SocGen reports best first half for five years

Societe Generale swung to a profit in its best first half for five years as the French bank recovered from losses incurred early in the pandemic.

Net income was €2.25bn (£1.9bn) in the six months to the end of June compared with a loss of €1.59bn a year earlier as net banking income rose to €12,51bn from €10.47bn.

The bank upgraded its 2021 outlook, predicting improved revenue in all its businesses, reduced cost of risk and better control of expenses. SocGen shares rose 5.7% to €26.28 at 09:52 BST.

The bank posted its first annual loss in decades in 2020 after cancelled dividends by companies hit its equity trading division but business improved as the year progressed.

Net income was €1.44bn in the second quarter compared with a loss of €1.26bn a year earlier as retail banking gained from recovering net interest income and commissions that were hit by lockdowns in the first quarter of 2020.

Chief Executive Frédéric Oudéa said: "The results for H1 2021 are the best for five years, illustrating the strength of the business model and the group’s capacity to rebound. On these bases, the group is raising its full-year forecasts for 2021."