SocGen Drops Profitability Target; 4Q Net Profit Falls
February 06 2020 - 1:49AM
Dow Jones News
By Pietro Lombardi
Societe Generale SA (GLE.FR) dropped its profitability target
for this year, a day after peer BNP Paribas SA (BNP.FR) cut the
same target, and said its fourth-quarter net profit fell.
France's third-largest listed bank by assets said it now expects
its return on tangible equity--a key measure of profitability--to
improve this year. It had previously guided for a RoTE of between
9% and 10%, a fairly large jump from last year's 6.2%.
Net profit for the quarter fell 4.6% on year to 654 million
euros ($719.4 million), it said on Thursday.
Net banking income, the bank's top-line revenue figure, rose
4.8% on year to EUR6.21 billion.
The bank expects higher profit this year compared with 2019,
thanks to slightly higher revenue and lower operating expenses. It
also targets a lower cost-income ratio. Its core Tier 1 ratio
target remains at 12% and the lender said it "aims to steer above"
that target.
SocGen will pay a cash dividend of EUR2.20 a share. It will
shift to a new dividend policy, targeting a payout ratio of 50% of
underlying net income. It could include a buyback component of up
to 10%, with the dividend component paid in cash.
The bank's core Tier 1 ratio, a key measure of capital strength,
rose to 12.7% from 12.5% in September.
Write to Pietro Lombardi at pietro.lombardi@dowjones.com
(END) Dow Jones Newswires
February 06, 2020 01:34 ET (06:34 GMT)
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