SocGen posts surprise loss as coronavirus crisis impacts its equity trading unit

French bank Societe Generale’s headquarters in Paris.

Chesnot | Getty Images News | Getty Images

The French bank decided to make provisions of 653 million euros to deal with potential risks from the ongoing crisis.

The French lender said that its CET1 ratio, which sheds light on its capital strength, is expected to be between 11.5% and 12% at the end of 2020.

Its equity trading business saw revenues fall 80% from a year ago.

Societe Generale reported a net loss of 1.26 billion euros ($1.48 billion) for the second quarter of the year, missing market expectations, as the bank set aside more capital due to the pandemic and reduced the value of its trading business.

Source: CNBC

As i mentioned earlier, EU banks are taking a big hit on their revenue numbers and it looks like they are going to shrink their investment bank arm. The likely beneficiaries from this action would be BNP Paribas, Credit Suisse, UBS considering the type of clients that the EU banks are currently serving. 

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