Societe Generale's net profit misses estimates

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Societe Generale's net profit misses estimates

The net profit was missed at EUR 1.38 B, according to the headline at 0539 GMT.

Societe Generale SA said on Wednesday that it beat expectations for strong revenue after resilient performances in its international investment-banking and retail operations.

The French lender reported a net profit of 1.16 billion euros $1.24 billion a year ago, down from EUR 1.79 billion a year ago. The figures beat expectations of net profit of EUR 856 million and revenue of EUR 6.42 billion, according to consensus estimates provided by FactSet. The Paris-based bank, France's third largest by market capitalization, said the result was boosted by strong performances in its financing advisory, global markets and leasing subsidiary ALD, as well as growth at its private banking and international retail banking operations. It said that the bank's global banking and international-retail businesses were helped by higher interest rates in the period. SocGen plans to launch a EUR 440 million share-buyback program in the near future, with a cash dividend of EUR 1.70. The bank said that 2023 would be a transition year with decreased revenues, with the negative impacts of the end of the tiering benefits and the specific functioning of the French retail-banking market, in which there are caps on how much banks can take in from mortgage-rate rises.