Société Générale S.A.

Reported figures: Q2 2026 group revenue rose 4.5% year over year, or 6.1% at constant perimeter and FX; H1 2026 revenue rose 2.4% year over year. Q2 group operating expenses fell 4.1% year over year, and H1 expenses fell 5%. Q2 cost/income ratio was 58.6% versus 63.8% in Q2 2025; H1 cost/income ratio was 59.7%. Cost of risk was 27 bps in Q2 and 26 bps in H1. Q2 group net income was EUR 1.8 billion and H1 net income was EUR 3.5 billion, both described as records. Q2 ROTE was 12.2% versus 9.7% a year ago; H1 group ROTE was 12%, versus a 2026 target of above 10% before the upgrade. CET1 was 13.2% after the EUR 1.5 billion extraordinary buyback. Guidance was raised: 2026 cost reduction is now expected at around minus 4% versus around minus 3% previously, and 2026 ROTE around 11% versus above 10% previously. Management reaffirmed revenue growth guidance of more than 2% for 2026, a cost/income ratio below 60% by year-end, and cost of risk in the 25-30 bps range. The interim dividend was set at EUR 0.75 per share, up 23% versus last year.

Slawomir Krupa framed the quarter as evidence that the transformation program is working, saying the bank is now more efficient, focused and profitable with a more diversified mix. He emphasized control over performance drivers and repeated that management wants to rely on factors it can manage, while still investing to improve the business mix over time. He also tied the strong results to capital returns and said the upgraded 2026 targets reflect the group’s momentum, not a one-off benefit.

Leopoldo Alvear highlighted 4.5% reported revenue growth in Q2, with 6.1% growth at constant perimeter and FX, and said expenses fell 4.1% year over year. He pointed to a Q2 cost/income ratio of 58.6%, cost of risk of 27 bps, and record quarterly net income of EUR 1.8 billion with ROTE of 12.2%. He also noted CET1 of 13.2% after the EUR 1.5 billion buyback, liquidity reserves of EUR 339 billion, an LCR of 146%, an NSFR of 115%, and a 96% execution rate on the 2026 long-term funding program.

Analysts pressed management on whether the strong cost actions preview a more aggressive 2029 strategic plan, and Krupa said the company is committed to keeping more control in its own hands while details would come at the September Capital Markets Day. Questions on weaker equities performance drew a response that Société Générale favors stability and profitability over maximizing upside in any one quarter, while still investing organically in equities capabilities. On French retail, management said the business should be viewed holistically across the network, insurance and BoursoBank, and that current deposit and lending choices reflect a deliberate balance between growth and profitability rather than an attempt to maximize lower-quality volumes.