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☆ Societe Generale's investment bank limits first-quarter profit plunge
▼ + stars: | 2024-05-03 | by ( ) www.cnbc.com time to read: +1 min

French bank Societe Generale reported a smaller-than-expected 22% slide in first-quarter net income on Friday, as profits on equity derivative sales offset more weakness at its retail bank and in fixed-income trading. France's third-biggest listed lender, whose CEO Slawomir Krupa is seeking to end several years of lackluster performance and trim costs, said group net income over the first three months of the year was 680 million euros ($729.30 million). Sales slipped 0.4% to 6.65 billion euros, above the 6.46 billion-euro analyst average estimate. SocGen's investment banking division saw its earnings jump 26.4% to 690 million euros, beating forecasts, while revenues weakened 5.1% to 2.62 billion euros for the quarter. Equity derivatives sales, an area where SocGen has historically been strong, did well, the bank said, as did corporate financing services and its advisory business.

Persons: Slawomir Krupa Organizations: Societe Generale, Equity

☆ Societe Generale posts sharp profit drop as net banking income slides
▼ + stars: | 2024-02-08 | by ( Elliot Smith | ) www.cnbc.com time to read: +2 min

Societe Generale on Thursday reported a sharp decline in fourth-quarter net profit on the back of weaker net banking income, but launched a new 280 million euro ($302 million) share buyback program. The French lender posted a group net income of 430 million euros, slightly above a consensus analyst forecast of 404 million euros, according to LSEG data, but well below the 1.07 billion euros recorded for the final quarter of 2022. It comes after the bank posted posted a group net income of 295 million euros for the third quarter, as resilient investment bank performance offset a sharp downturn in its French retail business. Thursday's result took France's third-largest listed bank's annual net profit to 2.49 billion euros, slightly above analyst expectations of 2.15 billion euros. However, quarterly net banking revenue dropped 9.9% year-on-year to 5.96 billion euros, which the bank attributed largely to a decline in net interest income in French retail, and its private banking and insurance division, along with the negative impacts from unwinding hedges.

Persons: Slawomir Krupa, Krupa, BoursoBank Organizations: Generale, SocGen, Global Banking, Investor Solutions, Retail Banking, Soc Locations: France

NII at the French retail division fell by 27% in the quarter, excluding two regulated savings accounts, "well below expectations," JP Morgan said in a note to clients. The French lender said it now saw NII of its French retail, private banking and insurance division falling by more than 20% in 2023. The French retail division's earnings also suffered from hedging contracts against the risks of low interest rates. SocGen's shares had edged up 0.6% by 0924 GMT. The bank has also finalised the merger of its two French retail networks.

Persons: Gonzalo Fuentes, JP Morgan, SocGen, Slawomir Krupa, Jefferies, Krupa, ALD, Mathieu Rosemain, Silvia Aloisi, Ingrid Melander, Emelia Organizations: Societe Generale, La Defense, REUTERS, European Central Bank, BNP, Deutsche Bank, Barclays, Thomson Locations: La, Paris, France

☆ SocGen Q3 earnings beat estimates as investment bank offsets French slump
▼ + stars: | 2023-11-03 | by ( ) www.cnbc.com time to read: +3 min

Societe Generale , France's third-biggest listed bank, posted better-than-expected quarterly earnings onFriday, as a resilient performance from its investment bank offset the steep downturn seen at its French retail division. SocGen's third-quarter reported group net income came in at 295 million euros ($313.2 million), above the 168 million-euro average of 13 analyst estimates compiled by the company. The bank has also finalised the merger of its two French retail networks. NII at the French retail division fell by 27% in the quarter, excluding two regulated savings accounts. In this context, the 0.4% drop in sales seen at SocGen's investment bank, compares well with some of its European peers.

Persons: Slawomir Krupa Organizations: Generale, BNP, Deutsche Bank, Barclays

"We are negatively surprised by lack of revenue growth, increased capital target, payout & ROTE cut, and by the lack of details," Jefferies analysts said in a note. It also said its new targets were based on annual revenue growth expectations between zero and 2% between 2022 and 2026, but that it would aim to improve its cost-to-income ratio. A SocGen veteran and former head of its investment bank, Krupa said he would streamline the bank's activities but didn't elaborate. The share price decline put SocGen on course for the biggest one-day drop since March. "It will take time for the shares to discount the cost improvement given SG's mixed track record," they said.

