French bank Credit Agricole (CAGR.PA) is putting acquisitions on ice as it fights to stem losses at crisis-stricken Greek unit Emporiki and grow against a backdrop of economic uncertainty in Europe, its chief said. It is not clear how long the acquisition freeze will last, but getting Emporiki (CBGr.AT) back in the black is the priority for the time being, Jean-Paul Chifflet told reporters ahead of the unveiling of the group's 10-year plan on Wednesday.
"We will stay calm; we will first take care of Greece," said Chifflet, who has led France's third-biggest listed bank since March. "We are ruling out acquisitions for now." Credit Agricole might be spurred to action, however, if another bank made a move on French rival Societe Generale (SOGN.PA), a frequent target of takeover speculation. "We would not stay inactive then," Chifflet said. When asked whether Credit Agricole might sell assets such as its 20 percent stake in Spain's BankInter (BKT.MC) or its stakes in private-equity funds, Chifflet said no final decision had yet been made but he would not rule it out.
Credit Agricole, which is majority owned by a network of 39 cooperative regional lenders, is eyeing a return to low-risk, neighbourhood banking after the financial crisis cut short an overambitious push in investment banking and international retail banking in the mid-2000s. Following the unveiling of its 10-year plan at a meeting of its parent banks in Paris on Wednesday, Credit Agricole is due to give more precise details to investors in March. The bank will also reveal the estimated impact of tougher Basel III bank capital rules at the end of February, Chifflet said. The bank's stock has fallen 14 percent in the year to date, underperforming the sector index .SX7P, on fears it is undercapitalised under the incoming requirements.
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