Q3 results for SocGen
03 November 2010 Paris
Image: Shutterstock
Societe Generale has announced its results for the third quarter of 2010, and the first nine months of the year.
Group net income totalled EUR 896 million in Q3 2010 (EUR 3.0 billion in the first nine months of 2010) and reflects, says the bank:
- the healthy commercial momentum of retail banking activities with, in particular, growth in International Retail Banking revenues,
- satisfactory results, in a mixed environment for Corporate and Investment Banking, still characterised by the excellent performance of structured financing activities,
- the ongoing gradual decline in the Group's cost of risk.
The economic recovery under way since end-2009 remains hesitant. Whereas the latest GDP trends observed in Germany and France are encouraging, the pace of the recovery in the US economy appears to be more uncertain. The monetary policies implemented in order to support growth are creating a certain amount of interest rate and exchange rate volatility which is spreading to other financial markets. At the same time, there has been a clarification of the regulatory environment for the banks by the Basel Committee, albeit with several fundamental points still to be defined in conjunction with national regulators.
Against this backdrop, Societe Generale has provided further evidence of the announced rebound in its results. These doubled in Q3 10 vs. Q3 09 and increased more than sixfold between the first nine months of 2010 and the first nine months of 2009.
Frederic Oudea, the group's chairman and CEO, stated: "With Group net income of EUR 3.0 billion in the first nine months of the year, Societe Generale has provided further evidence of the soundness of its universal banking model. The businesses' commercial momentum makes us confident of our ability to achieve the objectives of the corporate plan "Ambition SG 2015". We are determined to pursue the transformation of the Group, by capitalising on the quality of our customer franchises, substantially increasing the effectiveness of our operating model, and associating all personnel in the Group's success via a "performance share plan" aimed at all our employees.
"Our earnings prospects, underpinned by optimised management of the capital allocation between businesses and coupled with the Group's financial strength, will enable us to finance our growth, while ensuring we have the ability to comply with the new Basel 3 capital requirements without a capital increase, with an estimated Tier 1 core capital ratio (excluding phase-in) of 7.5 per cent as of January 2013."
Group net income totalled EUR 896 million in Q3 2010 (EUR 3.0 billion in the first nine months of 2010) and reflects, says the bank:
- the healthy commercial momentum of retail banking activities with, in particular, growth in International Retail Banking revenues,
- satisfactory results, in a mixed environment for Corporate and Investment Banking, still characterised by the excellent performance of structured financing activities,
- the ongoing gradual decline in the Group's cost of risk.
The economic recovery under way since end-2009 remains hesitant. Whereas the latest GDP trends observed in Germany and France are encouraging, the pace of the recovery in the US economy appears to be more uncertain. The monetary policies implemented in order to support growth are creating a certain amount of interest rate and exchange rate volatility which is spreading to other financial markets. At the same time, there has been a clarification of the regulatory environment for the banks by the Basel Committee, albeit with several fundamental points still to be defined in conjunction with national regulators.
Against this backdrop, Societe Generale has provided further evidence of the announced rebound in its results. These doubled in Q3 10 vs. Q3 09 and increased more than sixfold between the first nine months of 2010 and the first nine months of 2009.
Frederic Oudea, the group's chairman and CEO, stated: "With Group net income of EUR 3.0 billion in the first nine months of the year, Societe Generale has provided further evidence of the soundness of its universal banking model. The businesses' commercial momentum makes us confident of our ability to achieve the objectives of the corporate plan "Ambition SG 2015". We are determined to pursue the transformation of the Group, by capitalising on the quality of our customer franchises, substantially increasing the effectiveness of our operating model, and associating all personnel in the Group's success via a "performance share plan" aimed at all our employees.
"Our earnings prospects, underpinned by optimised management of the capital allocation between businesses and coupled with the Group's financial strength, will enable us to finance our growth, while ensuring we have the ability to comply with the new Basel 3 capital requirements without a capital increase, with an estimated Tier 1 core capital ratio (excluding phase-in) of 7.5 per cent as of January 2013."
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