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Societe Generale posts sharp revenue drop as web banking revenue slides

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A emblem outdoors a Societe Generale SA financial institution department in Paris, France.

Bloomberg | Bloomberg | Getty Pictures

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Societe Generale on Thursday reported a pointy decline in fourth-quarter web revenue on the again of weaker web banking revenue, however launched a brand new 280 million euro ($302 million) share buyback program.

The French lender posted a gaggle web revenue of 430 million euros, barely above a consensus analyst forecast of 404 million euros, in line with LSEG information, however effectively under the 1.07 billion euros recorded for the ultimate quarter of 2022. It comes after the financial institution posted posted a group net income of 295 million euros for the third quarter, as resilient funding financial institution efficiency offset a pointy downturn in its French retail enterprise.

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Thursday’s outcome took France’s third-largest listed financial institution’s annual web revenue to 2.49 billion euros, barely above analyst expectations of two.15 billion euros.

Nonetheless, quarterly web banking income dropped 9.9% year-on-year to five.96 billion euros, which the financial institution attributed largely to a decline in web curiosity revenue in French retail, and its non-public banking and insurance coverage division, together with the destructive impacts from unwinding hedges.

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SocGen introduced that it could be proposing a money dividend to shareholders of 90 cents per share, and launching a 280 million euro share buyback, equal to 35 cents per share.

Different key figures the financial institution reported included its CET1 ratio, which sat at 13.1% to finish the yr, its reported return on tangible fairness for the fourth quarter of 1.7%, and a cost-to-income ratio of 78.3%.

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Group CEO Slawomir Krupa mentioned 2023 was “a yr of transition and transformation” for the financial institution, which is focusing on income development of 5% or above in 2024.

“The distinctive momentum of BoursoBank, the power of our World Banking and Investor Options franchises, the efficiency of our worldwide banking actions throughout all areas, plus the capability of our new financial institution in France and Ayvens to implement unprecedented transformations are all robust proof factors on our capacity to execute at a excessive degree,” Krupa mentioned in an announcement.

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“On the similar time, whereas 2023 was negatively affected by a pointy lower in web curiosity revenue in French Retail Banking and the elevated value of integrating LeasePlan, it was additionally characterised by disciplined administration of prices, dangers and capital.”

On-line and cell banking subsidiary BoursoBank was a specific spotlight for the Soc Gen, posting a report quarter for brand spanking new consumer acquisitions at 566,000 in comparison with a yr in the past. It takes BoursoBank’s complete shoppers to five.9 million by the tip of 2023.

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