Societe Generale has reported equities net banking income in the third quarter of 2016 at €482m, up 16.7% from the same period last year, boosted by a robust appetite for structured products. Income was, however, down 23.2% over the first nine months of 2016, against the same period in 2015.
At €687m, fixed income, currencies & commodities (FICC) net banking income was up 42.2% versus the third quarter of 2015, and up 19.1% in the first nine months of 2016 versus 2015, driven by credit and rates. There was an increased contribution from emerging markest and commodity activities, with only forex activity lower, in 'wait-and-see' market and reduced volumes, according to the bank.
Prime services' net banking income totalled €135m in the third quarter, down 6.9% from the third quarter in 2015 (up 9% in the first nine months of 2016 versus 2015), while securities services' revenues were up 4.6% in the third quarter of 2016 against the same quarter last year, at €159m (and down -6.9% in the first nine months of 2016 vs. 2015).
Outstanding unsecured debt securities with a maturity exceeding one year stood at €42bn at the end of the third quarter of 2016, against €38.5bn at the end of 2015.
SG's parent company's 2016 funding programme, at €28.9bn (of which 87% was completed at October 12, 2016), included €17bn of structured notes. An additional €3.9bn was issued by subsidiaries, according to the bank.
SG was involved an issuer for 278 structured products (€2.1bn) in Europe between January 1 and September 30, 2016, far below the 781 products (€2.4bn) over the same period last year, according to SRP data.
In its domestic market, the French bank sold 94 products worth €1.5bn (2015: 68 products/€1.2bn) via, among other, Adequity, Exclusive Partners, i-Kapital, Primonial and Vaillance Courtage. In Sweden, SG remained its position as the highest ranked foreign issuer, behind local players Swedbank and Handelsbanken, although both issuance (89 products) and sales (SEK999/€101m) were down on last year (2015: 152 products/SEK2.4bn).
Other European markets where the bank retains a large presence are Belgium, Ireland and the UK. In Belgium, the bank collected €134m from eight products (2015: five products/€85m), which were distributed via Crelan, Deutsche Bank and VDK Spaarbank, respectively, while in Ireland the bank's nine products were sold via BCP and Cantor Fitzgerald.
In the UK, SG was involved in 38 products during the first nine months of 2016, which, bar one product from Reyker, were exclusively distributed by Walkers Crips.
The net banking income of asset and wealth management totalled €256m in the third quarter of this year, stable against the same quarter last year (-8.2% in the first nine months of 2016).
Private banking's assets under management amounted to €118.9bn at the end of September 2016. Driven by inflows of €3.3bn, notably in France and the UK, and thanks to the integration of Kleinwort Benson, assets under management were higher (6.0%) than in the first nine months of 2015, despite extremely negative market and currency effects, according to the bank.
'The Group is pursuing its trajectory in a disciplined manner, with a view to winning new customers and enhancing its added value offering, notably by integrating digital technologies, while at the same time rigorously managing its costs and risks and strengthening its balance sheet,' said Frédéric Oudéa (pictured), chief executive officer of SG in a statement.
Click the link to view the full Societe Generale third quarter and nine months 2016 results and the presentation.
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