UPDATE 2-Agricole makes Chifflet new CEO, net profit falls
* Net profit 289 mln eur vs average Reuters forecast 238 mln
* Current CEO Pauget says no plans for big acquisitions
(Adds comments from current CEO, fund manager)
PARIS, Nov 10 (Reuters) - Credit Agricole (CAGR.PA), France's biggest retail bank, plucked a new chief executive from its influential provincial outlets as its third quarter net profit fell less than many had expected.
The group said on Tuesday that Jean-Paul Chifflet, currently head of one of its main units in Lyon [ID:nLA490980], would replace Georges Pauget in March next year.
The appointment of Chifflet highlights the renewed power of the company's regional retail banks over the group, which has cut back on ambitious plans for its Calyon investment banking unit after Calyon posted a string of losses in 2008.
"The company's regional banks are tightening their grip on the power," said Reyl France fund manager Dorothee Marty, who holds Agricole shares in her portfolio.
Third-quarter net profit fell 21 percent from a year earlier to 289 million euros ($432.9 million), above the average net profit forecast of 238 million euros from a Reuters poll of twelve analysts.
The company's earnings were hit by writedowns at its Greek Emporiki division and by a rise in provisions, but they beat forecasts partly due to a strong performance at its French retail bank which had inflows of assets from new customers.
"The results were fairly good. I was pleasantly surprised," said Agilis Gestion fund manager Arnaud Scarpaci, who said he might buy Agricole shares in the coming weeks.
PROFITS LESS THAN DOMESTIC RIVALS
Many of the world's top banks have posted solid profits over the last month as they have benefited from a rebound in financial markets, although doubts remain over rising provisions to deal with problematic loans.
Agricole's risk charge for provisions rose 61 percent from last year to 1.19 billion euros, echoing a similar message from Rabobank -- another bank with roots in the farming community -- which also announced higher provisions in August. [ID:nLQ371309]
Agricole's third quarter profit was also less than those reported by its main domestic rivals earlier this month. Continued...
