The private banking arm of French banking giant Societe Generale generated net banking income of EUR201 million in the second quarter of 2014, a decline of 10.8% compared to a year ago.
Figures were hit by a ‘high comparison base’ and benefited from a non-recurring income item, the bank said in a statement.
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This decline also reflects the slowdown of the activity in Asia related to the disposal of private banking activities which is expected to be finalised in the fourth quarter of 2014.
At EUR116 billion at end-June, assets under management were higher for the fourth quarter running, by EUR2.2 billion in the second quarter. They were driven by Europe, where client-driven activity was buoyant with net inflow of EUR 1.1 billion, especially in France.
Private banking’s gross margin remained at a ‘satisfactory level’ of 101 basis points.
The revenues of the bank’s Asset and Wealth Management business line totalled EUR258 million in the second quarter, down 3.4% year-on-year.
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By GlobalDataLyxor Asset Management, a wholly owned subsidiary of Societe Generale, recorded an increase in assets under management to EUR86 billion, or EUR2.2 billion in the second quarter, with a EUR1.7 billion performance effect and EUR 0.5 billion positive currency impact.
The second quarter net inflow was underpinned by the good performance of ETFs, the group said.
Lyxor’s revenues were substantially higher (33.4%) at EUR50 million in the second quarter, involving a significant improvement in Lyxor’s gross margin which amounted to 24.3 basis points vs. 21.6 basis points in the year ago period.
