Société Générale

Note: This is a daily stock update and the information stands true as of 31/10/24, 09:00 CET.

Company Update:
Revenue was a 4% beat (+10% yoy), driven by the strong recovery in French Retail Banking and the continued strong performance of CIB, driven almost solely by global markets.
Opex declined by 1% yoy (2% beat), resulting in a 63% C/I ratio (vs a 71% target) and leading to a strong 11pp positive jaws effect.
Net income was a 8% beat. ROTE at 9.6% and ROE at 8.4%;

May be more importantly, the group announced a reshuffling of its C Suite. Deputy CEO Philippe Aymerich (head of Retail) and Marie Christine Ducholet (Head of Retail France) and CFO Claire Dumas are to step down. Leopoldo Alvear will join from Sabadell as the new CEO.

Expert Opinion:
The new CEO is clearly moving the lines and is decided to tackle the retail issues of SocGen, and especially France. These are steps that go in the right direction. I must say that unlike many on the market , I like Mr Krupa’s strategy and his willingness to change things. SocGen is one of the few banks I would still own in Europe as it is late and cheap but more importantly, I believe that it will eventually be taken over when cross border consolidation happens (and I believe it will).

Note that BNP and BBVA also released their earnings.
BNP: Good but in-line results in Q3-24. Management noted an improving outlook for CPBS in the coming quarters.

BBVA: Strong set of results. Q3 results 10% above expectations driven by revenues. Adverse FX. Underlying performance stronger with revenues up 5.4% qoq at constant € driven by fee income, with stable NII and cost of risk.


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