Credit Agricole income surges after pulling out of EU periphery

 
Tim Wallace
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FRENCH lender Credit Agricole saw profits rebound in the second quarter, it announced yesterday, after selling off or slimming down its units in Greece and Italy.

By shifting its focus away from the recession-struck nations, the bank saw profits come in at €696m (£602.5m), more than 12 times higher than the €56m recorded in the same period of 2012.

Revenues dipped 0.9 per cent to €4.4bn, while operating expenses fell 2.9 per cent to €2.9bn and cost of risk fell 13.9 per cent to €680m.

The corporate and investment bank performed strongly with net income up 37.7 per cent to €283m.

The group’s cost-cutting plan generated savings of €146m in the three-month period, or 4.9 per cent of costs in the same period of 2012.

The group’s fully loaded Basel III core tier one capital ratio hit 10 per cent, up from 9.6 per cent.

The bank blamed a “technical error” for the results appearing earlier than planned on its website.