PARIS (Reuters) – Societe Generale on Friday published better-than-expected results in the first quarter thanks to a more pronounced decline than expected in its risk side and in its rates, credit and foreign exchange activities.
The third French bank by market capitalization, after BNP Paribas and Crédit Agricole, said in a press release that it posted a net profit up 5.7% to 868 million euros.
According to a Refinitiv consensus, analysts on average expected a net profit of 449 million euros.
Over the quarter, its revenues fell by 5.3%, while its cost of risk fell by 67.6%.
The bank says it expects a cost of risk this year below 30 basis points, whereas it was expecting it to be between 30 and 35 basis points previously.
Like its competitors, its corporate and investment bank benefited from a dynamic quarter for rates, credit and foreign exchange (FIC) activities where revenues grew by 16%.
In contrast, in retail banking in France, revenues fell 11%.
“The year 2023 will be a year of transition in terms of retail banking income in France, due to an expected lower net interest margin”, underlines the bank.
“The projection of the net interest margin of Retail Banking in France is estimated to decline by around -15% to -20% in 2023 compared to 2022”, continues the banking group. “The benefit of positive rates will materialize as early as 2024”.
(Report Mathieu Protard, Matthieu Protard)
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