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SocGen warns on profit
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May 4, 2001: 6:33 a.m. ET
Second French bank this week says U.S. slowdown will affect earnings
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LONDON (CNN) - Societe Generale became the second French bank to issue a profits warning this week when it said Friday the U.S. slowdown will hit earnings.
SocGen (PGLE) shares fell more than 4 percent in Paris after Chairman Daniel Bouton said first-quarter profits would show a "significant decline" compared with the first three months of last year.
French banking rival Credit Lyonnais predicted on Wednesday that 2001 first-quarter results will be significantly lower from the same period a year ago because of worse business conditions in the U.S.
"Our profit will naturally see a significant drop, notably in certain areas such as investment banking," said SocGen's Bouton on Friday.
SocGen had posted a 42 percent rise in net income in the fourth quarter of 2000 to  569 million ($508 million) as its corporate and investment banking units flourished.
SocGen has 3,000 employees in the U.S., mainly in investment banking and securities trading, but like other European banks will also feel the effects of the U.S. slowdown feeding through to the domestic market.
The Credit Lyonnais chairman, Jean Peyrelevade, speaking at his annual shareholder meeting this week, said a poorer market environment and the impact of the U.S. economic slowdown would hit results.
"In this environment the first quarter of the year 2001 will naturally be in sharp retreat from the same period last year," Peyrelevade said.
Credit Lyonnais (PCL) shares - which traded at a year-high of 44.15 on Wednesday before the profit warning - were priced 0.3 percent down in Paris on Friday at 41.93. 
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