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SocGen Equities Trading Wiped Out in Perfect Storm for CEO Oudea

  • Equities unit slumps as dividend suspensions hit derivatives
  • Bad loan provision could reach 5 billion euros in worst case
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Societe Generale SA slumped to a surprise first-quarter loss after coronavirus-related market volatility wiped out stock trading revenue and bad loan provisions surged.

Revenue from equities trading, a traditional stronghold of the firm, slumped 99%, more than offsetting strength in the smaller fixed-income unit, the French lender said Thursday. SocGen set aside 820 million euros ($890 million) to cover bad loans and warned provisions -- including for defaults and two fraud cases -- could hit 5 billion euros this year in a worst case scenario.