By Pierre Bertrand
Societe Generale reported a decline in earnings after net interest revenues fell, costs increased and exceptional items cut into the bank’s third-quarter result.
The French lender on Friday said that its net profit was 295 million euros ($313.3 million) compared with EUR1.45 billion in the year-ago period, as revenue declined 6.2% to EUR6.2 billion.
The result compares with expectations of EUR225 million in quarterly profit and EUR6.3 billion in revenue, according to analysts polled by FactSet.
The bank attributed the revenue decline to a fall in net interest income at its French retail, private banking, and insurance business.
“Based on latest assumptions consistent with the current economic environment, the forecast of the net interest income of French retail banking, Private Banking and Insurance is expected to decrease by more than 20% in 2023,” the bank said, adding next year it ought to be at a level higher or equal to 2022.
Expenses in the reporting period came to EUR4.36 billion, a 6.8% increase over the prior year, it said.
Societe Generale added that its result was also affected by EUR610 million worth of exceptional items.
Its common equity Tier 1 ratio, a gauge of financial strength, came to 13.3% at the end of September, while the cost of risk came to EUR316 million.
Write to Pierre Bertrand at [email protected]
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