SocGen Equities Trading Wiped Out in Perfect Storm for CEO Oudea
- Equities unit slumps as dividend suspensions hit derivatives
- Bad loan provision could reach 5 billion euros in worst case
This article is for subscribers only.
Societe Generale SA slumped to a surprise first-quarter loss after coronavirus-related market volatility wiped out stock trading revenue and bad loan provisions surged.
Revenue from equities trading, a traditional stronghold of the firm, slumped 99%, more than offsetting strength in the smaller fixed-income unit, the French lender said Thursday. SocGen set aside 820 million euros ($890 million) to cover bad loans and warned provisions -- including for defaults and two fraud cases -- could hit 5 billion euros this year in a worst case scenario.