The asset and wealth management business line of Societe Generale has reported a rise in net banking income in Q1 2020 even as the group reported a loss on bad loan provisions.
Net banking income was €230m in Q1 20, up 6% when adjusted for the revaluation of SIX securities and for divestment of its Belgian private banking business.
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Private Banking reported net inflows of €1bn at the end of March 2020, driven by France.
Lyxor’s assets under management were €126bn as of 31 March 2020, a 15% decrease from December 2019.
Societe Generale highlights for Q1 2020
At a group level, the French bank reported a net loss of €326m in Q1 2020 driven by increased loan loss provisions amid the Covid-19 pandemic.
In the previous year, the bank posted a profit of €686m.
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By GlobalDataThe provisions rose to €820m in Q1 2020, compared to €264m in Q1 2019.
Underlying net income plunged 91% to €98m from €1.06bn.
Societe Generale Frédéric Oudéa CEO said: “We are tackling this crisis with insight but confident in the soundness of our business model, the agility of our operational model driven by technological and digital advancements and the robustness of our capital and risk profile.
“Beyond our focused adaptation to the immediate impact of the crisis, we are already working on the designs of our next strategic plan 2021-2025 to take into account the new environment post-crisis.”
