An unexpected spanner in the works for the big French banks came, of course, in the form of the recent Russian financial crash. Their exposures were great and losses may derail carefully laid plans and strategies for the coming years.
Société Générale has been one of the worst hit through Russian exposure and has booked a provision of Ffr2.5 billion ($430 million) in its first-half results. Some analysts fear the actual losses will be much higher. The bank's exposure of $500 million is mainly through banking counterparties and government bonds. Although Russian commitments have been reduced since the end of 1997, SocGen has wide-ranging activities in eastern Europe and the former Soviet republics, including a 100-strong Moscow office.
Crédit Lyonnais is also thought to badly affected, though the already troubled bank refuses to disclose the extent of its losses. Analysts predict that losses could equal those of SocGen. Along with SocGen and Paribas, Crédit Lyonnais has been the most internationally-focused French bank.
BNP's exposure, at around Ffr4.3 billion ($785 million), is the largest in the French banking sector, though no provisions for losses have been made.