SG's earnings release: The results are well below expectations due to both expenses and provision misses. In addition, we consider management's guidance towards a lower ROE for 2016 as a sort of profit warning. It is not clear yet whether this is more to do with the regulatory environment (higher common equity requirement, higher interest expenses to face with TLAC, MREL, etc...) or the confirmation of a slowing in global economic growth. CET1 is still 10bp higher than expectations at 10.9% (
11 Feb 2016
Q4 15 earnings miss, future earnings under pressure...
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Q4 15 earnings miss, future earnings under pressure...
Societe Generale S.A. Class A (GLE:WBO) | 0 0 0.9% | Mkt Cap: 37,685m
- Published:
11 Feb 2016 -
Author:
Farhad Moshiri -
Pages:
3
SG's earnings release: The results are well below expectations due to both expenses and provision misses. In addition, we consider management's guidance towards a lower ROE for 2016 as a sort of profit warning. It is not clear yet whether this is more to do with the regulatory environment (higher common equity requirement, higher interest expenses to face with TLAC, MREL, etc...) or the confirmation of a slowing in global economic growth. CET1 is still 10bp higher than expectations at 10.9% (