Societe Generale, a French multinational investment bank, announced its third quarter results for its 2018 fiscal year today. During the period, the firm reported solid results overall, driven in part by a rebound in the global financial markets.
During the third quarter, Societe Generale achieved a revenue of €6.5 billion. This is an increase of 9 per cent year-on-year. However, when excluding revenues earnt from the revaluation of Euroclear securities, revenue was up 4.4 per cent.
According to the results, revenue was driven by strong growth in the company’ French retail banking business and international retail banking and financial services operations. In addition, revenues were also supported by the global banking and investor solutions unit, which reported solid results thanks to a rebound in the global markets.
Operating expenses were also up in the third quarter, coming in at €4.4 billion. This is an increase of 5.2 per cent when compared to the third quarter of 2017. Net income for the group also jumped by 16.1 per cent year-on-year to reach €1.25 billion.
Fixed income, currencies and commodities revenues stable in Q3
Taking a look at Global Markets & Investor Services sector, net banking income came in at €1.3 billion in the third quarter. This is an increase of 7.9 per cent from the same quarter of 2017 due to the rebound in Equity activities and a solid performance of rates and commodities.
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Revenues for fixed income, currencies and commodities were stable during the quarter at €494 million. An increase in client demand during Q3 was offset by low liquidity in the European Credit market during the summer. Overall, for the nine months ended September 30, 2018 revenue for the sector was €1.61 billion, this is down 13.4 per cent when compared to the same period in 2017.
For equities and prime services, revenues were up by 19 per cent when compared to Q3 of 2017, reaching €593 million. This was largely due to a good performance in the United States and in structured products.
Commenting on the results, Fréderic Oudéa, the Group’s Chief Executive Officer, said: “Societe Generale published solid results in Q3 18, with a good level of profitability. Our revenues increased due to the confirmed growth in International Retail Banking & Financial Services and the healthy momentum in Financing & Advisory and market activities.
“The Group pursued its disciplined approach to cost management and the low cost of risk confirms the quality of our loan portfolio. The Group put an end this quarter to the financial impact of the major litigation issues with the US authorities relating to the pre-financial crisis period.
“Finally, the Group continued to optimise its portfolio of activities, with the announcement of the disposal of its Polish subsidiary. On the back of these various developments and its recognition as one of the most socially responsible banks in Europe, the Group is determinedly and confidently pursuing the implementation of its strategic plan”.