SocGen asset losses smother trading rebound
SocGen, seen as less well capitalised than domestic rival BNP Paribas, booked losses on the sale of Greek unit Geniki and U.S. fund-management unit TCW as part of a drive to slim down its balance sheet and boost capital levels ahead of tougher regulations and as the global economy slows.
Lenders across the globe, from Morgan Stanley in the United States to Commerzbank in Germany, are gearing up for deeper cuts to staff and costs to better withstand the uncertainty ahead.
While SocGen's investment bank followed rivals like BNP, Deutsche Bank and Citigroup in posting a strong rebound in fixed-income revenue - up threefold year-on-year - SocGen Chief Executive Frederic Oudea warned the outlook for 2013 was murky and confidence might fray.
Economic growth should remain sluggish overall (in 2013), with a key uncertainty in the U.S. - the fiscal cliff - in the beginning of the year, Oudea said in an interview with Reuters Insider television, referring to the threat of expiring tax cuts and government expenditure.
In the euro zone, we can't expect miracles.
Nomura analyst Jon Peace said the results were better than expected after stripping out the one-offs. We see the results effectively as a beat...Like BNP, fairly broad based by division, he said.
Quarterly net profit fell 86 percent to 85 million euros ($108.4 million) from 622 million a
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