Société Générale's net profit fell by almost two-thirds last year

The net profit of Société Gégérale fell by almost two thirds last year

Illustrative photo – Headquarters of Société Générale bank in Paris.

Paris – Last year, the net profit of the French financial institution Société Générale fell by 64 percent to 2.02 billion euros (roughly 48 billion CZK). This was announced today by the company that owns Komerční banka in the Czech Republic. Last year, Société Générale's financial results were hit by extensive extraordinary costs related to the exit from Russia and the creation of provisions for loan losses. However, the bank's operating profit last year increased by four percent to 7.78 billion euros.

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In the fourth quarter alone, net profit fell by 35 percent year-on-year to 1.16 billion euros. However, it exceeded the expectations of analysts who, according to a survey by Visible Alpha, estimated it at an average of 834 million euros, Reuters wrote.

The net income of Société Générale, which is the third largest bank in France, increased by almost nine percent to more than 28 billion euros. In the fourth quarter, they rose by four percent to EUR 6.9 billion.

Komerční banka announced today that its net profit last year rose by 38 percent to CZK 17.6 billion. The bank's revenues rose by 23.2 percent to 38.6 billion. “The dynamic recovery of consumer and business activity after two years of pandemic restrictions contributed to the strong business and financial results,” said Jan Juchelka, Chairman of the Board of Directors and CEO of Komerční banka. “The environment in which we do business will also bring a number of challenges this year. Inflation, rising deposit costs and the consequences of the economic slowdown will undoubtedly affect this year's results,” he added.