Persons: Gonzalo Fuentes, Krupa, Slawomir Krupa, SocGen, JP Morgan, Tassilo Hummel, Silvia Aloisi, Elisa Martinuzzi, Michal Alexandrowicz, Mathieu Rosemain, Ingrid Melander, Mark Potter Organizations: Societe Generale, La Defense, REUTERS, BNP, Jefferies, Thomson Locations: La, Paris, France, Russia

☆ Key targets in SocGen's new strategy plan
▼ + stars: | 2023-09-18 | by ( ) www.reuters.com time to read: +1 min

A logo of French bank Societe Generale is seen on the company's skyscraper at the financial and business district of La Defense near Paris, France September 14, 2023. Here are key targets:GROWTHAnnual revenue growth expectations between 0 and 2% by 2026. In August last year, the bank said it was aiming for average annual revenue growth of at least 3% for 2021-2025. ROTETargets a 9 to 10% return on tangible equity ratio in 2026, up from a reported 5.6% ROTE at the end of June. CET1Aims for a CET1 ratio - a key measure of financial strength - of 13% in 2026, almost on par with the 13.1% reported at end of June.

Persons: Gonzalo Fuentes, Slawomir Krupa, SocGen, Krupa, Mathieu Rosemain, Ingrid Melander, Mark Potter Organizations: Societe Generale, La Defense, REUTERS, Generale's, Thomson Locations: La, Paris, France

☆ SocGen's new boss Krupa pledges to cut costs to boost profits by 2026
▼ + stars: | 2023-09-18 | by ( ) www.cnbc.com time to read: +2 min

Societe Generale's new CEO Slawomir Krupa pledged on Monday to cut costs to boost profits by 2026 amid stagnating sales, in his first strategic plan for France's third-biggest listed bank. SocGen said it would target a 9 to 10% return on tangible equity ratio (ROTE) in 2026, up from a reported 5.6% ROTE at the end of June. The bank also said that it would reduce its exposure to upstream oil and gas businesses by 80% by 2030 when compared to 2019. SocGen said its new targets were based on annual revenue growth expectations between 0 and 2% by 2026. SocGen is also open to a sale of its equipment finance unit, sources have told Reuters.

Persons: Slawomir Krupa, Krupa, ambitioned, SocGen Organizations: Generale's, Basel Committee, Reuters, Finance, BNP Locations: Basel, Russia, Ukraine

REUTERS/Gonzalo Fuentes/File Photo Acquire Licensing RightsLONDON/DUBLIN, Sept 18 (Reuters) - Societe Generale's (SOGN.PA) much-hyped new strategy plans were given a thumbs down by investors on Monday, underscoring uncertainty over European banks as they face a brittle economy. "There are more questions about the future and the economy," Legras said, adding that transformative mergers between banks, which investors have waited for in vain, remained unlikely. Reuters GraphicsThat dampens the prospects for Europe's banks, whose valuations are low and static, said one adviser who works with top executives from the region's lenders, adding that investors struggle to see much promise for the sector. European banks' modest earning power has dampened investor appetite for their shares, which often trade at just a fraction of book value - the sum of their assets. While in the United States, JP Morgan and Morgan Stanley are valued at around 1.5 times book value, Germany's Deutsche Bank, Dutch lender ABN Amro, France's Credit Agricole and Britain's Standard Chartered are valued at just half book value or less.

