Societe Generale profits slip

10th May 2007, Comments 0 comments

PARIS, May 10, 2007 (AFP) - French banking group Societe Generale reported on Thursday a 1.9-percent fall in net profit in the first quarter, owing partly to stagnation of its retail operations in France.

PARIS, May 10, 2007 (AFP) - French banking group Societe Generale reported on Thursday a 1.9-percent fall in net profit in the first quarter, owing partly to stagnation of its retail operations in France.

Net profit amounted to 1.431 billion euros (1.95 billion dollars). Analysts had forecast an overall figure of 1.469 billion euros.

The price of shares in the group fell by 2.89 percent to 148.51 euros in early trading.

Dealers said that the resulsts were slightly lower than the bank's targets, and that prospects that the group might be the target for a takeover, which had pushed the shares to a record high point, had run out of steam.

Net banking income amounted to 6.046 billion euros, a gain of 4.8 percent and in line with analysts' expectations.

But foreign retail banking operations increased net profit by 19.0 percent to 763 million euros (1.037 billion dollars), and the financial services division raised profits by 14.9 percent.

Asset management and investment services activities increased net banking income by 19.5 percent to 919 million euros.

Retail banking operations in France were flat, although net banking income rose by 2.3 percent on a 12-month comparison, excluding the recovery of provisions for potential problems, to 1.701 billion euros.

But the bank said that these activities should show growth slightly exceeding overall growth of the economy as measured by nominal French gross domestic product.


Copyright AFP

Subject: French new

0 Comments To This Article