Societe Generale SA (ADR)(OTCMKTS:SCGLY) CEO Frédéric Oudéa CEO discussed on 3Q2016 results with EuroBusinessMedia (EBM). On asking what factors led to the robust financial and commercial performance, the CEO said that these good performances, both financial and commercial, highlights the capacity of them to transform and to face the challenges of a difficult and uncertain environment.
Revenues are growing and it is firm’s goal, which showcases the balance of business model between different geographies and different activities. The company is able to effectively monitor well cost and the risk cost which is at an extremely low level. It shows the quality of the credit origination and the strong portfolio of assets.
Societe Generale recorded a strong increase in net profit, a number which is good, at 9.7%, a ROE, and this can further gain from the improvement in balance sheet. That’s something that the company will implement, quarter after quarter, step by step, there is a robust increase of Core Tier 1 ratio. It is at 11.4% at the close of 3Q2016. Overall, the numbers show good financial performance and very strong commercial performances.
Further when asked by EBM on how have retail banking measures in France sustained the existing environment of low, and at times negative interest rates, the CEO of Societe Generale said that among the different measures in this balanced business model, the retail business in France is the business which is affected for some part of its sales by the extremely low rate environment and also negative rate environment.
It should not cover the impressive commercial performances. The company is getting new clients, both business clients as well as individual clients. For instance, Boursorama has 920,000 customers, and it is growing rapidly. But they are also acquiring new customers in traditional networks and they consider it shows the quality of business model, services and the utmost commitment of teams.