LONDON, Sept 14 Frederic Oudea, chief executive
of Societe Generale (SOGN.PA), has criticised the market's
bearish views of French lenders in an interview with the
Financial Times on Wednesday.
He dismissed the recent call from Christine Lagarde,
managing director of the IMF, for an urgent recapitalisation of
Europe's banks, which have been hit by eurozone sovereign debt
"I do not believe in a scenario of stress or real losses on
[eurozone debt]," Oudea said in the interview recorded before
Monday's steep fall in eurozone bank shares and his pledge to
accelerate asset disposals and cut costs to free up 4 billion
euro by 2013. [ID:nL5E7KC0H4] [ID:nL5E7KC1UO]
"If you look at the figures again for the big banks, there
is a capacity to generate profit and to compensate for that. So
really I do not believe that there is an urgent need to recap
for the large banks," he said.
French banks are among the biggest holders of Greek
sovereign debt, led by BNP Paribas (BNPP.PA), which despite
recent reductions, still holds more than 4 billion euro.
Oudea highlighted the small exposures that SocGen had
compared with its capital base, referring to its eurozone
exposure as "low, declining and manageable." Its Greek exposure
is now 1.1 billion euro.
"We are one of the banks, I think, with one of the safest
balance sheets," Oudea added.
"I don't believe in the scenarios of big problems with
certain countries that sometimes the markets have. But, even if
it were the case, when you look at the balance sheet, we have
very low figures," he added.
"So we don't have a capital problem from that perspective
and for me it's a great comfort entering into this period of
uncertainty which might last a few months," he added.
(Reporting by Stephen Mangan; Editing by Gary Hill)