November 8, 2018 / 5:57 AM / 8 months ago

Societe Generale Q3 net profit jumps on revaluation of Euroclear stake

PARIS, Nov 8 (Reuters) - Societe Generale, France’s second largest listed bank, said its third quarter net profit jumped 32 percent thanks to a capital gain booked on its stake in clearing house Euroclear.

Net profits rose to 1.23 billion euros ($1.41 billion). Five analysts polled by Inquiry Financial consultancy on behalf of Reuters had expected a profit of 917 million euros.

Societe Generale said it made a capital gain of 271 million euros as it updated the valuation of its stake in Euroclear. The bank said it has more than doubled the valuation of the stake, which is higher than 5 percent, in its books.

Revenues during the quarter rose 9.6 percent to 6.53 billion euros, above the 6 billion euros expected by the analysts.

SocGen’s French retail bank performed better than the previous quarter with a 1.8 percent revenue increase, while revenue from fixed-income, currency and commodity trading was stable.

During the quarter, the bank booked a 136 million euro provision to pay potential settlements with U.S. authorities, mainly over possible sanctions violations.

SocGenk had already set aside an amount of 1.1 billion euros to cover a possible settlement on this case. The bank’s Chief Executive Frederic Oudea said in a statement that the provisions now cover “the financial impact” of the disputes.

$1 = 0.8736 euros Reporting by Inti Landauro; Editing by Sudip Kar-Gupta

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