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Feb. 6, 2020, 2:06 a.m. EST

SocGen drops profitability target as net profit falls

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By Pietro Lombardi

AFP via Getty Images
This photograph taken on November 23, 2017, shows the logo of French banking group Societe Generale at the Actionaria fair in Paris.

Societe Generale SA dropped its profitability target for this year, a day after peer BNP Paribas SA /zigman2/quotes/206351084/delayed FR:BNP -0.37%  cut the same target, and said its fourth-quarter net profit fell.

France’s third-largest listed bank /zigman2/quotes/206663756/delayed FR:GLE -0.63%  by assets said it now expects its return on tangible equity--a key measure of profitability--to improve this year. It had previously guided for a RoTE of between 9% and 10%, a fairly large jump from last year’s 6.2%.

Net profit for the quarter fell 4.6% on year to 654 million euros ($719.4 million), it said on Thursday.

Net banking income, the bank’s top-line revenue figure, rose 4.8% on year to EUR6.21 billion.

The bank expects higher profit this year compared with 2019, thanks to slightly higher revenue and lower operating expenses. It also targets a lower cost-income ratio. Its core Tier 1 ratio target remains at 12% and the lender said it “aims to steer above” that target.

SocGen will pay a cash dividend of EUR2.20 a share. It will shift to a new dividend policy, targeting a payout ratio of 50% of underlying net income. It could include a buyback component of up to 10%, with the dividend component paid in cash.

The bank’s core Tier 1 ratio, a key measure of capital strength, rose to 12.7% from 12.5% in September.

FR : France: Euronext Paris
-0.21 -0.37%
Volume: 1.99M
May 29, 2023 5:55p
P/E Ratio
Dividend Yield
Market Cap
€69.46 billion
Rev. per Employee
FR : France: Euronext Paris
-0.14 -0.63%
Volume: 0.00
May 29, 2023 5:55p
P/E Ratio
Dividend Yield
Market Cap
€17.51 billion
Rev. per Employee

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