SocGen tumbles to full-year loss

Société Générale has tumbled to a full-year loss, the French bank revealed on Wednesday, after the Covid-19 pandemic weighed heavily.

In the 12 months to 31 December, net banking income fell 10% to €22.1bn, while operating income collapsed 63% to €2.1bn. The reported group net loss was €258m, compared to net income of €3.2bn a year previously.

In the fourth quarter, net banking income fell 6.0% to €5.8bn, while reported net income came in at €470m, a 28% decline but marginally ahead of analyst expectations.

In common with the rest of the banking sector, SocGen has battled both low interest rates and the impact of the pandemic in 2020. But it has also been hit by one-off charges as it seeks to overhaul its global markets business. It reported losses in both the first and second quarters before returning to the black in the third.

Frédéric Oudéa, chief executive, said: "The fourth quarter results provide further confirmation of the rebound in our businesses observed in the third quarter, after a beginning of the year marked by the impacts of the Covid crisis.

"In the second half, we defined ambitious and value-creating strategic trajectories for our businesses, demonstrating our ability to adapt and transform in a durably more uncertain environment. We are therefore entering 2021 with confidence and determination with, as a priority, the executive of our strategic roadmap."

The lender is scheduled to publish a review of its global banking and investor solutions strategy in May.

Paris-listed SocGen said it would pay a dividend of 55 cents per share, in accordance with maximum permitted by the European Central Bank.