Credit Agricole first-quarter profit falls as restructuring weighs

Lionel Bonaventure | AFP | GettyImages

Credit Agricole reported a 71 percent fall in first-quarter net income, weighed down by the launch of its plan to revamp complex shareholding ties with its parent group, and weakness in French retail and investment banking.

Chief Executive Philippe Brassac announced a major structural overhaul earlier this year aimed at overcoming internal divisions and reassuring investors of its capital strength.

The bank said on Thursday that quarterly net income fell to 227 million euros ($259 million) from 784 million a year earlier, hit by the moves to optimise its balance sheet and reduce the future cost of debt carried by the bank.

The restructuring plan also led to the loss of the parent banks' contribution to the listed entity's earnings.

Analysts in a Reuters poll had on average predicted a 64.5 percent decline in net income to 278 million euros.

Excluding one-off items, net income fell 9.3 percent to 394 million euros, the bank said.