Profits slump at Societe Generale

Societe Generale said it could handle the slowdown

French bank Societe Generale has seen net profits slump 84% for the third quarter, hit by the credit crisis.

Net profits in the three months to the end of September fell to 183m euros ($235m; £145m) from 1.12bn euros in the same period a year before.

The bank has been hard hit by the turmoil in the finance sector with the collapse of Lehman Brothers alone prompting a 447m-euro write-down.

Despite the results the bank said it was positioned to handle the downturn.

Its stock climbed in morning trade in Paris on assurances that it would be able to protect itself against the worsening economic climate.

It said it was robust enough to to "weather a potential deterioration in the economic environment of 2009."

Government intervention

Shares in the firm added some 2% at 43 euros in Paris.

Both its investment banking arm and asset management divisions saw losses for the quarter.

As well as being hit by the credit squeeze the firm saw a 4.9bn-euro loss linked to a rogue trader, Jerome Kerviel, earlier in the year.

The financial sector has seen exceptional turmoil and upheaval in recent weeks, with some leading firms collapsing while others have been bailed out or bought.

Governments worldwide have intervened in a bid to prop-up markets and prevent a wider recession.

France is to lend 10.5bn euros to its leading banks to encourage them in turn to lend and increase liquidity.