Société Générale: profit up 24% in third quarter, ROTE at 13%
Société Générale reported on October 29, 2026, a net income attributable to the group of 5.4 billion euros for the first nine months of the year, up 17.3%. It is based on a favorable gap between revenues and costs: the former increased by 4.1%, to 21.4 billion euros, while management expenses declined by 3.2%.
This gap brings the ROTE to 12.3% for the period, against a target of approximately 11% for the full year 2026, an objective that the group had raised during its half-year publication on July 30, 2026. These results are published while the stock was showing a decline of 20% over three months as of October 26.
French retail banking and equities activities drive the quarter
In the third quarter, net income attributable to the group reached 1,888 million euros, compared to 1,521 million a year earlier, representing an increase of 24.1%. The quarterly ROTE stood at 13.0%, compared to 10.7% in the third quarter of 2025.
French retail banking, private banking and insurance provided the strongest growth. Its revenues increased by 10.9%, to 2,531 million euros, with net interest income up 12.7% and commissions up 8.3%. Its management expenses fell by 5.1%.
The operating ratio of the business unit thus improved from 65.7% to 56.1%, and its net income attributable to the group increased by 55.4%, to 682 million euros. BoursoBank contributed 101 million euros to this, with 446,000 new customers in the quarter, following a change in the accounting treatment of its acquisition costs, now spread according to IFRS 15.
Large client banking and investor solutions saw revenues increase by 12.5%, to 2,777 million euros, and net income attributable to the group by 22.4%, to 899 million.
Equities activities reached 1,202 million euros, up 45.9%, a record level according to the group. In the first half, this business unit's revenues had declined by 1.3%.
Interest rates activities and Mobility division decline
Interest rates, credit and currency activities declined by 20.6% in the quarter, to 474 million euros, which the group attributes to lower activity levels in interest rates. They had already fallen 15.0% in the first half, and the decline reached 16.7% over nine months.
The Mobility division, international retail banking and financial services, reported net income attributable to the group of 349 million euros, down 11.1% (8.6% on a constant scope and exchange rate basis). Its revenues declined by 6.7%, to 1,855 million euros, due to the impact of Ayvens, whose revenues fell by 12.2%, to 731 million.
The average result on Ayvens' used car sales was approximately 120 euros per vehicle in the quarter and approximately 310 euros over nine months, against an annual target range of 200 to 600 euros. The division's cost of risk rose to 47 basis points, compared to 37 a year earlier.
At the group level, the cost of risk stood at 28 basis points in the third quarter, compared to 26 a year earlier. International retail banking maintained revenues up 1.0% on a constant scope and exchange rate basis, with a RONE of 16.5%.
Provision for distribution of 3.42 euros per share at end of September
The group indicates it is on track to exceed its objective of revenue growth exceeding 2% in 2026. It has completed its financing program for the year, with approximately 18.8 billion euros of vanilla debt at medium and long term issued by the parent company and its subsidiaries.
Following notification by the ECB on October 26, 2026, of a Pillar 2 requirement of 2.37% applicable from January 1, 2027, Société Générale reported a pro forma margin of approximately 300 basis points over its regulatory requirements. Annual results will be published on February 4, 2027.
According to the consensus of analysts surveyed, the stock trades at approximately 7.8 times expected earnings for the current fiscal year. Earnings per share reached 6.56 euros over nine months, compared to 6.80 euros for the full fiscal year 2025.
Based on a distribution rate of 50%, the total provision for distribution equals 3.42 euros per share at end of September, including an interim dividend of 0.75 euro paid in October 2026. Tangible book value per share stood at 76.4 euros, compared to 71.4 euros at end of 2025.
