Societe Generale expects profit in 2nd quarter

Societe Generale, France's second-largest bank, said Monday that its second quarter net income will be "slightly positive" thanks to its corporate and investment banking units.
JUL 07, 2009
By  Bloomberg
Societe Generale, France's second-largest bank, said Monday that its second quarter net income will be "slightly positive" thanks to its corporate and investment banking units. The bank said its overall net income will be hit by a €1.3 billion ($1.82 billion) writedown from credit default swaps and debt instruments. The global financial crisis has led to major losses on risky securities at banks worldwide. "Solid operational performances, in particular in corporate and investment banking, will absorb the significant negative impact on the accounts of the substantial tightening of credit spreads stemming from an improving market environment and reduced aversion to risk since mid-March," SocGen said. The bank's Tier 1 ratio, seen as a key measure of a bank's financial health, should be "close to" the level reported at the end of the first quarter, 9.2 percent. Societe Generale said it is continuing to shed risky assets. Societe Generale shares fell Monday, trading down 3.1 percent at €36.72 in late morning Paris trading. The Paris-based bank issues its quarterly results Aug. 5. It struggled to return to profitability last year after losing billions of euros in a massive trading scandal, and reported a net loss of €278 million in the first quarter this year after devaluation of assets linked to U.S. real estate.

Latest News

Married retirees could be in for an $18,100 Social Security cut by 2032, CRFB says
Married retirees could be in for an $18,100 Social Security cut by 2032, CRFB says

A new analysis finds long-running fiscal woes coupled with impacts from the One Big Beautiful Bill Act stand to erode the major pillar for retirement income planning.

SEC bars New Jersey advisor after $9.9M fraud against Gold Star families
SEC bars New Jersey advisor after $9.9M fraud against Gold Star families

Caz Craffy, whom the Department of Justice hit with a 12-year prison term last year for defrauding grieving military families, has been officially exiled from the securities agency.

Navigating the great wealth transfer: Are advisors ready for both waves?
Navigating the great wealth transfer: Are advisors ready for both waves?

After years or decades spent building deep relationships with clients, experienced advisors' attention and intention must turn toward their spouses, children, and future generations.

UBS Financial loses another investor lawsuit involving Tesla stock
UBS Financial loses another investor lawsuit involving Tesla stock

The customer’s UBS financial advisor allegedly mishandled an options strategy called a collar, according to the client’s attorney.

Trump's one big beautiful bill reshapes charitable giving for donors and advisors
Trump's one big beautiful bill reshapes charitable giving for donors and advisors

An expansion to a 2017 TCJA provision, a permanent increase to the standard deduction, and additional incentives for non-itemizers add new twists to the donate-or-wait decision.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.