Societe Generale Q3 profit rises 24% on equities trading strength

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

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

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(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.)