Société Générale (GLE) Q2 2024 earnings summary

Executive summary

• Net income rose 24% year-over-year to €1.1 billion in Q2 2024, with H1 net income at €1.8 billion and ROTE at 7.4%.

• Revenues increased 6.3% year-over-year to €6.7 billion in Q2 2024, driven by strong Global Markets, Transaction Banking, and NII recovery in France.

• Cost-to-income ratio improved to 68.4% in Q2 2024 and 71.6% for H1, reflecting disciplined cost management.

• Capital and liquidity remain robust: CET1 at 13.1%, LCR at 152%, and a €0.91/share distribution provision.

• Strategic progress includes BoursoBank surpassing 6.5 million clients and the launch of a €1 billion energy transition investment.

Financial highlights

• Q2 2024 revenues: €6.7 billion (+6.3% y/y); H1 2024: €13.3 billion (+2.9% y/y).

• Q2 2024 group net income: €1.1 billion (+24% y/y); H1 2024: €1.8 billion (+1.4% y/y).

• Q2 2024 cost/income ratio: 68.4%; H1 2024: 71.6%.

• Q2 2024 cost of risk: 26bps (€387 million), within 25–30bps guidance.

• Q2 2024 ROTE: 7.4%; H1 2024 ROTE: 5.8%.

Outlook and guidance

• CET1 ratio expected to remain above 13% at year-end 2024.

• French Retail NII for 2024 projected at €3.8 billion, reflecting higher deposit beta and lower loan growth.

• Market revenues expected to exceed €5.4 billion for 2024 under normal conditions.

• Cost of risk guidance for 2024 maintained at 25–30bps.

• Cost/income ratio expected below 71% in 2024 and below 60% by 2026.