Crédit Agricole Records Goodwill Impairment Charge

Sally Ling

4 February 2013

Crédit Agricole will record a goodwill impairment charge in its financial statements for the fourth quarter of 2012, to be published on 20 February 2013. This measure does not involve any cash outflows and does not affect the strength of the group.

As part of the process of preparing its consolidated financial statements, Crédit Agricole carried out impairment tests on the goodwill carried on its balance sheet. In accordance with IFRS standards, these tests are based on the comparison between the amounts of goodwill on the firm’s books and the values in use of the relevant assets.

The net impairment charge, group share, recognised in the consolidated financial statements for the fourth quarter of 2012 amounts to €2.676 billion (around $3.653 billion). While this will have a negative impact of the same amount on Crédit Agricole’s net income group share for the fourth quarter of 2012, it will not affect the group’s solvency or its liquidity, the bank said in a statement.