Société Générale, the leading French bank, continues to suffer, which in the first quarter of this year recorded a drop in net profit of 26% to 631 million euros, even worse than what Reuters analysts had forecast, who estimated a result around 637 million. Furthermore, the bank has predicted that its restructuring plan, which will lead it to become a commercial institution but also an investment bank, will it will cost another 2019-250 million by 300 for lost revenues due to the closure of some businesses. Despite the difficult context, with wait-and-see markets and still very low interest rates, SocGen has nevertheless announced that it has strengthened its financial solidity: the CET1 Ratio rises to 11,7% in the first quarter, against 11,2 % at the end of 2018, thanks in particular to some disposals.
The last one in chronological order, closed on Friday 3 May, was that of the Slovenian SKB Banka to OTP Bank, which however has a negative impact of 67 million on the quarterly accounts, due to the devaluation. to report thepositive trend of the international division, which grew by 8%. However, the retail operations in France continued to be affected by low interest rates this quarter and the division's net income fell by more than 13%. In this division, however, the group expects "a gradual improvement in the trend", in the months to come.
The division's net banking income asset and wealth management it stood at 255 million euro, an increase of 4,9% in one year. Private banking assets under management remained in line at €113 billion, with net banking income up 11,4% to €206 million. Despite the declining profit, Société Générale shares rebounded on the Paris Stock Exchange, where it gained 3,5% in mid-morning, approaching 30 euros per share.
