Société Générale, France’s second biggest bank, sought to reassure markets saying in a trading update on Wednesday that it expected to have broken even in the last three months of 2008 and to make €2bn ($2.6bn) in full-year net profit. Although the guidance was below analysts’ forecasts, it calmed fears of extraordinary Q4 losses and the shares bucked a downward trend in banking stocks, rising nearly 5% in afternoon Paris trading to €25.84. after falling 30% in the last two weeks. SocGen also said it would take €1.7bn from a second tranche of €10.5bn in state aid for French banks, which the government announced late Tuesday night.

This entry was posted by Gwen Robinson on Thursday, January 22nd, 2009 at 5:45 and is filed under Capital markets. Tagged with SocGen. Edit this entry.