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1. Company Snapshot

1.a. Company Description

Société Générale Société anonyme provides banking and financial services to individuals, businesses, and institutional investors in Europe and internationally.It operates through three segments: Retail Banking in France, International Retail Banking and Financial Services, and Global Banking and Investor Solutions.It offers retail banking services, such as consumer credit, vehicle leasing and fleet management, financing of professional equipment, and long-term leasing activities under the Societe Generale, Credit du Nord, and Boursorama brand names; and insurance products, including home, vehicle, family, health, and mortgage insurance.


The company also provides corporate and investment banking, securities, market and investor, financing and consulting, and asset management and private banking services.In addition, it offers security brokerage, equipment finance, cash management, payment services, factoring, and supply chain financing services.The company serves through a network of 1849 branches.


Société Générale Société anonyme was founded in 1864 and is based in Paris, France.

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1.b. Last Insights on GLE

Société Générale's recent momentum is driven by its ongoing share buy-back program, with 85% of the €1 billion program completed. The bank is also simplifying its organization and investing in skills development to enhance operational efficiency. Additionally, its digital asset division, SG-FORGE, is innovating with the use of stablecoins for tokenized bond settlements, leveraging its MiCA-compliant EUR CoinVertible stablecoin.

1.c. Company Highlights

2. Société Générale's Strong 2025 Performance Sets Stage for Future Growth

Société Générale reported a robust financial performance for 2025, with revenues reaching a record EUR 27.3 billion and group net income hitting EUR 6 billion. The bank's successful transformation has driven long-term profitable growth, with a 7% increase in revenues excluding asset disposals. The cost-to-income ratio improved to 63.6% due to a 2% decrease in costs, outperforming the targeted decrease of at least 1%. Earnings per share (EPS) was not disclosed, however, the bank's profitability was significantly boosted, with a Return on Tangible Equity (ROTE) of 10.2% for the year.

Publication Date: Feb -08

📋 Highlights
  • Record Revenues & Net Income:: Achieved EUR 27.3 billion revenues and EUR 6 billion group net income in 2025, driven by 7% revenue growth (excluding disposals) and 2% cost reduction.
  • ROTE & Capital Strength:: Returned 10.2% ROTE (9.6% ex-disposals) and maintained a CET1 ratio of 13.5% after Basel IV, with EUR 4.679 billion total distribution (169% growth YoY).
  • Cost Efficiency:: Cost-to-income ratio improved to 63.6% in 2025 (64.6% in Q4), exceeding targets, with plans to reduce it below 60% by 2026 via 3% cost cuts.
  • Business Segment Performance:: Global Markets, FMA, and Ayvens drove growth, with GBIS recording EUR 10.4 billion revenue (+2.6% YoY) and MIBS net income up 28% ex-FX.
  • 2026 Guidance:: Targets NBI growth above 2%, ROTE above 10%, and cost-to-income ratio <60%, leveraging capital allocation to high-return businesses and disciplined cost management.

Segment Performance

The bank's businesses performed well, with French Retail, Private Banking, and Insurance recording strong revenue growth of 4.2% versus 2024. Global Markets delivered a record year in terms of revenues, and Financing & Advisory increased its origination volumes at a high marginal rate of return. International Retail Banking revenues improved 2.7% versus Q4 '24 at constant perimeter and exchange rates, with Europe posting solid commercial momentum.

Capital Position and Distribution

The bank's capital position remains strong, with a CET1 ratio of 13.5% after Basel IV regulatory impact. The Board has proposed a total ordinary distribution of EUR 2.7 billion, including a dividend per share of EUR 1.61 and a share buyback of EUR 1.462 billion. The total distribution for 2025 will amount to EUR 4.679 billion, a growth of 169% versus last year.

Outlook and Valuation

In 2026, the bank expects NBI growth above 2%, a net cost decrease of around 3%, a cost-to-income ratio below 60%, and a ROTE above 10%. With a current P/TBV of 0.92, the market is pricing in a relatively modest growth expectation. The dividend yield stands at 2.34%, providing a relatively attractive return for investors. Analysts estimate next year's revenue growth at 3.5%.

Key Drivers and Challenges

The bank's growth strategy in Financing & Advisory is expected to continue, with no exceptional seasonality expected. The company's approach to inorganic growth is rational and based on financial sense, considering factors like relative valuation and residual value risk. The revenue mix for equities includes cash equities, derivatives, and prime, with a geographical mix, and the company is working to optimize execution, with a focus on controlling expenses and maintaining a healthy base for growth.

3. NewsRoom

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Societe Generale accelerates the simplification of its organization and the development of skills to strengthen its efficiency

Jan -22

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Societe Generale: Information regarding executed transactions within the framework of a share buy-back programme

Jan -21

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Assessing Société Générale (ENXTPA:GLE) Valuation After Strong Recent Share Price Momentum

Jan -17

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Is Société Générale (ENXTPA:GLE) Pricing Look Stretched After 153% One Year Share Return

Jan -17

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Societe Generale works with Swift to settle tokenize bonds using cash and stablecoins

Jan -15

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Societe Generale: Information regarding executed transactions within the framework of a share buy-back programme

Jan -12

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Societe Generale: shares and voting rights as of 31 December 2025

Jan -09

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Societe Generale: Information regarding executed transactions within the framework of a share buy-back programme

Jan -05

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.75%)

6. Segments

French Retail and Private Banking

Expected Growth: 2.5%

Société Générale's French Retail and Private Banking segment growth of 2.5% is driven by increasing demand for digital banking services, expansion of wealth management offerings, and strategic partnerships. Additionally, the segment benefits from a strong brand reputation, a large customer base, and a solid financial position, enabling investments in innovation and customer experience.

