French Financial services major Societe Generale reported Friday weak profit in its third quarter, despite higher revenues amid increasingly complex geopolitical and economic environment. In Paris, the shares were gaining around 5 percent.
Fréderic Oudéa, the Chief Executive Officer, said, “The third quarter is marked by increasing revenues, continued control of operating expenses and a contained cost of risk, while maintaining a prudent provisioning policy… The coming months will enable us to continue to implement the strategic initiatives underway, which would ensure sustainable growth and profitability…”
The company noted that on September 30, its Board of Directors decided that at the next General Meeting it would propose Slawomir Krupa as Board member to succeed Oudéa as Chief Executive Officer of the Group in May 2023.
In the third quarter, Group net income declined 6.4 percent to 1.50 billion euros from 1.60 billion euros in the prior year.
Underlying Group net income was 1.41 billion euros, compared to last year’s 1.39 billion euros.
Operating income fell 7.2 percent from last year to 2.14 billion euros, and underlying operating income dropped 8.6 percent to 2.01 billion euros. Gross operating income grew 3.7 percent to 2.60 billion euros.
Revenues or net banking income went up 2.3 percent to 6.83 billion euros from 6.67 billion euros last year. At constant exchange rates, revenues grew 3.7 percent.
The results reflected the resilience of French Retail Banking with a 0.5 percent rise in revenues, strong 5.6 percent growth in International Retail Banking and in Financial Services, and a robust performance from Global Markets and Financing & Advisory, the company noted.
In the quarter, Global Banking & Investor Solutions’ revenues went up 6.4 percent. Global Markets & Investor Services was 11.2 percent higher, and the growth was 7 percent in Financing & Advisory activities.
In the first nine months of fiscal 2022, group net income fell 77.7 percent from last year to 858 million euros or 0.55 euro per share. Underlying group net income increased 11.2 percent to 4.49 billion euros or 4.68 euros per share. Net banking income grew 10.4 percent year-over-year to 21.17 billion euros.
In Paris, Societe Generale shares were trading at 24.52 euros, up 4.97 percent.
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