Equipment leasing business was down at
Société Générale Equipment Finance (SGEF) but the French banking
giant’s Specialised Financial Services and Insurance division
maintained a steady profit for the second quarter of the year.

Specialised Financial Services, the bank’s
sub-division which includes SGEF and the group’s fleet business,
reported stable income of €707m, 0.3% down on the same period last

Operating expenses also declined 1.8%
year-on-year to €390m and the cost of risk dropped from €214m in
2011 to €168m.

New business at SGEF was down 4% year-on-year
to €1.9bn although margins remained at a healthy level, according
to the group’s financial statement.

The division’s outstandings amounted to
€18.2bn at the end of the period, down 1.7% on the total for the
end of June 2011 while the operational vehicle leasing and fleet
management arm saw 5.8% growth in its fleet on last year to 931,000
vehicles at end of June 2012.

Specialised Financial Services and Insurance
recorded net income for the second quarter of €167m, up 14.6%
year-on-year from €146m in 2011, giving a half-year result of
€330m, 19.1% up on last year.

The SFS division increased external funding
initiatives during the first six months of 2012, generating €2.2bn
over the period largely through the securitisation of car loans in
France and Germany, and the launch of deposit collection in

Net income for Société Générale Group was down
42% year-on-year from €747m in the second quarter of 2011 to €433m
for the same period this year which the bank attributed to its
ongoing capital requirement adjustments.

Frédéric Oudéa, Société Générale chairman and
chief executive, said: “In the space of one year, we have
significantly bolstered our financial solidity, with a Basel 2.5
Core Tier 1 capital ratio of 9.9% at end-June 2012 and a more
favourable financing structure.

“On the back of these results, and despite an
environment that is likely to remain uncertain and challenging over
the next few quarters, the Group is confident of its ability to
generate capital in order to reach its target of a Basel 3 Core
Tier 1 ratio of between 9% and 9.5% at end-2013.”