The French banking group Crédit Agricole closed the third quarter with a net loss of 2,85 billion, a new record in the bank's history, against a profit of 258 million a year earlier and market expectations of a 'hole' of 1,76 billion. The quarterly accounts were scuttled by the sale in October of the subsidiary in Greece, Emporiki, to the Greek banking group, Alpha Bank, at the symbolic price of one euro.
The sale resulted in a $1,96 billion impairment on Credit Agricole's third-quarter accounts. To find a buyer, the French bank had to undertake to recapitalize Emporiki for 500 million and grant a 1,4 billion credit line to the former subsidiary. Credit Agricole's revenues for the quarter decreased by 31,9% to $3,43 billion.
