Continued pain at Societe Generale's domestic retail division and a decline in the profitability of its global banking arm during the second quarter was partially mitigated by strong growth in the French lender's overseas retail banking operations.
Here are the highlights from the earnings release:
- Net income down to 1.06 billion euros ($1.25 billion), slumping 28 percent from 1.46 billion euros a year ago.
- Revenue fell 26 percent to 5.20 billion euros, vs. 5.39 billion euros according to Thomson Reuters.
"We have taken an advantage from the improving environment in central and eastern Europe, from the dynamic in Africa which has compensated the still negative interest rate environment in the euro zone and the low market volatility," Severin Cabannes, deputy chief executive officer (deputy CEO) of the French bank told CNBC on Wednesday.
The lender's traditional domestic retail business continues to be plagued by the challenge of persistently low interest rates which sent net interest income down by 6.6 percent during the quarter versus a year ago. It also reported that it had set aside 300 million euros to pay for any potential legal costs, further weighing on profits during the quarter.
Meanwhile, costs at the division shot up by 3.7 percent year-on-year, outpacing the higher end of earlier guidance, as efforts to transform the business continued apace.