French banking group Crédit Agricole has announced plans to achieve EUR900m in cost savings over the next three years to offset earnings deficit created by its recent restructure.
In its medium term strategic plan for 2016-2019, the bank has highlighted plans to reap cost savings by cutting IT costs and simplifying its corporate structure.
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Plans are also on to increase cross-selling in its retail banking, asset management and insurance businesses to boost earnings.
The Paris-based lender, said that it aims to increase its net profit to more than EUR4.2bn in 2019, compared with EUR3.52bn in 2015, aided by cross-selling and cutting costs.
In addition, it plans to invest EUR7.7bn, including EUR4.9bn to develop the business lines and continue the digital transformation.
Last month, the bank announced plans to sell back the 25% stake it holds in the group’s regional lenders for EUR18bn in an effort to simplify its capital structure. The deal includes Crédit Agricole S.A’s intragroup transfer of the co-operative investment certificates and cooperative associate certificates held in the regional banks.
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By GlobalData
