SocGen’s net income of €900m recorded during the second quarter is significantly higher than the losses of €1.5bn in Q2 2023, mostly due to its hurried exit from Russia.
However, the company said its Retail Banking revenues fell by -13.6% compared to the same period last year, mostly because of a lower net interest margin. But International Retail Banking & Financial Services revenues grew by 6.3%, reaching €2.36bn compared to €2.22bn reported in Q2 2022.
Operating expenses stood at €4.41bn, 2.7% higher than in Q2 2023. The business is built on three complementary core businesses: French Retail Banking, International Retail Banking, Insurance and Financial Services, and Global Banking and Investor Solutions.
Slawomir Krupa, SocGen Group’s CEO, commented on the latest results: “During the quarter, commercial activity was good in most businesses. Group revenues contracted due to the decline in the net interest margin in France and market activities’ revenues against a backdrop of gradual normalisation after some particularly favourable years.
“The Group shows a solid balance sheet with a CET 1 ratio at 13.1% and a robust liquidity profile”, Krupa added. “In addition, we pursued the execution of our ongoing strategic projects, notably the closing of the LeasePlan acquisition by ALD. The new management team has been fully operational since taking office on 24 May this year and is working to prepare the next chapter of the Group’s strategy.”
SocGen is a French multinational financial services provider with over 117,000 staff in 66 countries.
In April last year, the company exited the Russian market after divesting its entire stake in Rosbank and completing the sale of its insurance subsidiaries to Interros Capital, a private investment company owned by Vladimir Potanin, a Russian oligarch and individual closely associated with Russian President Vladimir Putin.
Following news about the company’s net income, SocGen’s share price increased by +3.27%, from €23.82 on 2 August at 17:00 to 24.60 on 3 August at 09:00, shortly after European markets opened. The price has since decreased to €24.36 at the time of reporting.
In addition to posting the financial results for the second quarter, the French bank announced launching a share buyback programme for around €440m.