The nigh on 15% holding they have in BES has led to France’s 3rd largest bank to report a 98% drop Q2 profits.
Net income is down to €17.0m from €696m and well below expectations of €387.4m. The BES stake cost them €708m
That’s a very hefty hit they’ve taken there and though the market was well aware of their BES position it was still pricing in hugely higher income and that might see the French stock market take an early hit on the open. Stripping out the BES part Q2 profits rose to €1bn. CA shares were up 2% yesterday to €10.29. The stock price has gained 11% this year compared to the top two French banks, BNP Paribas and SocGen which have fallen 11% & 12% respectively.
