Credit Agricole reports record loss

Credit Agricole sign Credit Agricole has reported its worst loss since going public in 2001

Related Stories

French bank Credit Agricole has reported a record loss for 2012 after an unexpected tax charge relating to the sale of its Greek business pushed it deeper into the red.

Losses for last year totalled 6.5bn euros ($8.7bn; £5.6bn).

The worsening economic downturn also led to losses at the bank's Italian and investment banking divisions.

The bank is now planning a three-year turnaround plan to try to revive its fortunes.

Credit Agricole sold Emporiki Bank for one euro at the end of 2012 as a result of the Greek economic crisis. However, unexpected taxes of 838m euros related to the sale meant that Credit Agricole's full-year loss was larger than expected.

Earlier this month, the bank said it had taken a big writedown on the value of its assets - including those in Portugal and Italy - to reflect the worsening eurozone economy and new tighter regulations.

Credit Agricole

Last Updated at 30 Oct 2014, 11:59 ET *Chart shows local time Credit Agricole intraday chart
price change %
11.65 +
+0.25
+
+2.15

"In 2012, we turned the page and profoundly transformed the group," said chief executive Jean-Paul Chifflet.

"Leaving Greece cost us dearly, but it was a necessary decision," he added.

On the bank's new business plan, Mr Chifflet said: "There will be two main priorities governing the undertaking: the acceleration of improvements to our universal customer-focused bank and a deepening of changes that we've already begun on specialised financial services."

Credit Agricole is a semi co-operative bank, controlled by 39 regional French banks.

Shares in the bank are up about 5% to 7.7 euros.

"Things are looking up from here on. Now that they've got rid of Greece, they're coming back to being a plain retail business," said John Raymond, banking analyst at the research provider CreditSights.

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

More Business stories

RSS

Features & Analysis

Elsewhere on the BBC

  • EarthWater world

    Are ‘oceans’ hiding inside Earth? BBC Future investigates

Programmes

  • Francis Rossi, co-founder of band Status QuoHARDtalk Watch

    Status Quo's Francis Rossi explains how alcohol led him to take cocaine

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.