Société Générale (GLE) Q4 2024 earnings summary

Executive summary

• 2024 net income rose 69% year-over-year to €4.2bn, surpassing all group financial targets, with revenues up 7% to €26.8bn and strong performance across GBIS, Ayvens, International Retail, and a rebound in French Retail.

• Cost-to-income ratio improved to 69%, below the 71% target, reflecting stable costs and disciplined risk management.

• ROTE increased to 6.9% (up from 4.2% in 2023), and CET1 ratio rose by 20bps to 13.3%, 310bps above regulatory requirements.

• Streamlined business portfolio with 13 disposals, including private banking in Switzerland, Morocco, and Madagascar.

• Board proposes a total distribution of €1.74bn (up 75% vs. 2023), split equally between cash dividend and share buyback.

Financial highlights

• Group revenues reached €26.8bn (+6.7% vs. 2023); Q4 revenues up 11.1% year-over-year, driven by French retail, private banking, insurance, and GBIS.

• Group net income for 2024: €4.2bn (+68.6% vs. 2023); Q4 net income: €1.04bn (+2.4x vs. Q4 2023).

• Cost-to-income ratio improved to 69% (down 4.8pp year-over-year); operating expenses stable at €18.5bn.

• Cost of risk at 26bps for 2024, at the low end of guidance; NPL ratio at 2.81%.

• ROTE at 6.9% for 2024; EPS at €4.38 (vs. €2.17 in 2023).

Outlook and guidance

• 2025 targets: revenue growth above 3% (excluding disposed assets), cost decrease >1%, cost-to-income ratio below 66%, cost of risk 25-30bps, ROTE above 8%.

• CET1 ratio expected to remain above 13% post-Basel IV; organic RWA growth capped at 1% through 2026.

• Payout ratio set at 50% going forward, with a balanced mix of cash dividends and share buybacks.

• Continued focus on commercial momentum, client satisfaction, and disciplined capital allocation across all businesses.