A year after the "earthquake" of the mortgages at higher risk (subprime) crisis, which hit the property sector in the USA and which has led to the financial crisis affecting the banking industry in the world, French banks continue to suffer from aftershocks of this crisis.
Despite the statement by the "BNP Paribas" Bank, in which the bank says have made a net profit of 1,5 billion euros during the second quarter of the current year, these profits were 34% less compared to the same period in 2007.
In a statement issued at the Paris stock marcket today, the bank said that income from banking activities fell by 8,5% to 7,5 billion euros during the second quarter.
The General Director of the bank Udo Prott said that "BNP Paribas" and the U.S. "Goldman Sachs" are the only two banks in the world who have managed to reduce the impact of the mortgages crisis and made profits since the summer of 2007.
"BNP Paribas" said that it had been costed 542 million euros of losses during the second quarter alone because the crisis of mortgages at high-risk, bringing to 2,4 billion euros the total loss of the bank in this sector since the begining of the crisis in summer 2007.
The bank explained that it was not seriously affected by the crisis because the administration decided to stay away from the activity of this sector and focused on traditional banking activities and financing the small and medium-sized enterprises.
The announcement comes one day after that la "Société Générale" said have made a net profit of 644 million euros during the second quarter against 1,74 billion euros during the same period last year, a decrease of 63%, due to the crisis in "subprime". Sources at the bank said that the losses since last summer increased to five billion euros.
"Société Générale" also suffers from the scandal that has hit the bank at the end of last year as a result of the fraud carried out by one of its employees, Jerome Kerviel, which has caused losses to the bank estimated at 4,9 billion euros.
The effect of this fraud on the bank can be noticed by the number of new accounts opened at the bank. "Société Générale" has received 23,1 thousands new customers during the second quarter against 45 thousands during the same period last year.
The markets are awaiting for the results of "Credit Agricole" and "Natiksys", which will be announced later this month, but analysts do not expect that these results are different from those of "BNP Paribas" and "Société Générale".
At the European level, the British bank "HSBC", the largest European bank, announced the decline of its profits by 29% during the second half of this year. The bank indicated that its activities in the USA costed him an estimated loss of 2,2 billion dollars, but these losses were offset by the activities of the bank in Europe and emerging countries that have contributed to achieving Two-thirds of profits.
The dutch-belgian bank "Fortis" showed a net profit of 830 million euros during the second quarter of this year, twice less than the same period last year, reflecting the poor management by the bank of the subprime crisis, which prompted the President of the bank Jean-Paul Voutron to resign under pressure from shareholders, and the appointment of Herman Verwilst in his post.
These results raise many questions, namely, is that French banks, and European banks in general, are able to overcome the crisis which began in USA and hit Europe, despite the slowdown in the economy American, with inflationary pressures which affecting the world despite attempts by central banks to curb? or the banks continue to realize losses, which could lead to a series of bankruptcy, as was the case in the USA?
Is the U.S. presidential elections will lead to a new president who will try to stimulate the U.S. economy which will help reactivating the world economy and push it out of the current financial crisis?