Société Générale plans car-leasing IPO as earnings exceed expectations
Lender plans to offer shares in its wholly owned ALD division this year, market conditions permitting, through the sale of a minority stake
Paris — Société Générale reported fourth-quarter profit that exceeded estimates, helped by a surprise jump in earnings from French consumer banking. The lender announced plans for an initial public offering (IPO) of its car-leasing business. Net income was €390m, down 41% from a year earlier but above the €315m average estimate of seven analysts surveyed by Bloomberg. Costs, including a charge tied to the sale of a Croatian unit, weighed on the results. European lenders have struggled to increase profit amid record-low interest rates, tepid economic growth and tougher capital rules. In the final three months of 2016, Société Générale benefited from lower provisions for bad loans, improved trading conditions and better results from Russia and Africa. The lender said it would raise its dividend 10% to €2.20 a share. "SocGen should perform well on the back of those results," Jefferies analysts led by Maxence le Gouvello said in a note titled Firing All Cylinders. The "beat comes across...
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