French bank Société Générale announced Thursday 8 February revenues and net profit down in 2017. A year during which the bank realized a net profit share of 2,81 billion euros, a decrease of 27,6% compared to 2016. Societe Generale has suffered in particular the high cost of restructuring its network of establishments in France in the midst of a digital revolution.
However, the bank exceeds the expectations of a loss predicted by a consensus of analysts compiled by Factset, which counted on 2,31 billion.
Equivalent to the turnover, the net banking income fell to the extent of expectations, from 5,3% to nearly 24 billion euros.
The bank was hit by a series of exceptional charges reported including 390 M € as part of its plan to adapt its retail banking network in France and 145 M € following a French tax regulation. It also recorded an impact of 416 M € in the fourth quarter due to the impact of tax reforms in France and the United States.
Revenues of the bank’s retail banking and financial services grew by 8% over the quarter thanks to “a new record contribution from Europe and Africa, the recovery in Russia and good performances insurance and business financial services.
“We are starting 2018 with confidence, supported by the ambition to seize growth opportunities in our business, in an economic and financial environment that should gradually be more favorable. We will focus on the rigorous execution of the first year of our new strategic plan. Said Frédéric Oudéa, General Manager of Société Générale.
In November, and as part of its strategic plan, the bank announced the closure of 15% of its branch network and the removal of 900 jobs in France by 2020, the bank seeking to reduce costs and accelerate its transition to digital banking.
