SocGen cautious after a fourth quarter below expectations
Societe Generale on Thursday posted a profit below expectations for the fourth quarter due to increased losses in its banking activities and investment banking (CIB) of Due to the crisis in the euro area and said to remain cautious this year.
The bank said in a statement it had passed a new provision of € 162 million on government debt in the last quarter of 2011, bringing its funding to 75%, as its rival BNP Paribas.
In CIB, being restructured due to the crisis, the group posted a net loss of 482 million euros.
Its quarterly net income of spring suddenly falling from 88% to 100 million euros.
"I remain generally cautious for 2012," said Frederic Oudéa, the bank's CEO, on CNBC. "I'm happy with the start of the year in respect of market activities."
The consensus reached by the editor of Reuters expected a profit of 190 million euros for the last three months of 2011, a drop of 78%, including a loss of only 81 million euros in the BFI.
"The dollar liquidity needs of corporate banking and investment have been reduced by about 55 billion USD in the second half," said the bank, which have added accel ; Lere disposals in its portfolio of toxic assets in the second half of 2011.
These sales had a negative impact of 524 million euros on revenues of the BFI on the fourth quarter alone.
Wednesday, BNP Paribas has reported better than expected results in the fourth quarter. In addition to reassuring the leaders of 2012, analysts point out that the bank financing and investment of the BNP was more resilient in the crisis than its main competitors.
At the Paris Bourse, before publishing the results of the bank, title company generally closed up 2.19% to 22.38 euros. He won 30% since the beginning of the year after plunging 57% in 2011.