Societe Generale has revealed a historic net profit of 5.6 billion euros for the year 2021, after a loss of 258 million euros in 2020.
On the occasion of the unveiling of its results for the year 2021, the Socit Generale group announced, this Thursday, February 10, a record net profit of 5.6 billion euros, after a loss of 258 million in 2020, the year the Covid-19 pandemic began. Net banking income (NBI), equivalent to turnover for the sector, stood at 25.8 billion euros in 2021, an increase of 16.7% compared to 2020 and 4.5 % compared to 2019. These results are above the expectations of analysts who were counting, according to Factset, on a NBI of 25.2 billion euros and on a result of 4.2 billion.
All of the businesses contributed to this very good performance and the group also posted a very solid balance sheet at the end of the year with a portfolio of very good quality loans and high capital ratios, welcomed the general manager, Frdric Ouda, quoted in a press release.
Boursorama a year ahead
In detail, the retail banking income in France grew by 6.3% last year, 7.8 billion euros, while the online bank Boursorama, which Socit Generale owns, is a year ahead of its customer acquisition targets, with 3.3 million customers at the end of December. It is now targeting 4 million customers by the end of the year. Last week, Boursorama also announced that it was in exclusive negotiations to take over the customers of ING, which is ceasing its retail banking activity in France, in order to consolidate its domination in France.
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As for the net banking income of the retail banking and international financial services activity, it is up by 7.9% to 8.1 billion and those of corporate and investment banking (BFI) are up by 25.2% 9.5 billion. The latter had experienced a difficult year in 2020, with in particular a loss of 537 million euros in the second quarter. In 2021, the financing and advisory activities achieved the best performance in their history, while the Equities activity recorded its best year since 2009.
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Beyond these past results, the group has displayed its confidence for 2022 by emphasizing the acceleration of strategic and business developments. In addition to Boursorama’s assault on ING’s customers, the group must continue the merger of the Socit Generale and Credit du Nord networkswhich should give birth to a new brand, and finalize the takeover of LeasePlan, Europe’s number one car leasing company, for 4.9 billion euros, in order to create a leader in mobility.
A dividend of 1.65 euros per share
the cost of riskthat is to say the sums provisioned to deal with any unpaid debts on the credits granted, was established 700 million euros over the year, compared to more than 3 billion in 2020. Finally, the core capital ratio, a key indicator within the sector, stands at 13.7%, well above the regulatory requirements of around 9%.
On the strength of these results, Socit Generale announced a dividend of 1.65 euro per share as well as a share buyback program of approximately 915 million euros, which is equivalent to 1.1 euro per share, specifies the bank. In 2021, Socit Generale paid a dividend of 55 euro cents per share, i.e. the maximum authorized by the European Central Bank, under the 2020 results, and launched a €470 million buyback program. euros.