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’Resurgent CLSA scraps pay cuts
CLSA, the Asia-focused brokerage arm of Credit Agricole, has scrapped a controversial scheme that slashed staff pay, in a sign of the dramatic revival in the fortunes of financial groups operating in the region.
Crédit Agricole beats expectations
Shares in Crédit Agricole surged on Thursday after it reported better-than-expected Q2 net profits, helped by resilient sales in its retail and asset management businesses and lower asset writedowns. France’s third-largest bank said it made net profit of €201m ($286m),
Snap news
Breaking pre-market news on Thursday,
- Credit Agricole Q2 net income up 52 per cent to €663m – statement.
- Fortis posts €886m profit on proceeds from divestment – statement.
- Nationwide House price index rises 1.6 per cent in August – statement.
Crédit Agricole’s net profits fall 77%
Crédit Agricole, France’s second-biggest bank, on Thursday reported a 77% year-on-year fall in Q1 net profit, after more than doubling its loan-loss provisions to €1.1bn. Net profit of €202m ($275m) in the first quarter underperformed consensus expectations of €350m profit after losses in its investment banking and international retail businesses.
CDS report: Debt buybacks, FASB and viAIGra stimulate the banks
The cost of insuring European corporate debt against default eased again on Monday as sentiment towards banks improved after last week’s loosening of US mark-to-market accountancy rules. In morning trade the Markit iTraxx Europe index of investment grade companies fell 9 basis points to 157bp,
Banks exploit junior debt discounts
European banks are boosting their capital bases by repaying billions of euros worth of junior bonds at hefty discounts to face value and booking the difference as profits to add to core equity. Crédit Agricole offered to buy back £750m of junior debt at a 28% discount on Wednesday,
Agricole hit by Calyon, Emporiki problems
Crédit Agricole said it expected the financial crisis to last until the second half of 2010, as it reported a worse-than-expected Q4 loss on writedowns in its Greek retail banking business and higher provisions for Calyon,
French banks plan joint functions
French banks Crédit Agricole and Société Générale plan to announce Monday an agreement to combine large parts of their asset-management operations, reports the WSJ. The banks aim to create a joint venture with about €700bn ($909bn) in assets under management,
CDS report: Crossover reaches all-time high
The cost of protecting European corporate debt against default jumped on Monday as benchmark credit derivatives indices tracked falling global equities.
The Markit iTraxx Crossover index of credit default swaps written on 50 mostly junk-rated European corporates rose 39 basis points to reach an all-time high of 929 bp.
CDS report: ‘Time for debt rehab’
The cost of protecting European corporate debt against default rose on Friday as the flow of dismal global economic data continued to pour forth from the world’s statistics bureaus.Data showed tumbling monthly industrial output in Japan,
Agricole brokerage arm takes pay cut
Hundreds of top staff at CLSA, the Asia brokerage arm of Crédit Agricole, have agreed to a take a voluntary pay cut to stave off the threat of redundancy. The firm’s 500 most senior employees were ordered to say,
CLSA asks 500 staff to take pay cuts
Bloomberg reports CLSA Asia-Pacific Markets, the regional brokerage unit of Credit Agricole, has asked 500 senior bankers and executives to accept pay cuts of as much as 25 per cent next year to avoid getting rid of jobs.
France injects €10.5bn into top six banks
France’s government said it would inject €10.5bn into the country’s six largest banks. Crédit Agricole would receive €3bn, BNP Paribas €2.55bn, Société Générale €1.7bn, Crédit Mutuel €1.2bn,
A kingdom for some (Tier 1) capital
Yesterday we saw UBS and Credit Suisse use government bailouts to help raise their Tier 1 capital, banks’ stress-test safety cushion, to 11.5 per cent and 13.7 per cent respectively. UK banks, with at least £37bn of HM Treasury money behind them,
Credit Agricole to cut 500 Calyon jobs
Credit Agricole, France’s biggest retail bank, said on Wednesday it would cut 500 jobs at Calyon, its investment banking unit that has been badly hit by the global credit crunch, reports Reuters. Half the cuts will occur in France and the other half at Calyon’s international operations,
Crédit Agricole profits plunge
Crédit Agricole, France’s third largest bank, on Thursday reported a 94% plunge in Q2 net profits as it wrote-down €1.1bn due to its exposure to US monoline insurers. The results were worse than expected,
Snap news
The latest on Thursday,
- Q2 profits all but evaporate at Credit Agricole. Bloomberg
- Swiss Life misses forecasts at the half-year, warns on year-end. Reuters
- Thomas Cook in talks with Lufthansa and TUI about merging their respective no-frill operations – Condor,
Les menaces monolines
Unfortunate news for Belgian-French bank Dexia today as monoline FSA draws down on a $5bn credit line.
Such is the power of Ackman.
But there’s monoline pain elsewhere in francophone Europe. Take Credit Agricole.
Investors cool to Agricole rights issue
Shares in Crédit Agricole fell by 8% to a five-year low Thursday in the first stock market reaction to its heavily discounted rights issue aimed at raising €5.9bn ($9.18bn). France’s third-largest bank has offered investors the right to buy one share for every three held at €10.60 each,
Crédit Agricole defends rights issue
Georges Pauget, chief executive of Crédit Agricole, warned that the worst of the credit crisis was not yet over and unveiled plans to raise €5bn ($7.7bn) in disposals. Pauget confirmed a €5.9bn rights issue and said that Calyon,
Credit Agricole is next bank to tap the market
Another European bank calling on shareholders to boost ailing capital ratios. Credit Agricole wants €5.9bn.
Les Echos had the story.
In setting its Tier 1 target at 8.5 per cent, Credit Agricole is broadly in line with UK peers that have bolstered their balance sheets for tough times ahead.
Snap news
The latest on Tuesday:
- Credit Agricole will announce plans on Thursday to raise several billion euros to cover further writedowns at its investment bank Calyon, reports Les Echos, alongside the departure of chief executive Marc Litzler.
Agricole rules out SocGen bid
Crédit Agricole sought Wednesday to scotch rumours that it would bid for Société Générale, its bigger rival, when its chairman, René Carron, ruled out large acquisitions as it reported worse-than-expected Q4 results.
Subprime hit for Agricole
Crédit Agricole, France’s largest retail bank, is set to become the country’s biggest loser so far from the US subprime crisis when it announces an additional writedown to the €2.5bn ($3.7bn) already disclosed.
Crédit Agricole sells Suez stake
Crédit Agricole has sold its stake in Suez, the French utility group, in an effort to reinforce its capital position, reports the FT. Crédit Agricole held a 2.1% stake in Suez, which it successfully placed with institutional investors on Monday,
SocGen to set up broking in India
French bank Societe Generale will set up broking operations in India with an initial investment of $50m over two years, reports Reuters, citing the Economic Times of India. The bank’s broking subsidiary would operate through a wholly-owned unit in India,
Taittingers buy back the ‘farm’
The Taittinger family is to secure control once again of the Taittinger champagne business more than two years after selling its quoted portfolio of businesses to Starwood Capital, the US hotel group. The family is participating in an MBO from French bank Crédit Agricole Nord-Est,
Le Supersiv
No one knows what exactly is happening with Citi’s yankee super SIV. It seemed to have stalled, then things picked up again and now… nada.
Now comes news that the French felt they couldn’t wait for the yanks and started to build a super fund of their very own.
Agricole agrees €809m deal for Bankinter stake
Crédit Agricole of France was poised Monday to become the largest shareholder in Bankinter after agreeing to pay €809m ($1.18bn) for a 14.99% cent stake in Spain’s sixth-largest listed bank by assets.