Société Générale flies to the Paris Stock Exchange, driven upwards by 2024 accounts that beat targets and expectations. The stock was also boosted by the strong increase in distributions to shareholders and optimistic estimates for 2025. In this context, the shares of the French bank, after reaching an intraday high of 34,10 euros, gained 10,38% to 33,92 euros per share, marking one of the biggest increases in the Stoxx Europe 600.
The 2024 accounts of SocGen
SocGen closed 2024 with revenues of 26,8 billion euros, up 6,7%, “exceeding the target of an increase of at least 5%” indicated previously, thanks to “the strong rebound in net interest margin in France and the excellent performance in Global Banking and Investor Solutions, with revenues above 10 billion euros, explains the institute in a note.
THEGroup net profit jumped 69% to 4,2 billion, while the cost/income is better than 2023 (69% vs 73,8%) and also of the target that aimed at 71% "thanks to strong cost control, stable compared to 2023".
Il cost of risk stood at 26 basis points, “at the low end of the guidance”. The Rote also beat the target at 6,9%. The Cet1 capital ratio then stands at 13,3%, “310 basis points above regulatory requirements”, highlights Société Générale.
Societe Generale: Profit more than doubles in the fourth quarter
The market particularly welcomed the fourth quarter 2024 results, in which the bank net profit more than doubled, which stood at €1,04 billion (28% above the consensus average of €814 million), thanks to the recovery of retail banking activities in France and investment banking.
Il intermediation margin increased by 11,1% to 6,62 billion in the last three months of the year, while the consensus was at 6,41 billion. Operating expenses fell 1,5% in the quarter, the cost/income ratio fell to 69,4% from 78,3% and the cost of risk decreased to 23 basis points.
Societe Generale also highlighted that it exceeded its customer acquisition targets for its online bank BoursoBank, which had 7,2 million customers at the end of December 2024, above the target of 7 million and made a positive contribution to the group's net profit for the second consecutive year.
1,74 billion to shareholders between dividends and buybacks
Thanks to the excellent results achieved, the board of directors will propose to the members the distribution of 1,74 billion total (+75%), equal to 2,18 euros per share in the form of a cash dividend of 1,09 euros and a plan of 872 million euro buyback, equal to 10,9 euro per share.
The group also intends to improve the remuneration policy of its members by permanently increasing the 50% overall payout of net profit and providing for a balanced distribution of profits between cash dividends and the purchase of own shares.
Estimates for 2025
For 2025 Société Générale expects a revenue increase of more than 3%, one cost reduction greater than 1%, a cost/income ratio of less than 66%, a cost of risk between 25 and 30 basis points and a Cet1 ratio of more than 13%.
“In 2024, our performance improved significantly. All our targets were exceeded and ahead of the strategic plan. In 2025, we will continue to focus on relentlessly executing our strategy and further improving our performance,” said CEO Slawomir Krup, who has led the bank since 2023 and is the architect of the group's recovery plan.
Societe Generale's better-than-expected results and 2025 guidance, which points to greater cost control, should give confidence in achieving goals for 2026, analysts at RBC Capital Markets wrote in a note, noting that the French bank has achieved a good series of results.
