'Avoid French Banks': SocGen falls after JPM cuts to 'neutral'

Societe Generale SA

08/09/2026 09:32

** Shares in Societe Generale SOGN.PA fall 2.7% after J.P. Morgan downgraded the French bank to "neutral" from "overweight", saying expectations for cost reduction are already high and there's less room for earnings surprises
** JPM favours UK exposure over French banks, citing improved lending momentum and a supportive regulatory environment
** "While UK fiscal risks remain, we view the political/fiscal situation as relatively more stable and palatable compared to France," it says
** The broker removes Societe Generale from its top picks portfolio
** "We would avoid French exposure and prefer Germany", it adds 
** SocGen's shares are the worst performers on France's CAC 40 .FCHI, which is down 0.5%

(Reporting by Gianluca Lo Nostro)
((gianluca.lonostro@thomsonreuters.com;))