Credit Agricole profit drops in fourth quarter

Paris: Credit Agricole posted a slump in fourth-quarter profit after it booked a goodwill writedown at its French consumer-banking unit and trading revenue fell.
Net income dropped to 291 million euros ($308 million) from 882 million euros a year earlier, the Montrouge, France-based lender said on Wednesday. That compares with the 315 million-euro average estimate of six analysts surveyed by Bloomberg. Credit Agricole will pay a cash dividend of 60 cents a share for 2016.
The lender, which refocused on its main markets after losses during both the Greek and subprime-mortgage crises, last year reorganized its corporate structure to free up capital. Chief Executive Officer Philippe Brassac, almost two years into the job, is expanding in asset management as record-low interest rates take a toll on its French retail unit.
Credit Agricole booked a 491 million-euro goodwill writedown at LCL, its French branch network, after "massive” mortgage refinancing by clients, it said last month. While the charge had no impact on the bank’s solvency or dividend policy, it illustrated the pain the rates squeeze is inflicting on consumer banks. The bank also booked a 161 million-euro charge related to a review of deferred tax assets in the quarter.