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Feb 6, 2025

Societe Generale Signals Higher Payouts Amid Rising Profitability

Societe Generale SA has announced a strategic shift that marks the end of a period of accumulating excess capital into reserves, signaling increased payouts to investors due to enhanced profitability. The full details of these changes and their implications can be accessed through a Bloomberg report. The Paris-based financial giant aims to achieve a return on tangible equity of 8% by 2025, surpassing analysts' forecasts. Following this announcement, the bank's stock surged over 9% as it pledged to distribute half of its cash surplus to shareholders after posting impressive fourth-quarter results that exceeded market estimates.

As of 2024, Societe Generale turned the corner from a challenging year, contrasting with its European counterparts who capitalized more directly on interest-rate hikes. Since early December, the bank's shares have climbed nearly 40%, amidst France's political turbulence. New CFO Leopoldo Alvear confirmed the bank's robust core capital ratio of 13.3%, indicating a solid financial foundation. The earnings report highlights a EUR1.7 billion ($1.8 billion) payout to investors derived from an EUR872 million buyback program and an increased dividend of EUR1.09 per share. Net income more than doubled year-over-year, reaching EUR1.04 billion.

While French political stability appears to be on the rebound following Prime Minister Francois Bayrou's survival of two no-confidence motions, the prospect of tax hikes, including those on share buybacks, poses challenges. CEO Slawomir Krupa suspects limited repercussions for Societe Generale due to its global operations. The bank anticipates revenue growth surpassing 3%, decreases in costs over 1%, and heightened profitability in the coming year.

Equity and Fixed Income Trading Gains

Societe Generale's equities trading revenues reached a record high, climbing 10% to EUR831 million in the last quarter of 2024, outperforming analysts' expectations of EUR814 million. These results have been buoyed by favorable market conditions stemming from the U.S. presidential elections, though they are modest compared to BNP Paribas SA's 30% surge earlier. Additionally, fixed income and currency trading revenues rose by 8.8% to EUR501 million, exceeding forecasts. The bank credits this success to the election outcomes and is supported by the data available on the IndexBox platform, which shows sectorial growth trends.

After CEO Krupa's strategic restructure in October 2024, including the appointment of Alvear and taking charge of the French retail-banking division, the bank continues to streamline operations. This includes job cuts and asset divestitures, including the pursuit of selling Hanseatic Bank, a German consumer finance business. The reduction in France's Livret A savings account interest rate to 2.4% from 3% this February will aid in lowering Societe Generale's funding costs, further enhancing its financial posture.

Lastly, the lender's financing and advisory unit reported a 17% revenue increase to EUR964 million, driven predominantly by structured finance and M&A advisory accomplishments. The bank successfully reduced its cost-to-income ratio to 69% for 2024, better than its target of below 71%.

Source: IndexBox Market Intelligence Platform

  1. 1. INTRODUCTION

    Making Data-Driven Decisions to Grow Your Business

    1. REPORT DESCRIPTION
    2. RESEARCH METHODOLOGY AND AI PLATFORM
    3. DATA-DRIVEN DECISIONS FOR YOUR BUSINESS
    4. GLOSSARY AND SPECIFIC TERMS

  2. 2. EXECUTIVE SUMMARY

    A Quick Overview of Market Performance

    1. KEY FINDINGS
    2. MARKET TRENDS This Chapter is Available Only for the Professional Edition PRO

  3. 3. MARKET OVERVIEW

    Understanding the Current State of The Market and Its Prospects

    1. MARKET SIZE
    2. CONSUMPTION BY COUNTRY
    3. MARKET FORECAST TO 2030

  4. 4. MOST PROMISING PRODUCT

    Finding New Products to Diversify Your Business

    This Chapter is Available Only for the Professional Edition PRO
    1. TOP PRODUCTS TO DIVERSIFY YOUR BUSINESS
    2. BEST-SELLING PRODUCTS
    3. MOST CONSUMED PRODUCT
    4. MOST TRADED PRODUCT
    5. MOST PROFITABLE PRODUCT FOR EXPORT

  5. 5. MOST PROMISING SUPPLYING COUNTRIES

    Choosing the Best Countries to Establish Your Sustainable Supply Chain

    This Chapter is Available Only for the Professional Edition PRO
    1. TOP COUNTRIES TO SOURCE YOUR PRODUCT
    2. TOP PRODUCING COUNTRIES
    3. TOP EXPORTING COUNTRIES
    4. LOW-COST EXPORTING COUNTRIES

