Societe Generale 2015 net profit up almost 50%

SocGen is expected to use proceeds on expanding its operations in the Middle East.

PARIS: French bank Societe Generale on Thursday reported its net profit rose almost 50% to 4 billion euros (US$4.5 billion) in 2015, compared with a year earlier.

The results beat analyst expectations, but the bank warned it would fall short of its target for a 10% return on equity this year due to tighter regulations and a difficult economic environment. 

The board expects to offer a dividend of two euros per share at the next AGM in May, up from 1.20 euros last year.

Chief executive Frederic Oudea said the rise in profits showed the bank had “successfully completed another stage in its transformation process”.

“(The year) 2015 was marked by good operating performances in all the businesses and the strengthening of synergies between the businesses,” he said in a statement.

In November, Societe Generale, France’s second largest bank, announced plans to close 400 branches and cut 2,000 jobs as customers increasingly move to online banking. - AFP