SocGen posts near doubling of earnings
FRENCH bank Societe Generale (SocGen) has more than doubled its profits thanks to a good investment banking performance, although the numbers failed to hit market hopes, sparking takeover talk.
SocGen posted a 133 per cent rise in net profit to €426m (£381m) from €183m a year earlier, mainly due to the fact that the bank’s investment banking arm swung to a profit from a loss a year earlier.
The banking group’s revenues took a hit at its international arm, affected by the Russian economic slowdown and its investment management arm, due to outflows, but the domestic French retail banking business performed robustly.
“Societe Generale confirms the sales momentum of its businesses in and outside France,” the bank said.
The results triggered fresh speculation that SocGen could become a takeover or merger target for one of its French peers, including BNP Paribas and Credit Agricole.
However, Didier Valet, the chief financial officer, said the bank was eyeing a number of acquisition opportunities of its own, particularly in central Europe.
France’s second-biggest and the eurozone’s number six bank by market value has been steadily recovering since a €4.9bn trading loss in January 2008, which it blamed on unauthorised deals carried out by Jerome Kerviel, a former junior trader at the bank.