Societe Generale seen swinging to fourth-quarter loss, naming new CFO
February 13, 2013 11:14 AM EST
France's No. 2 listed bank, Societe Generale
The bank's outgoing CFO, Bertrand Badre, last month warned analysts that a combination of rising loan losses in France, accounting losses on the bank's own debt and a writedown on the value of brokerage joint-venture Newedge would eat up profits.
Several names have been cited as likely frontrunners to replace Badre, who is leaving to join the World Bank. They include Deputy CFO Philippe Heim and the bank's head of specialised financial services, Didier Hauguel, people close to the matter told Reuters.
SocGen is seen reporting a quarterly net loss of 237 million euros ($317.08 million), compared with quarterly profit of 100 million for the year-ago period, according to an average of eight analyst forecasts.
Meanwhile, revenue is expected to fall 14.8 percent, to 5.12 billion euros, according to an average of six analyst forecasts.
This would put SocGen's overall profits for 2012 at around 1 billion euros, a far cry from the 6 billion promised by Chief Executive Frederic Oudea in 2010. This target was shelved in 2011 as financial markets were gripped by panic over the euro.
SocGen has spent the past year on a drive to boost capital by cutting jobs and selling assets, but Oudea has yet to give a clear outline of long-term strategy as tougher regulations and recession in the euro-zone dampen industry fortunes.
With rivals like UBS
(Reporting by Lionel Laurent and Matthias Blamont; Editing by Helen Massy-Beresford)
Join the Conversation
- Tourre on stand says email in SEC case 'not accurate'
- Syrian authorities blocking access to needy in Homs - Red Cross
- Faith in European Union at low ebb, EU poll says
- Former UBS banker gets 18 months, $1 million fine, for muni bid-rigging scheme
- U.S. judge halts challenges to Detroit's bankruptcy bid