Societe Generale Q3 profit rises 24% on equities trading strength

By Reuters News


Overview

  • France-based bank's Q3 group net income rose 24% yr/yr to EUR 1.9 bln

  • Q3 net banking income grew 7.8% yr/yr, cost-to-income ratio of 57.1%

  • Company completed EUR 1.5 bln share buyback in Q3


Outlook

  • Societe Generale says it is on track to exceed its 2026 revenue growth target of >2%

  • Company expects 2026 cost-to-income ratio to remain below 60%

  • Societe Generale maintains 2026 cost of risk guidance at 25 to 30bps


Result Drivers

  • FRENCH RETAIL AND PRIVATE BANKING - Segment revenues rose 10.9% yr/yr in Q3, driven by higher net interest income and fee income, with operating expenses down 5.1%

  • GLOBAL MARKETS PERFORMANCE - Global Banking and Investor Solutions revenues climbed 12.5% yr/yr in Q3, led by a 46% jump in equities revenues and strong momentum across all activities

  • AYVENS USED CAR SALES - Mobility and Financial Services revenues fell 7.8% yr/yr in Q3, reflecting lower results from used car sales at Ayvens, partly offset by higher margins


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Net banking income

EUR 7.17 bln

Q3 Gross operating income

EUR 3.08 bln

Q3 Operating Expenses

EUR 4.09 bln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 8 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the banks peer group is "buy"

  • Wall Street's median 12-month price target for Societe Generale SA is €89.75, about 44.9% above its October 28 closing price of €61.95

  • The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 9 three months ago


Reuters Recommended Reads

  • Oct 28 - European banks beat profit forecasts, Brazil overshadows Santander

  • Oct 28 - BNP Paribas beats Q3 profit forecasts, unveils €1.3 billion share buyback

  • Oct 28 - Santander's Q3 profit jump overshadowed by Brazil weakness


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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