French bank Societe Generale has reported a 63% fall in second quarter profits after the credit crunch hit its investment banking arm.
Net profits fell to 644m euros ($1bn; £510m) from 1.744bn a year before.
Many banks have seen profits hit hard as financial markets have deteriorated and defaults have risen.
On top of suffering from the credit crisis, Societe Generale was hit by a rogue trader scandal last year that it said had cost it 4.9bn euros.
While Societe Generale has blamed trader Jerome Kerviel for the 4.9bn-euro loss as an "isolated" incident, there have been criticisms over a lack of internal oversight at the bank.
Societe Generale said its corporate and investment banking arm made a 186m-euro loss in the quarter, down from a profit of 721m euros in the same period a year earlier.
The profit fall at the French bank comes a day after HSBC, Europe's largest bank, reported a 28% fall in half-year profits and warned that financial conditions were at their most difficult "for several decades".
http://news.bbc.co.uk/go/pr/fr/-/2/hi/business/7542252.stm
Published: 2008/08/05 06:59:10 GMT
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