Deals
Credit Agricole Jumps Amid Cash Dividend, Bank Stakes Sale
- Transaction seen boosting CET1 ratio to 11% from start of 2016
- Fourth-quarter profit climbs 28%, beating analysts' estimates
Credit Agricole Boosts Capital, 4Q Profit Up 28%
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Credit Agricole SA jumped the most in more than four years after the French lender said it will sell stakes in more than three dozen French regional banks to shore up capital and target all-cash dividends.
The 18 billion-euro ($20 billion) transaction will increase Credit Agricole’s common equity tier 1 ratio, a gauge of financial strength, to 11 percent as of the start of 2016, a year earlier than planned, the Montrouge, France-based bank said in a statement Wednesday. It will also ensure an all-cash dividend as soon as 2016. For last year, the bank will pay 60 cents a share, and give investors the option to take payment in stock.