Societe Generale bounces back
Tuesday, 13 May 2008 15:30
Paris-based bank Societe Generale posted a 23 per cent drop in profits for Q1
Societe Generale said it has "bounced back" from the chaos caused by a rogue trader and posted a 23 per cent drop in net income, beating expectations.
The French bank, which uncovered a €4.9 billion fraud at the start of the year, said over the first quarter of 2008 it had achieved a good commercial achievement in a very difficult environment.
"Overall, and faced with an exceptionally serious event, the group demonstrated its resilience and ability to bounce back during the quarter," the bank said in a statement.
The bank posted a fall in net income of 23.4 per cent to €1.096 billion from €1.431 billion last year.
However, analysts had expected profits of around €947 million, following huge losses relating to the US subprime crisis and junior trader Jerome Kerviel's alleged unauthorised deals.
Group gross operating income was €1.774 billion, a 24.4 per cent decline from last year.
Although the group's asset management arm booked a loss of €139 million over the three months, other divisions made up for it.
International retail operations, which is focussed on emerging markets, performed strongly, with a 22.1 per cent revenue uplift to €1.116 billion over the quarter.
Meanwhile, the group's securities, brokers and online savings unit reported net banking increases of 21.8 per cent to €401 million.