The French multinational investment bank, Société Générale, had a rough quarter. In the words of its CEO, Frédéric Oudéa, “second quarter had effectively been its worst amid the Covid-19 crisis.”
SocGen posted a net loss of €1.26 billion, leaving far behind the €13.6 million expected. The revenue figures came in at €5.3 billion, lower than last year’s €6.3 billion. Bank’s expenses dropped from €4.3 billion to €3.9 billion.
The bank made provisions of €653 million to deal with potential risks caused by the current health crisis. The current amount is four times bigger than in the same quarter last year.
Also, the bank said that it would cut costs in Global Banking and Investor Solutions business by almost €450 million by 2023, as its equity business had a hard time during Q2.
The solvency rate is expected to reach a high of 12% at the end of this year.
After the report, the share traded lower by 4%. Since the beginning of the year, the Société Générale stock price slipped 58%.
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Sources: cnbc.com, seekingalpha.com