Societe Generale announced a 2011 net profit of 2.38 billion euros, down 39% compared to 2010, mainly due to losses recorded in bank financing and investment. The bank remains cautious for 2012. She expects a very volatile environment.
Societe Generale said Thursday net income in 2011 of 2.38 billion euros, down 39% compared to 2010. The origin of this trend: the results of its investment banking and investment (BFI), undergoing restructuring due to the crisis. The group posted a net loss to 482 million euros.
Its quarterly net profit in spring and fall from 88% to 100 million euros.
The bank is conservative red and black for the year 2012. “It must be because I believe that the environment will remain volatile in 2012, but the beginning of the year was good in market activities,” he told Reuters Frederic Oudéa, CEO of the bank.
“We certainly will, in 2012 still costs deleveraging (reducing balance, Ed).”
“The results are below expectations but what they say on capital is better than what was expected,” said a trader.
The consensus reached by the editor of Reuters expected a profit of 190 million euros for the last three months of 2011, a drop of 78%, including a loss of only 81 million euros in the BFI.
As BNP Paribas , Societe Generale said to be ahead of six months on the requirements of the EBA concerning the need for recapitalization of the Old World, with a capital ratio of 9% at end 2011.
The bank confirms the same time it will meet its objectives of equity under the new rules of the Basel Committee without recourse to the market.
“It confirms a target ratio in excess of 9% without a capital increase,” insists Frédéric Oudéa. “We will do this both through asset sales and disposals of businesses but also to our results.”
The CEO of SocGen confirms its objective to return the next year a dividend after having had to give this year to strengthen its solvency.
“The dollar liquidity needs of corporate banking and investment have been reduced by approximately $ 55 billion, in the second half,” the bank said, adding sales have accelerated in its portfolio toxic assets in the second half of 2011.
These sales had a negative impact of 524 million euros on revenues of the BFI on the fourth quarter alone.
Wednesday, BNP Paribas has reported better than expected results in the fourth quarter. In addition to reassuring the leaders of 2012, analysts point out that the bank financing and investment of the BNP has weathered the crisis better than its main competitors