Paris - French bank Credit Agricole said on Wednesday that its profits for 2008 fell by 74.7 per cent over the previous year, to 1.024 billion euros (1.28 billion dollars).

The sharp downturn was primarily caused by risk provision write-offs of 3.2 billion euros, up nearly 70 per cent over 2007.

"This large increase reflects the deterioration of the global economic environment," Credit Agricole said in a statement.

The risk provisions were particularly marked in the bank's investment and finance operations, where they totalled 1.31 billion euros because of the crises in the global finance and real estate sectors.

The effects of these crises were particularly felt at the end of the year, with Credit Agricole registering a loss of 309 million euros in the fourth quarter of 2008. Analysts had expected a slight profit for the quarter.

The bank was also affected by the weak performance of its Greek subsidiary Emporiki, which cost Credit Agricole 616 million euros in profits for the year, 527 million euros in the fourth quarter alone.

To keep Emporiki from failing, shareholders approved a capital increase of 850 million euros for the Greek bank earlier this year.

Credit Agricole's turnover for the year was down 4.8 per cent, to just under 16 billion euros.

Credit Agricole managing director Georges Pauget said that the bank "has demonstrated its ability to take the measure of the crisis in adapting very early its plan of action."

However, investors were undecided. In late-morning trading on the Paris Bourse, Credit Agricole shares were virtually unchanged, at 7.09 euros. Over the past 52 weeks, the bank's shares have lost nearly 60 per cent of their value. (dpa)