Prime Highlights :
- Societe Generale posted record quarterly profit, beating analyst expectations.
- The bank raised its 2026 profitability target following strong retail performance.
Key Facts :
- Societe Generale is one of France’s largest listed banks by market value.
- The bank announced a €1.5 billion share buyback and higher dividend.
Background :
Societe Generale reported record quarterly profit this week and raised its 2026 profitability target, as a recovery in retail banking and tight cost controls helped offset weaker performance at its trading division.
The French bank’s net income rose 23% from a year earlier to €1.79 billion in the second quarter, beating analyst forecasts and marking a record high. Revenue also came in above expectations, rising 4.5% to €7.1 billion, supported by lower-than-expected costs.
Following the results, the bank raised its full-year return on tangible equity target to around 11%, up from its earlier goal of above 10%. It also improved its cost-cutting outlook after its cost-to-income ratio came in better than planned.
Analysts welcomed the bank’s cost discipline, with some noting that its retail operations, online banking arm and expense control pointed to a clearer path toward long-term value creation.
Chief executive Slawomir Krupa has led a closely watched turnaround at the bank since taking charge in 2023, with its share price rising sharply since then and outperforming the broader European banking sector. Even so, the bank remains smaller than its larger domestic rival and continues to face competition from fast-growing digital lenders and US banks expanding in investment banking.
The bank also announced a new share buyback programme worth €1.5 billion, along with a higher interim dividend.
Trading revenue, however, declined for a third straight quarter, weighed down by weaker fixed income and currency trading, even as equities revenue improved. The bank’s retail division saw strong growth in net interest income, while its online banking unit remained on track to meet its annual profit target.