This year surely and for much of next yearBut the situation has changed in two yearsOn paper Washington scrupulously on its promisesWe can just identify it by different means8 of net sales from January to June at EUR 23Finish the besos and abrazos the kisses and KissThe renewal will continue without precipitationIt is quite lucid about the risks he takesA statutory change that meets officiallyMore reason to focus on the quality of the indexAnd three. The direction of Emporiki, subsidiary of the Crédit Agricole in Greece, yesterday presented the third plan of redress of the company since its acquisition in 2006. Mixing reducing burdens, better risk management, workforce reduction and closure of agencies, it must allow him to return to profit in 2011. Green Bank had shared the development of this plan earlier this year, the announcement of the strengthening of own funds its subsidiary by a capital increase of EUR 850 million. "It is a set of measures to build a plan of action to resolve the most important issues and the more urgent." "In some ways it has forms break with previous plans, but also forms of continuity," explains Alain Strub, CEO of Emporiki since the month of February, former Director of the risks of Casa.
The Greek acquisition of Credit Agricole's into a cross. The Bank was only slightly beneficial in 2007, first exercise in full since the acquisition by Credit Agricole for EUR 2.1 billion, and then recorded 492 million euros of losses in 2008 and again 169 million in the first quarter of 2009. Alone, the subsidiary has cancelled all of the profits made by the pole of Casa international retail bank. "The work that we engaged in Greece is to resume, had said Georges Pauget and René Carron leaders Casa at May 12 GA.". And it will last between 24 and 36 months. It happens like that in retail banking. Taking as reference the Crédit Lyonnais, we attacked the problem in 2003 and the tangible results have emerged from 2006.
Avoid impairment losses
The Greek bank suffers from an economic and social conditions especially difficult. The default rates for individuals and small businesses on credits achieved between 5 and 6, or more than twice the French average. In this connection, Emporiki began to centralize all of the decisions to grant credits to the siege of Athens. "Look in a substantial improvement in the cost of the risk," says Alain Strub, adding "our main challenge came from the fact that full recovery, we were struck by a crisis on an unprecedented scale." "Such a situation requires us to review the extent of the remedial action plan".
In any case, this announcement did not prevent the title fall by 3.9 percent yesterday on the Paris stock exchange. "Profit warning" rumours have circulated on the market. The Office analyses the Crédit Agricole Cheuvreux, subsidiary, has revised its estimate of result in downward. Another is also skeptical Emporiki situation. "Contrary to the expectations of management, cleaning of the fourth quarter of 2008 and the first quarter of 2009 Emporiki loan portfolio will not suffice to absorb the losses of the Greek subsidiary: despite advance of EUR 450 million on these two quarters, we understand that the Bank could still cost 400 to 500 million euros until it arrives to balance in 2011".writes Pierre Flabée, Kepler Capital Markets analyst. In his note, if interesting to the participation of Casa in Italian Intesa, he finds that it wants to consolidate its participation to avoid impairment losses that it considers to 2.1 billion euros. "But fair value adjustments will be made, says analyst." We understand that it is EUR 300 million. "Finally, after the meeting, the Agency S & P has degraded"stable"to"negative"perspective on the note of consideration for Casa.
