Societe Generale's profits fall on liability loss

AP News
Posted: May 07, 2013 4:59 AM

PARIS (AP) — Societe Generale says its net profit fell 50 percent in the first quarter of the year, as it took a 1 billion-euro ($1.3 billion) loss in reevaluating its financial liabilities.

The French bank said Tuesday that it brought in 364 million euros ($477 million) in the January-to-March period.

The reevaluation of financial liabilities was largely to blame for the drop, but the bank also noted that profits at its French banking network were dropping. A stagnant economy has led to a drop in demand for loans.

Societe Generale has been hit particularly hard by Europe's debt crisis since it was heavily exposed to Greek bonds, which plummeted in value. The bank said earlier this year that it had completed a program to get rid of bad investments and loans.