Profits rebound at SocGen

Societe Generale reported record results on Thursday, boosted by buoyant equity markets and the reopening of global economies following the worst of the pandemic.

The French lender said group net income hit €1.8bn in the fourth quarter, against €470m a year previously, well ahead of analyst expectations. The cost of risk, which reflects provisions against bad loans, fell 87.5%.

For the year to 31 December, net income was €5.6bn, compared to a loss 12 months previously of €258m. Underlying revenues rose 16%.

Within individual divisions, French retail banking saw net banking income excluding provisions rise 4.8%, while international retail banking and financial services saw revenues jump 9.9%.

The strongest performing division, however, was global banking and investor solutions, with revenues ahead 25.2%.

Frederic Oudea, chief executive, said the numbers were the "best financial results" in the bank’s history and enabled SocGen to "generate a good level of profitability and offer its shareholders an attractive return".

"All the businesses have contributed to this excellent performance. The group also had a very robust balance sheet at the end of the year, with a very good quality loan portfolio and high capital ratios."

Shareholders are set to receive a cash dividend and share buyback totalling €915m following the strong performance.

Looking to the current year, SocGen - France’s third-largest listed back after BNP Paribas and Credit Agricole - said it expected its underlying cost-to-income ratio to be between 66% and 68% in 2022, compared to 67% in 2021.

Oudea said: "The group is entering 2022 with confidence."

As at 1230 GMT, shares in SocGen were ahead 3%.