Global GDP, yields and the profitability of the banking sector will never be able to return to pre-crisis levels. This is stated by Séverin Cabannes, deputy managing director of Société Générale. The French group has pledged to cut costs again this year in an attempt to reassure investors after a start to the year marked by weakness in investment banking, but offset by commercial banking activities.
France's second-largest listed bank has announced new cuts of 220 million euros for its global banking and investor solutions divisions, raising its overall target by 2017 to over 500 million.
In the first quarter, SocGen's net profit rose by 6,5% to 924 million. Excluding extraordinary items, such as debt revaluation, it would be down 0,5% to 829 million.
Analysts, according to a Reuters poll, had expected a drop of 7,7% to 801 million euros.
“In 2016, the strength of a diversified business model and additional cost efforts, as well as solid asset quality, should support both commercial and financial results,” confirmed the Bank, which expressed confidence on the 2016 outlook.
In the afternoon, the Bank's stock gained 2,2% on the Paris Stock Exchange.
