Credit Agricole profit soars as loan provisions fall

10th November 2010, Comments 0 comments

French bank Credit Agricole reported Wednesday better-than-expected third quarter results and said it would not need to raise fresh cash to meet new international capital adequacy regulations.

Credit Agricole said its third quarter net profit soared some 2.6 times from a year earlier to 742 million euros (1.02 billion dollars).

Analysts polled by Dow Jones Newswires expected a net profit of 675 million euros.

The bank said earnings reflected an 18 percent decline in loan loss provisions to 973 million euros.

Net interest income -- the difference between interest paid on deposits and interest charged on loans -- increased 3.1 percent to 4.98 billion euros.

The banking group said it had no need to raise cash to meet new rules calling for lenders to have core, easily available capital equal to seven percent of their total risk assets by 2018.

© 2010 AFP

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