Unfortunately, Banco Espirito Santo saddled for Credit Agricole

Severine ROUBY | AFP -

Unfortunately Portuguese bank Banco Espirito Santo (BES) sealed quarterly reports shareholder his French Credit Agricole, which saw its profits despite the good operating performance.

Credit Agricole SA, a listed bank, a net profit of € 17 million from April to June compared to € 696 million the previous year. The whole group, with the participation of regional banks, 49% of its profits come from € 705 million.

Currently, BES, rescued from bankruptcy this week in a total loss of the investment shareholders, which reduces the value of their investment of 14.6% in the Portuguese bank Credit Agricole zero, and must form part of the record quarterly loss assume (3.57 billion) has the BES deleted.

Overall, the effects of these two factors amounted to € 708 million: € 502 million and € 206 million impairment in the value of the investment.

This is another blow to the green bench in southern Europe after the fall of the two years that the Greek subsidiary Emporiki, the total bill amounted to 8.7 billion euros.

In addition to the special factors, in particular the burden of BES and measuring elements, Credit Agricole would have a profit of 1.69 billion euros and a profit of € 1 billion in CASA generated.

BES had to be rescued with a family Espirito Santo by the Portuguese State after suffering setbacks in its largest shareholder.

The Bank of Portugal has decided to create a healthy part of the BES to become a new bank loan is funded by the Portuguese State and toxic assets have remained in the hands of the shareholders.

- The Herald -

"Needless to say, we support the action of the Banco de Portugal. Both can only regret, been misled by Credit Agricole family tried to establish a true partnership to build the first private bank in Portugal," the director complained CASA executive, Chifflet during a conference call.

"We need to draw all the consequences, particularly in the context of the actions that will either open a new BES management, indicating that the processing studied., We are partners, and we will take appropriate measures to protect our interests" , he said.

The Group does not expect justice only if the results of the investigation.

Espirito Santo family member since the mid-1980s, then in 1990 in the capital, left the band in the BES database 2012 as part of a realignment of its assets.

Finally in 2013, after the first write-down of € 267 million shares of the Bank of Portugal, was estimated at € 816 million.

But in the meantime, leading to the dilution of equity growth BES spring and gave the French bank to limit the damage.

Mr. Chifflet assured them that the situation had limited no impact on the solvency ratio of CASA and the BES to 7 basis points (0.07 percentage points) on the relationship between the influence of the group.

CASA has strengthened its core capital under the new Basel III elm to 9.9% at end-June, as a group, the calculated total (12.3%).

"We are facing a quiet European style" be carried out in large institutions verify the quality of bank assets and the stress tests, Chifflet said.

The level of activity was mainly due to the growth in the Corporate and Investment Banking (CIB), insurance and asset management.

The Paris stock exchange, Credit Agricole of almost 5% in the late morning, to 0.40% is the market.

Société Générale analysts believe that the impairment of the investment in BES can resolve uncertainties. The results demonstrate the power of Jefferies "well above the consensus revenue, good cost control and lower depreciation."

Credit Agricole has also shown that where possible violations of the law on bills of U.S. dollars were sent to the U.S. government.

In case, if you will, that the record of sanctions against his rival BNP Paribas, but the leader believes that the risks are much lower in their institutions CASA.