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Greece hits SocGen profit


Greece hits SocGen profit


Losses from Greece caused French bank Societe Generale to post second quarter profits that were down by nearly a third.

France’s second-biggest bank also admitted that its target of six billion euros in net profit for next year would now be “difficult to achieve”.

Chief Executive Frederic Oudea defended the bank’s performance as “solid,” given the uncertain economic and financial environment, and said he remained “confident regarding the continuing growth of our results.”

The bank took a 395 million euro pretax hit on its exposure to Greece because of its contribution to a bailout plan.

Private sector investors have agreed to take a 21 percent loss on their Greek sovereign bonds, and French rival BNP Paribas on Tuesday took a 534 million euro charge related to Greece, but its net income still held flat from a year ago.

The provision proved harder for Societe Generale to absorb, and its second-quarter net income fell 31 percent from a year ago to 747 million euros, well below the 1.15 billion euro average forecast from analysts.

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