February 23, 2018 / 12:00 PM / 10 months ago

Credit Agricole to inject 1.2 eur in French retail unit LCL

FILE PHOTO - A logo is pictured on a Credit Agricole bank branch in Paris, France, February 15, 2017. REUTERS/Charles Platiau

PARIS (Reuters) - Credit Agricole (CAGR.PA) will inject 1.2 billion euros (1.06 billion pounds)in its French retail unit LCL as part of a 1.5 billion euros recapitalisation required by the European Central Bank, LCL said on Friday.

LCL said this move would not have any impact on the group’s solvency and that the move was aimed at being able to comply with new capital rules later this year that it was not previously subject to.

“There will be transfer of capital from Credit Agricole group (Credit Agricole SA). LCL is doing well, this (last) year net profit is more than 500 million euros,” a spokeswoman for LCL said.

“There are no economic problems. It is a technical process of capital increase”.

Credit Agricole said earlier in February that its French retail bank unit had reached a turning point and that revenues should grow from the levels seen in the fourth quarter last year, as it reported higher overall profits.

Reporting by Yann Le Guernigou and Maya Nikolaeva, Editing by Leigh Thomas

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