SocGen shares are higher Thursday, as the Paris-based bank reported upbeat third quarter earnings, boosted by its Euroclear stake. Revenues were also stronger than anticipated, despite struggling amid the ongoing low-interest rate back drop.
By 1435 BST, SocGen shares were 3.20% higher at €34.22. The stock is showing signs of a mild recovery after trending lower for some months.
SocGen Q3 earnings
SocGen said earlier Thursday, that it’s third quarter earnings came in much stronger than analysts had expected. It’s total group Q3 revenues climbed 9% from a year earlier, to €6.53 billion. That number was lifted by an increased valuation in its Euroclear stake.
Third quarter net profits at the bank, meanwhile, rose 32.4% to €1.234 billion.
“Societe Generale published solid results in Q3 18, with a good level of profitability,” said group CEO, Fréderic Oudéa.
“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,” Oudéa added.
In addition, to that, SocGen’s retail bank also proved positive, with revenues there rising 1.8% to €1.95 billion.
While the third quarter was a successful one for the French bank, some uncertainty remains.
SocGen has yet to settle a US probe into whether or not the bank violated US sanctions. However, it said just a few weeks ago that the matter should be resolved soon and that the provision it has set aside should be enough.
Looking further ahead, the bank said its cost cutting came in on target in Q3 and that its working to continue achieving its previously stated targets on cost.
“The Group is determinedly and confidently pursuing the implementation of its strategic plan,” said CEO, Oudéa.