Societe Generale SA headquarters stand in Paris, France
Antoine Antoniol | Bloomberg | Getty Images
Societe Generale reported Thursday a net income of 1.05 billion euros for the second-quarter of the year.
Analysts were expecting a net income of 964 million euros ($ 1.1 billion), according to Reuters’ estimates. The French bank posted a net income of 1.2 billion euros for the same quarter a year ago.
Here are some key highlights for the quarter:
- Net banking income of 6.3 billion euros vs 6.5 billion a year ago
- Return on tangible equity of 9.7% vs 11.2% a year ago
- Common equity tier 1 ratio stood at 12% at the end of the quarter vs 11.1% a year ago
Fréderic Oudéa, the Group’s Chief Executive Officer, said in a statement: “Societe Generale has provided further evidence of the successful execution of its strategic plan with two priority financial objectives: increasing its level of capital and improving profitability.”
“There was further confirmation of the positive trends observed in the previous quarter in French Retail Banking and International Retail Banking & Financial Services,” he added.
The French retail banking division saw a drop of 2.5% in net income from a year ago, reporting a profit of 356 million euros ($393 million). Nonetheless Societe Generale said the French division showed a “solid performance” amid a low interest rate environment and changes to French networks.
The international retail banking arm saw a net income of 515 million euros ($569 million) at the end of the second quarter, a fall of 4.8% from a year ago.
The Paris-based bank announced earlier this year its plans to cut 1,600 jobs — mainly at its corporate and investment banking arm. This was an attempt to boost profitability after last year’s poor performance.
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