Societe Generale Investment Bank, Focus on domestic activity in the 3rd quarter – Overview of results
By Ed Frankl
Societe Generale is due to publish its third quarter results on Friday. Here’s what you need to know:
NET PROFIT FORECAST: The French bank is expected to report net profit of 1.05 billion euros ($1.04 billion) according to the consensus provided by FactSet. This would be down from 1.58 billion euros for the same period last year.
REVENUE FORECAST: The Paris-based bank is expected to achieve revenue of 6.29 billion euros, according to the FactSet consensus, compared to 6.62 billion euros in the third quarter of 2021.
WHAT TO WATCH:
–INVESTMENT BANKING: Societe Generale has reduced its investment banking in recent years following business losses during the pandemic. It could see weaker performance in the division, with greater resilience in equity trading, but fixed income trading could suffer, Morgan Stanley analysts said in a research note. There also remain questions about whether the restructuring will help investment banking operations weather market volatility, they say. However, the company’s Global Markets unit is expected to deliver strong revenue performance in the quarter, the UBS analyst said in his note.
–FRANCE RETAIL: SocGen’s domestic retail business is expected to be constrained by caps on loan repricing and rates on regulated savings products increased significantly in the quarter, leading to lower net income from third-quarter interest versus second-quarter interest rates, UBS analysts said.
Write to Ed Frankl at [email protected]