By Marcus Leach
Crédit Agricole's Board of Directors, chaired by Jean-Marie Sander, met on 9 November 2011 to review the accounts for the third quarter and first nine months of 2011.
Net income Group share was 258 million euros in the third quarter of 2011, compared with 742 million euros in the third quarter of 2010, and 1,597 million euros in the first nine months of 2011, against 1,591 million euros in the same period the previous year.
Jean-Marie Sander, Chairman of Crédit Agricole S.A., said that this level of income stems from both a persistently strong operating performance and the substantial impact from the 60% impairment of Greek government bonds, and reflects on one hand:
- Continued strong momentum across all business lines in an extremely difficult climate and despite uncertain, volatile market conditions: third-quarter revenues were 5.3 billion euros, 6.2% higher than in the third quarter of 2010;
- Controlled costs, which rose slightly by 0.9%, but were stable excluding the new bank taxes;
- Gross operating income which, as a result, increased by 16.8% to over 2 billion euros;
- A confirmed decline in the cost of risk, which was down by 2.7% excluding the impact of Greek government bond impairments;
and, on the other:
- The effects of measures to support Greece adopted by the euro zone countries at the European summit in Brussels; based on a 60% impairment of Greek government bonds, the cost of risk amounted to 905 million euros, or 637 million euros after tax and minorities.
Jean-Paul Chifflet, Chief Executive Officer of Crédit Agricole S.A., noted that in the third quarter, Crédit Agricole S.A.'s base of recurring income remained in line with that of the first two quarters of 2011 when considering the scale of the exceptional events which have hit both French and European banks.
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