Half Year 2024 Societe Generale SA Earnings Call Transcript
Key Points
- Societe Generale SA (SCGLF) reported a 24% increase in net income compared to last year, reaching EUR1.1 billion in Q2 2024.
- The cost-income ratio improved to 68.4% for the quarter, moving closer to annual targets.
- Revenues increased by 6% year-over-year, driven by strong performance in Global Banking and Investment Solutions, International Retail Banking, and higher margins at Ayvens.
- The bank maintains strong liquidity and capital ratios, with an LCR of 152% and a CET1 ratio of 13.1% post-distribution provision.
- BoursoBank continues to grow, reaching 6.5 million clients and contributing to the group's strategic roadmap with a EUR1 billion investment dedicated to the energy transition.
- French Retail NII is facing headwinds due to an increased share of interest-bearing deposits and slower loan origination in a muted environment.
- Operating expenses increased slightly to EUR4.6 billion, partly due to perimeter effects linked to LeasePlan.
- The cost of risk remains stable but high at 26 basis points, with specific market impacts affecting the overall figure.
- Consumer Finance revenues are down by 5% year-over-year, impacted by the effect of the usual rate on loans originated until last year.
- The bank's CET1 ratio is slightly down compared to previous quarters due to expected impacts from the creation of Bernstein and regulatory inspections by the ECB.
Thank you. Good morning, everyone. Thank you for joining the conference call today. We are pleased to present Société Générale group's results for the second quarter. They reflect the sustained improvement in profitability and the right pace towards the delivery of our financial targets.
The group's net income improves by 24% compared to last year and it stands at EUR1.1 billion in Q2 '24 equivalent to a quarterly ROTE of 7.4%. The cost income ratio is improving as well, at 68.4% for the quarter and 71.6% for the half year, moving us closer to our annual targets. Revenues are up 6% compared to last year and this outcome is driven by an overall robust performance of most businesses, with once again, an excellent quarter in Global Banking and Investment Solutions, sustained performance of our International Retail Banking and higher margins at Ayvens.
In France, NII is improving quarter after quarter, but it is facing headwinds coming from -- coming from an increased
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