Net income at Société Générale’s (SocGen)
private banking unit dropped to €23m ($30.4m) in the second quarter
of fiscal 2010, falling 63.5% from €63m in the comparable period of
2009.

France’s second largest lender by market
capitalisation said the private banking division continues to see a
“gradual recovery” in earnings, despite an unfavourable market
environment.

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The private banking unit’s assets under
management totalled €82.3bn at the end of June 2010, including an
inflow of €0.9bn in the second quarter of 2010.

 

SocGen revenues down 24%

Private banking revenues were down 23.5% to
€325m in the first half of 2010, compared to the year-ago period.
 

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SocGen said the decline was down to lower
treasury revenues as market conditions normalised, and was
partially offset by an increase in commissions and credit
margins.

Operating expenses remained “under control” at
€134m in the second half of 2010, down marginally from the second
quarter of 2009.

The division’s contribution to group net
income also fell 53.5% to €47m in the second half of 2010, from
€101m in the first half of 2009.

However private banking still made the biggest
contribution to group net income compared to SocGen’s asset
management unit (a contribution of €39m in the second half of 2010)
and the bank’s securities services and brokers unit (€43m) – which
all fall under SocGen’s private banking, global investment
management and services division.

 

Standard Chartered
results

Meanwhile Standard Chartered
(StanChart) Private Bank increased its assets under management
12% globally to about $40bn the first half of 2010. It’s AuM
in Asia increased 27%.

StanChart also hired more than 100 new
relationship managers and added more than 2,500 new clients in the
first half of the year.