Société Générale (GLE) Q1 2025 earnings summary

Executive summary

• Revenue grew 10.2% year-over-year excluding asset disposals, surpassing annual and four-year growth targets, with net banking income at EUR 7.1bn and group net income up 2.4x to EUR 1.6bn.

• Operating expenses fell 7.6% year-over-year, improving the cost-to-income ratio to 65%, a 10-point improvement from Q1 2024 and ahead of the <66% 2025 target.

• ROTE reached 11.0%, well above the end-of-year guidance of 8% and up from 4.1% in Q1 2024.

• CET1 ratio stands at 13.4% post-Basel IV, providing a 320 basis point buffer over MDA and exceeding the 13% target.

• All business segments contributed to growth, underpinned by strong risk management, capital position, and diversification across geographies and sectors.

Financial highlights

• Group revenues increased 6.6% year-over-year, or 10.2% excluding asset disposals, with net banking income at EUR 7,083 million.

• Net income doubled year-over-year to EUR 1,608 million; EPS at EUR 1.80.

• Cost of risk remained low at 23 basis points, below guidance and down from Q1 2024.

• French retail, private banking, and insurance revenues rose 16.5% year-over-year, excluding disposals; net income EUR 421 million.

• Global banking and investor solutions revenues grew 10% year-over-year, with net income EUR 856 million.

Outlook and guidance

• Management expects to outperform annual and 2025 targets, with revenue growth >3%, cost/income ratio <66%, ROTE >8%, and CET1 >13%.

• Cost of risk guidance maintained at 25–30bps for 2025.

• 2026 targets include cost/income ratio <60% and ROTE 9–10%.

• Capital distribution decisions hinge on FRTB clarity, with excess capital above 13% CET1 to be considered for distribution.

• Continued focus on sustainable cost reduction, efficiency, and disciplined execution across all divisions.