French bank Société Générale saw its third-quarter income rise 2.4% as growth at its retail network and lower risk provisions helped offset weakness in investment banking.
Record low lending rates and a gradual recovery in the French economy boosted demand in its domestic market for mortgages and corporate loans for companies looking to make investments, the bank said today.
But in contrast, volatile financial markets knocked back investment banking and in particular hit structured products that SocGen is usually strong in.
France's second-largest listed bank reported net income for the quarter of €905m on revenue of €6 billion, up 2.5% over one year.
Including a €293m boost to account for fluctuations in the value of debt liabilities, net income rose nearly 28% to €1.1 billion.
Earnings benefited from an 11% drop in cost of risk provisions with losses at its Russian business now expected to be less than €200m this year, compared with the €250-300m it had flagged previously.
The improved earnings helped boost the bank's capital cushion, with the common equity Tier 1 ratio rising 10 basis points in the quarter to 10.5% and bringing the bank closer to its end-of-year target of 11%.
