SocGen profit rises to €842 million, as provisions jump on Russia exposure

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By Cristina Roca

Societe Generale SA said Thursday that its first-quarter earnings rose, helped by all its businesses lines, even though provisions crept higher.

The French lender reported a net profit of 842 million euros ($894.4 million), compared with EUR814 million a year earlier.

Net banking income, its top-line figure, came in at EUR7.28 billion for the quarter, up 17% from EUR6.25 billion a year prior. All business lines contributed to the increase, with the international retail banking & financial services and the global banking & investor solutions posting double-digit revenue growth.

The bank booked provisions of EUR561 million, up from EUR276 million a year earlier, with the increase being mainly on account of credit exposures to Russia. Cost of risk stood at 39 basis points for the quarter.

The company said it expects cost of risk for the year at 30-35 basis points.

It also said it expects a residual net hit to its capital of about 6 basis points, upon closing, from the disposal of its Russian businesses, which it recently decided to sell after the war in Ukraine began.

Write to Cristina Roca at cristina.roca@wsj.com


This article was originally published by Marketwatch.com. Read the original article here.

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