Credit Agricole resumes divi as profits return
FRENCH bank Credit Agricole swung back into the black in the final quarter of the year as its home market picked up and cost cutting took effect.
The lender made a profit of €612m (£503m) in the final quarter of the year, compared with a loss of €3.98bn in the same period of 2012.
And for the year as a whole it made €5.1bn, again up from a loss of €6.5bn in 2012. As a result the bank has reinstated its dividend, paying shareholders €0.35 per share.
Revenues for the quarter increased 21.9 per cent on the year to €4.05bn, while operating expenses were cut four per cent to €2.9bn.
Credit Agricole’s French retail bank performed particularly well with net income rising 5.6 per cent to €225m in the quarter.
Revenues also increased in the savings management arm, up 3.5 per cent to €1.3bn in the final quarter. However, its expenses increased more quickly, up 4.8 per cent to €647m.
As a result that division’s net income fell 17.9 per cent to €367m.
Credit Agricole’s Basel III capital ratio came in at 8.3 per cent, higher than the expected top end of eight per cent.
The bank’s shares rose 2.4 per cent.
Bosses said the bank will set out new goals next month.
“Prior to unveiling our medium-term plan on 20 March , Credit Agricole has shown that it is ready to move forward with confidence,” said CEO Jean-Paul Chifflet.