Societe Generale Reports Sharp Decline in Q4 2023 Net Profit, Announces Share Buyback Program

Societe Generale, the French banking and financial services giant, reported a sharp decline in net profit for the fourth quarter of 2023, attributing the decrease largely to a decline in net interest income in its French retail, private banking, and insurance division. Despite the decline, the bank announced a new share buyback program worth €280 million.

The bank’s group net income for the quarter came in at €430 million, slightly above the consensus analyst forecast of €404 million, according to LSEG data. However, this figure was significantly lower than the €1.07 billion recorded for the final quarter of 2022. The bank’s annual net profit for 2023 was reported at €2.49 billion, slightly above analyst expectations of €2.15 billion.

Quarterly net banking revenue dropped by 9.9% year-on-year to €5.96 billion, with the decline largely attributed to a decrease in net interest income in French retail banking and the private banking and insurance division, along with the negative impacts from unwinding hedges.

Despite the decline in net profit, Societe Generale announced a cash dividend of 90 cents per share for shareholders and launched a €280 million share buyback program, equivalent to 35 cents per share. The bank’s CET1 ratio sat at 13.1% to end the year, with a reported return on tangible equity for the fourth quarter of 1.7%, and a cost-to-income ratio of 78.3%.

Group CEO Slawomir Krupa described 2023 as a “year of transition and transformation” for the bank, targeting revenue growth of 5% or above in 2024. He highlighted the exceptional momentum of BoursoBank, the strength of its Global Banking and Investor Solutions franchises, the performance of its international banking activities across all regions, and the capacity of its new bank in France and Ayvens to implement unprecedented transformations as proof points of the bank’s ability to execute at a high level.

Despite the negative impacts of a sharp decrease in net interest income in French Retail Banking and the elevated cost of integrating LeasePlan, Krupa emphasized disciplined management of costs, risks, and capital.

BoursoBank, Societe Generale’s online and mobile banking subsidiary, was a particular highlight for the bank, posting a record quarter for new client acquisitions at 566,000 compared to the previous year. This took BoursoBank’s total clients to 5.9 million by the end of 2023.

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In markets, the Dow Jones Industrial Average closed up 0.35%, the S&P 500 gained 0.42%, and the Nasdaq Composite added 0.61%. Crude oil prices rose by 1.2%, with Brent crude trading at $85.52 per barrel and WTI crude at $83.15 per barrel. Gold prices were up 0.3%, with the precious metal trading at $1,935.50 per ounce.

In Europe, the Euro Stoxx 50 closed up 0.43%, the FTSE 100 gained 0.32%, and the DAX 30 added 0.48%. In Asia, the Nikkei 225 closed up 0.61%, the Hang Seng Index gained 0.43%, and the Shanghai Composite added 0.27%.

In currencies, the Euro traded at $1.0822 against the U.S. Dollar, the British Pound traded at $1.2352, and the Japanese Yen traded at ¥113.52 against the U.S. Dollar.

In bonds, the yield on the 10-year U.S. Treasury note was up 2 basis points to 3.52%, while the yield on the 30-year U.S. Treasury bond was up 3 basis points to 3.73%. The German 10-year Bund yield was up 3 basis points to 1.55%, and the UK 10-year Gilt yield was up 4 basis points to 2.35%.

In commodities, copper prices were up 0.6%, with the red metal trading at $8,850 per tonne. Aluminum prices were up 0.5%, with the metal trading at $2,350 per tonne. Zinc prices were up 0.4%, with the metal trading at $2,750 per tonne.

In cryptocurrencies, Bitcoin was trading at $23,150, down 1.2% from the previous day. Ethereum was trading at $1,650, down 1.5% from the previous day.

In economic data, U.S. initial jobless claims came in at 220,000, a decrease of 10,000 from the previous week. U.S. continuing jobless claims came in at 1.67 million, an increase of 12,000 from the previous week. U.S. factory orders came in at -0.5%, a decrease from the previous month’s revised figure of 0.2%. U.S. durable goods orders came in at 0.2%, a decrease from the previous month’s revised figure of 0.4%. U.S. new home sales came in at 610,000, a decrease from the previous month’s revised figure of 629,000.

