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Societe Generale profits hit by Greek debt writedown | Societe Generale profits hit by Greek debt writedown |
(40 minutes later) | |
Second-quarter profits at Societe Generale, France's second-biggest bank, have fallen as a result of its exposure to Greek sovereign debt. | Second-quarter profits at Societe Generale, France's second-biggest bank, have fallen as a result of its exposure to Greek sovereign debt. |
SocGen's net profit for the quarter fell to 747m euros ($1.06bn; £652m), down 31% from a year ago. | SocGen's net profit for the quarter fell to 747m euros ($1.06bn; £652m), down 31% from a year ago. |
It made a 395m euro writedown on its Greek debt holdings. The bank holds about 2.65bn euros of Greek sovereign bonds. | It made a 395m euro writedown on its Greek debt holdings. The bank holds about 2.65bn euros of Greek sovereign bonds. |
SocGen also warned that its 2012 profit target would be "difficult to achieve". | SocGen also warned that its 2012 profit target would be "difficult to achieve". |
In a statement, the bank said that the second quarter results reflected the global economic and financial situation, which remained very mixed. | In a statement, the bank said that the second quarter results reflected the global economic and financial situation, which remained very mixed. |
Frederic Oudea, the group's chairman and chief executive, said, "The Q2 results testify to the Group's resilience in an uncertain economic environment." | Frederic Oudea, the group's chairman and chief executive, said, "The Q2 results testify to the Group's resilience in an uncertain economic environment." |
On Tuesday, BNP Paribas, which has the biggest exposure to Greek debt among France's banks, announced that it was setting aside 534m euros to cover its expected Greek losses. | |
French banks are among the biggest holders of Greek debt and were involved in the negotiations of a second bailout for the country, which included private sector support. | |
Banks could end up taking a loss of 21% on the value of their Greek debt as a result of the bailout. |
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