The French bank is surging like a bat out of hell, higher by 15%, on plans to “put an end to this unbearable paradox.”
Banks are widely higher in Europe.
Credit Agricole (CAGR.PA) outlined plans to simplify its much-criticized ownership structure on Wednesday, with a promise of stable investor returns and a solid capital base lifting shares in the French bank.
Credit Agricole Chief Executive Philippe Brassac said the plan would end criticism from analysts, shareholders and regulators that the cross-shareholding between its listed entity and its cooperative parent banks was a drain on capital.
“We want to put an end to this unbearable paradox that we are a big, well-capitalized bank while doubts linger over the fragility of the listed structure’s capital,” Brassac said.
The reform, aimed at reducing its complexity, would focus Credit Agricole mainly on asset management, insurance and investment banking activities, while reducing the share of retail banking operations in its underlying net income to 20 percent from 36 percent, based on 2015 results.
Just last week banks were the bane of society. Now they’re coveted vehicles of profit. That’s the market, insane and without decorum.
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“Just last week banks were the bane of society. Now they’re coveted vehicles of profit. That’s the market, insane and without decorum.”
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