http://www.bloomberg.com/news/2014-08-01/socgen-profit-rises-7-8-as-loan-loss-provisions-decline.html
Societe Generale SA (GLE), France’s second-largest bank, posted higher profit in the second quarter as earnings jumped at the investment bank and provisions for doubtful loans declined.
Net income rose to 1.03 billion euros ($1.4 billion) from 955 million euros a year earlier, the Paris-based bank said today. While earnings were the highest in four years and above analysts’ estimates, the shares fell amid concern over the bank’s business in Russia, where Societe Generale is among the largest foreign banks.
“Actions taken by management regarding Russian operations and the impact of sanctions” are a “key focus” for investors, Jean-Pierre Lambert, an analyst at Keefe, Bruyette & Woods Ltd. in London with an outperform rating on the bank, wrote in a note to clients today.
Deputy Chief Executive Officer Severin Cabannes, in an interview with Bloomberg Television, played down the risks to the bank’s business from widening U.S. and European Union sanctions on Russian companies. The bank’s Russian operations contributed 16 million euros to net income in the quarter.
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