Live Updates > Live Update Details
2025-10-30 17:49:09
[Société Générale's Better-than-Expected Earnings Face Market Resentment, Capital Returns Suppress Share Price] ⑴ Société Générale's third-quarter net profit rose 11% to €1.52 billion, exceeding market expectations by over €200 million. ⑵ The cost-to-income ratio fell to 61%, significantly below the full-year target of 65%, reflecting the CEO's effective cost control. ⑶ Share price fell 3% against the market trend, mainly due to management's failure to commit to returning excess capital to shareholders, causing disappointment. ⑷ Investment banking performance was mixed, with fixed income trading revenue growing 12% but the traditional strength in equities declining by 6.7%. ⑸ Net interest income growth in French retail banking and a 74% surge in mortgage lending were highlights. ⑹ Despite the share price doubling this year, Jefferies analysts bluntly stated that the bank should repurchase shares at a 20% discount. ⑺ The core tier 1 capital adequacy ratio reached 13.7%, with excess capital reserves providing room for future returns. ⑻ Competitor Crédit Agricole's performance was weak, with net profit actually declining after excluding the revaluation gains from its Italian holdings. (9) Digital bank BoursoBank surpassed the 8 million customer threshold ahead of schedule, becoming a key pillar in its strategic transformation. (10) The ongoing political crisis in France, with S&P and Fitch downgrading sovereign ratings, could push up bank funding costs. (11) The CEO acknowledged that there is still room for improvement in operational efficiency, emphasizing that they are continuing to move in the right direction.
