French bank Societe Generale declined to comment on market speculation it is preparing the market for a profit warning, which traders said hit its stock on Friday. Shares in France's second-biggest listed bank fell nearly 5 percent, underperforming a weaker European banking sector, with traders citing talk that the bank had contacted analysts to lower its guidance.
SocGen was the top loser on France's CAC-40 index and the DJ Stoxx European bank sector was down 1.7 percent, pressured also by news late on Thursday of downbeat profits from Capitalia and fresh concern over Barclay's funding costs after it sold $2.05 billion in 5-year notes at a high 130 basis points spread.
BNP Paribas, France's largest listed bank, fell 3.2 percent. Last month, BNP Paribas helped trigger a fall in world stock markets after it briefly froze three funds amid problems in the US subprime mortgage market.
Three Paris banking analysts contacted by Reuters said they had not had any approach about a profit warning from Societe Generale, although two of them had heard of the speculation.
But a fourth analyst said the bank's investment banking chief had held a "very negative" meeting two days ago in Paris with a private audience, which included downbeat comments on the third quarter. Stratege Finance fund manager Jacques Tissier said he was unaware of the profit warning rumour but added that such speculation did not surprise him.
Tissier said SocGen's large investment banking business made it a likely subject of ongoing speculation that banks around the world are still vulnerable to losses in the US debt market. "Such speculation is quite normal," he said. Tissier's portfolio includes SocGen shares.