French bank Credit Agricole SA reported $5 billion in write-downs Wednesday and a hefty fourth-quarter loss related to the credit crisis.The Paris-based bank said it swung to a 857 million euros ($1.3 billion) fourth-quarter loss, compared with a 1.06 billion euros ($1.61 billion) net profit in the year-earlier period. "Results for the fourth quarter of 2007 were severely affected by the impact of the crisis in the structured credit markets," the bank said.

The bank cited 3.3 billion euros ($5 billion) in write-downs at its investment bank Calyon as the main driver for the quarterly loss, nearly 32 percent greater than the 2.5 billion euro ($3.8 billion) in write-downs disclosed by the bank in December.

Agricole's chief financial officer Bertrand Badre said the company took 700 million euros ($1.06 billion) in additional write-downs in the fourth quarter to cover exposure to bond insurers.



Credit Agricole appeared to dismiss takeover speculation involving scandal-plagued rival Societe Generale, saying in a press release "the group will make organic growth its priority and it is not considering any significant new acquisitions."

But in a news conference CEO Georges Pauget said the bank "would not remain indifferent" if another bank made a move on Societe Generale. He declined to comment further.

Credit Agricole shares rose 5.8 percent to close at 18.20 euros ($27.67) Wednesday.

Credit Agricole shares in the past year have lost around 40 percent in value, giving the bank a market capitalization of around 30 billion euros ($45.6 billion). In recent years it has been especially active in the Mediterranean region, snapping up assets in Greece, Italy and most recently in Spain.

Societe Generale recently posted massive write-downs caused by fallout from troubled U.S. markets, although those losses were overshadowed by more than $7 billion in losses from an alleged trading fraud.

Agricole's results were also hit by an alleged unauthorized trading position which had a 230 million euros ($350 million) negative impact on earnings.

Chief Executive Georges Pauget said the bank would use investment gains made from recent disposals to strengthen risk controls within the group.

Fourth-quarter revenue fell 43 percent to 2.41 billion euros ($3.66 billion) from 4.21 billion euros ($6.4 billion) in 2006. The bank declared a full-year dividend of 1.2 euros a share, up 4.3 percent from last year.

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