Wednesday, August 5, 2015

Societe Generale: towards a new savings plan – Challenges.fr

General Company recorded a 25% increase in net profit in the second quarter to 1.35 billion euros, well above expectations and announced Wednesday, August 5 a new savings plan 850 million euros over the period 2015-2017.

Analysts on average expected a net profit of 856 million euros, according to a consensus provided by FactSet.

This much better result that the expected reflects a litigation provision of 200 million euros, bringing the total collective provision for litigation of the bank at 1.3 billion euros.

As Crédit Agricole, the group is the subject of a passage in review of some of these transactions in dollars in the United States to see if they conform to US law, a case which earned a record penalty BNP Paribas (6.6 billion euros).

SocGen does not detail in its statement the destination of this new provision.

Between April and June, if the result benefited from accounting items totaling 312 million euros, it was also driven by the increase in activity, particularly in retail banking in France and in the financing and investment banking.

Net income jumped 20%

Out of accounting items, net banking income (NBI equivalent of sales) increased by 9% to 6.54 billion euros.

Retail banking France sees its net profit jump 20%, to 419 million, and Corporate and investment banking business and solutions (BFI, private banking, asset management) sees his progress 15 % to 691 million euros.

Only downside, the retail banking business and international financial services was down 6.6% in net profit to 312 million euros, hit by Russia.

The Russian activity of Societe Generale posted a loss of € 45 million this quarter, however, reduced by half compared to the first quarter. For Rosbank, this loss amounts to 61 million.

The group, which believes its business in Russia back to normal, says have removed 1,200 positions in the country this quarter.

The banking group, which achieved 97% of the savings plan he had set in 2013 (€ 870 million) also announced a new level of € 850 million by 2017.

“At the halfway point, the group is on track to achieve all the objectives it has set. All Group businesses show results in line or above objectives, Except for Russia where the situation is gradually returning to normal, “said in the statement the CEO Frédéric Oudéa.

With these results, the group identified some of its objectives for regulatory capital ratio.

(With AFP)

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