Global Markets and Investor Services

Expected Growth: 3.5%

Société Générale's Global Markets and Investor Services segment growth of 3.5% is driven by increasing demand for hedging and risk management solutions, growth in equity derivatives and prime brokerage, and expansion in Asia-Pacific and Americas regions, supported by strategic acquisitions and investments in digital platforms.

Mobility and Leasing Services

Expected Growth: 2.0%

Société Générale's Mobility and Leasing Services segment growth of 2.0% is driven by increasing demand for alternative mobility solutions, expansion of fleet management services, and strategic partnerships. Additionally, the segment benefits from a growing trend towards sustainable and environmentally friendly transportation options, as well as investments in digitalization and innovation.

International Retail Banking

Expected Growth: 2.8%

Société Générale's International Retail Banking growth of 2.8% is driven by a strong presence in emerging markets, particularly in Africa and Eastern Europe, where economic growth and financial inclusion initiatives are boosting demand for banking services. Additionally, the segment benefits from a diversified revenue stream, including fees from payment services and insurance products, as well as a solid cost control strategy.

Financial and Advisory

Expected Growth: 3.2%

Société Générale's 3.2% growth in Financial and Advisory is driven by increasing demand for M&A advisory services, growth in equity and debt capital markets, and expansion in emerging markets. Additionally, the segment benefits from the bank's strong franchise in Europe and its ability to leverage its global network to deliver cross-border transactions.

Corporate Centre

Expected Growth: 1.8%

Société Générale's Corporate Centre growth of 1.8% is driven by efficient cost management, optimized resource allocation, and strategic investments in digital transformation. Additionally, the centre's focus on risk management and regulatory compliance has enabled the bank to maintain a strong capital position, supporting its growth momentum.

Insurance

Expected Growth: 2.2%

Société Générale's 2.2% growth in insurance is driven by increasing demand for life insurance products, expansion in emerging markets, and strategic partnerships. Additionally, the insurer's digital transformation efforts, improved risk management, and cost savings initiatives have contributed to its growth.

7. Detailed Products

Retail Banking

Société Générale provides a range of retail banking services to individuals, including current and savings accounts, credit cards, personal loans, and mortgages.

Corporate Banking

Société Générale offers corporate banking services to businesses, including cash management, trade finance, and risk management solutions.

Investment Banking

Société Générale provides investment banking services, including mergers and acquisitions, equity and debt capital markets, and leveraged finance.

Asset Management

Société Générale offers asset management services, including investment solutions for institutional clients, individual investors, and wealth management.

Private Banking

Société Générale provides private banking services, including wealth management, investment advice, and estate planning.

Insurance

Société Générale offers insurance products, including life insurance, non-life insurance, and health insurance.

Specialized Financial Services

Société Générale provides specialized financial services, including vehicle leasing, fleet management, and consumer finance.

8. Société Générale Société anonyme's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Société Générale is moderate due to the presence of alternative financial institutions and digital payment platforms.

Bargaining Power Of Customers

The bargaining power of customers is low due to the lack of negotiating power of individual customers and the complexity of financial products.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate due to the presence of multiple suppliers of technology and services, but the high switching costs.

Threat Of New Entrants

The threat of new entrants is high due to the increasing trend of fintech companies and digital banks, which can easily enter the market.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of multiple established players in the market, leading to a highly competitive environment.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 84.78%
Debt Cost 11.61%
Equity Weight 15.22%
Equity Cost 11.61%
WACC 11.61%
Leverage 557.08%

11. Quality Control: Société Générale Société anonyme passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Value: 5.7

Growth: 6.2

Quality: 4.9

Yield: 8.1

Momentum: 7.5

Volatility: 9.3

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Growth: 4.6

Quality: 5.5

Yield: 6.9

Momentum: 9.0

Volatility: 8.0

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Société Générale

A-Score: 6.5/10

Value: 8.6

Growth: 4.2

Quality: 5.5

Yield: 6.2

Momentum: 10.0

Volatility: 4.3

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Growth: 3.4

Quality: 3.9

Yield: 9.4

Momentum: 7.0

Volatility: 6.7

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A-Score: 6.1/10

Value: 5.0

Growth: 2.7

Quality: 5.4

Yield: 6.9

Momentum: 9.5

Volatility: 7.3

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Commerzbank

A-Score: 5.4/10

Value: 5.2

Growth: 6.2

Quality: 4.9

Yield: 3.1

Momentum: 10.0

Volatility: 3.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

64.12$

Current Price

64.12$

Potential

-0.00%

Expected Cash-Flows