Half Year 2025 Societe Generale SA Earnings Call Transcript
Key Points
- Societe Generale SA (SCGLF) reported a strong set of results for the first half of 2025, with revenues increasing by 8.6% compared to H1 2024, excluding asset disposals.
- The company upgraded its annual targets, now expecting a return on tangible equity (ROTE) of around 9% for 2025, and announced an additional share buyback of EUR1 billion.
- The cost-to-income ratio improved significantly, reaching 64% in the first half, which is below the initial annual target and 7 percentage points better than the previous year.
- Asset quality remains strong with a low cost of risk at 24 basis points for the first half, and the CET1 ratio increased to 13.5% after accounting for the additional share buyback.
- BoursoBank reached 8 million clients 18 months ahead of the initial target, showing improved financial performance and strong client acquisition momentum.
- Despite the strong performance, the company remains cautious about the macroeconomic environment, maintaining a prudent approach to risk management.
- The French Retail Banking segment did not provide specific revenue guidance for the year, reflecting uncertainty in the market.
- The Global Employee Share Ownership Program resulted in a one-off non-cash charge of EUR100 million, impacting the cost structure.
- The company faces challenges in the GTPS segment due to significant headwinds from rate effects, impacting revenue growth.
- The consumer credit business, while improving, remains small and less profitable compared to competitors, with no immediate plans for significant expansion.
Ladies and gentlemen, welcome to the Societe Generale second quarter and half year 2025 conference call.
I now hand over to Mr. Slawomir Krupa, Chief Executive Officer. Sir, please go ahead.
Thank you. Good morning, everyone, and thank you for joining us today for our H1 results. I am delighted to present to you another strong set of results as well as an important new milestone in the execution of our strategic plan. Last quarter, we demonstrated that our continued improvement is sustainable, and we continue to perform ahead of our end of year targets. Through consistent organic capital generation, we have further strengthened our capital ratio.
Our overall performance gives us the confidence to take two major steps forward in our commitments. We are upgrading our annual targets, and we now expect ROTE around 9% for 2025. And we are further improving shareholder return with today's announcement of our first ever exceptional
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