Don't miss

Replay


LATEST SHOWS

EYE ON AFRICA

Top opposition figure arrested in Burundi

Read more

MEDIAWATCH

"Is the UK still located in Europe?"

Read more

DEBATE

Crossing a red line: French mayor slammed for profiling Muslim students

Read more

DEBATE

Down to the wire: UK election poll shows main parties neck and neck

Read more

ENCORE!

Film show: 'A Thousand Times Goodnight', 'My Old Lady' and 'Titli'

Read more

FOCUS

UK election: Health system a key issue in Wales

Read more

FACE-OFF

Le Pen vs Le Pen: France's far-right family feud turns epic

Read more

MIDDLE EAST MATTERS

Saudi Arabia: Behind the royal family reshuffle

Read more

BUSINESS DAILY

Oil industry cuts an election issue in Scotland

Read more

Business

French bank SocGen profits slump over Greek debt

Text by News Wires

Latest update : 2011-08-03

Societe Generale shares took a plunge Wednesday as the French banking giant announced it may miss its 2012 earnings target due to its exposure to the Greek debt crisis.

AFP - French banking giant Societe Generale said on Wednesday its second-quarter net profit slumped 31 percent as it took a charge for its exposure to Greek debt and warned of a difficult 2012.

The warning on its 2012 outlook sparked a sharp drop in the share price, with Societe Generale stock slumping nearly 7.0 percent at the opening in Paris where the wider market was down 1.16 percent.

The bank said its three months to June net profit came to 747 million euros ($1.07 billion) after it set aside 395 million euros for losses on its holdings of Greek government bond.

If the Greek provision is excluded, the results were roughly in line with analyst forecasts from Dow Jones Newswires for a net profit of 933 million euros.

Societe Generale also downgraded its outlook, saying that its forecast for a 2012 net profit of 6.0 billion euros "looks difficult to achieve."

Societe Generale said that despite concerns over the 2012 outlook, it remained confident of achieving a 9.0 percent core capital level by 2013.

The new Basel III accords on banking sector reserves fixes a core capital requirement of 7.0 percent but some banks may have to set aside up to 2.5 percentage points more depending on their size and influence in the financial system.

Societe Generale said most units posted an improved performance, with its investment banking division contribution to the results up 9.0 percent on the back of a sharp increase of 72 percent in stock-trading activity.

Net banking income, however slipped 2.6 percent to 6.5 billion euros.
 

Date created : 2011-08-03

  • EUROZONE

    Italian, Spanish debt-risk premiums hit record highs

    Read more

  • FINANCE

    New deal to shave €26bn off Greek debt load by 2014

    Read more

COMMENT(S)