(Boursier.com) — The Societe Generale publishes quarterly results this Friday that exceed market expectations. The solid performance of its investment and financing bank offset the decline in its retail banking activities in France. Over the period from July to September, the Banque de la Défense published a net profit, group share of 295 million euros, while analysts expected on average less than 200 million euros, according to the market consensus. However, it corresponds to a decline of almost 80% over one year, due to a depreciation of 340 million euros on certain group activities and a provision of 270 million euros made for deferred tax assets.
The group’s quarterly revenues fell by 6.2% year-on-year to 6.2 billion euros, in line with the market consensus.
Remember that the new general director of the financial group, Slawomir Krupa, presented disappointing medium-term forecasts in September which had been harshly punished on the stock market, including an annual growth target for the group’s revenues of between 0% and 2 % by 2026.
SG’s net banking income was affected by the strict control of borrowing costs, the increase in the rate of regulated savings accounts and the end of so-called TLTRO operations (targeted long-term refinancing operations) of the European Central Bank.
Financing and advisory activities, on the other hand, increased by 2.1%, contributing to the 7.7% increase in the group’s net profit from the investment division over the period from July to September.
Société Générale has also revised its annual cost of risk objective to less than 20 basis points compared to a previous objective of less than 30 basis points.
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