French lender Crédit Agricole SA (CRARF.PK) reported Wednesday a loss in its fourth quarter, wider than last year, as it recorded 4.53 billion euros of charges mainly on goodwill impairments. Normalised net income increased on the resilience of French retail banking and a good performance in Savings management, even as revenues plunged amid persistently sluggish macroeconomic climate.
Further, the company said its Board has decided not to propose a dividend in respect of 2012, citing the results and short-term solvency targets.
Chief Executive Officer Jean-Paul Chifflet said, "2012 was a year of transformation and refocusing. We are turning a page and will develop a new medium-term plan this year. It will show that we are moving forward on solid foundations."
In its recently concluded fourth quarter, Crédit Agricole Group, including Regional Banks, recorded consolidated net loss Group share of 3.27 billion euros.
The parent company Crédit Agricole S.A.'s net loss Group share was 3.98 billion euros, wider than last year's net loss of 3.07 billion euros.
The latest quarter results were hurt by specific charges of 4.53 billion euros, comprising of 2.676 billion euros of already expected goodwill impairments, along with impairment of securities, 541 million euros of the revaluation of debt issues, the exit tax, and 706 million euros effects of the final terms of the sale of Greek unit Emporiki.
Normalised net income for the quarter, which excluded specific items, was 548 million euros, 10 percent higher than the prior year.
In early November, Crédit Agricole reported a hefty loss for its third-quarter, reflecting mainly a loss of 1.95 billion euros related to disposal of Emporiki.
Quarterly revenues plunged 23 percent to 3.33 billion euros from last year's revenues of 4.32 billion euros. The latest results included a negative impact of 837 million euros for revaluation of debt issues related to the improvement in its spreads. Normalised revenues were 6.4 percent lower than last year.
The company noted that French retail banking operations delivered a satisfactory performance despite the sharp economic slowdown.
In the quarter, gross operating income fell 77.4 percent to 206 million euros.
For fiscal 2012, Crédit Agricole S.A.'s net loss Group share was 6.47 billion euros, while Crédit Agricole Group's net loss Group share was 3.81 billion euros, including 3.4 percent increase in net income of the Regional Banks. Crédit Agricole S.A.'s normalised net income was 3.01 billion euros. Annual revenues fell 15.8 percent to 16.32 billion euros.
In terms of solvency, Crédit Agricole said its Core Tier 1 ratio was 9.7 percent at end-December 2012, adjusted for the deconsolidation of Emporiki, which will impact the first quarter 2013 accounts. It was 110 basis points higher than at December 31, 2011. According to the company, most of this improvement was due to a reduction in risk-weighted assets following completion of the adjustment plan.
Looking ahead, Crédit Agricole said it is well positioned to deliver a sustainable financial performance as a result of the set of measures adopted to adjust to the new banking and financial context.
In Paris, Crédit Agricole shares are currently trading at 7.44 euros, up 0.11 euros or 1.56 percent.
For comments and feedback contact: editorial@rttnews.com
Business News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.