SocGen 3Q Net Profit, Revenue Fell; Capital Rose -- Earnings Review

By Pietro Lombardi

Societe Generale SA (GLE.FR) reported third-quarter results on Wednesday. Here's what you need to know:

NET PROFIT: France's third-largest listed bank by assets reported a 35% decline in net profit for the period to 854 million euros ($948.1 million). Deutsche Bank analysts had forecast a net profit of EUR922 million.

REVENUE: Net banking income, the bank's top-line revenue figure, fell 8.4% to EUR5.98 billion. This compares with analysts' expectations of EUR6.02 billion, according to a consensus forecast provided by FactSet.

WHAT WE WATCHED:

-CAPITAL: The core Tier 1 ratio, a key measure of capital strength, rose to 12.5% in September from 12% at the end of June. The bank "continues to deliver strong on capital," Jefferies said.

-INVESTMENT BANK: The performance of the bank's global banking and investor-solutions business, which includes investment banking and asset management, weighed on the results. Earnings at the unit declined almost 27% on year, with revenue down 7.6%. Fixed-income revenue grew 1% while equities revenue fell 20%.

-OTHER DIVISIONS: Earnings fell 2.8% at the bank's French retail banking operations while they were down 3.6% at the international retail banking and financial services division.

Write to Pietro Lombardi at [e-mail]

(END) Dow Jones Newswires

November 06, 2019 05:01 ET (10:01 GMT)

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