SocGen posts forecast-beating Q2 performance

(Sharecast News) - Societe Generale reported a forecast-beating second-quarter performance on Thursday as strength in its retail banking operations and tighter cost control offset weaker trading revenues. Net profit rose 23% year-on-year to a record €1.79bn, ahead of expectations of around €1.6bn, while revenue increased 4.5% to €7.1bn.

Return on tangible equity reached 12.2%, while net interest income at its retail banking division rose nearly 15%.

The French lender raised its full-year return on tangible equity target to around 11% from more than 10% and now expects costs to fall 4% from 2025, compared with its previous forecast for a 3% reduction.

Societe Generale also announced a €1.5bn share buyback and an interim dividend of €0.75 per share. Investment banking revenue rose 2.7%, although fixed income and currencies trading revenue fell 11.3%.

Chief executive Slawomir Krupa said the quarter's improved operational efficiency reflected "both an increase in our revenues and a sharp drop in our costs generating strong positive jaws effect".

At 1332 CEST (1232 BST), shares in Societe Generle were up 6.17% in Paris at €81.45.

Reporting by Josh White for Sharecast.com.