Persons: Gonzalo Fuentes, Jerome Legras, Legras, Slawomir Krupa, Krupa, Goldman Sachs, JP Morgan, Frederic Rozier, Morgan Stanley, Karel Lannoo, Elisa Martinuzzi, John O'Donnell, Alexander Smith Organizations: Societe Generale, La Defense, REUTERS, Reuters, European Central Bank, European Union, Commission, Deutsche Bank, ABN Amro, France's Credit, Thomson Locations: La, Paris, France, DUBLIN, France's, Europe, United States, Germany, Mirabaud, U.S, Brussels

☆ European shares slip with central banks in focus; Nordic Semiconductor slumps
▼ + stars: | 2023-09-18 | by ( ) www.reuters.com time to read: +1 min

The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, September 15, 2023. The pan-European STOXX 600 (.STOXX) edged 0.2% lower by 0705 GMT, with healthcare (.SXDP) and rate-sensitive technology stocks (.SX8P) weighing on the index. Global central banks will take centre stage this week, with Bank of England likely to hike interest rates for the 15th time later in the week, while the Fed seems set for a hawkish pause. Nordic Semiconductor ASA (NOD.OL) shed nearly 14% after cutting its revenue guidance for the third quarter. Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Varun H KOur Standards: The Thomson Reuters Trust Principles.

Persons: Slawomir Krupa, Bansari Mayur, Varun Organizations: REUTERS, Staff, Bank of, Nordic Semiconductor ASA, Societe, Thomson Locations: Frankfurt, Germany, Norway, Sweden, Switzerland, United States, Bank of England, Bengaluru

People walk past a logo of French bank Societe Generale in front of the company's skyscraper at the financial and business district of La Defense near Paris, France September 14, 2023. The bank sees the business as non-core, having sold part of its operations in 2020, said the people, who spoke on condition of anonymity. But a transaction may not happen soon because difficult market conditions weigh on the unit's valuation, they said. Societe Generale Equipment Finance provides equipment leasing and financing solutions to manufacturers, dealers and vendors in sectors ranging from transport to industrials. Rather than naming non-core businesses, Krupa is more likely to outline the group's growth areas, said one person familiar with the bank's thinking.

Persons: Gonzalo Fuentes, Slawomir Krupa, Krupa, Italy's, SocGen, Pablo Mayo Cerqueiro, Mathieu Rosemain, Andres Gonzalez, Amy, Jo Crowley, Elisa Martinuzzi, Silvia Aloisi, Jane Merriman, David Evans Organizations: Societe Generale, La Defense, REUTERS, Finance, Reuters, Deutsche Bank, BNP, Societe Generale Equipment Finance, Basel Committee, Thomson Locations: La, Paris, France, PARIS, Basel

☆ SocGen and Brookfield to launch private debt fund
▼ + stars: | 2023-09-11 | by ( ) www.reuters.com time to read: 1 min

The logo of Societe Generale bank is pictured on an office building in Nantes, France, March 16, 2023. REUTERS/Stephane Mahe/file photo Acquire Licensing RightsPARIS, Sept 11 (Reuters) - French lender Societe Generale (SOGN.PA) and asset manager Brookfield Corp (BN.TO) plan to launch a private debt fund targeting total volume of 10 billion euros ($10.73 billion) over the next four years, they announced on Monday. Initial seed funding, which will be directed towards the power, transportation and finance sectors among others, amounts to 2.5 billion euros, the companies said. The fund "will have a positive impact on the real economy", SocGen Chief Executive Slawomir Krupa said in a press release. ($1 = 0.9319 euros)Reporting by Tassilo Hummel Editing by David GoodmanOur Standards: The Thomson Reuters Trust Principles.

Persons: Stephane Mahe, Slawomir Krupa, Tassilo Hummel, David Goodman Organizations: Societe Generale, REUTERS, Rights, Brookfield Corp, SocGen, Thomson Locations: Nantes, France

The beat was underpinned by much lower-than-expected "cost of risk" - money set aside for failing loans - of 166 million euros. Analysts had expected 430 million euros. Dubbed a "year of transition" by Krupa's predecessor Frederic Oudea, 2023 is also marked by a severe downturn at SocGen's French retail banking division, fresh from a merger of its two local networks. The second quarter was also affected by negative exceptional items of 240 million euros, which Credit Suisse analysts said were tied to "legacy legal disputes". Retail banking outside France fared better, as did SocGen's car leasing division ALD Automotive (ALDA.PA), whose sales jumped by more than 17% thanks to the acquisition of rival LeasePlan.

