France's Societe Generale Q2 net income jumps 23% on retail banking recovery

Societe Generale SA

30/07/2026 05:38

Overview
France banking group's Q2 net income rose 23% yr/yr to record EUR 1.8 bln
Q2 net banking income up 4.5% yr/yr, operating expenses down 4.1%
Company to launch EUR 1.5 bln extraordinary share buyback

Outlook
Societe Generale upgrades 2026 ROTE target to ~11%, from >10% previously
Company raises 2026 cost reduction target to ~-4% vs. 2025, from ~-3% previously
Societe Generale to launch EUR 1.5 bln extraordinary share buy-back in 2026

Result Drivers
FRENCH RETAIL & PRIVATE BANKING - Strong growth in net interest and fee income, with private banking and insurance assets reaching record highs
GLOBAL BANKING & INVESTOR SOLUTIONS - Solid commercial activity in derivatives, financing and prime services drove equity revenue growth, offsetting declines in fixed income
COST REDUCTIONS - Operating expenses declined due to disposals, lower transformation costs, and ongoing cost discipline

Company press release: ID:nGNERJrzk

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Net banking income
 
EUR 7.10 bln
 
Q2 Gross operating income
 
EUR 2.94 bln
 
Q2 Operating Expenses
 
EUR 4.16 bln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 6 "hold" and 2 "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 €85.50, about 11.4% above its July 29 closing price of €76.72
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 8 three months ago

Reuters Recommended Reads
July 29 - European bank rally rolls on as Deutsche Bank, UBS report profit jump
July 29 - Intesa says it could beat improved profit outlook, won't raise MPS bid
July 29 - Portugal's Millennium bcp profit rises on resilient margins, lower charges in Poland

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.)