Banks And Fınancıal Instıtutıons, Coronavırus

Banks And Fınancıal Instıtutıons, Coronavırus

SocGen extends losing streak with surprise $1.26 billion euros loss

SocGen extends losing streak with surprise $1.26 billion euros loss

3/8/2020 8:47:00 AM

SocGen extends losing streak with surprise $1.26 billion euros loss

PARIS (BLOOMBERG) - Societe Generale swung to a surprise 1.26 billion-euro (S$2.04 billion) loss fir the second quarter because of charges at its trading unit, extending a losing streak that's set to increase pressure on chief executive officer Frederic Oudea.. Read more at straitstimes.com.

The French lender posted almost 1.33 billion euros in one-off costs following a review of the global markets and investor services business, including a 684 million-euro writedown. That capped a tough period for the bank, which saw equities-trading revenue decline 80 per cent after structured products were hit for a second straight quarter.

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Mr Oudea, already under pressure from the board after an unexpected first quarter loss, is reducing risks and seeking to increase profitability while attempting to maintain the bank's leading position in equity structured products. Equities trading took a 200 million-euro hit in the second quarter related to companies canceling dividends because of the coronavirus, offsetting a 38 per cent rise in fixed income trading.

Mr Oudea, the longest-serving leader of a top European bank, is accelerating a transition toward simpler products at the investment bank that will see a decline in revenue. The bank said it also expects to cut costs by as much 450 million euros by 2022 at the unit. headtopics.com

The French firm's biggest rival, BNP Paribas, rebounded from a first-quarter profit warning and stock trading hit with a blowout performance in fixed-income. Revenue from trading fixed-income securities, currencies and commodities jumped 154 per cent in the second quarter from a year earlier, offsetting a more than 53 per cent decline in equities trading. It said there was only a"residual impact" from the dividend cancellations.

SocGen set aside about 1.28 billion euros in the second quarter to cover the cost of loans going sour, higher than the 820 million euros in the first three months.The lender is closing its trade commodity finance unit in Singapore after the collapse of oil trader Hin Leong Trading (Pte) Ltd, which owed SocGen $240 million, Bloomberg reported last week.

The bank's so-called cost of risk will probably fall at the low end of its range for the year while it also saw a further strengthening of its capital ratio, a key metric watched by bank investors. It expects the CET1 ratio to be at the top end of its 11.5 per cent-12 per cent guidance.

Read more: The Straits Times »

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SocGen shuts Singapore trade commodity desk after Hin Leong hitSINGAPORE (BLOOMBERG) - Societe Generale is closing its trade commodity finance unit in Singapore after the collapse of Hin Leong Trading prompted the bank to halt fresh funding to such firms in the region.. Read more at straitstimes.com.

SocGen shuts Singapore trade commodity desk after Hin Leong hitSINGAPORE (BLOOMBERG) - Societe Generale is closing its trade commodity finance unit in Singapore after the collapse of Hin Leong Trading prompted the bank to halt fresh funding to such firms in the region.. Read more at straitstimes.com.

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