Credit score Agricole mentioned internet revenue for the fourth quarter declined sharply, dragged by impairment at its Italian enterprise and provisions for dangerous loans, and that it’s taking additional steps to simplify its construction.
France’s second-largest listed financial institution by belongings posted an nearly 93% fall in internet revenue for the interval, to €124m ($150.3m). This compares with analysts’ expectations of a €165m internet loss, in line with a consensus forecast supplied by FactSet.
The financial institution reported a €903m impairment cost in opposition to Credit score Agricole Italia, in addition to a virtually 59% improve in provisions for soured loans, which have been €538m within the quarter.
Income rose 2.6% to €5.25bn, the corporate mentioned.
The board will suggest a dividend of €0.80 a share for 2020, with a scrip dividend possibility.
Credit score Agricole mentioned it could absolutely unwind a regulatory association generally known as swap by the top of subsequent 12 months. Underneath the swap assure mechanism, it transfers a part of the regulatory necessities associated to its insurance coverage operations to the regional banks of the group, paying in return a set price. The total unwinding ought to increase the financial institution’s internet revenue and income.
Write to Pietro Lombardi at email@example.com
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