Société Générale (GLE) JP Morgan European Financials Conference summary

Capital and distribution

• Achieved 13% CET1 capital target ahead of 2026 schedule, with no plans to build additional buffers.

• Extraordinary share buybacks are executed when excess capital is generated, with decisions made by the board.

• Ordinary payout policy increased to 50% due to higher profitability and capital target achievement.

• Interim cash dividend introduced, with flexibility in the cash/buyback split depending on circumstances.

• Political risks, such as potential taxes on buybacks, are considered low but will be managed with discipline.

Profitability and cost management

• Strategic plan focused on streamlining, core business retention, and cost-income improvement.

• Cost-income ratio reduced from mid-70s in 2023 to around 64% in 2024, targeting 60% by 2026.

• Revenue growth expected from French retail, BoursoBank, and financial advisory, with further cost reductions from restructuring and IT optimization.

• Cost discipline includes attrition management, cost control towers, and IT spend reshuffling.

• Commitment to cost reduction extends beyond 2026, aiming for further profitability gains.

French retail and BoursoBank

• French retail net interest income (NII) and revenues are on a positive trend, supported by deposit mix stabilization and asset repricing.

• No significant impact from political uncertainty on asset quality or loan demand.

• Fee income provides revenue stability, with client funds growing throughout the year.

• BoursoBank surpassed 8 million clients ahead of schedule, with strong client retention and lower-than-expected acquisition costs.

• Focus remains on monetizing the client base and achieving €300 million net profit in 2026 while continuing client growth.