Crédit Agricole posts record loss, announces new cost-cutting plan

French bank Crédit Agricole has announced a record loss of 6.47 billion euros for 2012 but bosses claimed it is “turning the page” with a plan to save 650 million euros in three years. Part of the loss is due to its withdrawal from a Greek bank.

AFP

Crédit Agricole’s losses were boosted by a massive 3.98-billion-euro loss in the fourth quarter. But that was due to exceptional items, the bank said Wednesday.

They included 838 million euros due to its exit from Greek bank, Emporiki, part of which accountants unsuccessfully tried to write off against taxes in France.

It also booked 2.67 billion euros in losses in writing down the value of its assets and an 837 million charge for the reevaluation of the value of its debt.

"2012 was a year of transformation and streamlining. We are turning the page and we will develop this year a new medium-term plan," chief executive Jean-Paul Chifflet said in a statement.

Last year the bank shed 2,300 jobs but it refused to say how many will go in the new “strategic plan”.

Management is to propose not paying a dividend for 2012, following 2011 when it also made no payout to shareholders after suffering a loss of 1.47 billion euros.

Like many banks, Crédit Agricole bought many assets in the early 2000s when prices were high.

It booked 2.67 billion euros in charges to revalue those assets in line with their current market value.

Other charges also brought the bank's accounts in line with current market conditions.

"We have turned the page and profoundly transformed the group," said Chifflet.