SGCIB reshuffles management team to integrate divisions

Société Générale Corporate and Investment Banking (SGCIB) has reorganised its management structure as part of a move to integrate its capital markets activities.

Christophe Mianné, formerly head of the global equity and derivatives division, adds management of the fixed-income, currencies and commodities (FICC) division to his existing responsibilities. Olivier Khayat, who previously ran FICC, will be reassigned to a position elsewhere in the group.

Patrick Soulard, deputy chief executive of SGCIB, is leaving the company and a new position of chief operating officer has been created but not yet filled.

The restructured executive committee of SGCIB will comprise Mianné, chief executive Michel Péretié, Thierry Aulagnon, head of the corporate, institutions and advisory division, Jean-Luc Parer, head of the capital raising and financing division, Slawomir Krupa, head of strategy, and the chief operating officer when appointed.

The Société Générale group today announced a net profit of €87 million in the fourth quarter, a year after rogue trader Jérôme Kerviel caused the bank fourth-quarter losses of €3.35 billion.

The corporate and investment banking division generated a total loss of €235 million in 2008, but that represented an 89% reduction of its 2007 losses, as the bank recorded the €4.9 billion loss resulting from Kerviel's fraudulent activities against its 2007 accounts. But excluding Kerviel's losses, the division would have made a profit in 2007 of €2.7 billion.

The division recorded valuation writedowns of €2.3 billion on assets at risk, €1.2 billion on exposures to monolines and credit derivatives product companies, and €494 million as a result of exposure to collapsed financial institutions such as Lehman Brothers. These losses were offset by gains of €339 million on the revaluation of financial liabilities and €2.1 billion corresponding to the mark to market of corporate credit portfolio hedges.

"The environment will probably remain challenging throughout 2009," the bank said today in a statement. It has resolved to pursue expansion only on a targeted basis this year and to strictly control overhead costs.

See also: Desperate Q4s call for desperate measures
Senior management shake-up at SG