Societe Generale (GLE, Financial) reported third-quarter results that exceeded analysts' expectations, thanks to increased trading revenue and improvements in its French retail banking sector. The bank announced that revenue from equities trading rose by 10% year-over-year, while fixed income trading revenue increased by approximately 6%, both surpassing forecasts.
The domestic retail banking division experienced a 19% rise in revenue, contributing to a group profit that more than tripled compared to the previous year. This financial performance could bolster CEO Slawomir Krupa, who has focused on capital strength to attract investors for over a year. His strategy included job cuts at the Paris headquarters and divesting non-core units to concentrate on the most profitable businesses.
Since early August, Societe Generale's stock has rebounded 18% from its low, amid signs that the worst might be over. However, the stock remains about 10% lower since Krupa unveiled his strategy last September, making it one of the worst performers in the European bank index.
The bank is restructuring its top leadership, with Deputy CEO Philippe Aymerich and CFO Claire Dumas set to depart. Leopoldo Alvear has been appointed as the new CFO, effective January 7.
