Societe Generale SA posted its first quarterly profit of the year in the third quarter and put on a more positive tone on its capital outlook as the performance of its trading operations helped the bank beat expectations.
France’s third-largest listed bank by assets said Thursday that net profit was 862 million euros ($1.01 billion), up from the EUR854 million in the same period a year earlier.
The lender enjoyed a strong rebound in stock trading. After two tough quarters, equity revenue rose almost four-fold from the second quarter and was up 5.1% from a year earlier. This, coupled with a 9.4% growth in fixed income, supported the bank’s top line, which, at EUR5.81 billion, fell 2.9% on year, less than analysts had expected.
“The Societe Generale Group’s Q3 results illustrate the ability of all our businesses to rebound, after the exceptional lockdown period that we have experienced, and to adapt to a still very uncertain environment,” Chief Executive Frederic Oudea said.
The bank improved its capital outlook for the year. It now targets a common equity tier 1 ratio above 12% at the end of the year, having previously guided for a ratio of between 11.5% and 12%.