Societe Generale’s (SCGLF) Q1 2017

posted in: Earnings Call, Notes | 0

Philippe Heim – Chief Financial Officer

Loan orgination is up

“Another sign of good commercial activities is, of course, the loan origination, which is very dynamic on the corporate side. The production is up by 28% compared with last year. Production on housing loan also is very variant. The production turned that volume up of €5.9 million, an increase of 63% on a year-on-year basis…. the book of productivity loans increased by 1.8% on a year-on-year basis. ”

A move to digitization of back offices

“Regarding the back offices, the model is one of digitization. Is one of the front-to-back industrialized processes. And overall, we want to reduce the number of back offices from 20 to 14.”

On Russia

“Russia is currently returning to growth after the short we know in early 2015. Inflation declined sharply, round back to 4.3% in March allowing the Central Bank of Russia to cut interest rate below the symbolic threshold of 10%. And we expect now a GDP goal of around 1% into 2017.”‘

On Africa

“In Africa, situation is still very solid, very strong, at least in the countries where we operate, with the GDP growth between 4% to 6%, in particular, in Ivory Coast, Senegal and Cameron….It’s still a firm pace of growth with outstanding loans at about 8%. And then some specific franchises around growth of about 20% like in Nigeria, plus 25%; in Ivory Coast, 25%; up”

A wait-and-see attitude from investors. 

“to characterize the situation of business activity beginning of 2017, let’s say, that January and February were pretty much in line with the end of 2017, where investors were very active after the American election in November and the context of high inflation. And then in March, we’ve seen, let’s say, the return of political uncertainties leading to, let’s say, more wait-and-see, let’s say, mood in the markets..”