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 Woman accidentally shoots herself in the head while posing for a selfie
- 2 Art Garfunkel: Paul Simon is a 'monster' with a Napoleon complex
- 3 Isis burns woman alive for refusing to engage in 'extreme' sex act, UN says
- 4 Female Muay Thai champion hustles coaches to give them a beating
Isis 'jihadi bride' claims forced sex with Yazidi girls is never rape because Koran condones it
Woman accidentally shoots herself in the head while posing for a selfie
Isis burns woman alive for refusing to engage in 'extreme' sex act, UN says
Puerto Rico, island of lost dreams: People are leaving the debt-hit territory in droves as near neighbour Cuba's star rises
16-year-old girl beaten and burned alive by lynch mob in Rio Bravo, Guatemala
As a white man, I'm surprised more women aren't tweeting the hashtag #KillAllWhiteMen
Scotland may have to leave the EU even if it votes to stay in, David Cameron confirms
The day that Britain resigned as a global power
Almost a third of school pupils believe 'Muslims are taking over our country', study claims
SNP fury as HS2 finds 'no business case' for taking fast train service to Scotland
Gay marriage 'Bert and Ernie' cake bakery found guilty of discrimination in Northern Ireland
iJobs Money & Business
£40-50K: Guru Careers: We are seeking an experienced Software / C# Developer w...
£45,000 - £55,000: Neil Pavier: Are you looking for your next opportunity for ...
£45,000 - £55,000: Sheridan Maine: Are you a newly qualified ACA/ACCA/ACMA qua...
£50,000 - £60,000: Laura Norton: Are you looking for an opportunity within a w...