May 4, 2018 / 7:22 AM / 19 days ago

SocGen and BNP Paribas shares fall as first-quarter results underwhelm

PARIS (Reuters) - Shares in Societe Generale (SOGN.PA) and BNP Paribas (BNPP.PA) both fell sharply on Friday, as traders and analysts expressed disappointment with a weak-looking set of first-quarter results from the French banks.

A view shows the logo on the headquarters of French bank Societe Generale at the financial and business district of La Defense near Paris, France, September 6, 2017. Picture taken September 6, 2017. REUTERS/Gonzalo Fuentes

SocGen shares were down 4.9 percent while BNP Paribas fell 2.7 percent.

A logo of BNP Paribas is seen outside its Tokyo headquarters, Japan, January 7, 2016. REUTERS/Yuya Shino/File Photo

SocGen reported a higher-than-expected quarterly net income, amid a top management reshuffle happening in the middle of discussions with the U.S. authorities over litigation issues, but its group revenues missed forecasts.

    SocGen’s corporate and investment bank (CIB) was a particularly weak spot.

    “Disappointing performance in Q1. Stock under pressure due to a lower performance in CIB, the unexpected change of management is not helpful at this stage and no finalization of the litigation,” Jefferies’ analysts wrote on SocGen’s results.

    BNP Paribas showed a similar picture to SocGen, with BNP Paribas also impacted by sluggish fixed income trading.

    “A difficult CIB quarter but not a bad performance,” wrote UBS analysts on the BNP Paribas results.

    Reporting by Sudip Kar-Gupta; Editing by Leigh Thomas

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