Company - - Feb 09,2017
France’s third-largest bank by assets, Societe Generale, announced its fourth-quarter earnings on Thursday, revealing a significant slump in net profit.
Societe Generale declared that the net profit for the fourth-quarter earnings was down by around two-fifths primarily due to the negative influence of higher taxes and a unit sale.
However, the net profit total of 390 million euros ($417 million) was quite ahead as compared to analyst expectations of 354 million euros. Moreover, revenue also edged upwards by 1 percent to reach 6.13 billion euros. It was noted that shares surged 2.6 percent in early deals on Thursday.
Also, during the reporting period, the multinational bank had taken a 235 million euro damage related to the auction of its fully-owned Croatian subsidiary OTP Bank.
Looking at the brighter side of the story, both its retail banking and global banking revealed a significant activity enhancement in the fourth quarter versus stats from a year ago. The former division, which covers security services, investment banking and asset management, experienced net profit rise 51 percent higher to 436 million euros, whereas the latter business saw net profit boost by a quarter despite the constant strain of low-interest rates.
The group net income jumped 15 percent to 4.1 billion euros for the whole of 2016. The recommended dividend for 2016 was 2.20 euros, 10 percent greater than the year before.
Chief Executive Officer (CEO) Frédéric Oudéa said on Thursday that he noticed the performance as very strong and celebrated the past quarter was the best for functional income in the past decade.
The CEO also added, the bank's new strategic plan, due for provision before year-end, will consist of goals and actions for advance boosting of profits.