Credit Agricole swings back to fourth-quarter profit from a record loss a year earlier

Credit Agricole, France's third- largest bank, swung to a fourth-quarter profit said on its website, flagging improving conditions in its main markets of France and Italy as it proposed its first shareholder payout since 2010 and beat its own annual solvency targets.

It reported full year net income of €2.5 bn, turning a page on two straight years of losses marked by a painful exit from Greece, Italy-related provisions and a pullout from riskier investment-banking activities. The from a record loss a year earlier, helped by earnings from French consumer banking and a tax rebate.

The shares rose the most in a month. Net income was €612 million. The bank said the economic outlook for France and Italy was improving and it would need to set aside less money for bad loans. – ( Bloomberg/Reuters )