Credit Agricole 4Q Profit Hit by Impairments
11 Février 2021 - 7:44AM
Dow Jones News
By Pietro Lombardi
Credit Agricole SA said Thursday that net profit for the fourth
quarter declined sharply, dragged by impairment at its Italian
business and provisions for bad loans, and that it is taking
further steps to simplify its structure.
France's second-largest listed bank by assets posted an almost
93% fall in net profit for the period, to 124 million euros ($150.3
million). This compares with analysts' expectations of a EUR165
million net loss, according to a consensus forecast provided by
FactSet.
The bank reported a EUR903 million impairment charge against
Credit Agricole Italia, as well as a nearly 59% increase in
provisions for soured loans, which were EUR538 million in the
quarter.
Revenue rose 2.6% to EUR5.25 billion, the company said.
The board will propose a dividend of EUR0.80 a share for 2020,
with a scrip dividend option.
Credit Agricole said it would fully unwind a regulatory
arrangement known as switch by the end of next year. Under the
switch guarantee mechanism, it transfers part of the regulatory
requirements related to its insurance operations to the regional
banks of the group, paying in return a fixed fee. The full
unwinding should boost the bank's net profit and revenue.
Write to Pietro Lombardi at pietro.lombardi@wsj.com;
@pietrolombard10
(END) Dow Jones Newswires
February 11, 2021 01:29 ET (06:29 GMT)
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