By Noémie Bisserbe
PARIS-- Crédit Agricole SA said it would announce the name of
its new chief executive next week, as the French bank seeks to
return to its roots and reorganize around its regional retail
lenders.
The new chief executive will take over from Jean-Paul Chifflet,
whose five-year term comes to an end this month. The lender is
struggling to reorganize its complex structure amid rising tension
within the company. The new chief executive will need to reconcile
Crédit Agricole's bankers with regional lenders, who feel that the
group has moved too far away from its traditional market by sinking
billions of euros into subprime losses and ill-fated acquisitions
in southern Europe.
"There's a permanent debate, sometimes we talk loudly, but
that's how it's been for years," Mr. Chifflet said, speaking at a
news conference in Paris. He added that the bank would announce its
decision as soon as an agreement is reached.
The group's regional retail banks own a 56% stake in Crédit
Agricole SA, the listed entity, which in turn owns 25% of these
lenders--a structure, analysts say, is too complex.
Philippe Brassac, who currently heads one of the 39 regional
retail banks, is a potential candidate for the chief executive
position, according to people familiar with the matter. The bank
declined to comment.
Crédit Agricole, which once had big ambitions in southern
Europe, was able to close a difficult chapter with the sale of its
Greek lender, Emporiki, and by writing off the entire value of its
stake in troubled Portuguese lender Banco Espírito Santo last
year.
Crédit Agricole, France's second-largest listed bank by assets,
on Wednesday said fourth-quarter profit rose 13% to 697 million
euros ($795.95 million), aided by falling costs and lower
provisions against bad loans.
In France, retail banking net profit rose 7.3% to EUR201
million, despite a stagnating economy and low interest rates.
But, like French rival bank BNP Paribas SA, Crédit Agricole
could continue to suffer from its exposure to Italy. Cariparma,
Crédit Agricole's Italian lender, set aside provisions against bad
loans of EUR141 million, up 9% from a year earlier, as the country
struggles with a weak economy and rampant unemployment.
Total revenue fell 2% to EUR3.89 billion in the fourth
quarter.
Crédit Agricole's core tier-one ratio, which compares
top-quality capital such as equity and retained earnings with
risk-weighted assets, stood at 10.4% on Jan. 14, up from 10.1% in
September.
The bank's board will propose a dividend of EUR0.35 a share.
Earlier this month, BNP Paribas said fourth-quarter net profit
jumped to EUR1.3 billion, as it recovered from a record U.S. fine
for sanctions violations last year, while Société Générale SA's net
profit more than doubled to EUR511 million.
Write to Noémie Bisserbe at noemie.bisserbe@wsj.com
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