Profit of the French bank Societe Generale fell by 52%
Societe Generale, the second bank in France by market value, has announced that profits fell by 52% in the second quarter, below analysts’ expectations, on the background of write-down operations (reduction accounting value of assets) and increase provisions to loans.
The lowered profit of 309 million euro from 644 million euro after a year, according to the bank headquarters in Paris. The results invalidated analyst’s estimates, which talked about a profit of 68 million euro.
Reduction of losses suffered by the investment banking sector was the reason that the profits were more than expected. French bank comes after a first quarter which recorded a loss of 278 million.
Bank revenues, which last year was scarred by the loss of 5 billion euro due to a trader who opened unauthorized positions, have increased in the period April to June by 2.4% to 5.72 billion euro.
Societe Generale headed by Executive Director Frederic Oueda, was outdated as performing by main competitor in France, BNP Paribas, for the second consecutive quarter, after the bank reduced the volume of investment and savedmoney for bad loans.
BNP Paribas announced today that group profit increased by 6.6% to 1.6 billion euro, helped by the acquisition of Fortis assets and revenue growth achieved by the investment banking sector.
