SocGen Cuts 2020 Targets as 4Q Net Profit Beats Expectations -- Update
February 07 2019 - 12:46AM
Dow Jones News
Adds revised targets
--Societe Generale cut its 2020 RoTE target
--The French bank's fourth-quarter net profit rose sharply from
a year earlier
--SocGen's results were hit by one-offs, but still beat
analysts' expectations
By Pietro Lombardi
Societe Generale SA's (GLE.FR) cut its 2020 RoTE target as
fourth-quarter net profit rose sharply from a year earlier, when
results were hit by one-offs, and beat analysts' expectations.
The French bank said Thursday that it now targets a RoTE of
between 9% and 10% in 2020, down from a previous estimate of 11.5%
in its plan.
SocGen said net profit for the period was 624 million euros
($710.4 million) compared with EUR69 million in the same period
last year, when one-offs, including charges related to tax reforms
in France and the U.S., weighed on the results.
Net banking income, SocGen's top line, fell 6.3% on year to
EUR5.93 billion.
Analysts had expected a net profit of EUR450.3 million on net
banking income of EUR5.94 billion, a consensus forecast provided by
FactSet showed.
Net profit for the year grew 38% to EUR3.86 billion.
Revenue for the quarter fell 6.9% on year at the bank's
global-banking and investor-solutions business, which includes
investment banking and asset management. Revenue from the global
markets and investors services divisions declined 19%, with
fixed-income, currencies and commodities revenue down 29% from the
same period last year. Equity revenue fell 16% on year.
The bank warned in January that its results for the final
quarter of last year would be affected by disposals and a
challenging environment in global capital markets. It had forecast
a roughly 20% decline on year in global markets and investor
services revenues for the quarter, and announced a dividend of
EUR2.20 a share for 2018, stable from the previous year, offering
the option of a payment in shares.
Write to Pietro Lombardi at pietro.lombardi@dowjones.com
(END) Dow Jones Newswires
February 07, 2019 01:31 ET (06:31 GMT)
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