On Friday, French financial services firm Societe Generale S.A. announced a decrease in their first-quarter net profit from the previous year, despite stable net revenues. Nonetheless, they saw an increase in the gross operating income compared to the prior year. Consequently, Societe Generale's shares in Paris observed approximately a 4.4% increase during morning trade.
CEO Slawomir Krupa commented on the company's progress in carrying out its strategic plan. The organization's improved operational performance is the result of a robust contribution from global banking and investor solutions, and unwavering revenues from international retail banking. Krupa also noted that costs are being kept in check, as promised at their Capital Market Day, asserting that the positive results are a testament to the team effort towards forming a more synergetic, efficient, and sustainably profitable model.
During the first quarter, Societe Generale saw a 21.7% decrease in Group net income, dropping from €868 million in the previous year to €680 million. Earnings per share settled at €0.64 as Core businesses' net income fell 13.5% from €1.14 billion last year to €989 million. The adjusted Group net income for the first quarter was €514 million, which was €705 million the previous year.
Although operating income fell 11.7% to €1.27 billion from last year's €1.43 billion, gross operating income saw a 3.2% increase from €1.61 billion to €1.67 billion. A 1.5% decrease was seen in operating expenses, which amounted to €4.98 billion. Quarterly revenues, otherwise known as net banking income, fell by a marginal 0.4% from last year's €6.67 billion to €6.65 billion. At constant currency rates, the net banking income fell by 4.8%.
Societe Generale's French Retail, Private Banking, and Insurance revenues experienced a 3.5% decrease from last year, dropping to €2.01 billion. Even when excluding PEL/CEL, revenues fell by 3.9%. Global Banking and Investor Solutions revenues dropped 5.1% to €2.62 billion. However, revenues from International Retail, Mobility and Leasing Services grew by 3.9% to €2.15 billion.
Societe Generale mentioned an ongoing rebound in retail banking in France, with an increase in net interest income compared to the last quarter. The firm's shares were trading at €26.98 in Paris, representing an increase of 4.6%.