The headquarters of the French bank Société Générale in Paris.
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Societe Generale On Wednesday, it reported better-than-expected earnings despite a hit of 3.3 billion euros ($3.36 billion) from the exit from its Russian operations.
The French lender saw per unit growth in the second quarter, which helped offset the impact of his departure from Russia in the wake of Moscow’s invasion of Ukraine.
Analysts estimated a net loss of 2.85 billion euros during the quarter, according to Refinitiv, but the bank incurred a net loss of 1.48 billion euros.
“We combined, in the first half of 2022, solid revenue growth and core profitability above 10% (ROTE) and were able to manage our exit from Russian activities without significant impact on capital and without impeding the group’s strategic developments,” said Frederic Oudéa, CEO. for the group, in a statement.
Speaking to CNBC, O’Dea said the decision to leave Russia was “very sad” but necessary.
“When you have successfully invested for many years, it is very sad but when you look at the situation it is very difficult to manage, so it is very risky moving forward, with no clear outcome to all of this, so it was clearly the best decision,” he told Charlotte. Reid from CNBC.
Other highlights for this quarter:
- Revenue was 7 billion euros for the quarter.
- Operating expenses amounted to 4.5 billion euros.
- CET1, a measure of bank solvency, was 12.9% at the end of June.
The French retail bank posted a net profit of 18.7% over the previous quarter. International retail banking services also increased by 33% over the previous three-month period. The Global Banking unit also reported a nearly 50% jump in net income from the previous quarter.
Going forward, the French bank said it aims for a return on tangible equity, a measure of profitability, of 10% and a CET of 12% in 2025. It also wants average annual revenue growth above or equal to 3% until then.
The stock is down 28% year-to-date.