Credit Agricole Profit Misses on Costs to Revamp Italy Unit

Credit Agricole SA fell short of analysts’ profit estimates for the fourth quarter as investments to revamp its Italian business pushed up costs and it set aside more money for souring loans and other risks.

Operating expenses rose 4.7% to €4.1 billion, above the €3.9 billion analysts had expected, driven by restructuring expenses and the impact of a deposit guarantee fund in Italy. Provisions of €629 million also came in higher than expected, and included money set aside for legal risks from UK car loans and a recovery plan for Italian lender Banca Progetto.