A loss at Credit Agricole Leasing &
Factoring (CAL&F) contributed to dampened profits at the French
bank’s Specialised Financial Services despite a slight revenue
increase.
The Credit Agricole Group recorded a €1.1bn
loss for 2011 as a result of its exposure to the Greek debt
crisis.
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The bank’s Specialised Financial Services
division remained in the black but took an 82.1% cut in profits
from 2010.
Profit in the division which includes
CAL&F was €106m in 2011, down from €595m in the previous
year.
Reflecting the group as whole, which lost
€3.1bn in the fourth quarter, the end of the year was particularly
difficult for Specialised Financial Services which lost €355m in
the final quarter compared to a €162m gain in 2010.
Revenue at CAL&F was up year-on-year, both
quarterly and annually, but the leasing business still recorded a
loss for both periods. Loss for the quarter was €304m, contributing
to €259m loss for 2011 which the bank attributed to a one-off
good-will impairment of €247m, increased cost of capital and
exposure to Greece and Italy.
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By GlobalDataCAL&F reported impairment charges for
lease finance operations in Greece of €93m in the quarter, €142m
over the year and in Italy of €10m in fourth quarter and €20m over
the year.
Specifically in lease finance, outstandings
for the year totalled €19.9bn, a 5% year-on-year rise which
reflected slower growth during the second half of 2011. According
to a Credit Agricole statement, the slowdown is in keeping with the
decisions under the banks’ adjustment plan to reduce the group’s
debt by €50bn between June 2011 and December 2012 and to refocus
geographically.
The priority for CAL&F is now focused on
strategic, profitable partnerships in France, according to Jean
Paul Chifflet, chief executive of Credit Agricole, who said in a
statement: “On the whole, Crédit Agricole’s solid fundamentals,
coupled with the rapid implementation of measures under the
adjustment plan, will give the Group the means to cope with the new
economic and financial framework.”
