The French bank Societe Generale recorded a notable improvement in its financial performance during the second quarter of this year, turning a profit after suffering a loss during the same time previous year. The bank reported a net income of 900 million euros ($983.6 million), which was more than experts had predicted and a significant improvement from the 1.5 billion euro loss recorded in the firm’s last quarter in Russia in 2022.

A reduced cost of risk, with provisions put aside for failed loans totaling 12 basis points, or 166 million euros, was one of the major drivers of the better performance. The bank’s earnings received a much-needed lift from this drop in risk expenses.

The French retail banking branch of Societe Generale, whose revenues fell by 13.6% from the prior year as a result of decreased net interest margins, a key metric of a bank’s profitability, however, experienced difficulties. Additionally, revenues for the global banking segment decreased by 7.3% as a result of reduced volumes and lower volatility. Notably, fixed income and currencies (FIC) operations were especially impacted, with revenues declining by 18.4% in the face of unfavorable market circumstances brought on by a decline in interest rates and increased currency volatility.

Similar to its competitors, Societe Generale launched a share repurchase program with a budget of around 440 million euros in response to its stronger financial standing.

The group’s chief executive officer, Slawomir Krupa, noted that business activity was robust in the majority of sectors throughout the quarter. Nevertheless, against the background of progressive normalization after very favorable prior years, a reduction in group revenues was caused by a fall in net interest margin in France and lower market activity revenues.

As a result of the caliber of their loan origination and portfolio, Krupa also emphasized the bank’s low cost of risk. Despite difficulties, Societe Generale is hopeful about its future, and its CEO has emphasized the bank’s dedication to overcoming global banking difficulties and maintaining a strong financial position.


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