French bank Societe Generale posted an 82 percent fall in quarterly net income, hit by tax-related charges and retail banking restructuring costs.
Net income fell to 69 million euros ($85 million) from 390 million a year earlier, but it exceeded market expectations for a 303 million loss, according to a Reuters poll of six analysts.
The bank said it was starting 2018 with confidence “in an economic and financial environment that should gradually be more favorable.”
Speaking to CNBC, Severin Cabannes, the deputy chief executive officer was upbeat despite the income drop, saying that the bank continues to gain market share with it market activities. He added that its fixed income business had been solid, highlighting rising demand for its structured products.
“If you compare with the average of the market, it is fair to say that our performance is above the average of the market this quarter,” Cabannes said.
On the week’s dramatic market turmoil which saw volatility spike at record highs, the banker noted that because volatility had been at historic lows throughout 2017, a change is to be expected. “We had a peak last Monday, but it is not a structural situation and we anticipate a bit higher volatility regime during the next period of time.”
But this does not change the bank’s positive outlook for this year and the next in terms of market activities, Cabannes said. “We’re still very positive for the macroeconomic environment and including in this part of the business.”
Earlier this week, SocGen’s French rival BNP Paribas reported quarterly net profit that fell short of market forecasts although BNP Paribas slightly increased its 2020 profitability target.
