PARIS (Reuters) – Societe Generale <SOGN.PA>, France’s third-largest bank in terms of market capitalization, posted lower second quarter net profits after earnings were impacted by restructuring costs at its corporate and investment banking unit.
Net profit fell 14% to 1.05 billion euros (£990.1 million) during the second quarter compared with the same period a year ago, with revenues down 2.6% to 6.28 billion euros.
Societe Generale booked a 227 million euro charge related to its plan to restructure its corporate and banking unit by reducing 500 million euros worth of costs and cutting 1,600 jobs after a dismal fourth quarter.
Despite the lower profit in the quarter, Societe Generale managed to raise its common equity tier 1 ratio to 12% from 11.5%, thanks to asset disposals and the payment of parts of its dividends in shares instead of cash.
(Reporting by Inti Landauro and Matthieu Protard)