Q1 2025 Societe Generale SA Earnings Call Transcript
Key Points
- Societe Generale SA (SCGLF) reported a 10% increase in revenues, excluding asset disposals, surpassing their full-year target of more than 3% growth.
- The company achieved a cost reduction of more than 4% in Q1, exceeding their commitment of at least a 1% reduction, resulting in a cost-to-income ratio of 65%.
- The cost of risk remains low at 23 basis points, below the guidance range, indicating strong risk management.
- The return on tangible equity (ROTE) improved significantly to 11%, well ahead of the end-of-year guidance of more than 8%.
- Societe Generale SA (SCGLF) maintains a strong capital position with a CET1 ratio of 13.4%, providing a buffer of around 320 basis points over MDA.
- The environment remains uncertain, with potential global macroeconomic slowdowns and prolonged market volatility posing risks.
- Despite strong performance, the company did not provide specific guidance on net interest income (NII) for the year, indicating potential uncertainty in this area.
- The fixed income business is not as large as desired, and there are challenges in expanding this segment compared to competitors.
- There is a potential impact on risk-weighted assets due to market volatility, although the company has not seen a noticeable impact yet.
- The strategic review of SGSS highlights concerns about scale, which could affect its long-term sustainability and profitability.
(Operator Instructions) Ladies and gentlemen, welcome to the Societe Generale first-quarter 2025 results conference call. I now hand over to Mr. Slawomir Krupa, Chief Executive Officer. Please go ahead, sir.
Thank you. Good morning, everyone, and thank you for joining us today. I am very pleased to be here with you to present together with Leo, our first quarter results. I am happy with our performance this quarter, and I am proud of the work and commitment from all of the SG teams. We still have a lot of work ahead of us, but our renewed ability to execute consistently and with discipline makes me confident that we will continue to build on our strong momentum.
The environment is uncertain for sure, and our progress will not always advance in a straight line. But it will be consistent and predictable. We have taken what was once merely our aspirations and transformed them into a tangible execution track record.
Since the CMD, the results we deliver continue to get better. Our strategy is paying off.
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