  6. 6. MOST PROMISING OVERSEAS MARKETS

    Choosing the Best Countries to Boost Your Exports

    This Chapter is Available Only for the Professional Edition PRO
    1. TOP OVERSEAS MARKETS FOR EXPORTING YOUR PRODUCT
    2. TOP CONSUMING MARKETS
    3. UNSATURATED MARKETS
    4. TOP IMPORTING MARKETS
    5. MOST PROFITABLE MARKETS

  7. 7. GLOBAL PRODUCTION

    The Latest Trends and Insights into The Industry

    1. PRODUCTION VOLUME AND VALUE
    2. PRODUCTION BY COUNTRY

  8. 8. GLOBAL IMPORTS

    The Largest Importers on The Market and How They Succeed

    1. IMPORTS FROM 2012–2024
    2. IMPORTS BY COUNTRY
    3. IMPORT PRICES BY COUNTRY

  9. 9. GLOBAL EXPORTS

    The Largest Exporters on The Market and How They Succeed

    1. EXPORTS FROM 2012–2024
    2. EXPORTS BY COUNTRY
    3. EXPORT PRICES BY COUNTRY

  10. 10. PROFILES OF MAJOR PRODUCERS

    The Largest Producers on The Market and Their Profiles

    This Chapter is Available Only for the Professional Edition PRO

  11. 11. COUNTRY PROFILES

    The Largest Markets And Their Profiles

    This Chapter is Available Only for the Professional Edition PRO
    • United States
    • China
    • Japan
    • Germany
    • United Kingdom
    • France
    • Brazil
    • Italy
    • Russian Federation
    • India
    • Canada
    • Australia
    • Republic of Korea
    • Spain
    • Mexico
    • Indonesia
    • Netherlands
    • Turkey
    • Saudi Arabia
    • Switzerland
    • Sweden
    • Nigeria
    • Poland
    • Belgium
    • Argentina
    • Norway
    • Austria
    • Thailand
    • United Arab Emirates
    • Colombia
    • Denmark
    • South Africa
    • Malaysia
    • Israel
    • Singapore
    • Egypt
    • Philippines
    • Finland
    • Chile
    • Ireland
    • Pakistan
    • Greece
    • Portugal
    • Kazakhstan
    • Algeria
    • Czech Republic
    • Qatar
    • Peru
    • Romania
    • Vietnam

  12. LIST OF TABLES

    1. Key Findings In 2024
    2. Market Volume, In Physical Terms, 2012–2024
    3. Market Value, 2012–2024
    4. Per Capita Consumption, By Country, 2018–2024
    5. Production, In Physical Terms, By Country, 2012–2024
    6. Imports, In Physical Terms, By Country, 2012–2024
    7. Imports, In Value Terms, By Country, 2012–2024
    8. Import Prices, By Country Of Destination, 2012–2024
    9. Exports, In Physical Terms, By Country, 2012–2024
    10. Exports, In Value Terms, By Country, 2012–2024
    11. Export Prices, By Country Of Origin, 2012–2024

  13. LIST OF FIGURES

    1. Market Volume, In Physical Terms, 2012–2024
    2. Market Value, 2012–2024
    3. Consumption, By Country, 2024
    4. Market Volume Forecast to 2030
    5. Market Value Forecast to 2030
    6. Products: Market Size And Growth, By Type
    7. Products: Average Per Capita Consumption, By Type
    8. Products: Exports And Growth, By Type
    9. Products: Export Prices And Growth, By Type
    10. Production Volume And Growth
    11. Exports And Growth
    12. Export Prices And Growth
    13. Market Size And Growth
    14. Per Capita Consumption
    15. Imports And Growth
    16. Import Prices
    17. Production, In Physical Terms, 2012–2024
    18. Production, In Value Terms, 2012–2024
    19. Production, By Country, 2024
    20. Production, In Physical Terms, By Country, 2012–2024
    21. Imports, In Physical Terms, 2012–2024
    22. Imports, In Value Terms, 2012–2024
    23. Imports, In Physical Terms, By Country, 2024
    24. Imports, In Physical Terms, By Country, 2012–2024
    25. Imports, In Value Terms, By Country, 2012–2024
    26. Import Prices, By Country, 2012–2024
    27. Exports, In Physical Terms, 2012–2024
    28. Exports, In Value Terms, 2012–2024
    29. Exports, In Physical Terms, By Country, 2024
    30. Exports, In Physical Terms, By Country, 2012–2024
    31. Exports, In Value Terms, By Country, 2012–2024
    32. Export Prices, 2012–2024

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