In recent time, SocGen (Société Générale S.A.) posted a net income of $1.16 Billion (1.05 billion euros) for the second quarter, exceeding market expectations. As per to a Reuters poll, the analysts expected a net income of 964 million euros. For the same quarter in the last year, the French lender reported a net income of 1.2 billion euros. The bank posted a net banking income of 6.3 billion euros against 6.5 billion euros in the earlier year. The ROTE (return on tangible equity) was 9.7% against 11.2% in the last year. The common equity tier 1 ratio was at 12% for the quarter against 11.1% in the previous year. The shares climbed over 5% in early accords.
According to Philippe Heim—Deputy CEO of SocGen—it was a “robust quarter regardless of some heavy tailwinds,” as reported by CNBC. In the meantime, Fréderic Oudéa—Chief Executive Officer of SocGen—stated in a statement, “The bank has provided further proof of the successful implementation of its tactical plan through two priority financial objectives: enhancing profitability and surging its level of capital.” Earlier in this year, the bank announced that it plans to curb 1,600 jobs at its investment banking and corporate division. This was an effort to increase productivity following last year’s poor presentation and it confirmed lately that it had scheduled restructuring provision worth 227 million euro.
Recently, SocGen was in news as the bank intends to cut jobs in London owing to gloom in the city that has been impacted by job losses at competitors including Deutsche Bank. In the last few weeks, dozens of job losses have occurred at the French bank’s London operations, counting 30 positions in commodities, sources having information said. They further added that SocGen’s voluntary departure plan is commencing in Paris with cuts scheduled to take place in coming few months.