Key Points: Societe Generale said?revenues fell 16.5% in the first quarter to 5.17 billion euros ($5.62 billion).Its cost of risk?increased to 820 million euros in the first quarter from 264 million a year earlier.French bank Societe Generale's headquarters in Paris.
Societe Generale posted a first-quarter loss on Thursday and said it would make deeper cost cuts in 2020 as its provisions against bad loans increased threefold and it suffered from trading losses.
The coronavirus pandemic has shut down businesses in France and beyond, brought chaos to the world markets and is expected to cause a recession not seen in generations.
France's third-biggest listed bank said revenues fell 16.5% in the first quarter to 5.17 billion euros ($5.62 billion), while its net loss amounted to 326 million euros versus a 686 million euros profit a year ago. Underlying net income was down 90.8% to 98 million euros.
Its cost of risk, or provisions against loan losses, increased to 820 million euros in the first quarter from 264 million a year earlier "in the context of the Covid-19 crisis and some specific files, including two exceptional fraud files," it said.
The banks' revenues from structured products saw losses due to the cancellation of dividend payments of companies and due to counterparty defaults.
The bank said it confirmed its target to see a decrease in costs in 2020 and that there would be an additional cost reduction between 600 and 700 million euros in 2020.
Chief executive Frederic Oudea said that bank was confident in the "the robustness of our capital and risk profile."
原文地址：https://www.cnbc.com/2020/04/30/socgen-posts-q1-loss-on-trading-bad-loan-provisions.html