{"id":1929664,"date":"2023-05-12T10:41:20","date_gmt":"2023-05-12T14:41:20","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/socgen-beats-estimates-as-bond-trading-offsets-retail-banking-slump\/"},"modified":"2023-05-12T10:47:06","modified_gmt":"2023-05-12T14:47:06","slug":"socgen-beats-estimates-as-bond-trading-offsets-retail-banking-slump","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/socgen-beats-estimates-as-bond-trading-offsets-retail-banking-slump\/","title":{"rendered":"SocGen surpasses expectations with bond trading offsetting retail banking decline."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fsocgen-beats-estimates-as-bond-trading-offsets-retail-banking-slump%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1929664&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>Societe Generale Posts Better Than Expected Quarterly Earnings<\/h2>\n<p>French bank Societe Generale has reported better than <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/stocks-down-sharply-as-retail-results-disappoint-across-the-board\/\" title=\"Stocks Down Sharply as Retail Results Disappoint Across the Board\">expected quarterly earnings<\/a>, thanks to a boost in its trading business due to turmoil in bond and currency markets. The bank&#8217;s net income in the first quarter of 2019 rose 5.7% from the previous year to \u20ac868m ($955.5m), almost double the average of four <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/tsmc-q3-profit-jumps-80-beats-market-expectations\/\" title=\"TSMC Q3 profit jumps 80%, beats market expectations\">analyst estimates compiled<\/a> by Refinitiv. High volatility in interest rates and currencies drove demand for hedging in the quarter, boosting revenue from trading in fixed income and currency by 16%. However, the bank&#8217;s French <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/black-friday-sees-more-online-shopping-as-retailers-battle-labor-shortages-supply-chain-disruptions\/\" title=\"Black Friday Sees More Online Shopping As Retailers Battle Labor Shortages, Supply Chain Disruptions\">retail division<\/a> saw a slump in earnings due to stricter interest rate caps on mortgages and other loans. <\/p>\n<h3>Investment Bank Chief to Take the Helm<\/h3>\n<p>The results come less than two weeks before investment bank chief Slawomir Krupa takes the helm. The incoming CEO is tasked with reviving the valuation of France\u2019s third-largest listed bank after years of restructurings and lacklustre performance. Krupa is set to present a new strategic plan in the third quarter. <\/p>\n<h3>Retail Banking Woes<\/h3>\n<p>Sales at Societe Generale\u2019s French retail business plummeted 11% in the quarter while group revenue fell 5.3% to about \u20ac6.7bn. In addition to the caps on lending rates, the bank has also been squeezed by a government-imposed increase to the savings rates paid on the most popular savings accounts offered by French banks, called Livret A. The phasing out of a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/socgen-beats-estimates-as-bond-trading-offsets-retail-banking-slump\/\" title=\"SocGen surpasses expectations with bond trading offsetting retail banking decline.\">cheap long-term loan programme<\/a> by the European Central Bank also weighed on results. Societe Generale is unlikely to reap the benefits of <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/china-to-leapfrog-u-s-as-worlds-biggest-economy-by-2028-think-tank\/\" title=\"China to leapfrog U.S. as world\u2019s biggest economy by 2028 \u2013 think tank\">rising interest rates<\/a> in its French retail activity before 2024, the company said. <\/p>\n<h3>Positive Outlook<\/h3>\n<p>Despite the challenges faced by the bank&#8217;s retail division, Societe Generale maintained its 2025 financial targets, including a cost to income ratio below 62% and an expected return on tangible equity of 10%. The bank also said it would set aside less money for soured loans this year than initially planned. It now expects the so-called \u201ccost of risk\u201d to be below 30 basis points this year, down from previous guidance of 30-35 points. <\/p>\n<h3>Key Takeaways<\/h3>\n<ul>\n<li>Societe Generale&#8217;s net income in Q1 2019 rose 5.7% from the previous year to \u20ac868m ($955.5m).<\/li>\n<li>Revenue from trading in fixed income and currency rose by 16% due to high volatility in interest rates and currencies.<\/li>\n<li>The bank&#8217;s French retail division saw a slump in earnings due to stricter interest rate caps on mortgages and other loans.<\/li>\n<li>The incoming CEO, Slawomir Krupa, is set to present a new strategic plan in the third quarter.<\/li>\n<li>Societe Generale maintained its 2025 financial targets, including a cost to income ratio below 62% and an expected return on tangible equity of 10%.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>By Mathieu Rosemain and Matthieu Protard PARIS (Reuters) -French bank Societe Generale posted better than expected quarterly earnings on Friday after turmoil in bond and currency markets boosted its trading business. Advertisement The trading windfall cushioned a slump in SocGen\u2019s French retail division, where earnings were curbed by stricter interest rate caps on mortgages and<\/p>\n","protected":false},"author":66,"featured_media":1929665,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[542],"tags":[14689,6542,5182,8427,26591,6581,26588,12146,3855],"class_list":["post-1929664","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-oann","tag-banking","tag-bond","tag-decline","tag-expectations","tag-offsetting","tag-retail","tag-socgen","tag-surpasses","tag-trading"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1929664","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1929664"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1929664\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1929665"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1929664"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1929664"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1929664"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}