PARIS (dpa-AFX) - French lender Credit Agricole Group (CRARF, CDA.L, ACA), comprising Credit Agricole S.A. and Regional Banks, reported Wednesday a decline in its fourth-quarter profit, reflecting significant charges and weak revenues. Underlying profit, meanwhile, increased from last year, on tight cost control despite weakness in Regional Banks.
Philippe Brassac, Chief Executive Officer, said, 'Crédit Agricole S.A. performed well in 2016 as a result of further strong top-line momentum across all its business lines, plus a tight grip on its costs and its risk. These encouraging results have laid the groundwork for the introduction of a normalised dividend policy and reinforced our confidence in our ability to achieve the targets of the Strategic Ambition 2020 plan for the benefit of our customers.'
For the fourth quarter, Credit Agricole Group's net income Group share came to 671 million euros, compared to 1.56 billion euros a year ago. The latest results included specific negative items 977 million euros, compared to gains of 59 million euros a year ago.
Excluding items, underlying net income Group share came to 1.65 billion euros, an increase of 9.5 percent from last year.
Crédit Agricole S.A.'s net income Group share came to 291 million euros. Underlying net income Group share came to 904 million euros, an increase of 52.6 percent from last year.
The Regional Banks' contribution to Crédit Agricole Group's underlying net income Group share was 707 million euros, down 25.1 percent from last year.
The group's revenues declined to 7.90 billion euros from 8.03 billion euros last year. Underlying revenues edged up 0.7 percent to 7.83 billion euros.
Crédit Agricole S.A.'s revenues increased to 4.58 billion euros from 4.39 billion euros last year. Underlying revenues increased 10.9 percent to 4.48 billion euros.
Underlying revenues from the Regional Banks declined 11.6 percent to 3.27 billion euros, affected by the impacts of the operation to simplify the Group's structure. Adjusted revenues rose by 3.1 percent with interest income stable and fee and commission income up 6.2 percent.
Further, the company announced a dividend of 0.60 euro in cash for the year 2016. The company also said that from 2017 onwards, it intents to maintain at least the 2016 level and attractive payout ratio of 50 percent.
Copyright RTT News/dpa-AFX