Societe Generale announces more cost-cutting measures, focusing on its global banking and investor solutions offering
Societe Generale has revealed further plans to cut costs in its quarterly results today, focusing this time on its global banking and investor solutions unit.
The new plans seek to slash €220m (£173.8m) from costs by the end of 2017, in an effort to offset rising taxes and generate more funds for investments.
The bank has been in the process of introducing cost-saving measures since 2012. Its first round of cuts, which completed in 2015, resulted in savings of €900m. In total, Societe Generale is aiming to cut costs by €2bn between 2012 and 2017.
Societe Generale also revealed results for its first quarter today. Net banking income slipped to €6.2bn, down from €6.4bn a year ago, with the bank pinning the drop on declining market revenues and a challenging start to the year for banking in general. Its retail baking offering, however, performed well and helped to offset some of the slowdown.
Meanwhile, group net income rose to €924m, up from €868m last year.
"In a more challenging environment at the beginning of the year than last year, the group generated sound results in quarter one of 2016, illustrating the benefits of its diversified and highly integrated business model, which is reflected in the constantly increasing synergies between the businesses," said chief executive Frederic Oudea.