Credit Agricole Profit Plunges 67% to EUR291 Million in Fourth Quarter
February 15 2017 - 1:29AM
Dow Jones News
By Noemie Bisserbe
PARIS--French bank Credit Agricole SA (ACA.FR) has reported a
drop in fourth-quarter net profit, hurt by a write-down on its
domestic retail arm.
The Paris-based lender, France's second-largest listed bank by
assets, said Wednesday that net profit fell 67% to 291 million
euros ($308 million) in the three months through December from
EUR882 million a year ago. That undershot analysts' expectations of
EUR301 million, according to data provider FactSet.
Revenue was up 7% at EUR4.58 billion.
As with other domestic lenders, persistently low interest rates
and loan renegotiations have eaten into the French bank's margins
this year.
Credit Agricole booked a EUR491 million write-down on its retail
bank LCL.
"There was a new wave of loan renegotiations in the second half
of this year," Chief Executive Philippe Brassac said at a press
conference in Paris. However, Mr. Brassac said he has seen "signs
of improvement" in the fourth quarter.
LCL posted a 15% increase in net profit to EUR136 million in the
quarter ended December, aided by a pickup in demand for new
loans.
Net profit at its corporate and investment bank surged to EUR271
million from EUR76 million a year ago, buoyed by volatile
markets.
Credit Agricole's insurance and asset-management business
reported an 14% increase in net profit to EUR448 million, while net
profit for its specialized financial-services business rose 15% to
EUR170 million.
Net profit for its international retail-banking business, which
includes Italy, Poland and Egypt, fell 38% to EUR24 million.
Despite lower earnings in the quarter, Credit Agricole's core
Tier one ratio, which compares top-quality capital such as equity
and retained earnings with risk-weighted assets, stood at 12.1% in
December, up from 12% in September.
The bank's leverage ratio, which measures capital held by the
bank against its total assets, was 5% in December, compared with
4.7% at the end of September.
The bank said it will pay shareholders a dividend of EUR0.60 a
share for 2016.
Write to Noemie Bisserbe at noemie.bisserbe@wsj.com
(END) Dow Jones Newswires
February 15, 2017 01:14 ET (06:14 GMT)
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