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Societe Generale 2nd quarter earns slump

A file picture taken on September 12, 2011 shows logos of French banks Societe Generale, Credit Agricole and BNP Paribas on agencies' frontdoors in Rennes, western France. AFP PHOTO / FILES / DAMIEN MEYER

PARIS: Societe Generale SA says its net profit slumped sharply in the second quarter as the French bank continued with its efforts to meet new international banking capital requirements.

Societe Generale's net profit fell to 433 million euros ($532 million) in the three months to June, down 42 percent from 747 euros million a year earlier.

The bank, which gained notoriety as the victim of convicted fraudster Jerome Kerviel, says profit from corporate and investment banking plummeted more than 70 percent in the second quarter as the bank took losses disposing of 2.2 billion euros in collatoralized debt obligations and other risky, capital-intensive assets.

In a statement Wednesday the bank warned that it expects business conditions to "remain uncertain and challenging over the next few quarters."

 

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