Credit Lyonnais director general Francois Gilles said that the French bank expects to post a loss in the first half of 1993, though not as much as in the second half of last year, according to an article in Le Figaro.
Provisions against real estate and other risks are expected to remain high, Gilles reportedly said.
As reported, the bank posted a 1.85 billion franc group loss in 1992 after a profit of 3.16 billion francs in 1991 and slashed its net dividend to 10 francs from 23 francs. According to the Le Figaro article, the second half of 1992 accounted for 1.9 billion francs in losses.
Gilles said that the group’s Altus Finance unit, of which it recently took 100% control by acquiring Thomson-CSF SA’s stake, could also post a loss due to the weight of finance charges and provisions in the first half.