PARIS (dpa-AFX) - French lender Societe Generale SA (SCGLF.PK, SCGLY.PK) on Thursday reported Group net loss for the first quarter of 326 million euros, compared to net income of 686 million euros in the year-ago period. Loss per share was 0.57 euros, compared to earnings per share of 0.65 euros last year.
Underlying Group net income fell to 98 million euros from 1.01 billion euros last year.
Net banking income declined 16.5 percent to 5.17 billion euros from 6.19 billion euros last year.
While French Retail Banking's net banking income declined 1.2 percent, International Retail Banking & Financial Services' net banking income rose 1.6 percent. Net banking income for Global Banking & Investor Solutions fell 27.3 percent, penalised heavily by market conditions.
In the first quarter, ROE was negative 3.6 percent, compared to 4.2 percent last year, and ROTE was negative 4.2 percent, compared to 5.5 percent a year ago. Underlying ROTE came in at negative 0.5 percent, compared to 8.4 percent last year.
Looking ahead to fiscal 2020, Societe Generale confirmed decrease in Group costs in 2020 and additional cost reduction between 600 million euros and 700 million euros in the year.
The company expects the cost of risk outlook at around 70 basis points throughout 2020 in a base Covid scenario and around 100 basis points in a scenario of extended shutdown.
'Beyond our focused adaptation to the immediate impact of the crisis, we are already working on the designs of our next strategic plan 2021-2025 to take into account the new environment post-crisis,' said Frédéric Oudéa, the Group's Chief Executive Officer.
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