Societe Generale's Impressive H1 2025 Financial Results
Strong Financial Performance of Societe Generale in H1 2025
RESULTS AT 30 JUNE 2025
Societe Generale has announced robust financial results for the first half of 2025, showcasing significant progress across its business sectors. The group recorded a net income of EUR 3.1 billion, reflecting a remarkable 71% increase compared to the same period in 2024.
Group Financial Highlights
Societe Generale reported group revenues of EUR 13.9 billion for the first half of 2025, which is an 8.6% increase from H1 2024, surpassing the annual target of more than 3%. Additionally, operating expenses decreased by 2.6%, illustrating effective cost management strategies and exceeding expectations of a decrease of at least 1% for the year.
Income and Ratios
The notable improvement in the cost-to-income ratio, which stood at 64.4% in H1 2025, also surpassed the previously set target of under 66%. Furthermore, the asset quality remained strong, with a low cost of risk at just 24 basis points, below the anticipated target of 25 to 30 basis points.
Quarterly Performance
In Q2 2025, the bank reported a net income of EUR 1.5 billion, representing a growth of 31% from Q2 2024. The return on tangible equity (ROTE) also improved, reaching 9.7%, significantly exceeding the annual target of over 8% for 2025.
Shareholder Benefits
As a testament to its strong performance, the Board of Directors approved an interim cash dividend of EUR 0.61 per share and initiated a share buy-back program worth EUR 1 billion, effective from August 4, 2025. This reflects Societe Generale’s commitment to returning value to its shareholders amid positive financial growth.
Business Segment Insights
Breaking down the results by business segments, Societe Generale’s French Retail, Private Banking, and Insurance performed admirably, driving up net banking income by 6.5% compared to Q2 2024. The Private Banking division enjoyed a 14.8% increase in net interest income, underlining its strong market position and customer service approach.
Global Banking and Investor Solutions
Similarly, the Global Banking and Investor Solutions sector maintained robust revenues, totaling EUR 2.6 billion in Q2 2025, up 0.7% year-over-year. This performance was driven by favorable conditions in the Fixed Income and Currencies markets.
ESG Commitments and Future Outlook
Societe Generale is also making strides in environmental, social, and governance (ESG) initiatives. The Group’s Scientific Advisory Council has been established to ensure that ESG considerations are integrated into strategic decision-making processes, enhancing both operational and financial outcomes.
The management remains focused on achieving sustainable growth while navigating the evolving economic landscape, emphasizing the aim for a ROTE target of approximately 9% for the remainder of 2025.
Frequently Asked Questions
What were Societe Generale's net income figures for H1 2025?
Societe Generale reported a net income of EUR 3.1 billion for H1 2025, a 71% increase from H1 2024.
How did the revenues perform compared to the previous year?
Group revenues reached EUR 13.9 billion, up 8.6% compared to the same period last year.
What is the cost-to-income ratio reported by Societe Generale?
The cost-to-income ratio was reported at 64.4% for H1 2025, below the target of < 66%.
What shareholder distributions were announced?
The Board approved a EUR 0.61 interim cash dividend and announced a EUR 1 billion share buy-back program.
What is the outlook for ROTE in 2025?
Societe Generale is targeting a ROTE of around 9% for the full year of 2025.
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