SocGen and Northern Rock have disclosed their losses
10 August 2008Net profit of French bank Societe Generale (SocGen), which in the beginning of the year has become a victim of the swindle largest in history from the trader, in the second quarter, has reduced more than twice - up to 644 million euro.
Yesterday the victim of credit crisis, largest in the Great Britain bank, Northern Rock (NR) in the first report after nationalization has opened semi-annual losses in 747 million euro.
Yesterday in the Great Britain NR has informed on the loss in the first half-year in 592 million pounds sterling (747,3 million euro), it is connected with write-off by bank of the delayed credits for the sum 191,6 million pounds (242 million euro), and also with charges on business reorganization.
NR has been nationalized in February of the last year after what it has gone through crisis of liquidity and scale response of means from deposits. Nationalization has been caused by absence of competitive private offers; however, this step still causes disputes.
NR, however, has informed, that has paid to Bank of England 9,4 billion (11,9 billion euro) from 26,9 billion pounds (34 billion euro), which it still should pay. Northern Rock has informed, that it will return to profit not earlier than 2010, when it expects to extinguish completely debts before British Central Bank. Thus yesterday the government has met NR, actually having given to it new financial injections: 3 billion pounds (3,8 billion euro) from the remained duty and preference shares for the sum 505 million the euros belonging the government, will be converted in ordinary bank’ shares.
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