
Societe Generale reported a 34.8% decline in its quarterly net profit to 854 million euros. According to Refinitiv analysts’, the estimated net income was 863.20 million euros.
Last year, the bank reported a net income of 1.3 billion euros. The revenue for the bank last year was 6.53 billion euros, compared to this year’s revenue of 5.98 billion euros. In addition, operating expenses fell 4.1% from last year to 4.17 billion euros.
The bank announced some months ago, its plans for cutting 1,600 jobs (mainly in its corporate offices and in investment banking).
Chief Executive Frederic Oudea said “Our performance is very much in line with our objectives and priorities. Our priority number one is around the capital. This is the core focus of our shareholders.”
Societe Generale in 2017 targeted a 12% to CET Tier 1 ratio by 2020. It is the second quarter that the bank was at a 12% to CET Tier 1 ratio. Oudea said about that target “At the beginning of the year, there was some worry that we would not be able to meet the 12% target. We are above, it gives a cushion. People should feel pretty relaxed now.”
The bank’s European competitors like Barclays, BNP Paribas, and Credit Suisse, had strong earnings in fixed-income trading revenue. Equity trading revenue increased by 5% at Barclays, grew by 7% at Credit Suisse and dropped by 15% at BNP Paribas.
“Global Banking & Investor Solutions delivered resilient net income in an unfavourable environment, without yet benefiting from the positive effects of the ongoing restructuring, which is ahead of its 2020 objectives,” Oudea added.
Shares of Societe Generale fell 18% compared to last year.
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Last updated: 07 November 2019.
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