Crédit Agricole: Farming Double-Digit Returns At France's Largest Bank
Helix Investment Research
Helix Investment Research
Wed, Feb. 17, 3:19 AM
- While posting fourth-quarter earnings that beat estimates, Credit Agricole (OTCPK:CRARY) said it would sell back stakes in more than three-dozen regional banks to provide more "financial flexibility."
- The €18B ($20B) transaction will increase Credit Agricole's common equity tier 1 ratio to 11%, and will ensure the lender can offer an all-cash dividend.
- The restructuring highlights the burden on European banks to fortify their balance sheets and improve transparency amid volatile markets and continuing pressure from regulators.
- Credit Agricole +7.8% in France.
Dec. 31, 2015, 10:52 AM
- The Swiss unit of Credit Agricole (OTCPK:CRARY -0.8%) has agreed to pay a $99M penalty to the U.S. Justice Department part of a nonprosecution agreement over its conduct toward U.S. taxpayers, WSJ reports.
- Under the 2013 deal, the U.S. cracked down on Swiss banks it suspected of helping American taxpayers conceal income.
- Previously: Credit Agricole settles sanctions violations for $787M (Oct. 21 2015)
Nov. 9, 2015, 4:24 AM
- The Financial Stability Board has published new rules that aim to stop banks from becoming "too big to fail," confirming its final proposals for Total Loss Absorbing Capacity, or TLAC.
- Under the plan, large lenders will have by January 2019 to hold a financial cushion of at least 16% of their risk-weighted assets in equity and debt that can be written off. That requirement will gradually increase, reaching 18% of assets weighted by risk by January 2022.
- The FSB will put the rules, which will apply to the world's top 30 banks, to the G20 later this month.
Oct. 21, 2015, 3:32 AM
- Credit Agricole (OTCPK:CRARY) has agreed to pay $787M to U.S. regulators and entered into a deferred prosecution agreement with the DOJ to settle allegations over the transfer of billions of dollars on behalf of Iran and other countries.
- Credit Agricole now joins 10 other global banks that have entered into similar agreements over the past six years, acknowledging conduct that violated U.S. sanctions.
Aug. 4, 2015, 4:29 AM
- Just two months into the job, Credit Agricole's (OTCPK:CRARY) new chief executive has made his mark with a management reshuffle, as the bank nears a settlement over possible sanctions breaches.
- Several business lines have now been reorganized to report directly to CEO Philippe Brassac and top management.
- The bank also announced it would book an additional €350M in litigation provisions, bringing the total to €1.6B.
Feb. 18, 2015, 6:53 AM
- Helped by a recovery in its investment banking activities and a sharp reduction in its provisions against loan losses, Credit Agricole (OTCPK:CRARY) today reported quarterly profit that beat market expectations.
- Net income for Q4 came in at €697M ($795M), up 13% from the same period in 2013.
- The bank also said it hopes to soon name a successor to its chief executive, Jean-Paul Chifflet, who retires in May. On Sunday, Philippe Brassac was reported to be the main candidate in the running.
Feb. 16, 2015, 3:14 AM
- Credit Agricole (OTCPK:CRARY) is poised to appoint Philippe Brassac as its new chief executive, FT reports.
- Brassac, who runs one of the 39 regional mutual banks that together own a majority stake in Credit Agricole’s listed entity, CASA, has majority board support and could receive formal approval as early as this week.
Jan. 9, 2015, 7:54 AM
- More than half of the €7.5B in newly issued Santander (NYSE:SAN) stock was purchased by U.S. investors, reports the FT, with about 25% bought by U.K. owners.
- The bank issued 1.214B shares at £6.18 each as new executive chairman Ana Botin quickly broke ranks with her late father's strategy just four months after replacing him atop the company.
- The ADRs are lower by 4.5% premarket after yesterday's 7% decline.
- Now that Santander has joined Deutsche Bank in raising capital, analysts turn their attention to the next dominoes. High on the list: BNP Paribas (OTCQX:BNPQY), Societe General (OTCPK:SCGLY), Credit Suisse (NYSE:CS), Commerzbank (OTCPK:CRZBY), and Credit Agricole (OTCPK:CRARY).
Aug. 5, 2014, 4:48 AM
- Credit Agricole (OTCPK:CRARY) says it is beginning to discuss its potential sanctions violations with U.S. authorities, and has sent the latter the results of its internal review.
