Societe Generale’s (SOGN.PA) much-hyped new strategy plans were given a thumbs down by investors on Monday, underscoring uncertainty over European banks as they face a brittle economy.
As a year-long boon from interest rate rises fizzles, Europe’s big lenders are under a spotlight, with higher rates now upping pressure on borrowers, threatening to prick a property price bubble and further slow the wider economy.
Against this backdrop, shares in France’s third-largest listed bank tumbled by about 12% after its newly appointed CEO said he expected little if any growth in annual sales over the coming years, as he outlined a plan investors deemed lacklustre.
“We are at a crossroads,” said Jerome Legras of Axiom Alternative Investments, pointing to interest rate uncertainty.
“There are more questions about the future and the economy,” Legras said, adding that transformative mergers between banks, which investors have waited for in vain, remained unlikely.
Against this backdrop, shares in France’s third-largest listed bank tumbled by about 12% after its newly appointed CEO said he expected little if any growth in annual sales over the coming years, as he outlined a plan investors deemed lacklustre.
“We are at a crossroads,” said Jerome Legras of Axiom Alternative Investments, pointing to interest rate uncertainty.
“There are more questions about the future and the economy,” Legras said, adding that transformative mergers between banks, which investors have waited for in vain, remained unlikely.
Source : Reuters