The investment bank reported €24.67 billion in annual net banking income for 2019, a 2.1% fall from its 2018 figure of €25.21 billion. The company attributed the decrease to a base effect in the corporate centre, with the stability of businesses’ net banking income.
However, Société Générale did report a 4.8% quarter-on-quarter jump in net banking income of €6.21 billion during the fourth quarter.
According to SRP data, the bank issued 26,484 structured products in the final quarter, sliding to seventh place in terms of public offering product issuance in the retail space, from second place in the previous quarter. Vontobel took the lead and launched 49,378 structured products.
The bank reduced the group’s risk-weighted assets (RWAs), totalling a figure of €345 billion in December 2019, from €376 billion in the same month of 2018. It had already reached its initial target of reducing RWAs by 2020, during the third quarter, more than a year ahead of schedule.
In addition, over €40 billion of long-term/medium-term debt was issued at the end of December 2019 with an average maturity of 4.3 years.
Global markets and investor service revenues decreased by 1.6% while its reported net banking income totalled €5.21 billion, a 3.8% drop from 2018.
SRP data reveals that the countries possessing the largest listings for product issuances in 4Q19, were Germany and Austria, the majority of which were wrapped as warrants.
In France, the bank sold 243 products that were worth approximately €1 billion. They were distributed via 29 different providers that include Irbis Finance, Crédit du Nord, Swiss Life Banque Privée and DS Investment Solutions.
Revenues from fixed income and currencies were 3.4% higher when restated for the impact of restructuring on the global market, while equities and prime services revenues totalled €2.50 billion, down 5.2% from 2018.
The group’s consolidated balance sheet included debt securities of €125.17 billion and hedging derivatives of €10.21 billion, as of December 2019.
The asset management arm reported that Lyxor’s assets under management reached a record level of €149 billion at end-December 2019, up +7.6% vs. September 2019 and +26.1% year-on-year, including €17 billion from the integration of Commerzbank assets. Revenues totalled €200m in 2019, an increase of +4.7% vs. 2018. Revenues were 21.3% higher in Q4 19 than in Q4 18, driven by a healthy level of performance fees and the contribution of Commerzbank assets.
The French bank also reported the process of integrating Commerzbank’s Equity Markets & Commodities (EMC) business which started in 2019 continues.
“2019 was a year of considerable progress during which we achieved all the targets, both strategic and financial, that we set ourselves,” said chief executive officer Fréderic Oudéa (pictured). “We are therefore entering 2020 with confidence, with a more compact business model based on leadership positions in high added-value businesses and a presence in buoyant geographical regions.”
Click the link to view the fourth quarter 2019 results and the presentation.