Press "Enter" to skip to content

SocGen’s Third-Quarter Profit Fells By 34% As Investment Banking Declines

Lately, SocGen (Société Générale) reported its earnings for the third quarter of 2019. The financial services company reported a net income of $945 Million (854 million euros) falling short of analyst anticipations. According to Refinitiv, analysts projected a net income of 863.20 million euros for the third quarter of this year. In the second quarter of 2019, the French bank posted a net income of 1.05 billion euros. Additionally, it had posted a net income of 1.3 billion euros in the last year. The revenues of the bank stood at 5.98 billion euros versus 6.53 billion euros of the last year. The operating expenses declined by 4.1% from the last year to 4.17 billion euros. The CET Tier 1 ratio attained was 12.5% from 11.2% of 2018.

Earlier this year, SocGen publicized plans to curb 1,600 jobs, largely at its investment and corporate banking arm. Frederic Oudea—Chief Executive Officer of SocGen—said to CNBC, “Our performance is quite on the track with our goals and priorities. Our first priority is around the capital. This is the main focus of our financiers.” In 2017, SocGen announced that the lender will be looking to boost its capital position, toward a CET Tier 1 ratio goal of 12% by the end of 2020. The new results marked the straight second quarter where CET Tier 1 ratio was noted at 12%.

Similarly, SocGen was in news to set up entirely controlled China brokerage. SocGen is considering a fully-controlled brokerage in China, joining a race by the biggest lenders globally as the country accelerates the liberalization of possession limitations in the financial sector. The French bank’s previous plans for China comprised of spending $142 Million (1 billion yuan) to gain a 51%-owned regional brokerage, but SocGen is becoming more determined as it seeks development abroad and economizes in a slow European market.

Charles Woll
Charles Woll Author
Chief Marketing Manager At News Magazine 24

Charles is a Chief Marketing Manager at our company. He is good at content marketing, his job duties include all social media-related marketing, blogging, and publishing related operations. Charles is with us from last 5 Years and has pursued a post-graduate diploma in marketing management. In his free time, he guides team-mates regarding business and share thoughts on media-related content.

Be First to Comment

Leave a Reply

Your email address will not be published. Required fields are marked *