Societe Generale SA (SCGLY) shares gained firmly in Paris Thursday after France's second-biggest bank posted stronger-than-expected fourth quarter earnings and unveiled plans to spin-off its vehicle leasing unit.
SocGen, as it is known, saw its net income fall to €390 million in the three months ending in December, down from €656 million in the year-ago period but still ahead of analysts' forecasts of €354 million. Revenues for the period rose 1.3% to €6.13 billion, the bank said, also ahead of the €5.99 billion forecast.
Shares in the bank rose 1.8% to change hands at €43.46 each by 08:30 GMT, making it the second-biggest gainer on the CAC-40 benchmark. The stock has been significantly outpaced, however, but its European lending peers over the past three months, falling 5.5% against a 13.6% can for the Stoxx 600 Europe Banks index.
"In an economic environment that is less buoyant and much front, we have simplified our banking model, optimised capital allocation and continued to invest in the businesses of the future, as we undertook to do in our 2014 These efforts enable us to generally objectives set in 2014: we have demonstrated our potential for growth and operational excellence, and there has been a significant improvement in our structural profitability," said CEO Frederic Oudea. "The balance sheet has improved and all our regulatory capital and liquidity ratios are above the regulators' requirements."
Alongside the quarterly results, SocGen said it would sell a portion of its strong-growing vehicle leasing division, known as ALD, that services its corporate clients. Revenues for the group rose 23.4% in the fourth quarter to €454 million, according to the company's earnings report, which described it as " high added value businesss with substantial commercial and financial synergies within the Group."
