's biggest retail bank, posted better-than-expected second-quarter profit and said on Thursday its businesses were well placed despite the tough economic environment.
Net profit rose 164 percent to 201 million euros ($288 million), helped by strong earnings at its investment banking, retail bank and asset management divisions. The result beat the average forecast of 125 million euros in a Reuters poll.
Agricole's results follow a month in which many of the world's top banks have posted solid profits due to a rebound in global financial markets amid signs the worst of the economic recession might be over.
Last month, domestic rivals BNP Paribas, France's biggest bank by market capitalisation, and Societe Generale also published better-than-expected results.
Agricole shares were up 6 percent at 13.33 euros in morning trade, outperforming a 0.2 percent rise in the DJ Stoxx European bank sector index. It has a market capitalisation of 28.8 billion euros.
"The results are resilient in retail banking and asset management," said WestLB analyst Christoph Bossmann, who kept a "neutral" rating on Agricole shares.
AGRICOLE KEEPS CAUTIOUS OUTLOOK
The market recovery has spurred the investment banking activities of many groups due to a rise in trading volumes and merger activity, and Agricole's Calyon investment bank posted a net profit of 389 million euros after a loss last year.
The resurgence of bumper profits at investment banks has sparked concerns among politicians around the world, who are worried financiers might be returning to the sort of bets that helped spark the credit crisis.
Agricole decided to trim back its Calyon division last year after the unit ran up losses, but French President Nicolas Sarkozy has kept up pressure on investment bankers and traders ahead of next month's G20 summit.
This week, Sarkozy announced new limits on bonus payments to traders and called for tougher controls on remuneration..
Despite the recent recovery in world stock markets, Agricole stuck to its earlier forecast for the end of the financial crisis. "We're expecting an end to the crisis in the second part of 2010," finance director Bertrand Badre told reporters.
Mandarine Gestion fund manager Fabienne Girard-Tokay said she preferred BNP Paribas to Agricole, saying Agricole was less well-placed to benefit from a market upturn.
"Agricole's investment banking arm is not as big as that of BNP and they remain exposed to losses at their Greek bank Emporiki," she said.
Agricole shares have risen around 66 percent so far this year. While it has outperformed a 56 percent gain in the DJ Stoxx European bank sector, it has underperformed a 90 percent rise in the shares of BNP Paribas.
On Wednesday, French investment bank Natixis's battered shares rose sharply after news its majority owner, state-backed bank BPCE, was to provide a safety net for 35 billion euros of toxic assets. (Editing by Will Waterman and Dan Lalor) ($1 = 0.6983 euro)