Societe Generale ( (SCGLY) ) has released its Q4 earnings. Here is a breakdown of the information Societe Generale presented to its investors.
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Societe Generale, a leading financial services group in the banking sector, has reported impressive financial results for the year 2024, exceeding all its group targets. The company operates in various sectors including retail banking, private banking, insurance, global banking, and investor solutions.
The company’s 2024 results show a significant growth in net income, reaching EUR 4.2 billion, which is a 69% increase compared to 2023. Societe Generale’s revenues also increased by 6.7% to EUR 26.8 billion, driven by a strong rebound in net interest income in France and exceptional performance in its Global Banking and Investor Solutions division. The group also achieved a cost-to-income ratio of 69.0%, lower than its target, demonstrating effective cost management.
Key financial highlights include a return on tangible equity (ROTE) of 6.9%, above the expected target, and a Common Equity Tier 1 (CET1) ratio of 13.3%, well above the regulatory requirement. The company also announced a 75% increase in shareholder distribution, proposing a EUR 1,740 million payout through dividends and share buybacks.
Looking forward, Societe Generale has set ambitious financial targets for 2025, aiming for revenue growth of more than 3% and a decrease in costs by more than 1%. The company plans to improve its cost-to-income ratio to less than 66% and increase its ROTE to more than 8%. These targets reflect the company’s commitment to strong capital management and executing its strategic plans effectively.
Overall, Societe Generale’s strong performance in 2024 and its strategic focus for 2025 indicate a positive outlook for the company, reinforcing its position as a major player in the financial services industry.
