This photo, taken on October 28, 2019, shows the logo of the Society General Bank in Istraham, Normandy, France.
Summer Al-Dumi | AFP | Getty Images
LONDON – The Society General beat analysts’ expectations on Wednesday, describing the second half of 2020 as a “significant improvement” in business, despite the coronavirus epidemic.
The French bank posted a net profit of 470 million euros (9569 million) in the fourth quarter. Analysts expected a net income of 252 million euros in the quarter and a loss of 822 million for the year. The French lender ended 2020 with a net loss of 2520 million euros.
“The results for the fourth quarter are further confirming the boom in our business in the third quarter since the beginning of the year marked by the effects of the Covid crisis,” Friedrich Dia, the group’s chief executive officer, said in a statement.
The donor saw a loss of 1.26 billion euros during the second quarter when Europe struggled with the first wave of coronavirus. However, Society General returned profits in the following two quarters.
Here are the other highlights for the final quarter of 2020:
- Revenue has reached the level of 5.8 billion euros, a decrease of%% from a year earlier.
- From the fourth quarter of 2019, operating expenses decreased by 3.4%.
- The CET1 ratio, a measure of bank solvency, was 13.4%, up from 12.7% a year earlier.
Dividends and share buybacks
The French bank said it would pay a cash dividend of 0.55 euros per share in accordance with European rules. The European Central Bank (ECB) has asked lenders to be wary of dividend payments and share buybacks, at least until September, given the ongoing economic crisis.
In this regard, Soci જનt જન Gરેnrale announced that it would purchase approximately 470 million euros of shares during the fourth quarter of 2021, if the ECB’s recommendation does not lengthen.
The French bank has also said that its risk costs will be reduced in 2021.
The stock is down 43% in the last 12 months.
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