SocGen profit jumps 11pc as CEO steps up cost-cutting drive

PARIS: Societe Generale reported a forecast-beating 11 percent jump in third-quarter profit on Thursday, as CEO Slawomir Krupa stepped up his drive to slash costs.

The bigger-than-expected fall in expenses, as well as signs that a turnaround plan for the retail unit is beginning to work, offset a mixed performance at SocGen’s investment bank.

The French lender said sales rose 1.6 percent across its investment bank but that was below BNP Paribas, Deutsche Bank and Wall Street rivals during a bumper period for trading. SocGen’s well-known equities business even saw revenues shrink.

Overall group net income rose to 1.52 billion euros (USD1.77 billion), up 11.3 percent from a year earlier and beating by more than 200 million euros the average analyst estimate.

Sales fell 2.7 percent to 6.66 billion euros over the period, above expectations, because of a smaller business footprint following asset disposals.

Krupa, who took the helm in 2023, launched a turnaround plan two years ago in a bid to end SocGen’s reputation as a European laggard labouring under poor profitability and a bloated cost base.

After initially struggling, his policy of cost cutting, asset disposals and strengthening the bank’s capital position is winning over investors.

SocGen shares have doubled this year, against a 49 percent rise across the European banking sector, although that follows a long period of underperformance.

“Quarter after quarter through the cycle, we continue to execute our strategic roadmap with discipline by maintaining a strong capital position, strict cost control and prudent risk management,” Krupa said.