The asset and wealth management business of French bank Societe Generale has reported net income of EUR62m for the third quarter of 2015, down 7% compared to EUR67m in the year ago quarter.
The revenues of the bank’s asset and wealth management division, which contains private banking business line, totalled EUR254m in the third quarter of 2015, down 7% compared to the prior year quarter.
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For the quarter ended 30 September 2015, net banking income at the bank’s private banking business was EUR204m, a decrease of 6.8% compared to EUR219m the corresponding quarter of 2014.
Private banking’s assets under management were EUR112bn at end of September 2015, up 2.4% at constant structure compared to end September 2014 due to a good level of inflow driven by France and Luxembourg and a positive currency impact partially offset by an unfavorable market effect.
Lyxor Asset Management, a wholly owned subsidiary of Societe Generale, has registered assets under management of EUR105.7bn at the end of September 2015, driven by an inflow of EUR22.2bn since the start of 2015.
Revenues at the unit stood at EUR44m for the third quarter of 2015, down 10.2% from a yare ago reflecting the development of the business mix towards lower margin ETF activities.
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By GlobalDataOverall, the banking group posted net banking income of EUR6.36bn for the third quarter of 2015, an increase of 7.9% compared with EUR5.87bn in the year ago quarter.
Societe Generale CEO Frederic Oudea said: "The Societe Generale Group has posted sound results in Q3 2015 on the back of a good commercial performance and the continued control of costs and risks. We have provided further evidence of our growth potential against the backdrop of a recovery in Europe, with a substantial increase in our Retail Banking activities, in France with record growth in new customers and also internationally.
"Our ability to generate capital has enabled us to strengthen our financial solidity, with a CET1 ratio of 10.5%, in line with our target of around 11% at end- 2016. Our balanced model and customer-focused strategy demonstrate our ability to create value and adapt to rapid changes in our customers’ needs in an even more demanding regulatory environment."
