(Adds details from statement)
PARIS, May 2 (Reuters) - Boursorama, the online broker controlled by French bank Societe Generale, announced on Friday that it is to close its British business and that 2014 group net income would be near zero as a result.
Boursorama said in its first-quarter results statement that its Selftrade online brokerage in Britain had signed an exclusivity letter with Equiniti Group for the transfer of Selftrade’s client portfolio this year.
“Based on current projections, the costs associated with this transaction (transfer of the client portfolio and closure of the entity) will have a significant impact on Boursorama’s results and could lead to a net income of close to zero for the group for the financial year 2014,” it said.
Boursorama, which also offers online broking, banking and other financial services in France, Germany and Spain, reported an annual loss in 2013, hurt by writedowns on the acquisition value of assets abroad, namely Selftrade and German financial portal OnVista.
In the first quarter of this year, Boursorama’s net income fell 72 percent year on year to 2.5 million euros ($3.5 million), hit by restructuring costs of 7.8 million at Selftrade.
Excluding Britain, net income rose 16 percent to 13.1 million euros in the quarter. ($1 = 0.7212 Euros)
Reporting by Dominique Vidalon; Editing by David Goodman