Societe Generale reported revenues were down 8.5% in the fourth quarter of 2015 at €1.28bn across its global markets and investor services business - which includes equities, fixed income, currencies and commodities. However on a year-to-year comparison global markets & investor services revenues amounted to €5.97bn in 2015, up 6.1% versus 2014, the bank said.

At €2.51bn in 2015, equity revenues were up 12.3% compared to 2014. After an excellent performance in the first half of 2015, the second half was affected by challenging market conditions and an investor risk aversion, especially for structured products. In Q4 2015, the business posted revenues of €447m, down -31.4% versus Q4 2014. The group nevertheless confirmed its leadership positions in cash equity and in listed products.

At €2.18bn fixed income, currency and commodities' revenue was down 7.2% in 2015 versus 2014. This was linked to difficult market conditions marked by low volumes, according to Societe Generale. The performance of flow activities, especially in fixed income, currencies and emerging markets helped reduce the decline in revenues on structured products. However, the business' revenues were up by 10.4% at €511m in Q4 2015 compared to Q4 2014. This was due to strong growth in client revenues on fixed income and credit activities, the French bank said.

Societe Generale's global markets and investor services division posted its highest revenues for five years in 2015, while new acquisitions drove prime services revenues higher.

Net profit rose to €656m in Q4 2015, equal to +19.5% vs. Q4 2014, below forecasts. On a year-to-year basis net income was up 46.9%, from €2.68bn to €4bn in 2015.

Lyxor's assets under management amounted €104bn, due to the inflow of nearly €9bn on ETFs in 2015, a segment in which Lyxor has maintained its No. 3 ranking in Europe, with an increase in market share to 10.7% at end-December 2015. Lyxor's revenues came to €182m in 2015, down -9.9% compared to 2014, reflecting a current shift in the business mix towards relatively lower margin activities such as ETFs.

Regulatory and economic headwinds may hurt the bank this year, Frederic Oudea, chief executive of France's second largest lender warned. Oudea signalled the bank may have difficulty reaching its profitability target this year due to "headwinds" that include record-low interest rates and volatile financial markets. The CEO warned the firm could fall short of its target for a 10% return on equity in 2016 due to tighter regulations and a difficult economic environment. The earnings alarm came as SocGen missed analyst estimates with its fourth-quarter profit figures, as earnings at its investment bank fell and it set aside provisions for potential legal costs.

Group net income stood at €4bn in 2015, substantially higher than in 2014, the bank reported.

Societe Generale sold 177,102 structured products via its retail distribution network across six European countries during 2015, claiming a share of 4% of the European market, ahead of Intesa Sanpaolo, Credit Agricole and Banco Populare, according to SRP data. The products, of which the vast majority were wrapped as securities, collected sales of €4.1bn.

The French bank's corporate & investment banking (SG CIB) went through a reorganisation in 2015 and reshuffle the management of its global markets business in a move to reinforce its multi-asset and advisory services. The new organisation became effective on May 2015, and is headed by Richard Quessette, former global head of cross-asset solutions.

Societe Generale also made a significant push in the exchange-traded products segment with a range of leverage and short products rolled-out in several European countries such as Italy, the UK and Spain.

Click here to view the Societe Generale's 2015 full year results and here to view the presentation.

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