Credit Agricole’s half year results show
slower growth in the value of loans for its leasing and factoring
arm than last year.
The leasing divsion of Credit Agricole Leasing
& Factoring (CAL&F) was particularly affected “by the
difficult business climate” said the French banking group in a
Leasing grew by 7.7% or €1.4bn, in terms of
value of loans, compared to a growth of 11 % or €1.8bn last
Factoring saw a growth of 18% or of €4.8bn
compared to 35% or €7.1bn last year.
The value of CAL&F’s outstanding leases
outside France now amounts to €4bn, an increase of 5.3% year on
This is compared to an increase in value of 12
% year on year for 2009 to 2010.
The poor economic conditions in Greece
affected CAL&F’s international leasing negatively because of
the €20m cost of risk charged in the second quarter of this year
for Emporiki Leasing, the leasing arm of the Greek bank that Credit
Agricole controls 96% of.
The loan value of the French operations
increased by 8%, from €14.5bn in June 2010 to $15.6bn this
Leasing and factoring together grew 3.5%
year-on-year in terms of revenue in the first half of this year,
owing to growth in factoring.
Specialised financial services, which includes
leasing & factoring and consumer finance, makes up 11% of
Credit Agricole’s revenue.
Sector pre-tax income increased 5.5%
year-on-year, compared to a rise of 32.6% year on year for 2009 to
In August GE Capital acquired the UK
invoice discounting and factoring arm of CAL&F as the company
wanted to focus more on its core geographies.
Credit Agricole’s overall net profit for the
first half of 2011 increased 57% to €1.34bn, and the bank’s shares
rose by 6.5%.