* BNP Paribas says has reached 70 pct of deleveraging target
* Expects to complete plan by year-end
* SocGen says aims to cut CIB liquidity needs
* Expects to meet Basel 3 requirements by year-end
(Combines previous BNP, Socgen stories)
By Christian Plumb
PARIS, March 28 BNP Paribas and
Societe Generale are making strides in reducing their
balance sheets as they come to grips with more stringent capital
requirements and a dearth of dollar funding, the French banks
said on Wednesday.
BNP Chief Executive Jean-Laurent Bonnafe said the bank's
planned asset disposals were ahead of schedule and that they
should be completed by the end of the year.
"Our number-one priority remains our implementation of our
deleveraging plan," Bonnafe said in a presentation at a Morgan
Stanley conference in London, which was webcast. "All in all we
have already achieved 70 percent of the plan."
BNP, France's largest bank, also said that it had completed
60 percent of its 2012 funding programme, raising 12 billion
euros ($15.99 billion) since the beginning of the year with an
average maturity of 6 years, mostly through private placements.
Societe Generale CEO Frederic Oudea said his bank - which
last year saw its shares pummelled amid concern about its
liquidity - was making progress on cutting the kind of assets
viewed as riskier by bank regulators.
"The deleveraging will carry on," he said. "We have clear
SocGen aims to cut the liquidity needs of its corporate and
investment bank by 50 to 60 billion euros as it sells more
loans, he said, confirming that the bank would meet capital
requirements under Basel 3 rules between now and 2013.
BNP Paribas also confirmed that it expects to meet the Basel
3 common equity Tier 1 capital ratio target of 9 percent by the
beginning of next year.
Both executives spoke at a Morgan Stanley financial services
conference in London at which the deputy CEO of No. 3 French
bank Credit Agricole, Jean-Yves Hocher, and Chief
Executive of insurer AXA, Henri de Castries, were
scheduled to speak later on Wednesday.
In slides released before de Castries spoke, AXA also
focused on the strength of its balance sheet, saying that its
regulatory Solvency 1 ratio had risen to more than 200 percent
by the end of February.
Societe Generale shares were down 2.1 percent at 23.06 euros
in late morning trading, while BNP Paribas was 1 percent lower
at 36.40 euros, about in line with a 1.1 percent decline in the
($1 = 0.7506 euros)
(Reporting by Christian Plumb; Editing by Elena Berton and