PARIS (dpa-AFX) - Societe Generale SA (SCGLF.PK, SCGLY.PK) reported Wednesday that its fourth-quarter Group net income declined 28.1 percent to 470 million euros from last year's 654 million euros.
Underlying Group net income was 631 million euros, compared to 875 million euros a year ago.
Operating income declined 40.4 percent to 798 million euros from prior year's 1.34 billion euros. Net banking income declined 6 percent to 5.84 billion euros from 6.21 billion euros last year.
Looking ahead, the company said it is aiming for a decline in underlying operating expenses in relation to 2020, as from 2023.
In 2021, it will maintain strict discipline and target a positive jaws effect against the backdrop of an improvement in the economic outlook with a slight increase in its costs.
The 2021 cost of risk is expected to be lower than in 2020.
The Group aims to operate with a CET1 ratio more than 200 basis points above the regulatory requirement.
In 2021, the CET1 ratio is expected to be at a level significantly higher than 200 basis points above the regulatory requirement.
Regarding its distribution policy for the 2021 financial year, the Board of Directors has confirmed the objective defined before the outbreak of the COVID crisis, i.e. a payout ratio of 50% of underlying Group net income.
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