PARIS (dpa-AFX) - French lender Crédit Agricole SA (CRARF.PK) Thursday revealed its medium-term plan for 2014-2016 , and said it targets net income Group share of more than 4 billion euros, or about $5.5 billion, by the year 2016. From 2015, the bank will assume a 50 percent dividend pay-out with 50 percent payment in cash.
Crédit Agricole Group, which comprises the Regional Banks and Crédit Agricole S.A., expects group net income share for 2016 to be over 6.5 billion euros.
The company noted that the medium-term plan income estimations are made in a still fragile economic context but reflecting a progressive normalization of the situation in the eurozone.
The Group said it estimates 2016 revenues of around 15.5 billion euros from its regional banks. By 2016, revenue synergies across the Group are expected to raise by about 850 million euros, the main contributors being Savings management and Insurance.
Revenue synergies in Italy are expected to be around 500 million euros by 2016.
Crédit Agricole S.A.'s cost optimisation programme, which was launched in 2012, aims to achieve 650 million euros in cost savings by 2016. By the end of 2013, it achieved 351 million euros of savings.
For the year, CET1 Basel 3 fully loaded ratios is anticipated to be over 10.5 percent for Crédit Agricole S.A., and 14 percent for the Group.
According to the lender, its medium term plan core focus will be on retail banking and savings management & insurance business lines, with the priority of organic growth.
Crédit Agricole Group's medium term plan will include transformation of retail banking business, acceleration of revenue synergies and focusing of growth in Europe, among other things.
Crédit Agricole's 2016 strategic pillars also include implementation of ambitious 3.7 billion euros investment plan.
In Paris, Crédit Agricole shares are currently trading at 11.37 euros, down 2.65 percent, on a volume of 5.72 million shares.
Copyright RTT News/dpa-AFX