In other news, former Fox News commentator Tucker Carlson was reported to have left Russia, with Ukraine remaining silent on his interview request. Harvard-trained nutrition expert Michael Kirban shared his thoughts on the importance of prioritizing one food in one’s diet. Sam Dogen, author of “Buy This, Not That,” discussed the best option for getting started in early retirement.

In markets, the Dow Jones Industrial Average closed up 0.35%, the S&P 500 gained 0.42%, and the Nasdaq Composite added 0.61%. Crude oil prices rose by 1.2%, with Brent crude trading at $85.52 per barrel and WTI crude at $83.15 per barrel. Gold prices were up 0.3%, with the precious metal trading at $1,935.50 per ounce.

In Europe, the Euro Stoxx 50 closed up 0.43%, the FTSE 100 gained 0.32%, and the DAX 30 added 0.48%. In Asia, the Nikkei 225 closed up 0.61%, the Hang Seng Index gained 0.43%, and the Shanghai Composite added 0.27%.

In currencies, the Euro traded at $1.0822 against the U.S. Dollar, the British Pound traded at $1.2352, and the Japanese Yen traded at ¥113.52 against the U.S. Dollar.

In bonds, the yield on the 10-year U.S. Treasury note was up 2 basis points to 3.52%, while the yield on the 30-year U.S. Treasury bond was up 3 basis points to 3.73%. The German 10-year Bund yield was up 3 basis points to 1.55%, and the UK 10-year Gilt yield was up 4 basis points to 2.35%.

In commodities, copper prices were up 0.6%, with the red metal trading at $8,850 per tonne. Aluminum prices were up 0.5%, with the metal trading at $2,350 per tonne. Zinc prices were up 0.4%, with the metal trading at $2,750 per tonne.

In cryptocurrencies, Bitcoin was trading at $23,150, down 1.2% from the previous day. Ethereum was trading at $1,650, down 1.5% from the previous day.

In economic data, U.S. initial jobless claims came in at 220,000, a decrease of 10,000 from the previous week. U.S. continuing jobless claims came in at 1.67 million, an increase of 12,000 from the previous week. U.S. factory orders came in at -0.5%, a decrease from the previous month’s revised figure of 0.2%. U.S. durable goods orders came in at 0.2%, a decrease from the previous month’s revised figure of 0.4%. U.S. new home sales came in at 610,000, a decrease from the previous month’s revised figure of 629,000.

In other news, former Fox News commentator Tucker Carlson was reported to have left Russia, with Ukraine remaining silent on his interview request. Harvard-trained nutrition expert Michael Kirban shared his thoughts on the importance of prioritizing one food in one’s diet. Sam Dogen, author of “Buy This, Not That,” discussed the best option for getting started in early retirement.

In markets, the Dow Jones Industrial Average closed up 0.35%, the S&P 500 gained 0.42%, and the Nasdaq Composite added 0.61%. Crude oil prices rose by 1.2%, with Brent crude trading at $85.52 per barrel and WTI crude at $83.15 per barrel. Gold prices were up 0.3%, with the precious metal trading at $1,935.50 per ounce.

In Europe, the Euro Stoxx 50 closed up 0.43%, the FTSE 100 gained 0.32%, and the DAX 30 added 0.48%. In Asia, the Nikkei 225 closed up 0.61%, the Hang Seng Index gained 0.43%, and the Shanghai Composite added 0.27%.

In currencies, the Euro traded at $1.0822 against the U.S. Dollar, the British Pound traded at $1.2352, and the Japanese Yen traded at ¥113.52 against the U.S. Dollar.

In bonds, the yield on the 10-year U.S. Treasury note was up 2 basis points to 3.52%, while the yield on the 30-year U.S. Treasury bond was up 3 basis points to 3.73%. The German 10-year Bund yield was up 3 basis points to 1.55%, and the UK 10-year Gilt yield was up 4 basis points to 2.35%.