Persons: Gonzalo Fuentes, Krupa, Slawomir Krupa, France's, Jefferies, Frederic Oudea, Intesa, LeasePlan, SocGen, Mathieu Rosemain, Augustin Turpin, Ingrid Melander, Mark Potter Organizations: Societe Generale, La Defense, REUTERS, Royal Bank of Canada, European Central Bank, Credit Suisse, Retail, ALD Automotive, Thomson Locations: French, Courbevoie, Paris, France, PARIS, Russia

☆ SocGen beats second quarter estimates on cost control, car leasing unit
▼ + stars: | 2023-08-03 | by ( ) www.cnbc.com time to read: +1 min

Societe Generale , France's third-biggest listed bank, reported better-than-expected quarterly earnings on Thursday, as cost management and a strong growth of its car leasing division alleviated a steep fall in margins at its retail branch. SocGen reported a 900 million-euro, or $984 million, group net income for the three months-period ending in June, above the average analyst estimate compiled by the company of 670 million euros. The beat was also underpinned by lower-than-expected "cost of risk" — money set aside for failing loans — of 166 million euros in the second quarter, while the markets expected more than twice that figure, or 430 million euros. "The cost of risk was very low, reflecting the quality of our origination and our loan portfolio," said Chief Executive Slawomir Krupa, who was unveiling his first quarterly results in his new role. The bank, which confirmed its full-year objectives, didn't mention longer-term targets, as all eyes are now set on Sept. 18, when Krupa and his new executive team will present a strategic plan.

Persons: Slawomir Krupa, Krupa Organizations: Generale Locations: Russia

☆ Societe Generale returns to profit, but comes under pressure in its home market
▼ + stars: | 2023-08-03 | by ( Silvia Amaro | ) www.cnbc.com time to read: +1 min

Societe Generale returned to profit in the second quarter of this year, but lower revenues in France and broader global banking challenges dragged down its performance. However, revenues in French retail banking dropped by 13.6% from a year ago, off the back of lower net interest margins — a crucial indicator of banks' profitability. Revenues in the global banking division fell by 7.3% on lower volumes and weaker volatility. Fixed income and currencies (FIC) activities were down by 18.4%, "amid less conducive market conditions due to weaker interest rate and currency volatility," the bank sad in a statement. Group revenues contracted due to the decline in the net interest margin in France and in market activities' revenues against a backdrop of gradual normalisation after some particularly favourable years."

Persons: Slawomir Krupa Organizations: Generale Locations: France, Russia

☆ SocGen beats estimates as bond trading offsets retail banking slump
▼ + stars: | 2023-05-12 | by ( ) www.cnbc.com time to read: +1 min

General view of the logo outside a branch of French bank Societe Generale in Paris. French bank Societe Generale posted better than expected quarterly earnings on Friday after turmoil in bond and currency markets boosted its trading business. The trading windfall cushioned a slump in SocGen's French retail division, where earnings were curbed by stricter interest rate caps on mortgages and other loans. "Performance is tracking well in all the divisions, but the main issue is French retail," JPMorgan said in a note to clients. "We think the market will focus on French NII (net interest income), taking the shares down," it said.

☆ Eiffage CEO de Ruffray put forward as SocGen board candidate
▼ + stars: | 2023-03-10 | by ( ) www.reuters.com time to read: +1 min

PARIS, March 10 (Reuters) - Societe Generale (SOGN.PA) said on Friday that its board will propose that shareholders elect Eiffage (FOUG.PA) Chief Executive Officer Benoit de Ruffray as an independent board director at its general meeting in May. Three other board appointments will be put to the vote at the meeting on May 23. If elected by SocGen's shareholders, the four new board members will replace outgoing CEO Frederic Oudea, Kyra Hazou, Gerard Mestrallet and Juan Maria Nin Genova. These board appointment proposals come on the heel of a top management reshuffle proposed by Krupa, who is also set to formally take the reins of the French lender on May 23. Reporting by Mathieu Rosemain; Editing by Sharon SingletonOur Standards: The Thomson Reuters Trust Principles.

