Of Special Interest
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- Newslink Trends-The Global Strategic Perspective
- Juniper Research says digital wallet users to exceed 4.4 billion by 2025, as mobile drives digital payments’ revolution
- Criminals exploit COVID-19 pandemic with rise in scams targeting victims online
- Equifax says Open Banking proving pivotal to pandemic lending
- Consumer confidence in banks, credit card providers and investments remain stable as demand supercharges digital finance says Toluna research
- Mintos says Europeans are starting to embrace investing
- US banks see IT modernisation as a way to improve customer experience
- Risk mitigation in global trade depends on digitisation-Andrew Raymond, CEO, Bolero International comments
- Juniper Research new study says the volume of B2B payments facilitated by non-banks will exceed 53 billion in 2022, from a COVID-related low of 38 billion in 2020
- CMA issues fifth publication over 3 years of the service quality league table of personal and business current account providers
- Barclays says scammers take advantage of COVID-19, cashing in on nations’ uncertainty
- S&P Global report says financial market infrastructure sector's earnings likely to cool off In second half
- Global banking market capitalisation slumps by over 30% amid pandemic says Buyshares research
- Digital wallet spend in Europe & North America to increase by 40% in 2019, finds study
- Juniper forecasts mobile money transactions will exceed 200 billion by 2024
- Banks can save the world from climate change, says former UN climate chief
- Research by NatWest reveals gender divide over attitudes to saving
- Europe’s big bank problem: too much capital is trapped in the US, says Scope
- Later-Life lending market set to almost double in the next 10 years, finds report
- Barclays/Cebr report challenges nation to think differently about wealth
- Fifth of UK investors looking to debt investment, new research reveals
- Regtech will play a more important role in PSD2, says Mitek
- Banks turn to Fintech partnerships to improve customer experience, finds Fraedom
- New industry code to tackle fraud must deliver, says Which?
- New TTF report highlights loss of trust in financial services
- Arxan highlights financial app vulnerability epidemic
- SAS asks whether banks really need to choose between operations and innovation
- Which? raises alarm as almost 1,700 free ATMs become fee-charging
- Financial wellness affects half of peoples’ mental or physical health, finds report
- Study finds traditional financial institutions embrace Fintech disruption
- Grass is greener for environmentally friendly businesses, finds Barclays
- Prospective homeowners would consider a 40-year mortgage to escape renting, finds Santander
- Millennials’ needs are changing the face of banking industry, says new report
- FS is putting consumer data at risk by failing to protect mobile apps, says Arxan
- A lack of belief in their ability holds 28% women back in work, says Cambridge & Counties
- ‘Which?’ reveals Scotland has lost over a third of its bank branches in eight years
- Next downturn unlikely to be as bad as 2008, according to S&P
- FCA reveals findings from first cryptoassets consumer research
- US consumers favour single mobile app for banking and payments
- Banks suffering major IT shutdowns every day, ‘Which?’ reveals
- The US will be a key offshore centre in 2019, says GlobalData
- Debit industry changes markedly in 10 years of the Debit Issuer Study
- UK's ‘Big Five’ face ‘too big to compete’ as small challengers secure stellar returns
- Banks as vulnerable now as before crash, says new study
- Leverage ratio a constant conundrum for European and US banks, says SNL
11th November 2011
Societe Generale profits down - dividend cancelled
Société Générale reported group net profit of €622m (£531m $848m ¥65.9bn Y5,369m) for Q3 and €2,285m (£1,951m $3,115m ¥242.1bn Y19,725m) for the 9 months DOWN 31% and DOWN 25% respectively. The group profit included a €822m gain from Debt Value Adjustment whilst taking a €333m write down on Greek bonds to make a total of 60% Greek writedown. Exposure to PIIGS sovereign debt has been reduced by approximately one half in the year to date.
No surprise that CIB profits were minimal, however this fall was partly made up from higher retail profits and the absence of the central writedowns of a year ago.
The requirement to achieve 9% CT1 (Core Tier 1) by June of next year has left the bank with €3.4bn to find. It has decided to do this by not paying any final dividend. In point of fact it had few options as the market has remained concerned over Société Générale and, for example, the bank has had to make extensive use of the European Central Bank liquidity funding. Despite the lack of final dividend the market believed the bank to be doing the right things and the share price increased by over 7% following the results announcement.
Income Summary 2011-Q3 2010-Q3 2011-9m 2010-9m
€m €m €m €m
Net banking income 6,504 6,301 19,626 19,561
Operating expenses -4,018 -4,039 -12,635 -12,105
_________________________________________
Gross operating income 2,486 2,262 6,991 7,456
Net allocation to provisions -1,192 -918 -3,255 -3,060
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Operating income 1,294 1,344 3,736 4,396
Net profits or losses from other assets 20 -2 84 -2
Companies accounted by equity method 32 33 110 91
Impairment losses on goodwill -200 0 -200 0
Income tax -455 -372 -1,142 -1,178
________________________________________
Net income 691 1,003 2,588 3,307
Non controlling Interests 69 107 303 264
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Group Net Profit 622 896 2,285 3,043
Divisional net income
French Networks 390 340 1,126 931
International Retail Banking 90 149 250 388
Corporate & Investment Banking 77 468 1,117 1,419
Specialised Financial Services & Insurance -53 87 224 249
Private Banking, Global Investment
Management and Services 60 80 216 209
o.w. Private Banking 28 42 102 89
o.w. Asset Management 16 26 81 65
o.w. SG SS & Brokers 16 12 33 55
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CORE BUSINESSES 564 1,124 2,933 3,196
Corporate Centre 58 -228 -648 -153
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GROUP 622 896 2,285 3,043