PARIS (Reuters) - Credit Agricole (PA:CAGR) said on Friday it recorded a 491 million euro (426 million pound) goodwill impairment charge on its French retail unit LCL, but that would not affect its 2016 dividend.
Retail banks are feeling the pinch from years of low interest rates that encourage customers to renegotiate loans, putting pressure on revenues.
"The current macro-economic and financial environment in which LCL operates, and in particular the low level of interest rates and resulting massive renegotiation of mortgage loans, has affected LCL's value," the bank said in a statement.
LCL has slashed jobs, while trying to focus on fee income activities and boost lending to small and mid-sized companies that are less exposed to early repayments.
France's third-biggest bank, due to report fourth-quarter results on Feb. 15, said that excluding the impairment charge, its underlying net income for 2016 would be in line with analysts' consensus of 3 billion euros.
It confirmed the board of directors would propose a dividend of 0.60 euro per share for 2016 at the annual general meeting.