The French Bank has Warned Market
The French bank has warned of a 20% decline in revenues in its market activities in the fourth quarter due to the high volatility on the financial markets. Its title loses more than 4% this Thursday morning, causing other banking stocks.
After Natixis, JP Morgan and Citigroup, it is Societe Generale’s turn to announce a drop in its trading income, against a backdrop of a mini-crash on the markets in December. La Défense bank announced Thursday, Jan. 17 expect a decline of 20% of its revenues in its market activities in the fourth quarter due to the high volatility in the financial markets. It also indicates that the disposals announced at the end of last year (in Serbia, in La Banque Postale Financement) will result in an exceptional charge of 240 million euros in its accounts for the fourth quarter.
“The challenging environment in global capital markets is expected to reduce revenues from the Markets & Investor Services business by around -20% in Q4-18 compared to Q4-17 and by around -10% in 2018. compared to 2017, as well as a significant increase in risk-weighted market risk outstandings, “the bank said in a statement.
Share Soc Gen loses more than 4% this Thursday morning on the Paris Stock Exchange, resulting in other banking stocks: BNP Paribas yields 2.5% and Crédit Agricole nearly 2%.
“All the activities of retail banking and international financial services as well as those of financing and consulting should be in line with the expectations communicated by the group,” relativizes the bank, which maintains its forecasts in retail banking in France (or a decline of 1% to 2% over 2018).
In December, Natixis, the listed subsidiary of the mutual bank BPCE, issued a warning on its fourth quarter earnings due to losses in its equity derivatives portfolio in Asian markets. According to the Bloomberg agency, BNP Paribas has lost $ 80 million in its trading activities on the S & P 500 index. The bank of the Rue d’Antin will publish its results on February 6.
For the big American banks, which have just released their results for the fourth quarter, they have all been penalized by the difficult market environment, the Dow Jones having experienced its worst month of December since 1931.
JPMorgan saw its income in the bond drop by 18% between October and December, Citigroup by 21%. At Goldman Sachs, the dynamism of equity trading (+ 17%) and advice in mergers and acquisitions has amortized losses related to bond trading (-18%).