The reported group net income for the three months ending in December came at 1.16 billion euros ($1.24 billion), beating the analyst consensus of 834 million euros provided by Visible Alpha. SocGen's quarterly net income was however 35% lower than the same period a year ago, as the bank's hiked provisions for failing loans, which increased by close to fivehold to 413 millions in an uncertain economic environment. Group revenues were up by 4% to 6.89 billion euros in the fourth quarter, also beating the Visible Alpha consensus. Like its bigger French rival BNP Paribas(BNPP.PA), SocGen is enjoying higher revenues from debt and trading in volatile markets. It plans a 440 million-euro share buyback in 2023, on top of a cash dividend of 1.70 euro per share.

☆ SocGen’s BNP envy carries a cost
▼ + stars: | 2022-11-22 | by ( Liam Proud | ) www.reuters.com time to read: +3 min

It mimics BNP Paribas’s (BNPP.PA) deal with European peer Exane, which the French group took over last year. SocGen research analysts cover around 500 mostly European stocks, according to JPMorgan, compared with AllianceBernstein’s more international coverage of roughly 800 companies. Second, the venture makes the French bank’s equities business less reliant on derivatives and structured products, which led to heavy losses in 2020. Trading cash equities and selling research typically chews up much less capital and leads to fewer blow-ups. And the wider equities trading business is increasingly dominated by larger players, especially U.S. banks.

☆ SocGen profit tops forecast but France lags
▼ + stars: | 2022-11-04 | by ( ) www.cnbc.com time to read: +2 min

This photo, taken on October 28, 2019, shows the logo of the Societe Generale bank, in Ouistreham, Normandy, France. Societe Generale , France's third-biggest listed bank, joined European rivals in posting a higher than expected net income in the third quarter as market volatility boosted trading revenues. SocGen, which has appointed the head of its investment banking division as its new CEO from May 2023, said net income had come in at 1.5 billion euros ($1.46 billion)- well above a Refinitiv consensus forecast of 1 billion euros. The beat was driven by a 12% increase in Global Markets revenues, led by thriving trading in fixed income and currencies. The bank, which has seen a series of high-profile departures in recent weeks, said on Thursday it had appointed a new chief of risk.

☆ Société Générale Names New Chief Risk Officer
▼ + stars: | 2022-11-03 | by ( Mengqi Sun | ) www.wsj.com time to read: +2 min

Société Générale SA promoted a veteran banker to be its new group chief risk officer, as the French bank continues to navigate geopolitical uncertainties in Europe and a possible economic slowdown. Stéphane Landon, who has been Société Générale’s deputy chief risk officer since October 2020, will become the chief risk officer on Dec. 1, the bank said Thursday. He will succeed Sadia Ricke, who is leaving the bank at the end of this month to become the chief risk officer at Standard Chartered PLC in London. He served as Société Générale Americas’ chief financial officer in New York between 2018 and 2020, before taking the risk-officer position. He previously led the bank’s Americas business and worked on key market functions for Société Générale, including securitization and leveraged finance.

☆ Societe Generale says two senior executives to leave bank
▼ + stars: | 2022-09-23 | by ( ) www.reuters.com time to read: +2 min

Register now for FREE unlimited access to Reuters.com RegisterThe logo of Societe Generale Private Banking is seen at an office building in Zurich, Switzerland March 25, 2022. REUTERS/Arnd WiegmannPARIS, Sept 23 (Reuters) - Societe Generale (SOGN.PA), which is seeking a new chief executive, said on Friday two senior female executives would be stepping down before the end of the year. France's third-biggest listed bank said Chief Risk Officer Sadia Ricke would leave on Nov. 30 and Caroline Guillaumin, the head of human resources and communication, would quit on Dec. 15. Ricke, a SocGen veteran, will become group chief risk officer of Asia and Africa-focused bank Standard Chartered, the London-based bank said in a separate statement. Register now for FREE unlimited access to Reuters.com RegisterRicke joined Societe Generale in 1994 and held a series of senior positions within the corporate and investment banking division before being appointed as chief risk officer last year.

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