Société Générale (GLE) Q2 2024 earnings summary

Executive summary

• Net income rose 24% year-over-year to €1.1bn in Q2 2024, with ROTE at 7.4% and revenues up 6% year-over-year, reflecting robust business performance and improved profitability.

• Global Markets and Transaction Banking delivered strong results, while French Retail saw NII recovery but faced headwinds from higher deposit beta and subdued loan demand.

• Cost-to-income ratio improved to 68.4% in Q2 2024, reflecting disciplined cost management and positive operating leverage.

• Strategic roadmap execution continues, including BoursoBank surpassing 6.5 million clients and the launch of a €1bn energy transition investment.

• Capital and liquidity remain robust, with CET1 at 13.1%, LCR at 152%, and a €0.91/share distribution provision.

Financial highlights

• Q2 2024 revenues reached €6.7bn (+6.3% y/y); H1 2024: €13.3bn (+2.9% y/y).

• Q2 2024 group net income: €1.1bn (+24% y/y); H1 2024: €1.8bn (+1.4% y/y).

• Q2 2024 cost-to-income ratio: 68.4%; H1 2024: 71.6%.

• Q2 2024 cost of risk: 26bps (€387m), within 25–30bps guidance.

• Operating expenses at €4.57bn in Q2 2024, stable excluding perimeter effects.

Outlook and guidance

• CET1 ratio expected to remain above 13% at year-end 2024.

• French Retail NII for 2024 projected at €3.8bn, reflecting higher deposit beta and lower loan growth.

• Market revenues expected to exceed €5.4bn for 2024 under normal conditions.

• Cost of risk guidance for 2024 maintained at 25–30bps.

• ROTE expected above 6% in 2024 and 9–10% by 2026; cost/income ratio expected below 71% in 2024 and below 60% by 2026.