France's BPCE bank in 1.5 bn euro capital boost
France's BPCE banking group has decided to boost the capital of its mortgage unit Credit Foncier by 1.5 billion euros ($2 billion) due to its exposure to Greek sovereign debt, a spokeswoman said Tuesday.
The amount includes a 500 million euro advance announced when France's third largest bank by assets presented quarterly results at the beginning of the month.
BPCE posted a 60 percent drop in its July-September earnings compared to the same period last year to 332 million euros due to a significant drop in the value of its holdings of Greek government bonds.
Credit Foncier sought to diversify its business in 2006-2008 by buying debt of foreign countries and companies, and also holds a considerable amount of Italian government bonds.
BPCE includes the Caisse d'Epargne and Banque Populaire retail banks.
© 2011 AFP