Societe Generale experiences profit fall

8 November 2011

Societe Generale witnessed its net profit decline by 31 per cent during the third quarter of the year, mainly due to the knock-on impact of the ongoing Greek debt crisis.

Figures published today (8 November) by France's second-largest bank revealed that the continuing uncertainty surrounding the eurozone and its exposure to unstable markets were the primary reasons behind this fall.

Throughout the three-month timeframe, the financier experienced a drop in net profits to €622 million ($857 million) in comparison to the €896 million recorded in the corresponding period in 2010.

However, its revenue went up slightly against last year's figures and, in a statement, the company indicated it is making provisions to strengthen its capital requirements ahead of the implementation of new European Banking Authority rules.

This comes after France's biggest bank - BNP Paribas - posted a slip in net profit of 72 per cent to €541 million in quarter three.

By Asim Shah

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