Profits at Société Générale, France’s third largest bank, fell by 41 per cent despite "excellent" performances in Q2 by its core businesses.
Announcing its results this morning, the bank said that overall its gross operating income rose by 30 per cent, but after provision for bad debts its net income was down 41 per cent to €376 million
At the meeting of the Board of Directors of Société Générale yesterday, chaired by Daniel Bouton, the Board closed the Group’s consolidated accounts for the second quarter of 2002.
"In the second quarter of 2002, the Société Générale Group continued to develop and saw its core businesses turn in excellent performances, with gross operating income rising 30 per cent year-on-year," Mr Daniel Bouton, chairman of Société Générale said.
"Operating expenses were stable quarter-on-quarter when adjusted for changes in Group structure and at constant exchange rates, while net banking income was up by 5% on the same basis.
"With risk provisioning stable at a level close to that seen in previous quarters, the Group’s operating income was up by 22 per cent year-on-year, and by 7 per cent when adjusted for changes in Group structure and at constant exchange rates.
"Due to sharp fall and volatility seen in French share prices, the Group booked provisions on its industrial equity portfolio totalling €265 million, including an exceptional prudential lump-sum provision of €150 million."