Societe Generale : 02/08/2017 Quaterly financial information
August 02, 2017 at 01:11 am EDT
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Stable net banking income for the businesses (EUR 6,392m, -0.5% vs. Q2 16), with the substantial growth in International Retail Banking & Financial Services offsetting the decline in Global Banking & Investor Solutions (-4.3% vs. Q2 16) compared with the high level in Q2 16, and the slight fall (-1.8% vs. Q2 16) in French Retail Banking.
Group book net banking income, including non-economic items, of EUR 5,199m, down -25.6% vs. Q2 16 (base effect in Q2 16 related to the capital gain on the Visa sale (EUR 725m) and the impact of the settlement with the Libyan Investment Authority (LIA) signed in Q2 17 for EUR -963m, booked in the Corporate Centre).
Operating expenses under control, +1.2% vs. Q2 16.
Commercial cost of risk of 15bp in Q2 17 (38bp in Q2 16) reflecting the improvement in the Group's risk profile. Net cost of risk including a net write-back of EUR 450m in respect of the provision for disputes.
Book Group net income of EUR 1,058m in Q2 17 (EUR 1,461m in Q2 16).
Underlying Group net income up +11.0% at EUR 1,165m in Q2 17 (EUR 1,050m in Q2 16).
Fully-loaded CET1 ratio of 11.7% (11.6% at March 31st, 2017)
H1 17: GOOD HALF-YEAR RESULTS
Net banking income for the businesses of EUR 12.9bn (+1.7% vs. H1 16)
Operating expenses contained (+2.2% vs. H1 16 excluding Euribor fine refund in Q1 16)
Book Group net income of EUR 1,805m (EUR 2,385m in H1 16)
Underlying Group net income of EUR 2,551m, up +32.6% in H1 17 (EUR 1,924m in H1 16)
Underlying ROE of 9.5% (7.5% in H1 16)
EPS: EUR 2.12 in H1 17 (EUR 2.77 in H1 16). Provision for dividend of EUR 1.10/share
The Alternative Performance Measures, notably the notions of net banking income for the pillars, operating expenses, IFRIC 21 adjustment, (commercial) cost of risk in basis points, ROE, RONE, net assets, tangible net assets, EPS excluding non-economic items, and the amounts serving as a basis for the different restatements carried out (in particular the transition from accounting data to underlying data) are presented in the methodology notes, as are the principles for the presentation of prudential ratios. The footnotes * and ** in this document are specified below:
* When adjusted for changes in Group structure and at constant exchange rates.
** Excluding non-economic items.
(1) Excluding PEL/CEL provision.
(2) Excluding disputes, in basis points for assets at the beginning of the period, including operating leases.
Annualised calculation.
(3) See methodology note 5 for the transition from accounting data to underlying data.
(4) Excluding non-economic items (gross EPS in H1 17: EUR 1.94 and EUR 2.71 in H1 16)
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Société Générale is one of the largest French banking groups. Net interest income breaks down by activity as follows:
- financing and investment banking (36.8%): specialized financing (for acquisitions, projects, etc.), activity on the stock, interest rate, currency exchange, and raw material markets, brokerage operations, merger-acquisition consulting, commercial banking activities, etc.;
- retail banking in France (30.7%; SG). The group also develops asset management and private banking activities (EUR 143 billion in assets under management in 2023), and provides online banking and online brokerage services (Boursorama Banque) as well as an economic and financial information Website (boursorama.com);
- provision of specialized financial and insurance services (16.5%): consumer loan, leasing, management of car fleets, professional equipment financing and insurance;
- international retail banking (16%).
At the end of 2023, Société Générale managed EUR 533.8 billion in current deposits and EUR 485.4 billion in current credits.
Net interest income is distributed geographically as follows: France (40.2%), Europe (37.4%), the Americas (8.3%), Africa (8%) and Asia/Oceania (6.1%).