Societe Generale’s share price tumbled four per cent this morning after the French bank reported a large fall in profits after being hit by legal costs.
The bank’s net income for the second quarter came in at €1.1bn (£1bn), down 28 per cent from the same period last year.
The profit slide came as the firm set aside an extra €300m to pay for potential legal costs in relation to lawsuit from the Libyan Investment Authority.
The group’s revenue also fell during the period. SocGen reported net banking income for the period of €5.2bn, down 26 per cent on the second quarter of 2016.
The bank’s shares were down four per cent to €48.10 at the time of writing.
Why it’s interesting
SocGen reported its second quarter results alongside fellow French bank Natixis today and shortly after BNP Paribas.
The figures show that SocGen has underperformed its rivals in terms of equities trading. Its equities revenue was down in the quarter, while BNP Paribas and Natixis grew strongly in this area.
However, SocGen outperformed rivals in fixed income trading, where revenue dipped 6.8 per cent, a less dramatic fall than experienced by rivals.
What the company said
Chief executive Frederic Oudea said:
In a mixed economic and financial environment, Societe Generale posted sound second quarter results, confirming the good commercial and operating performances achieved by the businesses at the beginning of the year and the relevance of its diversified and integrated banking model.