Greek economic turmoil has continued to affect
income at Credit Agricole Leasing & Factoring (CAL&F).
The asset finance division of French bank
Credit Agricole posted a 53% year-on-year decline in first quarter
net income, due largely to €11m Greek cost of risk over the
Revenue at the division has remained steady so
far in 2012, reaching €142m compared to a €145m for the first three
months of last year.
Expenses were also stable, dropping 7.4%
year-on-year, generating a gross income of €62m, a 5.5% increase on
the first quarter of 2011.
However, after a €10m increase in cost of risk
for the period to €32m, €11m of which was attributed to Greece, net
income dropped to €12m compared to €25m the year before.
The figure marks return to profitability for
CAL&F after a €304m loss for the fourth quarter of 2011 as a
result of a one-off €247m write-off, increased cost of capital and
exposure to the Greek and Italian debt including €93m Greek cost of
CAL&F’s leasing business in France, which
contributed €15.7bn of €19.7bn in outstandings as of the 31 March
2012, has been deliberately reduced both in equipment leasing and
property lease finance, according to the company’s financial
statement, as part of Credit Agricole’s strategy to reduce
risk-weighted assets and control growth in lending.
The Credit Agricole financial statement
described the Leasing & Factoring division as delivering a
solid operating performance in the first quarter.