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Crédit Agricole to book €491M goodwill impairment charge on French retail arm

Crédit Agricole SA will record a €491 million goodwill impairment charge on French retail arm LCL as part of its consolidated financial statements for 2016, to be released Feb. 15.

Crédit Agricole said the charge on the unit, also known as Crédit Lyonnais SA, resulted from low interest rates and "massive renegotiations of mortgage loans" that diminished LCL's value.

The charge will directly affect the bank's net income group share, but will not affect the solvency or liquidity of it or Crédit Agricole Group. Crédit Agricole SA's dividend plans are also unaffected, with the lender intending to pay out 60 euro cents per share in respect of 2016 and a dividend equal to 50% of net attributable income per share from 2017 onward.