Societe Generale Pledges More Cost Cuts, Says Confident On 2016

Reuters

An employee enters the headquarters of French bank Societe Generale, the country's second largest, at La Defense, west of Paris, Aug. 11, 2011. Photo: Reuters

Societe Generale pledged to cut costs this year and sought to reassure investors it was confident about its 2016 outlook thanks to a diversified business model that helped outweigh investment banking weakness in the first quarter.

France's second-biggest listed bank said on Wednesday that net income rose 6.5 percent in the first three months of the year to 924 million euros (729 million pounds).

When adjusted for exceptional items, such as the revaluation of SocGen's own debt, net income was down 0.5 percent to 829 million euros.

Analysts in a Reuters poll had predicted a 7.7 percent decline in net income to 801 million euros on average.

"In 2016, the strength of the diversified business model, additional efforts on costs and solid asset quality should sustain both commercial and financial performances," the bank said.