Société Générale share drops below €69.87 and extends its decline
Société Générale loses ground this Wednesday, in a CAC 40 also oriented downward, finishing in the middle of the Paris index rankings. The stock breached a technical threshold downward during the session, extending a decline that has been underway for several weeks, as the banking sector evolves in a changing interest rate environment.
A support level broken during the session that extends the quarterly slide
Société Générale falls 1.19% to €69.79 in session, after breaching its support level of €69.87 downward, with the stock now trading below at €69.76. This breach is part of a broader decline: the stock is already down -3.54% over one month and -9.21% over the quarter, in a CAC 40 that is down 0.56% in session. The technical configuration remains under pressure.
The stock is trading below its three moving averages: the 20-day MA at €73.03, the 50-day MA at €76.60 and the 200-day MA at €72.10, with a gap of more than 8.8% below the 50-day MA. The RSI at 40 remains in neutral territory, without signaling immediate selling exhaustion. It should be noted that a capital reduction took effect on September 23, as part of the €1.5 billion share buyback program announced in August, of which approximately 84% have been executed as of September 25.
Record results in the first half but an interest rate context weighing on the sector
When publishing first-half 2026 results on July 30, the bank had reported record net income attributable to the group of €3.5 billion, up 13.9% year-on-year, with a ROTE of 12.0%. The 2026 ROTE target had been raised to approximately 11%, and the bank had announced a 23% increase in interim dividend and an exceptional share buyback. These elements contrast with some more cautious signals: Large Client Banking revenues had fallen 1.3% over the half-year, and cost of risk increased 6.6% to €745 million.
On the macro front, Société Générale is historically sensitive to mortgage credit rates in the eurozone and in France, a context that remains challenging as the 3-month Euribor stands at 2.51% and the average effective rate on long-term fixed mortgage loans comes in at 3.97%. According to the analyst consensus surveyed, the stock is trading at approximately 8.8 times expected earnings for the current fiscal year, with EPS growth anticipated at +14.4% year-over-year. The next key date for the stock is the dividend ex-date scheduled for October 5.
