PROFITS soared at French lender Credit Agricole after the bank disposed of its troublesome Greek units, the bank’s first quarter results showed yesterday.
Net profits hit €469m (£396m) in the three-month period, up 51 per cent on the year. Losses of €907m in Greek bank Emporiki had dragged down earnings a year ago, but that has since been sold to Greece’s Alpha Bank.
Revenues at the group fell 26.2 per cent to €3.9bn while operating expenses fell 3.5 per cent to €2.9bn.
A revaluation of the group’s own debt and the application of new accounting rules knocked €262m from the total, but the restructuring of the lender outweighed those costs.
The corporate and investment banking arm performed particularly poorly as pre-tax profits fell 52.2 per cent to €307m.
Investors were disappointed with the results – despite the rise in group profits, the bank’s shares fell 1.58 per cent on the day.