Crédit Agricole has registered a quarterly net income down 67% (from 339 to 111 million euro) which were particularly affected by the accounts of the Greek subsidiary Emporiki and a writedown of 427 million euro of the stake held in Intesa Sanpaolo.
The Bank has revealed that they are continuing negotiations with the European Commission and the Greek authorities regarding a potential sale of Emporiki, but which has not entered into advanced negotiations with any bidders.
In addition to the reduction in the value of its 5% stake in Intesa, the Institute was hit by charges of €370 million in relation to Greece, as well as by €16 million for the cost of the restructuring plan to reduce the balance sheet and cut dollar funding needs.
The Core Tier 1 ratio as at 30 June stood at 11,3%, with an increase of 40 basis points in the second quarter and 110 basis points in the first half of 2012. The EBA ratio was instead equal to 10,7%. The bank confirms its objective of fully loaded Common Equity Tier 1 Basila 3 above 10% for the end of 2013.
The Italian group cariparma, controlled by Credit Agricole, instead closed the first half with a net profit of 166 million, up 39,7% on an annual basis, and operating income of 850 million (+4,2%). On the capital front, Core Tier 1 stands at 8,8%, with an improvement of 5 basis points compared to December.
The group has decided to review the structural costs and has started the activation of the Social Fund, with a provision of 55 million, with a forecast of voluntary participation of around 400 resources.
