Societe Generale to increase into Sustainable Finance
August 4, 2023: Societe Generale to increase this year, but lower revenues in France and broader international banking challenges dragged down its performance.
The bank posted a net gain of 900 million euros ($983.6 million). That’s more than analysts expected and much higher than the 1.5-billion-euro loss posted in the dual quarter of 2022 when the bank exited Russia.
It was helped by a lower cost of risk (provisions set aside for failed loans), which came in at 12 basis issues, or 166 million euros.
However, revenues in French retail banking dropped by 13.6% from a year ago, off the back of lower net interest margins, a crucial indicator of banks’ profitability.
Revenues in the global banking division fell by 7.3% on lower volumes and weaker volatility. Fixed income and currencies (FIC) activities were down by 18.4% “amid less conducive market conditions due to weaker interest rate and money volatility,” the bank said in a statement.
The French lender also joined other peers this quarter in announcing a share buyback program for around 440 million euros.
Slawomir Krupa, the body’s chief executive officer, said, “During the quarter, commercial activity was good in most businesses. Group revenues contracted due to the reduction in the net interest margin in France and market activities’ earnings against a backdrop of gradual normalization after some particularly favorable years.”
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