Credit Agricole has posted a record loss for 2012 after goodwill writedowns and a tax charge related to the sale of its Greek unit forced the French bank to use more red ink.

The total loss for 2012 amounted to €6.47bn compared to a €1.47bn loss in the prior year. The bank reported a loss of €3.982bn for the fourth quarter alone, 29.8% more than in the year-ago period.

Some €2.67bn in goodwill writedowns were taken in the fourth quarter to reflect stricter accounting rules and a worsening economy and included writedowns at its Italian and investment banking businesses. The bank also booked a €706m loss on the sale of its Greek unit Emporiki.

"Leaving Greece cost us dearly but it was a necessary decision," said Chief Executive Jean-Paul Chifflet.

Credit Agricole announced that it will implement a cost savings plan through 2016 valued at €650m.

On the new business plan, Chifflet said: "There will be two main priorities governing the undertaking: the acceleration of improvements to our universal customer-focused bank and a deepening of changes that we've already begun on specialised financial services."

The board has decided it will skip a dividend for a second year.

MJ

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