Wednesday 6 November 2019 8:20 am

SocGen profit slumps amid major restructuring

Societe Generale has posted a steep drop in profit for the third quarter of this year, missing analyst expectations amid a major restructuring effort.

The bank reported net profit of €854m (£734m) for the three month period, dropping almost 35 per cent when compared to the same quarter last year.

Analysts expected a net income of €863m for the third quarter, according to Refinitiv.

Equity trading revenue slumped 20 per cent, with the bank citing “lower volumes and adverse market conditions, particularly in August”.

Read more: Insurance industry must improve corporate culture, Bank of England warns

SocGen’s core Tier 1 ratio, a key measure of capital strength, rose to 12.5 per cent in September from 12 per cent at the end of June.

The firm reported revenue of €5.98bn compared with €6.53bn in the previous year.

Under chief executive Frederic Oudea, SocGen has been pressing ahead with a new strategy aimed at reversing several weak financial quarters.

The bank announced 1,600 job cuts earlier this year and is planning to downsize its commodities trading arm.

Read more: Softbank ‘tightening governance’ at firms it back after Wework saga

“We have achieved results very much in line with our objectives and priorities,” Oudea said in a statement this morning.

He told CNBC: “Our performance is very much in line with our objectives and priorities. Our priority number one is around capital. This is the core focus of our shareholders.”