Société Générale (GLE) Q4 2024 earnings summary

Executive summary

• 2024 net income rose 69% year-over-year to €4.2bn, with revenues up 7% to €26.8bn, surpassing all financial targets and driven by strong performance across business lines.

• Cost-to-income ratio improved to 69%, below the 71% target, reflecting effective cost control and stable operating expenses.

• ROTE increased to 6.9% (up from 4.2% in 2023), and CET1 ratio rose by 20bps to 13.3%, 310bps above regulatory requirements.

• Portfolio streamlined with 13 business disposals, including Swiss private bank and African operations.

• Shareholder distribution increased 75% to €1.7bn, split equally between cash dividend and share buyback, with a 50% payout policy.

Financial highlights

• Group revenues reached €26.8bn (+6.7% vs. 2023), with Q4 revenues up 11.1% year-over-year.

• Group net income for 2024: €4.2bn (+68.6% vs. 2023); Q4 net income: €1.04bn (+2.4x vs. Q4 2023).

• Cost-to-income ratio improved to 69.0% (down 4.8pp year-over-year); operating expenses stable at €18.5bn.

• Cost of risk at 26bps for 2024, at the low end of guidance; NPL ratio at 2.81% in Q4.

• CET1 ratio at 13.3%, LCR at 156%, NSFR at 117%, loan-to-deposit ratio at 75%, and liquidity reserves at €315bn.

Outlook and guidance

• 2025 targets: revenue/NBI growth above 3%, cost decrease >1%, cost-to-income ratio below 66%, cost of risk 25-30bps, ROTE above 8%.

• CET1 ratio expected to remain above 13% post-Basel IV; organic RWA growth capped at 1% through 2026.

• Payout ratio set at 50% going forward, balanced between cash dividends and share buybacks.

• Focus on commercial momentum, client satisfaction, and asset-light transformation.