Societe Generale Shares Soar

France's second-biggest bank posted stronger-than-expected fourth-quarter earnings and unveiled plans to spin off its vehicle-leasing unit.

Author:: Edward Hardy
Publish date:: Feb 9, 2017 7:08 AM EST

Societe Generale (SCGLY) shares gained firmly in Paris on Thursday after France's second-biggest bank posted stronger-than-expected fourth-quarter earnings and unveiled plans to spin off its vehicle-leasing unit.

SocGen saw its net income fall to €390 million in the three months ending in December, down from €656 million from the period last year, but still ahead of analysts' forecasts of €354 million. Revenue for the period rose 1.3% to €6.13 billion, the bank said, also ahead of the €5.99 billion forecast.

Shares in the bank rose 1.8% to change hands at €43.46 each by 8:30 a.m. GMT, making it the second-biggest gainer on the CAC 40 index. The stock has been significantly outpaced, however, by its European lending peers over the past three months, falling 5.5% against a 13.6% gain for the Stoxx 600 Europe Banks index.