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Fourth quarter results at France's Credit Agricole were severely affected by the financial markets crisis, with the bank posting a €857 million (£655 million) loss.

Calyon Financial, the company's investment banking arm, booked €3.3 billion (£2.5 billion) in charges relating to its capital market activities over the quarter.

The results dragged down overall earnings for the year and income declined 16.8 per cent to €4 billion (£3 billion).

Excluding the impact of these losses, net banking income would have risen by 25.5 per cent and gross operating income would have increased by 30.5 per cent, Credit Agricole added.

The bank also said it is not considering any major acquisitions, ruling itself out of any potential purchase of rival Societe Generale, which was rocked by massive writedowns on the credit crisis and rogue deals carried out by a junior trader.

Chairman René Carron said: "We have built a solid model. With its sound capital base, the group will make organic growth its priority and it is not considering any significant new acquisitions."

Credit Agricole said it has tightened up its impairment policy in response to the crisis.

The bank is proposing a dividend of €1.20 (£0.92) for its shareholders, a 4.3 per cent rise from last year.