Societe Generale on Friday published a slight increase in turnover (+ 2.3%) over one year in the third quarter, but a profit down 6.4%, weighted by the remuneration of the booklets regulations and the provisions constituted in case of non-payment.
Net banking income (NBI), equivalent to turnover, amounted to 6.83 billion euros from July to September, for a net result of 1.5 billion euros.
This quarter was marked by an increase in revenues, the continued control of general expenses and a contained cost of risk, commented in a press release the general manager Frdric Ouda.
Retail banking, bringing together in particular the Socit Gnrale and Crdit du Nord branch networks which are to merge from next year, is seeing its profitability drop compared to the same period last year: if the turnover of the activity is stable, its net profit is cut by 27%, to 343 million euros.
The accounts are affected in particular by the cost of risk, these sums provisioned to deal with any unpaid debts on the loans granted (nearly 200 million euros for the networks).
The rise in the rate of the Livret A and the Livret de développement durable et solidaire, from 1% to 2% on August 1, as well as those of the associated savings products also weighed on the profitability of retail banking.
The net result of the international retail banking networks, grouped with insurance and specialized services, increased by 6.8% in the third quarter, as did that of the financing and investment banking, 15.6%.
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The company also clarified Friday that its solvency ratio, a key indicator of its strength in the event of a crisis, stood at 13.1% on September 30, above the regulatory requirement.
The group is also in the process of restructuring its staff, echoing the announcement on September 30 of Frdric Ouda’s successor: Slawomir Krupa, the head of financing and investment activities, who will take over the reins of the group in May. next.
Socit Generale is the second major French bank to publish its third quarter results, after BNP Paribas on Thursday and before BPCE and Crdit Agricole next week.
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