General Company generated a net profit of 868 million euros in the first quarter, against 169 million a year earlier.
Despite a loss of 91 million euros in its Russian subsidiary Rosbank, Societe Generale has quintupled its net profit in the first quarter due to market activities, financing and asset management. It posted a net profit of 868 million euros for the first three months of the year _ _ slightly better than expected, against 169 million in the first quarter 2014 was marked by a heavy depreciation in Russia.
Last year at the same period, the bank saw its results strongly burdened by an impairment on its activities in that country. In February, the group had warned to expect further losses in Russia, where the economy continues to suffer from Western sanctions implemented last year because of the role of Moscow in the Ukrainian separatist conflict.
In addition to a favorable comparison basis, the bank in red and black logo has enjoyed good commercial momentum of its businesses and saw its net banking income ( GNP, the equivalent of sales) increase by 12% to 6.35 billion euros.
The home loan explodes
“The revenue increased in all businesses in both retail banking in France, in a mixed environment of low interest rates when credit demand starts to restart, and within the retail banking and international financial services, where growth in Africa, Eastern Europe (…) offsets the anticipated deterioration in Russia, “commented CEO Frédéric Oudéa, said in the statement.
The collection of deposits increased by 3.8%, including current accounts, while the home loan explodes by 65% (5.3 billion euros) this quarter, while the production loans to companies increased by 35% (1.9 billion euros).
In exchange, the Societe Generale shares displays since the beginning of the year a gain of nearly 28% after a decline of 17.12% in 2014. The stock closed Tuesday at 44.765 euros.
Sources AFP and Reuters
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