Societe Generale Q1 Profit Declines, Yet Stock Up

(RTTNews) - French financial services provider Societe Generale S.A. reported Friday that its first-quarter net profit declined from last year amid nearly stable net revenues. Gross operating income, however, increased from the prior year. In Paris, Societe Generale shares were gaining around 4.4 percent in the morning trading.

Slawomir Krupa, Chief Executive Officer, said, "We are progressing in the execution of our strategic plan. Our operating performance improved thanks to a strong contribution from Global Banking and Investor Solutions and solid revenues from International Retail Banking..... Costs are under control, in line with the trajectory presented at our Capital Markets Day.... These first positive results demonstrate the mobilisation of all the teams to shape a more synergetic and efficient model, a source of sustainable profitability."

In its first quarter, Group net income fell 21.7 percent to 680 million euros from last year's 868 million euros.

Earnings per share were 0.64 euro. Core businesses net income dropped 13.5 percent to 989 million euros from last year's 1.14 billion euros.

Adjusted Group net income for the first quarter was 514 million euros, down 705 million euros a year ago.

Operating income fell 11.7 percent to 1.27 billion euros from last year's 1.43 billion euros. Gross operating income, however, grew 3.2 percent to 1.67 billion euros from last year's 1.61 billion euros.

Operating expenses came to 4.98 billion euros, down 1.5 percent from the prior year.

Quarterly revenues or net banking income edged down 0.4 percent to 6.65 billion euros from last year's 6.67 billion euros. At constant currency rates, net banking income fell 4.8 percent.

Revenues of French Retail, Private Banking and Insurance were down 3.5 percent from last year to 2.01 billion euros. Revenues were down 3.9 percent, excluding PEL/CEL.

Global Banking and Investor Solutions revenues were down 5.1 percent to 2.62 billion euros.

However, International Retail, Mobility and Leasing Services' revenues increased 3.9 percent to 2.15 billion euros.

The company noted that the rebound of retail banking in France is underway with an increase in the net interest income compared to last quarter.

In Paris, Societe Generale shares were trading at 26.98 euros, up 4.6 percent.

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