SocGen increases assets under custody but sees rocky Q4

SocGen has reported a 3.4% increase in assets under custody to €3.9 trillion in its full-year figures, confirming its No.2 ranking in Europe.

Assets under administration increased 7.4% to €589 billion, and the bank reported stable revenues overall in securities services. Revenues totalled €688 million in 2015, “with the increase in commissions offsetting the negative impact of continued decline in interest rates.”

Fourth quarter revenues for its securities and services division were down 3.5% compared to the same period in 2014, to €164 million.

In other figures, SocGen group’s operating income in 2015 increased 22.5% from €6.9 billion to €8.8 billion compared to 2014. However, fourth quarter revenue decreased significantly by 45% from €1 billion to €547 million. The report explains this is “mainly due to the increase in provision for litigation issues,” as it includes an additional €400 million in the fourth quarter of 2015 as provision for litigation.

Frédéric Oudéa, chief executive officer at SocGen commented on the 2015 results and said: “Revenue growth was buoyant, while maintaining rigorous management of risks and costs.”

Oudéa added: “In the unstable environment expected in 2016, the Societe Generale Group, supported by a successful business model, will determinedly pursue its transformation plan in order to continue to provide its customers with added value and create value for its shareholders.”