French bank Société Générale has reported better than expected third-quarter profits of €896m, more than double the same period last year. The figure was much higher than the €716m forecast by analysts.
SocGen also said it would not need a capital increase to meet tougher industry rules. Banks from Germany, Italy, Greece and Spain have tapped investors for fresh equity, but SocGen has said it will not follow suit despite lingering concerns.
'We have the ability to comply with the new Basel III capital requirements without a capital increase,' chief executive Frederic Oudea said in a statement.
SocGen is confident it will meet its long-term financial targets despite a 'hesitant' economic recovery, Oudea said, adding that the turnaround in the US appeared more uncertain than in France and Germany.
SocGen's Q3 results benefited from a more benign risk environment than a year ago, leading to lower loan-loss provisions in French and international retail banking. This helped offset the impact of capital markets sluggishness on corporate and investment banking.
'It's the confirmation of the recovery of Société Générale,' chief executive Frederic Oudea said. SocGen lost billions of euro in a rogue trader scandal in 2008.
