2024-08-01 07:13:28
Through its financial banking activities, the bank with the red and black logo generated a net profit of 1.1 billion euros, an increase of 24%. However, the stock fell on the stock market.
After a difficult year in 2023, Société Générale is getting back on track. The bank generated a net profit of 1.1 billion euros in the second quarter, an increase of 23.7%! This is the first time since the end of 2022 that it has recorded a quarterly net profit of over one billion euros. And revenues have increased by 6.3% over a year (to 6.7 billion euros). Like its competitors BNP Paribas and Crédit Agricole, it benefits from the very good performance of banking and investment services (BFI). Market activities (shares, bonds, etc.) are very hot. In a press release, Slawomir Krupa, CEO of Société Générale, in the background “the best quarter for corporate banking and investor solutions”a division which only brought 770 million in net profit (+ 24.3% over a year).
In the world, “Our business and operations are clearly progressing” in the second quarter, he congratulated himself. Banking results are also driven by retail banking networks, including certain specialized businesses such as car leasing and consumer credit. On the other hand, retail banking in France continues to suffer. Société Générale has also revised down its net margin target (the difference between the rate that the bank applies to its customers and that of its restructuring) for this division. “The net interest rate is improving but it is suffering from an increase in the share of interest deposits and weak credit capacities in a wait-and-see mode”, according to Slawomir Krupa. Interest rates fell slightly in France in the first half of the year but the volume of real estate loans remained low.
Asset disposal
The cost reduction program (1.7 billion euros in savings by 2026) is also starting to bear fruit. Since arriving at Société Générale in June 2023, Slawomir Krupa has set himself the goal of strengthening its financial strength, improving its profitability and focusing on value-creating businesses. Since 2023, the group has started its exit from many African countries. And he sold a division of the leasing specialist, Société Générale Equipment Finance, to BPCE (Banque populaire – Caisse d’épargne). On Tuesday, the bank announced on Tuesday an agreement to sell its retail bank in Benin, as well as its branch in Togo.
However, the stock price of Société Générale fell by more than 6% at the opening of the Paris Stock Exchange.
#Société #Générale