(Full story) (exclusive to Reuters)
By Lionel Laurent and Matthieu Protard
PARIS, Jan 9 (Reuters) - French bank Societe Generale (SOGN.PA) is forecasting a "significant" drop in 2012 investment-bank revenue compared with 2011, weighed by higher funding costs and efforts to slash its balance sheet, according to an internal memo obtained by Reuters on Monday.
France's second-biggest listed bank has also decided to exit or strongly reduce property, shipping and aircraft financing activities, as well as physical energy trading in North America, according to the 245-page memo sent to employee representatives.
"(SocGen) CIB expects a significant drop in revenues for 2012 compared with 2011, weighed by higher charges linked to funding and balance-sheet reduction," the memo said.
A spokeswoman for SocGen said the bank had already warned that its moves to cut debt and shrink its balance sheet would see revenues fall by 750 million euros ($955.32 million). "(This) is a significant drop and excludes charges linked to asset sales," she said.
By Lionel Laurent and Matthieu Protard
PARIS, Jan 9 (Reuters) - French bank Societe Generale (SOGN.PA) is forecasting a "significant" drop in 2012 investment-bank revenue compared with 2011, weighed by higher funding costs and efforts to slash its balance sheet, according to an internal memo obtained by Reuters on Monday.
France's second-biggest listed bank has also decided to exit or strongly reduce property, shipping and aircraft financing activities, as well as physical energy trading in North America, according to the 245-page memo sent to employee representatives.
"(SocGen) CIB expects a significant drop in revenues for 2012 compared with 2011, weighed by higher charges linked to funding and balance-sheet reduction," the memo said.
A spokeswoman for SocGen said the bank had already warned that its moves to cut debt and shrink its balance sheet would see revenues fall by 750 million euros ($955.32 million). "(This) is a significant drop and excludes charges linked to asset sales," she said.
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