The bank booked losses and writedowns totalling €370 million on exotic credit derivatives. But it reported that the mark-to-market value of its credit default swap holdings had risen to €262 million, up from negative €501 million in the second quarter of 2008.
SG said it was well-positioned to withstand deteriorating conditions in the financial markets, citing its Tier 1 capital ratio of 9%.
In October, SG agreed to receive €1.7 billion from the French state in exchange for subordinated debt. The move was part of a €10.5 billion government scheme to encourage lending to households and businesses while maintaining high solvency levels in banks.
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