Categories: Finance

France’s SocGen raises 2021 forecasts on lower bad loan provisions

PARIS, Aug 3 (Reuters) – French bank Societe Generale (SOGN.PA) on Tuesday raised its forecasts for 2021 as the lender swung back to a profit in the second quarter on lower pandemic-related charges for bad loans and a rebound in its French retail banking.

Societe Generale now expects revenue to grow in all its businesses this year, including in French retail banking where it had previously anticipated growth between minus 1% and 1%.

France’s third-largest listed lender, after BNP Paribas (BNPP.PA) and Credit Agricole SA (CAGR.PA), said its cost of risk, which reflects provisions against bad loans, would be lower than expected in 2021, between 20 and 25 basis points, down from a previous forecast of between 30 and 35 basis points.

The lender posted second-quarter net income of 1.44 billion euros ($1.71 billion), compared with a loss of 1.26 billion euros a year earlier. Revenue rose 18.2% to 6.26 billion euros.

($1 = 0.8418 euros)Reporting by Matthieu Protard; Editing by Anil D’Silva and Christian Schmolllinger

Our Standards: The Thomson Reuters Trust Principles.

World Economic Magazine

Share
Published by
World Economic Magazine

Recent Posts

Judge Blocks New York Labor Law in Major Win for Amazon’s Workplace Policy Battle

Amazon secured a key early win as a federal judge blocked New York from enforcing…

4 hours ago

Enthuse Foundation Announced Finalists for 7th Annual Women Founders Pitch Competition

The Enthuse Foundation has revealed the finalists for its 7th Annual Women Founders Pitch Competition,…

4 hours ago

2nd Edition Model Risk Management, Canada

The Marcus Evans 2nd Edition Model Risk Management, Canada conference taking place in Toronto, Canada…

1 day ago

‘Grow With China’ Event Highlights Shanghai’s Expanding Role in Global Economic Growth

Economists say Shanghai is strengthening its role as China’s reform engine, accelerating innovation and global…

1 day ago

U.S. Consumers Plan to Spend Nearly $80 Billion During Black Friday

U.S. shoppers are set to spend nearly $80 billion this Black Friday and Cyber Monday,…

3 days ago

Waiken’s $450 Million Bet on Latin America: A Strategic Push into Connectivity and Content

Waiken has unveiled a US$450 million investment plan through 2031 to strengthen its entertainment and…

3 days ago