Loss day for Crédit Agricole on the Stock Exchange Paris. The share of the French institute, dragged down by the announcement of new provisions for the dispute in the USA, in fact dropped by more than 11% in the early afternoon, to 12,76 euros per share.
At the presentation of the accounts for the first half-year, CEO Philippe Brassac announced that he had increased the provision for litigation by 350 million euros, as part of advanced discussions with the US for payments in dollars to countries subject to embargo by the of Washington. Last year, for a similar dispute, Bnp Paribas had to pay a maxi fine of 6,6 billion euros, although Crédit Agricole has already announced that the amount of its fine will be lower.
Apart from these extraordinary items, the accounts of the French institute were in line with analysts' forecasts, with growth of 34% of the net profit, which rose to 2,7 billion euros.
The delay in the reorganization announced in September 2013 is also weighing on the group's stock. According to Credit Suisse analysts, for example, "the lack of clarity on the future governance structure" of Crédit Agricole puts the stock under pressure.
