Société Générale
Note: This is a daily stock update and the information stands true as of 06/02/25, 09:00 CET.
Company update:
Q4 was 21% above consensus. The beat was delivered through strong revenue growth (+11% yoy) thanks to the continued recovery observed in French Retail Banking and the continued strong performance of CIB, while cost reductions continued (down 2% yoy), taking C/I ratio below 69% yoy. Cost of risk was at 23bp, lower than Q3-24 and Q4-23.
CET1 ratio improved by 10bp qoq to 13.3%, representing a 310bp regulatory buffer. The bank announced a €1.09 dividend per share and a €872m buyback on the back of the 2024 results, taking the payout ratio at 50% in the high-end of the guided range (“40-50%”). The buyback is set to be launched in February 2025.
2025 guidance topline to grow more than, a 1% cost reduction vs 2024, a C/I ratio below 66%, a cost of risk in the 25-30bp range and an ROTE above 8%.
2026 targets were kept intact: 0-2% annual revenue growth between 2022 and 2026, a C/I ratio below 60% by 2026, an ROTE between 9 and 10% by 2026, a CET1 ratio at 13% by 2026, all serving a 40-50% payout ratio.
Expert opinion:
Soc Gen is delivering more than expected. we still like the equity story with new CEO refocusing on core business and generating results. Among French banks, this is our favorite as it is a restructuring story with a very low valuation. We are still cautious regarding the French situation and the expected rises in tax levels which will hurt the economy.
For daily updates, subscribe to our newsletter and for detailed information, reach out to us at sales@alphavalue.eu
Company update:
Q4 was 21% above consensus. The beat was delivered through strong revenue growth (+11% yoy) thanks to the continued recovery observed in French Retail Banking and the continued strong performance of CIB, while cost reductions continued (down 2% yoy), taking C/I ratio below 69% yoy. Cost of risk was at 23bp, lower than Q3-24 and Q4-23.
CET1 ratio improved by 10bp qoq to 13.3%, representing a 310bp regulatory buffer. The bank announced a €1.09 dividend per share and a €872m buyback on the back of the 2024 results, taking the payout ratio at 50% in the high-end of the guided range (“40-50%”). The buyback is set to be launched in February 2025.
2025 guidance topline to grow more than, a 1% cost reduction vs 2024, a C/I ratio below 66%, a cost of risk in the 25-30bp range and an ROTE above 8%.
2026 targets were kept intact: 0-2% annual revenue growth between 2022 and 2026, a C/I ratio below 60% by 2026, an ROTE between 9 and 10% by 2026, a CET1 ratio at 13% by 2026, all serving a 40-50% payout ratio.
Expert opinion:
Soc Gen is delivering more than expected. we still like the equity story with new CEO refocusing on core business and generating results. Among French banks, this is our favorite as it is a restructuring story with a very low valuation. We are still cautious regarding the French situation and the expected rises in tax levels which will hurt the economy.
For daily updates, subscribe to our newsletter and for detailed information, reach out to us at sales@alphavalue.eu
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Alphavalue Morning Market Tip
Solid start of 2025 with signs of recovery in key markets.