SocGen posts Q1 2014 growth in financial services

The equipment finance division of Société Générale turned in a ‘solid performance’ in the first three months of the year, according to the board’s report on the French bank’s Q1 2014 results.

The board said equipment finance posted ‘a good level of new business’ by the end of March, up by 16% on the same quarter the previous year, with Germany, Italy and the US proving to be the hot spots for business. The bank said new business margins remained at a high level due to its selective origination policy. However, outstanding loans were down 2.6% compared to the same period in 2013, totalling €15.1bn.

Growth in operational vehicle leasing and fleet management was strong, up by 9% year-on-year, and the fleet now totals more than one million vehicles. The bank said the improvement in performance was down to the successful development of its partnerships with car manufacturers and retail banking networks, in particular its recent agreement with Banco Bilbao Vizcaya Argentaria (BBVA).

Overall, financial services to corporates’ revenues were up by 13.9% compared to last year, reaching €334m. Gross operating income rose by 25.3% to €162m and operating expenses rose by 4.9% to reach €172m. As a result the contribution to the group net income increased by 29.5% to €100m, compared to €78m for the same period in 2013.

The Societe Generale Group’s net banking income for Q1 2014 amounted to €5,829bn, up 3.3% on the previous year. In a statement the board said: “In a generally still lacklustre environment, the Group achieved a good operating performance.”