SocGen posts 7.6% profit decline in 2020

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ociete Generale – the parent to the European leasing companies SGEF and ALD – demonstrated a “significant improvement” in its financial performance during the second half of 2020, against a net profit fall of 7.6% for the full-year 2020 (to €22.1bn), the French bank said in a statement.

Against this picture, the company’s auto and equipment finance divisions “delivered a resilient commercial performance” the company said.

After the first half of 2020 was marked by the effects of the coronavirus health crisis and the dislocation of businesses, the Group’s overall performance improved significantly in H2, the bank said.

Societe Generale reported that last October it sold to Nordea Finance all its shares in SG Finans AS, a provider of equipment finance and factoring in Norway, Sweden and Denmark. 

These units include a) operational vehicle leasing and fleet management; b) equipment and vendor finance. For this division, net profit was down -2.1% in 2020, at €1.7bn. In Q4 2020, net profit came to €459m, up +11.8% versus Q4 2019. 

Financial services to corporates “delivered a resilient commercial performance” the bank said.

The number of contracts for operational vehicle leasing and fleet management was stable versus end-December 2019, at 1.76 million contracts at end-December 2020.

In 2020, the group’s fleet management and long-term vehicle leasing provider ALD Automotive posted a used car sale result (€201 per unit) above the guidance, while margins were higher in Equipment Finance. 

Societe Generale Equipment Finance’s outstanding loans were slightly lower (-0.8%) versus end-December 2019, at €14.1bn (excluding factoring).