Credit Agricole's profit falls by 98%

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Credit Agricole said profit was almost wiped out in the second quarter on charges tied to its stake in bailed-out Banco Espirito Santo SA.

Bloomberg News reports that net income dropped 98% to $23m from $933.9m a year earlier, the bank, based near Paris, said in a statement Tuesday. That compares with the $519.8m average estimate of five analysts surveyed by Bloomberg. Credit Agricole booked $950m in costs related to its 14.6% holding in Banco Espirito Santo.

The Bank of Portugal on August 3 unveiled a $6.6bn bailout that will leave Banco Espirito Santo’s shareholders and junior bondholders with losses, while sparing senior creditors and unsecured depositors. Excluding the Espirito Santo losses and some one-time financial costs, second-quarter profit at the lender rose to $1.34bn as bad-loan provisions fell.

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Credit Agricole Net Falls 98% on Banco Espirito Santo

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