French bank Societe Generale posted higher second quarter profits that were in line with market expectations, as earnings from its overseas businesses offset a slight contraction on its domestic market.
Net profit rose 9.3 percent to 1.16 billion euros ($1.35 billion). Four analysts polled by Inquiry Financial consultancy on behalf of Reuters had expected profit of 1.15 billion euros.
The net profits included a 200 million euro provision set aside by the bank to pay a potential settlement with U.S. authorities over possible sanctions violations.
Group revenues rose 24 percent to 6.45 billion euros. The year-on-year increase also reflected the fact that second quarter results in 2017 were impacted by a 963 million euros settlement of a dispute with Libya’s sovereign wealth fund.
SocGen’s revenue from its banks and other businesses abroad rose 5.4 percent to 2.08 billion, while revenue from its domestic retail bank shrunk 1.7 percent to 1.99 billion.
Revenue from corporate and investment banking (CIB) rose by 0.5 percent, after the CIB arm had suffered a 13 percent decline in revenue during the first quarter.
