French bank Société Générale said it would not need a capital increase to meet tougher industry rules as it this morning reported forecast-beating quarterly results driven by retail banking.
Banks from Germany, Italy, Greece and Spain have tapped investors for fresh equity as consolidation heats up and tighter capital requirements loom.
SocGen has said it will not follow suit despite lingering concerns.
"We (will) have the ability to comply with the new Basel III capital requirements without a capital increase," SocGen chief executive Frederic Oudea said in a statement.
Mr Oudea, who took the reins of the bank at the tail-end of the crisis in 2009, said he would steer SocGen to an estimated core capital ratio of 7.5 per cent by January 2013 - six years ahead of Basel's deadline for a new minimum of 7 per cent.
SocGen is confident it will meet its long-term financial targets despite a "hesitant" economic recovery, Mr Oudea said, adding that the turnaround in the US appeared more uncertain than in France and Germany.
The bank reported a year-on-year doubling of third-quarter net profit to €896 million, higher than the €793 million average estimated by analysts.
Sales were in line with forecasts at €6.3 billion.
SocGen benefited from a more benign risk environment than a year ago, leading to lower loan-loss provisions in French and international retail banking. This helped offset the impact of capital markets sluggishness on corporate and investment banking.
Reuters