SocGen losses 1.26 billion euro in Q2 due to trade losses
Societe Generale SA extended the series of losses that could increase pressure on CEO Frederic Oudea by losing 1.26 billion euros due to losses from the trading unit.
The French-based bank recorded one-time costs of about 1.33 billion euros in global markets and investor services activities, including a reduction of the balance sheet value of assets by 684 million euros. The bank’s revenue from stock trading fell 80 percent.
Oudea, which is already under the pressure of the board of directors due to the unexpected first-quarter loss, wants to increase the profitability by reducing the risks and at the same time maintain its leading role in the bank’s stock structured products.
In the second quarter, the bank lost 200 million euros from stock transactions due to companies that canceled dividends due to coronavirus. Oudea, the longest-serving leader of HSBC, one of the leading banks in Europe, accelerates the transition to simpler products in the investment bank.