December 17, 2019 / 6:13 PM / a month ago

UPDATE 1-Credit Agricole books 600 mln euro impairment on LCL

(Adds detail)

PARIS, Dec 17 (Reuters) - French bank Credit Agricole will book a 600 million euro ($661 million) impairment charge in its fourth quarter earnings against the goodwill recognised in retail banking unit LCL, it said on Tuesday.

It said in a statement the charge will have a direct impact on net income but added it will not affect the solvency or liquidity of the group as the goodwill is already fully deducted in its regulatory capital.

As the loss will be booked as a specific item, it will also not affect the group’s underlying net income, nor its tangible net book value or dividend policy, it added.

Crédit Agricole said it booked the impairment because the current macro-economic and financial environment in which LCL operates has impacted its value.

It added that LCL’s business remains dynamic with a net acquisition of more than 49,000 customers over the nine first months of 2019. ($1 = 0.9073 euros) (Reporting by GV De Clercq; editing by David Evans and Emelia Sithole-Matarise)

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