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SocGen Net Profit Tumbles, but Beats Forecast

Reuters
Tuesday, 13 May 2008 | 1:50 AM ET

Societe Generale, the French bank hit by the world's worst rogue trader scandal, reported a 23.4 percent fall in first quarter net profit although earnings came in above the average market forecast.

Net profit fell to 1.096 billion euros ($1.69 billion), mainly due to a 79 percent fall in net profit at its corporate and investment banking division and a loss at SocGen's global investment management unit.

Twenty analysts polled by Reuters gave an average net profit forecast of 924 million euros.

On Jan 24, SocGen announced 4.9 billion euros of losses which it said were caused by rogue deals carried out by Jerome Kerviel, a junior trader at the bank.

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