MarketPulse Europe: SocGen, Commerzbank Drive Gains in Financial Sector

MarketPulse Europe: SocGen, Commerzbank Drive Gains in Financial Sector

Nov 08, 2018

The European financial sector was among the best performers in midday trade on Thursday, as investors cheered strong results from Societe Generale (PA:SOGN) and Commerzbank (DE:CBKG).

The European banking index (Stoxx 600 Banks) was up 0.7% by 6:48AM ET (1148GMT).

Shares of French banking giant Societe Generale gained 3% in Paris after the lender reported a better-than-expected 32% jump in its net income from last year.

"Our revenues increased due to the confirmed growth in International Retail Banking & Financial Services and the healthy momentum in Financing & Advisory and market activities," Fréderic Oudéa, the Group's chief executive officer, said in a statement.

Meanwhile, Commerzbank's third-quarter net profit beat estimates, as Germany's second-largest bank focused on a major overhaul, sending shares 4% higher in Frankfurt.

"The environment remains challenging and although we have made a lot of progress, we still have some work to do," Chief Executive Martin Zielke said in a statement.

The upbeat results soothed concerns about slowing corporate earnings in the sector and boosted other banks across Europe. Deutsche Bank (DE:DBKGn) gained 0.7%, Credit Agricole (PA:CAGR) rose 1.2%, while Barclays (LON:BARC) added 1.7% in London.

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