(Corrects first paragraph to make clear ROE targets are for
investment banking unit)
PARIS, April 3 Credit Agricole is
aiming for a return on equity of 12 percent through 2016 at its
corporate and investment bank (CIB) and will cut fixed costs by
15 percent to achieve it, the head of its investment banking
unit told Les Echos newspaper and Agefi newsletter.
"To get there we will tighten our spending, as we are doing
across the investment banking unit," Jean-Yves Hocher said in
the interview published Wednesday.
Tightened regulation and weak demand have led France's
third-largest bank by market value to cut back on equities,
derivatives and M&A advisory to focus on a future as a
pared-back investment bank catering to French and other European
Hocher said the French bank had already exited its
derivatives business and was selling some funds, while looking
to outsource some back-office functions.
"These cost reductions will not result in another lay-off
plan," said Hocher.
He said brokerage unit Newedge was being split into an asset
execution specialist and a clearing business and a sale of
Newedge "is not on the agenda".
"We want to strengthen this business which suffered from the
strong drop in the financial markets," he said.
(Reporting by Leila Abboud; Editing by Tom Pfeiffer)