Open

Coming up

Don't miss

Replay


LATEST SHOWS

AFRICA NEWS

Kenya : Police arrest 8 over Mombasa rampage

Read more

FOCUS

Overfishing and the global appetite for bluefin tuna: can Tokyo turn the tide?

Read more

MEDIAWATCH

Too many graphic images from Gaza ?

Read more

FASHION

Who's next in Paris, an event with international ready-to-wear and fashion accessories collections

Read more

ENCORE!

Tunisia's Carthage International Festival turns 50

Read more

THE OBSERVERS

Muslims and Christians clean up Bangui, and violence spirals out of control in Algeria's Gardaia

Read more

IN THE PAPERS

Is there such thing as 'telegenic' victims of war?

Read more

IN THE PAPERS

2014-07-22 07:21 IN THE FRENCH PRESS

Read more

THE INTERVIEW

Michel Sidibé, UNAIDS Executive Director

Read more

  • US, European airlines suspend flights to Tel Aviv over Israel-Gaza conflict

    Read more

  • Video: Lebanon fears fallout from regional turmoil

    Read more

  • Australian veteran Rogers claims 16th stage of Tour de France

    Read more

  • French Jews mourn French-Israeli soldier killed in Gaza

    Read more

  • Colombia's Rodriguez signs '€80m' contract with Real Madrid

    Read more

  • A call for harmony in riot-hit ‘Little Jerusalem’ Paris suburb

    Read more

  • Five children among six killed in minibus crash in central France

    Read more

  • Hollande says French warship delivery will ‘depend on Russia’s attitude’

    Read more

  • Widodo wins Indonesian presidential election

    Read more

  • Ukraine rebels release bodies, black boxes from flight MH17

    Read more

  • Notorious ‘VIP’ prison in Paris closed for renovations

    Read more

  • An ‘explosion of violence’: French press reacts to Gaza protests

    Read more

  • Christians in Iraq's Mosul face execution or exodus

    Read more

  • Scores killed as Libyan militias fight over airport

    Read more

  • Ukraine football players refuse to return home after friendly in France

    Read more

  • China steps up communist education to guard against ‘moral decline’

    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)