PARIS: French bank Credit Agricole said it posted a record 6.47 billion euro ($ 8.7 billion) loss for 2012 after booking a massive fourth quarter charge but was now "turning the page".
The bank said it would be launching a three-year strategic plan aimed at saving 650 million euros.
In the fourth quarter alone, the bank posted a loss of 3.98 billion euros, mostly due to exceptional items.
Part of the loss, 838 million euros, was due to Credit Agricole's exit from its Greek bank Emporiki.
It also booked 2.67 billion euros in losses in writing down the value of its assets and an 837 million charge for the re-evaluation 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," the bank's chief executive Jean-Paul Chifflet said in the statement.
"It will show that we are going forward on a solid foundation."
Stripping out exceptional items, the banking group's fourth quarter earnings rose by 10 percent from the same period in 2011 to 548 million euros.
For 2012 as a whole it put net earnings before exceptional items at 3.0 billion euros.
It said its retail banks generated 3.5 billion euros in profit.
Credit Agricole's management said that it would propose not paying a dividend for 2012, following on from 2011 when it also made no payout to shareholders after suffering a loss of 1.47 billion euros.
The bank did not disclose how many jobs may be cut as part of the new plan to generate 650 million euros in savings, saying it would provide details later.
Last year it shed 2,300 jobs at its investment and consumer finance units as part of a previous savings plan.
The bank had been hoping to write off its loss on selling Emporiki against its taxes, but French tax authorities refused.
This increased the loss from 706 million euros to 838 million euros, said finance director Bernard Delpit.
"Our presence in that county cost us dearly," commented Chifflet.
However Credit Agricole's Greek acquisition wasn't the only costly adventure. Like many banks it 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.
The bank's core capital ratio was 9.3 percent according to the new Basel III rules, and it said it would increase that to 10 percent at the end of 2013.
Credit Agricole posts record 6.47 bn euro loss
Credit Agricole posts record 6.47 bn euro loss
Closing Bell: Saudi main index dips slightly to 10,912
RIYADH: Saudi Arabia’s Tadawul All Share Index was broadly stable on Tuesday, as it shed just 4.61 points or 0.04 percent to close at 10,912.43.
The total trading turnover of the benchmark index stood at SR3.99 billion ($1.06 billion), with 68 of the listed stocks advancing, and 194 declining.
The Kingdom’s parallel market Nomu gained 0.68 points to close at 23,358.18.
The MSCI Tadawul Index also edged up by 0.03 points to 1,467.56.
The best-performing stock on the main market was Saudi Cable Co. The firm’s share price rose by 9.72 percent to SR161.40.
The share price of Almasane Alkobra Mining Co. advanced by 9.25 percent to SR108.70.
Al-Jouf Agricultural Development Co. also saw its stock price climb by 6.46 percent to SR48.10.
Conversely, the share price of Tabuk Agricultural Development Co. edged down by 3.67 percent to SR7.61.
On the announcements front, Dar Al Majed Real Estate Co. said that it signed a Shariah-compliant banking facilities agreement with the Arab National Bank valued at SR500 million.
In a Tadawul statement, the company revealed that the agreement is aimed at supporting the firm’s expansion plans and financing its future projects in line with its approved strategic plan.
The financing term extends for up to five years and includes a grace period of two years.
The share price of Dar Al Majed Real Estate Co. declined by 0.99 percent to SR9.
Saudi Paper Manufacturing Co. said it signed a credit facilities agreement with Kuwait Finance House Bahrain, which includes facilities allocated to finance working capital and medium-term facilities amounting to $40 million.
In a Tadawul statement, the company revealed that the working capital facilities extend for 12 months and are renewable.
The medium-term facilities last for 48 months, including a six-month grace period.
The credit facilities will be used to cover the company’s working capital for operational activities, plans and expansions in purchasing raw materials, in addition to restructuring medium-term debts to improve cash flows.
The share price of Saudi Paper Manufacturing Co. edged down by 1.09 percent to SR58.80.
