Société Générale shares rebound 2% after third-quarter earnings up 17.3%

Earnings supported by cost control and a 12.3% ROTE over nine months

The stock gains 1.9% to €63.13, while the CAC 40 rises 1.18%. Société Générale published this morning a net income attributable to shareholders of €5.4 billion for the first nine months, up 17.3%.

Revenues increase 4.1% to €21.4 billion, while operating expenses fall 3.2%, a gap that brings the ROTE to 12.3% against a target of around 11% in 2026.

In this release, the group indicates it is on track to exceed its 2026 revenue target, above 2% growth, with a cost of risk of 27 basis points over the period.

Among the points highlighted in the press release, BoursoBank reached 9.4 million customers, and the Equities business rose 45.9% in the third quarter, to more than €1.2 billion. Conversely, Rates, Credit and FX revenues fell 20.6% year on year, and the outlook on Moody's rating remains negative.

A rebound that does not erase the 17% quarterly decline, with moving averages still far away

The move of the day barely offsets the 17.06% decline recorded over three months, adjusted for the dividend detached on October 5. The price is near its 20-day moving average (MM20) at €63.13, but remains below its 50-day moving average (MM50) at €68.55, a gap of 7.9%.

CIC Market Solutions maintained its 'hold' rating with a price target of €77, implying potential of around 22% compared with the current price.

On valuation, the consensus of the analysts surveyed places the stock at around 7.9 times expected earnings for the current financial year.

On the regulatory side, the ECB set the Pillar 2 requirement at 2.37% for 2027 on October 26, with a CET1 ratio of 13.2% at June 30. The €59.66 zone, the nearest support level, remains the threshold to watch for the coming sessions.