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Credit Agricole eyes 60% profit rise by 2016


Credit Agricole aims to lift net profit by 60 percent to over 4 billion euros ($5.56 billion) in 2016, the French bank said on Thursday, helped by cost cuts and more product cross-selling at a time of slow growth at home.

France's third-biggest bank by market value, which is hosting an investor day in London, also pledged to increase its dividend payout ratio to 50 percent in 2015 from 35 percent in 2013, with a cash component of about 50 percent.

Lionel Bonaventure | AFP | GettyImages

The 120-year-old semi-cooperative lender said it was targeting a return on tangible equity (ROTE) of 12 percent in 2016 versus 9.3 percent in 2013. This profitability metric strips out intangible assets such as goodwill.

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