Societe Generale net profit increased 41% in the first half to expand core liabilities into difficulties
KeywordsNet profit first half difficulty
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On the evening of August 25, Societe Generale issued a semi-annual report to achieve a net profit of 8.764 billion yuan, an increase of 2.54 billion yuan, an increase of 40.82%, the earnings per share increased by 41.37% to 1.64 yuan. Under the high pressure of deposit and loan ratio, Societe Generale has an alternative to increase interbank deposits to ease the pressure, while balancing credit and adjusting credit structure to support profit growth. At the end of June, Societe Generale foreign currency deposit balance for the first time to break through the trillion, amounted to 1,011,257,000,000 yuan, the beginning of the new 110.372 billion yuan, an increase of 12.25%. Societe Generale management frankly, compared with regulatory requirements, its core debt growth is relatively slow, Societe Generale will deeply consider the sustainable development of debt business model, through business models and process innovation to product-led debt business development. Compressed personal housing loans accounted for more than Societe Generale half year report card, in the credit scale strictly limited adverse situation, the allocation of assets to achieve a significant increase in economic efficiency year-on-year. At the end of the reporting period, Societe Generale's assets amounted to 1,714,804,000,000 yuan, which grew 28.72%. The loan was increased by 90.899 billion yuan at the beginning of the period, an increase of 12.96%. At the end of June, the bank's public loans accounted for an increase of 0.99%, while individual loans rose by 1.41% at the beginning of the comparison period, and bill discounting accounted for a decrease of 2.4%. Societe Generale gradually reduce the low yield of bills, bills discounted balance sharply contracted 15.553 billion yuan, the decline of more than 100%, the closing balance of only 11.149 billion yuan. Societe Generale this year to adjust the structure of loan assets, as at the end of June, its personal loan balance (including credit card personal overdraft balance) than the beginning of an increase of 33.027 billion yuan, of which personal housing and commercial housing loans accounted for 85.96%, down 2.25%, other loans accounted for an increase of 2.43%. "The main reason is the company to optimize the structure of personal loans, increased the individual operating loans and other non-housing loans. Management said. Liquidity ratio under pressure using the traditional advantages of the business sector, Societe Generale has a strong interest in buying and selling back financial assets and increasing its earnings through the non-credit business. However, the rapid growth of industrial bank loans in the medium and long term, the mismatch of assets and liabilities increased, so that management worry, liquidity ratio indicators face some pressure. At the end of June, the bank's long-term loan balance amounted to 485.619 billion yuan, accounting for 64%, and short-term loans accounted for 34%. Societe Generale said that since the beginning of the year, in response to the phenomenon of unreasonable asset structure, the company to the operating units issued medium and long-term loan proportional control plan, the implementation of monthly monitoring and control, prudential control of long-term loan project approval progress. On the other hand, the bank continued to maintain the term deposit absorption policy, in the case of reasonable capital costs, timely attract fixed-rate agreement deposits and issue financial debt, to maintainReasonable balance of production and liability structure. The expansion of core liabilities was affected by 2009-day lending, and commercial banks faced unprecedented pressures this year. As at the end of June, Societe Generale's total liabilities were 1,630,882,000,000 yuan, an increase of 28.16% at the beginning of the period. This growth is impressive, but the analysis of its debt structure can be seen, its interbank deposits and sell repurchase financial assets increased significantly, far exceed the growth of customer deposits. The balance of customer deposits was increased by 110.372 billion yuan at the beginning of the period and only increased by 12.25%. The industry has once again become an important driver of industrial liability growth. As at the end of the reporting period, the balance of deposits of its peers and other financial institutions was 350.853 billion yuan, an increase of 113.84 billion yuan at the beginning and an increase of 48.03%. In addition, the company sold repurchase financial assets at the end of the June balance of 159.309 billion yuan, the beginning of the increase of 110.372 billion yuan, growth of up to 247%. Societe Generale has realized the core liabilities of the short board, the first half of the multi-pronged, trying to make changes. First, adjust and optimize the comprehensive evaluation and other resources allocation mechanism, strengthen the operating unit loan ratio assessment, improve the proportion of core debt assessment, support the development of deposits, savings business competitions. Second, strengthen the basic customer marketing and management, at the same time to strengthen the loan customers to its upstream customers marketing, so that the company loans entrusted to the customer after the payment of settlement deposits. The impairment loss is increased by 36 times times. With the linkage adjustment of assets and liabilities, Societe Generale increased the strength of impairment loss of assets. In the first 6 months, it raised $1.342 billion, a sharp increase of 3,594% over the same period last year. Societe Generale explained that the lower base of the same period a year ago, the main part of this year is due to loan size growth and the corresponding combination of the reduction of the value of preparation. At the end of the reporting period, Societe Generale non-performing loans "a liter and a drop", the balance of 3.89 billion yuan, the beginning of the increase of 111 million yuan, non-performing loan rate of 0.49%, compared to the beginning of the decline of 0.05%. Overdue loans also increased, with a balance of $5.201 billion at the end of June, which increased by $281 million earlier. Management said that the main reason is that a small number of enterprises affected by macro-economic adjustment or their own management problems, the repayment difficulties, as well as government-led reorganization or judicial disposal of longer time. Societe Generale has made a big increase in non-interest-bearing income, which does not occupy capital. During the reporting period, the realization of non-interest income of 2.766 billion yuan, accounting for 13.59% of operating income, an increase of 924 million yuan, an increase of 50.15%. Intermediate Business income (handling fees and commission income and exchange gains and losses) 2.375 billion yuan, an increase of 33.24%.
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