Societe Generale beats profit forecasts

3 November 2010

Societe Generale has exceeded analysts' expectations by posting third-quarter net profits of €896 million (£783 million), up from €426 million during the same period last year.

France's second largest bank, which lost billions in a rogue trader scandal during the financial crisis, said its quarterly revenue was in line with market forecasts at €6.3 billion.

Profits were well above the average estimate of €793 million taken from a Reuters poll of 14 analysts this week.

"They're very strong [results] overall, at the revenue level ... provisions are better than expected across the board," MF Global analyst Shailesh Raikundlia told the news agency.

The Paris-based bank's third-quarter performance was boosted by its retail arm, which saw profits rise by 15 per cent to €340 million.

Frederic Oudea, chief executive at Societe Generale, said the institution will not need to raise additional funds to comply with the Basel III capital requirements.

In an interview with CNBC, he described the results as "confirmation of the recovery of Societe Generale".

By Claire Archer

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