Socgen posts lower-than-expected loss after costly exit from Russia

A person holds an umbrella as the logo of French bank Societe Generale is seen outside a bank building in Saint-Sebastien-sur-Loire near Nantes, France, May 4, 2021. REUTERS/Stephane Mahe/ File Photo

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PARIS, Aug 3 (Reuters) – Buoyant retail and investment banking activity helped Societe Generale (SOGN.PA) post a smaller-than-expected loss in the second quarter, after absorbing a blow of 3.3 billion euros following the sale of its Russian unit.

The French bank, which has given no update on its current efforts to find a new chief executive, said on Wednesday it posted a loss of 1.48 billion euros ($1.51 billion), as analysts on average expected a loss of more than 2 billion euros. .

Net banking income jumped just over 7 billion euros, around 600 million euros more than expected, while operating expenses fell to 4.46 billion euros, it said. the bank.

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Revenue rose 23.3% to €1.5 billion in the global markets unit, which saw equity trading grow 7.5% to €833 million, while rates and exchange rates increased by 50% to 683 million euros.

French and international distribution recorded an increase in net banking income of 8.5% to 2.26 billion euros and 12.7% to 1.27 billion respectively.

In May, Societe Generale completed the sale of its Russian business Rosbank (ROSB.MM) to the Interros group, a company linked to Russian oligarch Vladimir Potanin.

In the same month, Frederic Oudea took investors by surprise when he announced he would step down as CEO next year after leading the lender for 15 years.

Socgen’s results follow rival BNP Paribas (BNPP.PA), which reported better-than-expected earnings on Friday as activity remained buoyant across all business sectors. Read more

With a 28.3% fall so far in 2022, Socgen shares follow BNP Paribas, which has lost 23.7%, while the wider European banking sector (.SX7E) was down 20, 5%.

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Report by Julien Ponthus and Matthieu Protard; Editing by Silvia Aloisi and Shounak Dasgupta

Our standards: The Thomson Reuters Trust Principles.

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