Cré dit Agricole Profit Boosted by Capital Gain
August 03 2016 - 1:40AM
Dow Jones News
PARIS—Cré dit Agricole SA on Wednesday reported a rise in
second-quarter net profit, as the sale of its shares in Visa Europe
countered the loss of the contribution from the group's regional
banks to earnings.
The Paris-based lender, France's second-largest listed bank by
assets, said net profit rose 26% to €1.16 billion ($1.30 billion)
in the three months to the end of June from €920 million a year
ago.
Revenue was up 2.4% at €4.74 billion.
Cré dit Agricole booked a €328 million gain on the sale of its
shares in Visa Europe in the second quarter.
Cré dit Agricole is 56%-owned by the group's regional
cooperative lenders and in turn controls 25% of those banks. The
bank said in February it would sell back the 25% stake it holds in
the group's regional lenders to ease concerns about its capital
strength.
Cré dit Agricole said on Wednesday it would book a gain of €1.25
billion on the sale in the third quarter of 2016.
Excluding one-off items, net profit rose 13% to €818 million,
lifted by the group's insurance, asset management and specialized
financial service units.
Cré dit Agricole's insurance and asset management business
reported an 8% increase in net profit to €415 million, while net
profit for its specialized financial services business rose 23% to
€154 million.
However, net profit at its corporate and investment bank fell 8%
to €365 million, hit by volatile markets.
Cré dit Agricole's own domestic retail arm, LCL, also reported a
38% drop in net profit to €108 million, hurt by persistently low
interest rates.
Net profit for its international retail banking business, which
includes Italy, Poland and Egypt, fell 16% to €77 million.
Cré dit Agricole's core tier one ratio, which compares
top-quality capital such as equity and retained earnings with
risk-weighted assets, stood at 11.2% in June, up from 10.8% in
March.
The bank's leverage ratio, which measures capital held by the
bank against its total assets, was 4.5% in June compared with 4.4%
at the end of March.
Write to Noemie Bisserbe at noemie.bisserbe@wsj.com
(END) Dow Jones Newswires
August 03, 2016 01:25 ET (05:25 GMT)
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