- SocGen’s fourth-quarter net income reached €1.04 billion, surpassing the estimate of €860.8 million and the previous year’s €429 million.
- Net banking income increased by 11% year-over-year to €6.62 billion, exceeding the forecast of €6.41 billion.
- Global Banking & Investor Solutions’ net banking income increased by 12% to €2.46 billion, beating the prediction of €2.27 billion.
- Global Markets & Investor Services revenue reached €1.49 billion, slightly above the estimate of €1.44 billion.
- FIC sales & trading revenue amounted to €501 million, exceeding the anticipated €494.9 million.
- Equities revenue was €831 million, higher than the estimate of €813.9 million.
- Security Services revenue came in at €162 million, surpassing the forecast of €157.2 million.
- Financing & Advisory revenue was €964 million, significantly above the estimate of €832.4 million.
- France Retail, Private Banking & Insurance net banking income rose by 15% to €2.27 billion, higher than the estimate of €2.25 billion.
- International Retail, Mobility & Leasing Services net banking income increased by 2% to €2.06 billion, exceeding the estimate of €1.95 billion.
- Operating expenses decreased by 1.5% to €4.60 billion, close to the projected €4.54 billion.
- Operating income surged by 82% to €1.69 billion, beating the prediction of €1.45 billion.
- Provision for loan losses was reduced by 6.4% to €338 million, better than the estimated €434.3 million.
- The fully-loaded CET1 ratio rose to 13.3%, higher than both the previous year’s 13.1% and the estimate of 13.1%.
- Non-performing loans ratio improved to 2.81%, surpassing the expected 3.19%.
- Return on tangible equity increased to 6.6%, up significantly from 1.7% year-over-year.
- For the 2024 fiscal year, SocGen declared a dividend per share of €1.09, slightly below the anticipated €1.15.
- SocGen forecasts net banking income to grow by over 3% in the coming year.
- The company projects a Cost to Income Ratio below 66%, with an expected return on tangible equity above 8%.
- The common equity Tier 1 ratio is expected to remain above 13%.
- A share buyback program valued at €872 million has been approved by the ECB and will commence on February 10, equivalent to around €1.09 per share.
- SocGen intends to increase its payout ratio to 50% of net income.
- Cost reductions in 2025 are anticipated to surpass 1% compared to 2024.
- The cost of risk for 2025 is expected to range between 25 and 30 basis points.
A look at Societe Generale Sa Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.6 |
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
Based on the Smartkarma Smart Scores, Societe Generale Sa appears to have a positive long-term outlook. With a strong Value score of 5, the company is likely considered undervalued by the market. Additionally, its high Momentum score of 5 suggests that the stock has been performing well recently, indicating a positive trend for investors. However, the company’s Resilience score of 2 may raise some concerns about its ability to weather economic downturns.
Societe Generale Sa, a financial institution offering a wide range of banking services, scored a 3 in both Dividend and Growth. This indicates a moderate outlook for the company in terms of its dividend payments and potential for future growth. Overall, with a mixed bag of scores across different factors, investors should conduct further research and analysis to make informed decisions about investing in Societe Generale Sa.
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.
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