SocGen Q3 misses estimates; increases legal provisions

The cost of legal disputes hit French bank Societe Generale on Friday as it released third quarter results that missed estimates.

The bank said it had lifted its disputes provisions by €300m to €2.2bn. Third quarter net income fell 15% to €932m, below estimates of €1bn. Net banking income felll 0.9% to €5.96bn against forecasts of €6bn.

It also confirmed that it would reveal its long-awaited strategic plan on November 28.

“French Retail Banking’s commercial momentum remained robust and results were resilient against a backdrop of low interest rates and the transformation of the business model,” SocGen said.

“International Retail Banking & Financial Services continued to enjoy strong growth in all businesses and geographical regions. Global Banking & Investor Solutions’ revenues were lower than in Q3 16 in a market environment characterised by historically low volatility levels.”

SocGen is caught up legal disputes in the US related to the Libya Investment Authority (LIA) and the Interbank Offered Rate (IBOR).

In a statement, the company said it was in talks with US authorities “in order to reach an agreement to resolve these matters, and has decided, as a precautionary measure, to increase the provision for disputes”.