SocGen makes €947m profit

Societe Generale (SocGen) has reported making a sizeable profit in 2007 despite losing almost €5 billion (£3.7 billion) as a result of a rogue trader.

The French bank announced today that it made €947 million (£713 million) net profit last year.

However, the profit levels were down 82 per cent from 2006.

It was announced that the alleged action of the rogue trader Jerome Kerviel had cost the bank €4.9 billion (£3.7 billion). A loss quoted as being "linked to an exceptional fraud".

In the final quarter of the 2007, the French firm said that it lost €3.35 billion as a result of Mr Kerviel's trading.

Daniel Bouton, SocGen executive chairman, said that the bank would continue as usual despite calls for his resignation and reports of a potential bid from BNP Paribas.

"I am completely determined to continue with our strategy… even taking into account our very bad year in 2007 due to the financial crisis and this fraud, it's this strategy which creates and will create the most value for shareholders," Mr Bouton told the Reuters news agency.

"This is my opinion, and it's one that's backed by the board."

An investigation launched by France's second biggest bank into the actions of Mr Kerviel claimed that internal systems were partly to blame for the biggest trading loss in the banking history.

It claimed that SocGen's risk controls had "lacked depth".

Mr Kerviel, 31, remains in custody while a police investigation into his illegal trading continues.

The trader is accused of breach of trust, falsifying documents and breaching computer security.