SocGen net profit triples

[August 04, 2010]  PARIS (AP) -- French bank Societe Generale SA said Wednesday that net profit in the second quarter more than tripled after higher earnings at its French retail banking business offset a decline in investment banking business.

Earnings a year ago were hurt by write-downs and losses on bad loans.

France's second-largest bank reported a net profit of euro1.08 billion ($1.43 billion) in the three months ending in June, compared with euro309 million a year earlier.

CEO Frederic Oudea said in a statement that corporate and investment banking had a "satisfactory" performance in a difficult market during the quarter.

The division posted a 53 percent decline in second quarter net profit to euro410 million.

French retail networks saw net profit rise by 7.6 percent to euro312 million.

International retail banking reported a 0.8 percent decline in net profit to euro125 million with provisions for Greece "substantial" but lower than before.

The Paris-based bank, which is trying to put a massive trading scandal behind it, said it will continue its "prudent strategy of reducing market risks."

"The results published today confirm Societe Generale's rebound," Oudea said.

SocGen said the recent European stress tests showed the quality of its portfolio, demonstrated by its estimated end 2011 Tier 1 ratio -- a key measure of capital strength -- of 10 percent under stress.

[Associated Press; By EMMA VANDORE]

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