CREDIT Lyonnais, which has a 53 per cent stake in Woodchester Investments, has recorded a net profit of 67 million French francs (£8.1 million) for the first half of the year, compared with Ffr36 million for the first six months last year, thee bank announced yesterday.

The Ffr67 million profit was after the elimination of the effect of the loan granted in connection with the second rescue plan aimed at putting the big bank back on a sound footing, the bank said.

That loan had depressed the Credit Lyonnais accounts last year to the extent of Ffr560 million and is said to have resulted in lost earnings of Ffr3 billion for this year - but it has been neutralised by the state, which has taken it over.

In presenting the results, the bank's chairman, Mr Jean Peyrelevade, said it was "premature to wonder about a date for privatisation" of the bank. "A plan for privatisation preparation" is to be worked out by the end of the year, he said.

He also said the second half of the year would be tougher than the first, and he would be "satisfied" if the bank broke even for the year.

The announcement said that, for the first time since the end of 1993, all four profit centres (France, rest of Europe, rest of world, and market activities) showed positive results for the six months.

But in France, the commercial banking business remains difficult and the cost of resources, the problems with the Credit Lyonnais image and worsening risks on small and medium sized businesses hurt the bank's performance.

The gross operating result rose by 23 per cent in Europe between the two half years, while it was up by 14.2 per cent in the rest of the world.

Net banking income from market activities grew by a strong 34 per cent in the first six months by comparison with the same period last year.