FRANCE – French bank Credit Lyonnais’ asset management business saw its 2002 net profits fall 5.6% to 203 million euros.

As of December 31 2002, it had 139.8 billion euros assets under management, down 3.4% on the previous year. The decline was attributed to a decline in asset values of 10.3%, which were not offset by new business of 10 billion euros (6.9% of asset base). New business came mostly from the institutional segment.

Operating costs increased by 2.3% to 376 million euros. “This slowdown in growth was according to plan, after two years of heavy investment in building up the product range and diversifying distribution channels during 2000 and 2001,” said Credit Lyonnais.

As with many of the Europe’s asset managers, the fourth quarter saw a marked improvement. Assets under management at Credit Lyonnais were up 2% with 1.6 billion euros in new business contributing 60% of the growth. Net profit was virtually unchanged from the previous year, down just 0.9% to 62 million euros.

With regards to the proposed merger with Credit Agricole, chief executive Dominique Ferrero commented: “All business segments are now enjoying solid dynamics and their development will continue with the proposed combination with Credit Agricole SA.”

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