Societe Generale announces tripling of second quarter profits
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Societe Generale, France's second-biggest bank, has announced a tripling of its second quarter profits to 1.08 billion euros, bolstered heavily by its retail banking division.
AP - French bank Societe Generale SA said Wednesday that net profit in the second quarter more than tripled after higher earnings at its French retail banking business offset a decline in investment banking business.
Earnings a year ago were hurt by writedowns and losses on bad loans.
France’s second-largest bank reported a net profit of 1.08 billion euros ($1.43 billion) in the three months ending in June, compared with 309 million euros a year earlier.
CEO Frederic Oudea said in a statement that corporate and investment banking had a “satisfactory” performance in a difficult market during the quarter.
The division posted a 53 percent decline in second quarter net profit to 410 million euros.
French retail networks saw net profit rise by 7.6 percent to 312 million euros.
International retail banking reported a 0.8 percent decline in net profit to 125 million euros with provisions for Greece “substantial” but lower than before.
The Paris-based bank, which is trying to put a massive trading scandal behind it, said it will continue its “prudent strategy of reducing market risks.”
“The results published today confirm Societe Generale’s rebound,” Oudea said.
SocGen said the recent European stress tests showed the quality of its portfolio, demonstrated by its estimated end 2011 Tier 1 ratio - a key measure of capital strength - of 10 percent under stress.
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