Société Générale continues its recovery in 2024 and takes off on the stock market

"We have (...) in 2024 exceeded each of our financial targets," Chief Executive Slawomir Krupa said in a telephone press conference.

In 2025, "let's not try to change a policy that works (...) let's improve it further," he continued.

Last year, the bank posted net banking income (NBI) of 26,8 billion euros (+6,7%) for a net result of 4,2 billion euros (+69%).

In the fourth quarter, "SocGen" even had the luxury of exceeding analysts' expectations.

Retail banking in France, whose results are consolidated with the insurance and private banking businesses (reserved for wealthy clients), posted a net banking income of 8,7 billion euros over the year (+7,5%) for a net profit approaching one billion euros (+66%).

The net interest margin - the difference between the rate at which a bank lends money and the rate at which it finances itself - of the SG network, the result of the merger of Société Générale and Crédit du Nord, "recovered significantly" between October and December compared to the same period in 2023, the bank said.

Spoiled shareholders...

The large client bank, which notably includes the financing and investment businesses, is establishing itself as the driving force of the group: its NBI, presented as a record, exceeds 10 billion euros over the year (+5%) for 2,8 billion euros of net profit (+22%).

The division grouping together automobile leasing, consumer credit and international retail banking, stripped of several African subsidiaries, sees its revenues stagnate in 2024, at 8,5 billion euros, for a net profit down 21%, at 1,3 billion euros.

The group's result is also reduced by 848 million euros, allocated among other things to the real estate management of the head office or to certain costs relating to "transversal projects".

On the strength of these results, the bank decided to redistribute 1,74 billion euros to its shareholders, by proposing a cash dividend of 1,09 euros per share, submitted to the vote of the general meeting of shareholders on May 20, and by launching a share buyback program of 872 million euros from February 10.

These results were welcomed on the stock market: the group's share price jumped by 10% to 25 euros at around 8,95:33,66 a.m., in a market up 0,64%.

Since January 1, the title has gained more than 23% and shows the best progression of the CAC 40 over the period.

...but depressed employees

The recovery of the stock market price, which has been battered in recent years, has been a strong focus of Slawomir Krupa's strategy since he took over the bank in May 2023.

It is accompanied by several transformation projects, the sale of subsidiaries deemed less profitable and a hunt for costs at all levels.

"We have also made significant progress in rationalizing our business portfolio, with 13 disposals," Mr. Krupa stressed on Thursday.

"The bulk of this first major phase of adjustment that we have undertaken is rather well behind us," he continued.

The impact is particularly strong on employment: the merger of the two historic networks is accompanied by 3.700 job cuts, still ongoing, to which are added approximately 950 announced at the beginning of last year in central functions.

It is also read in a study published at the beginning of the year by the SNB union. Presenting "alarming findings for the health of employees in the banking sector" as a whole, the work shows that respondents from Société Générale present the most degraded results.

57% of Société Générale employees say they are exposed to a high or very high risk of burnout, the union states in a column entitled "Employee unhappiness at the heart of transformations", well above the sector average.