Societe Generale Shares Rise on Friday After French Banking Group Reports Quarterly Figures Above Market Expectations

Despite a drop in net income in the first quarter to 680 million euros compared to 868 million euros in the same period last year, the results exceeded analysts' consensus expectations, who had forecast a net income of 475.7 million euros. This decline was mainly due to losses from the sale of assets in Morocco and higher risk costs, particularly due to provisions for doubtful loans.

The bank's revenue fell slightly by 0.4% to €6.64 billion but was above the consensus of €6.38 billion determined by Visible Alpha. While the French retail banking and global banking and investor business saw declining revenues, there were increases in international banking as well as in the mobility and leasing sector.

Sławomir Krupa, the CEO, Highlighted the Recovery in the French Retail Business, Notably an Increase in Net Interest Income Compared to the Previous Quarter. The Profit Margins of the Subsidiary Ayvens Mobility Also Began to Stabilize.

Barclays analysts rated Societe Generale's results as better than expected, in both revenue and adjusted profit, and saw initial signs of recovery in the French retail banking business.

The bank confirmed its annual targets, including a return on tangible equity – an important profitability metric for banks – of more than 6% and revenue growth of at least 5%. However, these forecasts do not take into account the expected recovery in French retail banking in the second half of the year, according to Barclays analysts.