- The negotiations begin only one month after French bank BNP Paribas was hit with a ban on certain dollar clearing activities and a $8.9B fine for violating U.S. sanctions.
- Credit Agricole gave no details about its litigation provisions, but says it considers them adequate.
Aug. 5, 2014, 3:02 AM
- Banco Espirito Santo may have received a $6.6B rescue yesterday, however, that did not stop one of its main shareholders from logging a record loss.
- Credit Agricole (OTCPK:CRARY) has reported that it took a €708M ($950M) hit due to its 14.6% stake it owns in Banco Espirito Santo, nearly wiping out the bank's Q2 net profit.
- The French bank is now trying to concentrate on its domestic business and move away from cross-border deals.
Aug. 4, 2014, 1:54 AM
- Portugal is spending €4.9B ($6.6B) to rescue Banco Espirito Santo, splitting it into a "good bank", to be renamed Novo Banco, and a "bad bank", which will house Banco Espirito's exposures to the troubled Espirito Santo business empire.
- The bad bank's losses will be born by the bank's shareholders, including the Espirito Santo Financial Group (OTC:ESFHF), one of the holding companies of the Espirito Santo family, and French bank Credit Agricole (OTCPK:CRARY) which owns a 14.6% stake.
- With total assets of €76.6B ($103B) at the end of March, Banco Espirito Santo is nowhere near large enough to rank among the eurozone’s largest banks. Still, the rescue will be costly for a country that emerged from an international bailout only months ago.
Jul. 10, 2014, 2:41 AM
- Commerzbank (CRZBF, CRZBY) is now expected to pay between a $600-$800M settlement for its money transfer operations which evaded U.S. sanctions, CNBC reports. The bank is accused of transferring money on behalf of companies in Iran and Sudan.
- It was previously reported that the bank would have to pay more than $500M.
- Over the past five years, American authorities have found more than half a dozen foreign banks guilty of sanctions violations.
- The U.S. is still probing UniCredit (UNCFF), Credit Agricole (CRARY), Societe Generale (SCGLF), and Deutsche Bank (DB).
Jul. 6, 2014, 9:46 AM
- France's finance minister Michel Sapin states that he is not worried about additional U.S. probes on other French banks, following last week's guilty plea by BNP Paribas for violating U.S. sanctions.
- "I think the risk is rather being perceived by other very big European banks," says Sapin.
- According to U.S. sources, French banks Societe Generale (SCGLF) and Credit Agricole (CRARY) and Germany's Deutsche Bank (DB) are also being investigated for having potentially violated U.S. sanctions.
May 20, 2014, 8:19 AM
May 6, 2014, 12:27 PM
- Germany's growth premium in comparison to Europe is shrinking, impacting 25% of Germany’s equity market revenues, says global equity strategist Andrew Garthwaite, moving to a benchmark weighting in German stocks from overweight.
- He also notes the country's competitiveness and funding-cost advantages are on decline, and it has three times more export exposure to China than Europe as a whole.
- German's DAX 30 Index closed -0.7% today.
- German ETFs: EWG, BUND, EWGS, DBGR, GERJ, DXGE, BUNL, FGM, BUNT, GGOV, HEWG
- France, on the other hand, is moved to overweight as a play on ECB launching QE. "Bond spreads are consistent with outperformance, and France stands to benefit more than Germany from any ECB easing," says Garthwaite.
- P/E valuations are 5% below average, and 75% of the companies in CAC 40 have restructuring potential, he says.
- Particularly cheap are the French banks: CRARY, SCGLY, BNPZY. Also looking good: Renault (RNSDF), AXA (AXAHY -1.6%), and Total (TOT -0.4%).
- The CAC 40 closed -0.8% today.
- French ETFs: FXE, EUO, ERO, DRR, EUFX, ULE, URR
Apr. 29, 2014, 9:39 AM
- Capital shortfalls will need to be covered within six months for those lenders failing under the EBA's baseline stress test scenario, while banks failing under the adverse scenario will have nine months to fix things.
- ECB Vice-President Constancio: "Banks should start to consider what private sources of capital could be raised as a result of this exercise and plan accordingly."
- Earlier: The EBA unveils stress test criteria. 124 banks from 28 EU states are subject to the exams. Among the larger ones: DB, BNPQF, BNPQY, SCGLY, SAN, BBVA, UNCFF, UNCFY, IRE, NBG, CRZBY, CRARY.
- European financial sector ETF: EUFN
Currently, there's no company description for CRARY.
Industry: Money Center Banks
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