Credit Agricole Provisions Surge as it Girds for Bad Loans
- CFO says bank less exposed than rivals to market dislocations
- Bank says clients have drawn down 10.6 billion euros
This article is for subscribers only.
Credit Agricole SA is setting aside almost three times the amount it booked a year ago to cover souring loans because of the impact of the coronavirus, the latest lender to try and estimate the damage to its balance sheet from the outbreak.
Provisions in the first three months of the year jumped to 621 million euros ($673 million) from 225 million euros a year earlier to take account of the worsening economic environment, the bank said in a statement on Wednesday. The lender expressed optimism it can navigate the crisis after posting mixed results, which included a better-than-expected top line performance and a drop in net income.