The head of Credit Agricole is to step down, due in part to the bank sustaining heavy losses from the collapsed US sub-prime sector.
Marc Litzler is now to leave his post following a new write-down of almost $1 billion from the bank’s investment arm, Calyon.
First quarter profits at the firm have declined by 66%, the bank also announced.
Moreover, Credit Agricole is to raise $9.1 billion in revenue from its shareholders in an upcoming rights issue and will also sell around $5 billion of its existing assets in a bid to shore up its balance sheet.
“The rights issue will be launched before the summer, subject to market conditions,” the firm says in a statement.
The resignation had been predicted by an anonymous bank source, who spoke to the newspaper Les Echos last week.