- Societe Generale (SocGen) plans to initiate a €1 billion share buyback starting on August 4, 2025, with necessary authorizations, including those from the ECB, already secured.
- The company has raised its full-year Return on Tangible Equity (ROTE) target to approximately 9%, previously anticipated to be above 8%.
- SocGen expects its Cost to Income Ratio to fall below 65%, an improvement from the previously expected below 66%.
- Second quarter net income increased by 31% year-over-year to €1.45 billion, surpassing the estimated €1.21 billion.
- Net banking income for Q2 amounted to €6.79 billion, edging up by 1.6% year-over-year, against an estimate of €6.69 billion.
- Global Banking & Investor Solutions segment reported net banking income of €2.65 billion, slightly up by 0.7% year-over-year.
- Revenue from Global Markets & Investor Services reached €1.75 billion, beating the forecast of €1.68 billion.
- FIC sales & trading revenue rose by 7.3% year-over-year to €615 million, exceeding the estimate of €572.9 million.
- Equities revenue fell by 2.9% year-over-year to €962 million, although it still surpassed the estimate of €933.9 million.
- Security Services revenue was €176 million, slightly higher than the estimated €174.7 million.
- Financing & Advisory revenue reached €895 million, though it did not meet the forecast of €924.3 million.
- France Retail, Private Banking & Insurance saw a 6.5% year-over-year increase in net banking income to €2.27 billion.
- International Retail, Mobility & Leasing Services reported a 5.6% decline in net banking income to €2.04 billion.
- Operating expenses decreased by 5.2% year-over-year to €4.33 billion, below the estimated €4.4 billion.
- Operating income grew by 22% year-over-year, reaching €2.11 billion, which exceeded the estimate of €1.88 billion.
- Provision for loan losses was reduced by 8.3% year-over-year to €355 million, lower than the forecast of €380.2 million.
- Common Equity Tier 1 (CET1) ratio is fully-loaded at 13.5%, meeting estimates.
- Non-performing loans ratio stood at 2.77%.
- Return on Tangible Equity increased to 9.7% from 7.4% year-over-year, above the estimated 7.85%.
- SocGen will issue an interim dividend of €0.61 per share on October 9, 2025.
- The CEO emphasized the decision to enhance shareholder returns through share buybacks and an interim dividend, attributing this to the company’s high capital ratio, which exceeds the target.
A look at Societe Generale Sa Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts using Smartkarma Smart Scores have assessed Societe Generale SA’s long-term outlook based on various factors. The company excels in value, underpinning its solid financial position and attractive investment potential. Additionally, Societe Generale SA demonstrates strong momentum, indicating a positive trend in its stock performance. However, the company’s dividend, growth, and resilience scores are all moderate, suggesting room for improvement in these areas for long-term sustainability.
Societe Generale SA is a comprehensive banking institution offering a wide range of financial services including commercial, retail, investment, and private banking. With a focus on consumer credit, insurance, leasing, and various other banking services, the company presents a diversified portfolio. While Smartkarma Smart Scores highlight certain strengths and areas for enhancement, investors may consider a balanced view of Societe Generale SA’s overall performance for their long-term investment strategies.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
