BNP Paribas SA, France’s largest bank, said third-quarter profit fell 72 percent because of a 2.26 billion-euro ($3.1 billion) writedown on Greek sovereign debt and losses from selling European government bonds.
Jerome Kerviel said he feels “crushed by the weight of the punishment,” in his first interview after being sentenced to three years in jail and ordered to repay Societe Generale SA for its 4.9 billion-euro ($6.8 billion) trading loss.
BNP Paribas SA and Societe Generale SA, France’s largest banks, are accelerating cuts in their 1.1 trillion-euro ($1.5 trillion) trading books to avoid going to shareholders or the government for capital.
Societe Generale SA , the French bank that had a record trading loss in 2008, is regaining favor with investors as a return to profit in Russia and fewer writedowns help narrow the earnings gap with BNP Paribas SA .
Jean-Laurent Bonnafe ’s route to the top job at BNP Paribas SA led through Rome and Brussels, where he spent much of the last five years overseeing takeovers that turned the Paris-based lender into Europe’s largest bank.
Credit Agricole SA and Societe Generale SA led French banks higher in Paris trading on speculation softer rules on capital and liquidity from the Basel Committee on Banking Supervision will help earnings.
Societe Generale SA, France’s third-largest bank by assets, said it could resist a freeze in dollar financing from U.S. money-market funds, which cut their lending to European banks amid the euro debt crisis.