Société Générale S.A.

Q2 2026 reported revenues were EUR 6.8 billion, up 4.5% year over year; at constant perimeter and exchange rates, revenues were up 6.1%. Q2 2026 net income was a record EUR 1.8 billion, and return on tangible equity was 12.2% versus 9.7% in Q2 2025. Costs were down 4.1% year over year, with a Q2 cost/income ratio of 58.6%; cost of risk was 27 bps, with the NPL ratio at 2.7% and net coverage at 83%. For H1 2026, the group said revenues were up 2.4% year over year, operating expenses were down 5%, cost/income was 59.7%, cost of risk was 26 bps, group ROTE was 12%, and net income was EUR 3.5 billion. Management announced an extraordinary EUR 1.5 billion share buyback and an interim dividend of EUR 0.75 per share, up 23% year over year. Full-year 2026 guidance was raised to around 4% cost reduction and around 11% ROTE; prior targets were around 3% cost reduction and above 10% ROTE.

Slawomir Krupa framed the quarter as proof that the transformation is working, saying the group is now more efficient, focused and profitable with a better-diversified mix. He stressed that results were ahead of annual targets and that the firm is entering the final stage of its current strategic roadmap, with a continued emphasis on controlling what it can manage internally. He was upbeat but disciplined, repeatedly emphasizing stability, predictability, and selective growth over chasing every market opportunity.

Leopoldo Alvear highlighted solid operating momentum: Q2 revenues up 4.5%, costs down 4.1%, and a cost/income ratio improved to 58.6% from 63.8% a year ago. He pointed to contained asset quality with cost of risk at 27 bps, Stage 3 provisions of EUR 405 million, stable Stage 1 and 2 provisions at EUR 2.9 billion, and a strong capital position with CET1 at 13.2% including the EUR 1.5 billion buyback. He also noted liquidity reserves of EUR 339 billion, an LCR of 146%, an NSFR of 115%, and 96% completion of the 2026 long-term funding program.

Analysts pressed management on whether the cost cuts and positive jaws signaled a more ambitious CMD, and management said it wants to keep more of the performance under its own control, but would say more in September. On equities, management acknowledged it was not the strongest quarter relative to peers, attributing it to mix and geography, especially a weaker FICC contribution and limited scale in prime services, while reiterating a strategic preference for stability and profitability and saying the franchise is still being built organically. Questions on French retail focused on weak network loan/deposit trends versus strong BoursoBank growth; management said the pillar should be viewed holistically, with the network, insurance and digital businesses serving one French retail market, and that the current deposit mix and cautious capital allocation are intentional. On capital return, management said the commitment to operate close to a 13% CET1 ratio remains unchanged.