SG Private Banking reports positive inflows
SG Private Banking, the wealth management arm of French bank Société Générale, enjoyed net inflows of €1.2bn in the third quarter, while its asset management division suffered a net outflow of €1.6bn.
The private bank said after taking into account a positive market effect of €3.2bn and a negative currency effect of €0.9bn, its assets under management amounted to €74.5bn at end-September 2009.
At €205m, the business line revenues rose 2% on the third-quarter last year, driven by a high margin and positive results for treasury products, the bank said. Operating expenses fell 5.1% on last year after the bank cut back on jobs and expenses.
Private banking revenues totalled €623m in the first nine months and rose 1.2% versus the same period in 2008.
Meanwhile, the asset management business, SGAM, suffered outflows of €1.6bn in the third quarter, mainly as a result of alternative investment activities which fell €2.1bn. Traditional investment activities also fell, as money market clients continue to favour bond funds, which were up by €1.9bn.
Assets under management totalled €273.3bn at the end of September, given a positive market effect of €15.1bn and a negative currency effect of €2.3bn.
A decline in bonuses and headcount brought operating expenses down 2.2% in the third quarter versus the previous year.
SGAM’s revenues amounted to €536m in the first nine months, up 18.8% versus the same period in the previous year.
However, analsyts at KBW pointed out that the fall in assets was significantly down from the second quarter this year. Jean Pierre Lambert said: "Net outflows of €1.6bn compared to outflows of €3.1bn in 2Q09 is relatively neutral as the business is being transferred to a joint venture with CASA."
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