Société Générale (GLE) Q2 2024 earnings summary

Executive summary

• Net income rose 24% year-over-year to EUR 1.1 billion in Q2 2024, with H1 2024 net income at EUR 1.8 billion, and ROTE at 7.4% in Q2; revenues increased 6% year-over-year, led by strong Global Markets and Transaction Banking, margin gains at Ayvens, and NII recovery in France despite muted loan demand.

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

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

• Strategic roadmap execution continues, including BoursoBank surpassing 6.5 million clients, a EUR 1 billion energy transition investment, and new partnerships.

• The group advanced its transformation with divestments, new partnerships, and continued ESG leadership.

Financial highlights

• Q2 2024 group revenues reached EUR 6.7 billion, up 6.3% year-over-year; H1 2024 revenues were EUR 13.3 billion, up 2.9% year-over-year.

• Q2 2024 operating expenses were EUR 4.57 billion (+2.9% y/y); H1 2024: EUR 9.55 billion (+0.6% y/y).

• Cost of risk was 26bps in Q2 2024 (EUR 387 million), within the 25–30bps guidance.

• EPS for H1 2024 was EUR 1.81.

• Total assets increased to EUR 1,592 billion as of June 30, 2024.

Outlook and guidance

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

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

• Market revenues expected to exceed EUR 5.4 billion 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.