By Pietro Lombardi

Credit Agricole SA (ACA.FR) presented Thursday its new mid-term plan through 2022, that includes measures to simplify the group's capital structure and targets a profit growth of more than 3% a year through 2022.

France's second largest listed bank by assets sees its return on tangible equity--a key measure of profitability--above 11%, with net profit growing by more than 3% a year to above 5 billion euros ($5.63 billion) at the end of the plan.

The bank also targets a cost-income ratio below 60% and core tier 1--a key measure of capital strength for lenders--of 11%.

Credit Agricole will also push forward with the simplification of its capital structure by partially unwinding the switch guarantee granted by the regional banks of the group to Credit Agricole SA. This will have a positive impact on earnings per share.

The group pledged to invest EUR15 billion in technological transformation.

Credit Agricole achieved ahead of time most of the targets in the medium-term plan presented in 2016, which set financial targets until 2019.

Write to Pietro Lombardi at pietro.lombardi@dowjones.com

(END) Dow Jones Newswires

June 06, 2019 01:40 ET (05:40 GMT)

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