(Bloomberg) -- Credit Agricole SA is studying whether to apply for a retail deposit license in Spain for its consumer finance unit Sofinco, as a part of a plan to make it profitable.
Sofinco Spain Chief Executive Officer Francois Abad told reporters in Madrid on Tuesday that he was considering such a license to help address the funding challenges against the backdrop of higher interest rates.
Abad said that funding costs are among the factors putting pressure on the company, which is expected to post losses this year and next before breaking even in 2026.
Getting a license to take retail deposits would take “two or three years,” he said.
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