Credit Agricole SA (ACA), France’s third- largest bank, said gains from buying back its own debt will more than compensate for the impact of additional Greek provisions on first-quarter earnings.
Credit Agricole, owner of the unprofitable Athens-based Emporiki Bank of Greece SA, is booking 130 million euros ($170 million) in first-quarter writedowns on Emporiki’s residual deferred-tax assets, as well as writing down 415 million euros of debt from three Greek companies by 74 percent, according to a statement today.
The Greek losses will be more than offset by about 550 million euros in gains from subordinated-debt buybacks, the bank said.
“Globally, the impact on the first quarter is going to be slightly positive,” said Charlotte de Chavagnac, a spokeswoman at the Montrouge, France-based bank.
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