Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Euronext Paris  >  BNP Paribas    BNP   FR0000131104

BNP PARIBAS

(BNP)
  Report  
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

Societe Generale's stronger showing on capital offsets profit fall

share with twitter share with LinkedIn share with facebook
share via e-mail
0
05/03/2019 | 05:05am EDT
FILE PHOTO: The logo of Societe Generale is pictured outside the headquarters of the French bank at the financial and business district of La Defense at Puteaux near Paris

PARIS (Reuters) - Societe Generale on Friday reported a 26 percent drop in first-quarter net profit, but the French bank also revealed an increase in its capital position, showing the benefits of a restructuring plan, sending its shares higher.

After a weak performance last year, the bank in April unveiled plans to protect profitability, including closing down businesses, cutting 1,600 jobs, selling assets and freeing up to 10 billion euros (£8.6 billion) in capital.

SocGen said its common equity tier one ratio - a measure of a bank's financial strength - rose to 11.7 percent at the end of the first quarter up from 11.2 percent three months earlier.

Analysts had forecast the ratio at 11.3 percent.

"The main achievement is a very strong increase of our capital ratio," CEO Frederic Oudea said in a video released on the bank's website. "It's an important element because it was a question mark for investors," he said.

As part of the restructuring, SocGen announced the sale of its Slovenian bank to Hungarian rival OTP Bank. SocGen said the deal would bolster its balance sheet by reducing its risk-weighted assets by 2.3 billion euros.

SocGen's shares rose by around 2 percent, as analysts focused more on the positives of the stronger capital position, rather than the weak results.

"This performance should close the debate on capital for Societe Generale," wrote brokerage Jefferies, keeping a "hold" rating on the stock.

"Unfortunately, the underlying performance is below our expectations," Jefferies said.

RESTRUCTURING UNDERWAY

Major European banks have found it tough to boost profitability because of low interest rates which have hit returns on retail banking, while investment banking has suffered from market volatility.

SocGen has begun a restructuring, announced in February, which aims to cut 500 million euros in costs in corporate and investment banking after a steep market downturn forced it to lower revenue and profitability targets.

SocGen's first-quarter net profits fell 26 percent to 631 million euros ($705 million), while its revenues fell 1.6 percent to 6.19 billion. Analysts polled by Infront Data expected a net profit of 637 million euros on revenues of 6.07 billion euros.

SocGen said profits from its domestic retail bank fell 13 percent in the first quarter while its corporate and investment banking arm reported a 16 percent profit decline.

SocGen's results contrasted poorly with those of its cross-town rival BNP Paribas, which earlier this week reported higher profits.

SocGen will book between 250 million euros and 300 million euros in restructuring costs this year for the 500 million euros in cost cuts, mainly next year.

(Reporting by Inti Landauro and Matthieu Protard; Editing by Sudip Kar-Gupta and Jane Merriman)

By Inti Landauro and Matthieu Protard

Stocks mentioned in the article
ChangeLast1st jan.
BNP PARIBAS -0.61% 42.185 Real-time Quote.7.71%
OTP BANK NYRT 0.00%End-of-day quote.0.00%
SOCIÉTÉ GÉNÉRALE -0.68% 22.63 Real-time Quote.-17.95%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on BNP PARIBAS
07/16Italian yacht maker Ferretti seen launching IPO process after summer - source
RE
07/16Italian builder Salini backs plan to buy Astaldi to revive industry
RE
07/15THE BANKING JOBS : Innovation Lab Coordinator
PU
07/11BNP PARIBAS : 4th Annual VR Arles Festival
PU
07/11BNP PARIBAS : Deutsche and BNP Paribas Securities are not withdrawing from Taiwa..
AQ
07/11BNP PARIBAS : The World's Best Bank for Corporate Responsibility in 2019
PU
07/10BNP PARIBAS : Check Out the Winners of the National and European Mini-Company Co..
PU
07/09BNP PARIBAS : THEAM Quant Europe Climate Carbon Offset Plan, new carbon offset f..
PU
07/05BNP PARIBAS : See the 2018 Integrated Report from BNP Paribas
PU
07/04BNP Paribas to source Asia stock research from Morningstar, cut analyst jobs
RE
More news
Financials (EUR)
Sales 2019 43 691 M
EBIT 2019 13 253 M
Net income 2019 7 416 M
Debt 2019 -
Yield 2019 7,02%
P/E ratio 2019 7,32x
P/E ratio 2020 6,81x
Capi. / Sales2019 1,21x
Capi. / Sales2020 1,19x
Capitalization 53 022 M
Chart BNP PARIBAS
Duration : Period :
BNP Paribas Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends BNP PARIBAS
Short TermMid-TermLong Term
TrendsBullishNeutralNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 25
Average target price 53,05  €
Last Close Price 42,52  €
Spread / Highest target 67,2%
Spread / Average Target 24,8%
Spread / Lowest Target -16,4%
EPS Revisions
Managers
NameTitle
Jean-Laurent Bonnafé Chief Executive Officer & Director
Jean Lemierre Chairman
Philippe Bordenave Chief Operating Officer & Director
Denis Kessler Director
Jane Fields Wicker-Miurin Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
BNP PARIBAS7.71%59 516
JP MORGAN CHASE & COMPANY17.93%370 083
INDUSTRIAL AND COMMERCIAL BANK OF CHINA6.05%279 743
BANK OF AMERICA17.65%279 161
WELLS FARGO & COMPANY-1.69%211 863
CHINA CONSTRUCTION BANK CORPORATION12.72%200 723