PARIS-Credit Agricole SA posted a modest rise in third-quarter
net profit, helped by lower provisions against bad loans in France
and at its Italian consumer credit unit Agos Ducato.
The Paris-based lender, France's second-largest listed bank by
assets, said net profit increased 4% to 758 million euros ($946.57
million) in the three months to the end of September, from 728
million euros a year earlier. Revenue was also up 4% at 4.01
billion euros from 3.86 billion euros in the same period last
year.
Bad loan provisions fell 8% to 581 million euros in the
third-quarter. Cariparma, Credit Agricole's Italian lender,
however, booked provisions of 109 million euros in the quarter, up
18% from the year before, as the country struggles to exit its most
prolonged recession and battles the risk of deflation.
Chief Executive Jean-Paul Chifflet ruled out any potential
acquisitions in Italy, where the French bank was tipped by analysts
as a potential suitor for parts of Monte dei Paschi di Siena's
business. The Italian lender said Wednesday it would sell assets
worth 220 million euros as part of a plan aimed at covering a 2.1
billion euros capital shortfall discovered by European
regulators.
"We won't interfere in Italy, no matter what happens," Mr.
Chifflet told reporters.
Unlike Monte dei Paschi di Siena, Credit Agricole went through
the European Central Bank's stress tests unscathed.
During the past few months, supervisors pored over the balance
sheets of 150 banks in Europe to measure the value of their assets
and estimate how much these lenders would lose under simulated
financial and economic shocks.
Results showed that even in a deteriorating economy, Credit
Agricole would have enough capital to shoulder potential
losses.
Credit Agricole's core tier-one ratio, which compares
top-quality capital such as equity and retained earnings with
risk-weighted assets, stood at 10.1% at the end of September, up
from 9.9% in June.
French rival bank BNP Paribas SA last week reported an 11% jump
in third-quarter net profit to 1.50 billion euros, buoyed by its
investment banking business and lower costs.
Write to Noémie Bisserbe at noemie.bisserbe@wsj.com
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