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Societe Generale Third-Quarter Net Doubles on Investment Bank

By Steve Gavriliuc for CEOWORLD Magazine Updated:November 4, 2009

France’s second largest bank Societe Generale SA (SOGN.PA) says net profit more than doubled in the third quarter after its investment banking unit returned to profit.

Credit Suisse (CSGN.VX) and Deutsche Bank (DBKGn.DE), SocGen’s investment banking results powered the profit line although debt provisions rose to cover an expected further rise in bad loans in 2010.

Net profit rose to 426 million euros ($623 million) euros from 183 million a year earlier, mainly due to the fact that SocGen’s investment banking arm swung to a profit from a year-earlier loss.

Last week, Credit Agricole (CAGR.PA) — the country’s biggest bank by branches — denied a report in Le Monde that it was considering a merger with SocGenand insurer Groupama.

La Tribune newspaper said on Wednesday that BNP Paribas (BNPP.PA) was looking at SocGen.

Banks rebounded, after steep losses on Tuesday. The DJ STOXX European banking index .SX7P gained 2.1 percent, while Standard Chartered (STAN.L), HSBC (HSBA.L), Barclays (BARC.L), Lloyds (LLOY.L), Royal Bank of Scotland (RBS.L) and Societe Generale (SOGN.PA) were up 1.3 to 4.7 percent.

Miners BHP Billiton (BLT.L), Anglo American (AAL.L), Antofagasta (ANTO.L), Rio Tinto (RIO.L), Xstrata (XTA.L) and Eurasian Natural Resources (ENRC.L) rose 1.5-2.8 percent.

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