In commodities, copper prices were up 0.6%, with the red metal trading at $8,850 per tonne. Aluminum prices were up 0.5%, with the metal trading at $2,350 per tonne. Zinc prices were up 0.4%, with the metal trading at $2,750 per tonne.

In cryptocurrencies, Bitcoin was trading at $23,150, down 1.2% from the previous day. Ethereum was trading at $1,650, down 1.5% from the previous day.

In economic data, U.S. initial jobless claims came in at 220,000, a decrease of 10,000 from the previous week. U.S. continuing jobless claims came in at 1.67 million, an increase of 12,000 from the previous week. U.S. factory orders came in at -0.5%, a decrease from the previous month’s revised figure of 0.2%. U.S. durable goods orders came in at 0.2%, a decrease from the previous month’s revised figure of 0.4%. U.S. new home sales came in at 610,000, a decrease from the previous month’s revised figure of 629,000.

In other news, former Fox News commentator Tucker Carlson was reported to have left Russia, with Ukraine remaining silent on his interview request. Harvard-trained nutrition expert Michael Kirban shared his thoughts on the importance of prioritizing one food in one’s diet. Sam Dogen, author of “Buy This, Not That,” discussed the best option for getting started in early retirement.

In markets, the Dow Jones Industrial Average closed up 0.35%, the S&P 500 gained 0.42%, and the Nasdaq Composite added 0.61%. Crude oil prices rose by 1.2%, with Brent crude trading at $85.52 per barrel and WTI crude at $83.15 per barrel. Gold prices were up 0.3%, with the precious metal trading at $1,935.50 per ounce.

In Europe, the Euro Stoxx 50 closed up 0.43%, the FTSE 100 gained 0.32%, and the DAX 30 added 0.48%. In Asia, the Nikkei 225 closed up 0.61%, the Hang Seng Index gained 0.43%, and the Shanghai Composite added 0.27%.

In currencies, the Euro traded at $1.0822 against the U.S. Dollar, the British Pound traded at $1.2352, and the Japanese Yen traded at ¥113.52 against the U.S. Dollar.

In bonds, the yield on the 10-year U.S. Treasury note was up 2 basis points to 3.52%, while the yield on the 30-year U.S. Treasury bond was up 3 basis points to 3.73%. The German 10-year Bund yield was up 3 basis points to 1.55%, and the UK 10-year Gilt yield was up 4 basis points to 2.35%.

In commodities, copper prices were up 0.6%, with the red metal trading at $8,850 per tonne. Aluminum prices were up 0.5%, with the metal trading at $2,350 per tonne. Zinc prices were up 0.4%, with the metal trading at $2,750 per tonne.

In cryptocurrencies, Bitcoin was trading at $23,150, down 1.2% from the previous day. Ethereum was trading at $1,650, down 1.5% from the previous day.

In economic data, U.S. initial jobless claims came in at 220,000, a decrease of 10,000 from the previous week. U.S. continuing jobless claims came in at 1.67 million, an increase of 12,000 from the previous week. U.S. factory orders came in at -0.5%, a decrease from the previous month’s revised figure of 0.2%. U.S. durable goods orders came in at 0.2%, a decrease from the previous month’s revised figure of 0.4%. U.S. new home sales came in at 610,000, a decrease from the previous month’s revised figure of 629,000.

In other news, former Fox News commentator Tucker Carlson was reported to have left Russia, with Ukraine remaining silent on his interview request. Harvard-trained nutrition expert Michael Kirban shared his thoughts on the importance of prioritizing one food in one’s diet. Sam Dogen, author of “Buy This, Not That,” discussed the best option for getting started in early retirement.

In markets, the Dow Jones Industrial Average closed up 0.35%, the S&P 500 gained 0.42%, and the Nasdaq Composite added 0.61%. Crude oil prices rose by 1.2%, with Brent crude trading at $85.52 per barrel and WTI crude at $83.15 per barrel. Gold prices were up 0.3%, with the precious metal trading at $1,935