The leasing business of Société Générale has recorded a 21% increase in profit for the third quarter despite a drop in business volume.
The French bank’s Specialised Financial Services division, which includes Equipment Finance and fleet arm ALD Automotive, reported net profit of 104m for the three months to 30 September, up from 82m for the same period last year.
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New business at Société Générale Equipment Finance was down 11.5% year-on-year, to 1.7bn for the quarter, due to the "sluggish economic environment" although margins remained at a "satisfactory level", according to the bank’s report.
The fleet leasing and management business continued to grow over the period with a 4.1% increase in its total fleet to over 936,000 at the end of September.
The Specialised Financial Services division also increased external funding, raising 3.5bn primarily on the back of greater deposit collection in Germany.
Asset disposal hits profit
Year-to-date net profit for the division was 286m, up 11% year-on-year, while the wider Specialised Financial Services and Insurance arm saw profits of 179m for the third quarter and 509m year-to-date, up from 224m in 2011.
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By GlobalDataSociété Générale Group reported net profit of 85m for the quarter, down 86% year-on-year, and 1.25bn for the nine months to 30 September, a 45.3% decrease on the 2.29bn reported in 2011.
The Group attributed the decline in profit to asset disposals over the year included the sale of its Greek subsidiary Genki Bank to Piraeus Bank which included a 444m capitalisation of the bank.
Société Générale held on to the Genki Leasing subsidiary in the deal.
Leasing Life reports on the French banks exits from Greece in the November issue of the magazine
