قالب وردپرس درنا توس
Home / Business / Third quarter income of 2020 of Societe Generale

Third quarter income of 2020 of Societe Generale



Logo outside the Societe Generale SA branch of the bank in Paris, France.

Bloomberg | Bloomberg | beautiful images

LONDON – Societe Generale beat its third quarter earnings expectations on Thursday due to more “normalized” market conditions.

The Bank of France reported net income of 862 million euros ($ 1

.011 billion) for the third quarter. Analysts estimated net income of 458 million euros, according to Refinitiv.

This came after the French bank reported a net loss of 1.26 billion euros in the second quarter of the year due to Covid-related loan terms and a decrease in commercial business value.

Séverin Cabannes, Executive Vice President at Societe Generale, told CNBC, “There has been a strong rebound and affirms our resilience in this difficult environment.

“We have shown that under this market normalization we can generate significant revenue and profits,” he added.

Here are other highlights of the quarter:

  • Turnover reached 5.8 billion euros, down 2.9% from a year ago.
  • Basic operating costs fell 7.3% from a year ago, to 4 billion euros.
  • The cost of risk (clarifies its level of risk) is up to 40 bps.
  • CET 1 (a measure of bank solvency) reached 13.1%, compared with 12.5% ​​in the previous quarter.

The French lender has targeted a CET 1 to 12% ratio by the end of 2020, cost or risk at around 70 bps and basic operating costs around 16.5 billion euros.

Its two retail units yielded lower net income in the third quarter compared with a year ago. The French retail banking sector has seen a 9% decline in net income over the past 12 months and the international retail banking sector down 34.3% from a year ago.

However, Global Banking reported net income increased 50.6% y / y due to more “normalized” market conditions compared to the first six months of 2020.

Fixed and monetary income reached 569 million euros in revenue mainly due to “healthy operations with European business customers, higher sales in the Americas and high flow and hedging activities. . ” The French lender has also seen a “strong recovery” in equity operations.

Shares of Societe Generale jumped nearly 5% in early trades on Thursday.


Source link