Banks forced to make Greek provisions
Thursday 04 August 2011
The fallout from the Greek debt crisis continued to take its toll on European banks yesterday, forcing France's Societe Generale to issue a profits warning and Italy's UniCredit to reveal it has made a large writedown.
As he announced a €395m (£344m) writedown on Societe Generale's Greek bond holdings, Frederic Oudea, chairman and chief executive of the bank, warned that the group's €6bn profit target for 2012 would be difficult to hit "within the scheduled time frame".
Societe Generale took the writedown after a deal last month in which investors in Greek government bonds agreed to a 21 per cent "haircut" on their holdings as part of a broader bailout deal orchestrated by leaders of the eurozone.
The Greek writedown helped push the bank's second quarter net profit down by 24 per cent to €449m.
UniCredit, Italy's biggest bank, reported that it took a €105m writedown on its portfolio of Greek bonds. However, the bank managed to increase its overall profits in the second quarter because it made lower provisions for bad debts elsewhere on its balance sheet.
BNP Paribas and Deutsche Bank have also announced writedowns since the Greek deal.
- 1 Tamir Rice: 12-year-old boy playing with fake gun dies after being shot by police in Ohio park
- 2 To help fuel their propaganda machine against the poor, our government has now decided to redefine the word 'welfare'
- 3 Naked free runner captured in breathtaking photographs above London's streets
- 4 Woman opens professional cuddling shop – gets 10,000 customers in first week
- 5 Manchester United named Premier League's loudest fans despite late push by Chelsea according to 'Smart Meter' app
Tamir Rice: 12-year-old boy playing with fake gun dies after being shot by police in Ohio park
Heroin to be prescribed to Canadian addicts by doctors
Audacious North Korean kidnap plot foiled at Paris airport as 'Asian men' attempted to bundle student onto plane
Tower Bridge glass walkway 'smashed' by night-time visitor dropping bottle of beer
Revealed: the case against Bill Cosby – through the stories of his accusers
Rochester by-election: Ukip gains second MP as Tory defector Mark Reckless holds seat
'Beast of Bolsover' Dennis Skinner takes Ukip MP Mark Reckless to task moments after he is sworn in
Rochester by-election: Labour MP Emily Thornberry resigns after posting white van and England flags tweet
The young are the new poor: Sharp increase in number of under-25s living in poverty, while over-65s are better off than ever
France 'blocks' Russian sailors from boarding a warship
Green Party Caroline Lucas interview: 'We could be on the edge of something very big'
iJobs Money & Business
Negotiable: Argyll Scott International: Hi All, I'm currently recruiting for t...
£50000 - £60000 per annum + benefits: Argyll Scott International: A Business A...
£30000 - £35000 per annum + benefits: Ashdown Group: PR Marketing & Events Exe...
$80000 - $110000 per annum, Benefits: Bonus and Employee Investment Scheme: Se...