The French bank Societe Generale (PARIS: SOGN) SA (SocGen, SG), the second largest in the country considering capitalization, got a net profit of 1.35 billion euro from 1.08 billion euro in the same period a year earlier. The figure for April-June 2015 was the highest since 2007, thanks to income from shares and another round of cost-cutting.
Positive impact on the quarterly result (312 million euro) had a revaluation of its own debt, according to a press release of the bank.
Quarterly revenues of the bank increased by 16% - from 5.9 billion to 6.87 billion euro.
Revenue from operations with shares jumped 61% in the last quarter, from 496 million to 799 million euro, as the unprecedented stimulus programs of the European Central Bank (ECB) support the growth of stock markets in Europe. Meanwhile, the bank has reduced revenues from transactions with interest rates, debt securities, currencies and raw materials by 15%.
Revenue of international banking service and investment decisions division of Societe Generale rose 17% to 2.68 billion euro.
The revenue from the organization of corporate transactions rose 26% to 685 million euro.
The net profit of the French bank's retail network has increased by 20% to 419 million euro.
Globally, retail banking has brought Societe Generale 6.6% less profit than last year - 312 million euro. In Russia, which is the second largest market of SG, there was recorded a loss of 45 million euro - roughly half as much as in the first quarter.
Russian business Societe Generale includes Rosbank, Rusfinance Bank, DeltaCredit bank, the leasing company ALD Automotive, and Societe Generale Insurance.
In the 2nd quarter, SG has increased reserves to cover legal costs by 200 million euro, to 1.3 billion euro.
Until the end of 2017, SG plans to cut costs by 850 million euro to compensate for rising costs due to new regulatory requirements and investments in digital technology.
Since the beginning of the year, SocGen shares rose 28%, while there 29 participants of Euro Stoxx Banks Index rose 16%. The bank's capitalization is about 36.3 billion euro.