Société Générale (GLE) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenues rose to €6.8bn, up 10.5% year-over-year, with group net income at €1.4bn, up 4.6x from Q3 2023; 9M 2024 net income reached €3.2bn, up 53% year-over-year.

• Strategic plan execution is on track, with capital build-up ahead of trajectory, efficiency gains, and ongoing business portfolio reshaping.

• Operating expenses declined 0.8% year-over-year, cost-to-income ratio improved to 63.3%, and ROTE rose to 9.6% from 3.8% in Q3 2023.

• High liquidity and strong capital ratios maintained, with CET1 at 13.2% and LCR at 152%.

• Management changes include a new CFO and CEO assuming direct supervision of key segments.

Financial highlights

• Q3 2024 net banking income: €6.8bn (+10.5% y/y); 9M 2024: €20.2bn (+5.3% y/y).

• Q3 2024 group net income: €1.4bn (x4.6 y/y); 9M 2024: €3.2bn (+53% y/y).

• Q3 2024 cost/income ratio: 63.3% (vs. 70.4% Q3 2023); 9M 2024: 68.8% (vs. 72.4%).

• Cost of risk stable at 27bps in Q3 and 9M 2024; non-performing loan ratio at 2.95%.

• ROTE: 9.6% in Q3 2024 (vs. 3.8% Q3 2023); 7.1% in 9M 2024 (vs. 5.0%).

Outlook and guidance

• 2024 targets reaffirmed: revenue growth ≥5% vs. 2023, cost/income ratio <71%, ROTE >6%, CET1 >13%.

• 2026 ambitions: cost/income ratio <60%, ROTE 9–10%, CET1 13%.

• Cost of risk expected at 25–30bps for 2024–2026.

• New sustainable finance target: €500bn facilitated between 2024-2030, including €400bn in financing and €100bn in sustainable bonds.