Societe Generale Earnings this autumn 2021

Societe Generale beat analyst expectations on Thursday, posting its highest ever revenue in 2021.

The lender reported a web earnings of 5.64 billion euros ($6.44 billion) for the total 12 months 2021. Analysts had anticipated web earnings to return in at 4.4 billion euros for the interval, in keeping with Refinitiv.

Taking a look at simply the quarterly numbers, the French financial institution reported a web earnings of 1.79 billion euros within the last three months of 2021, additionally increased than the 1.3 billion euros anticipated by analysts.

“2021 marks a milestone for the Societe Generale Group, which achieved the very best monetary leads to its historical past,” Frederic Oudea, the financial institution’s chief govt officer, mentioned in an announcement.

The outcomes obtained a lift from a robust efficiency in SocGen’s international banking and investor options division, the place web banking earnings rose by 25.2% on the earlier 12 months.

“Fairness exercise loved its finest 12 months since 2009,” the financial institution mentioned in an announcement, noting that revenues hit 3.15 million euros in 2021 versus 1.275 million euros in 2020.

SocGen’s asset and wealth administration divisions additionally reported an annual bounce in revenues, up 6.1%.

In distinction, income from mounted earnings and forex actions on the financial institution slipped 19.2% from the earlier 12 months, however this was offset by different elements of the worldwide banking division.

Different highlights for the fourth quarter:

• Group revenues hit 6.6 billion euros, up by 13.4% from a 12 months in the past.
• Working bills rose by 4.9% from a 12 months in the past.
• CET 1 ratio, a measure of financial institution solvency, reached 13.7%.

Societe Generale reported a a lot decrease value of threat in 2021 versus 2020. It got here in at at 700 million euros for 2021, in comparison with 3.3 billion euros in 2020. Banks needed to improve their provisions in 2020 to take care of potential defaults on the top of the pandemic.

“The price of threat is anticipated to be beneath 30 foundation factors in 2022,” the financial institution mentioned.

The financial institution can be proposing to pay a dividend of 1.65 euros per share and introduced it’s launching a buyback program for a complete quantity of about 915 million euros.

Shares of Societe Generale are up by round 100% over the past 12 months.