Societe Generale beat first-quarter profit forecasts Thursday, driven by cost cuts and a strong rebound in its French retail division. The results came despite a sharp drop in fixed income trading that left the bank trailing most of its major rivals.
SOCIÉTÉ GÉNÉRALE Q1 2026 EARNINGS SUMMARY
Net Income reached €1.70 billion, significantly beating the market estimate of €1.55 billion.
— Markets Today (@marketsday) April 30, 2026
Group net income for the three months to March 31 came in at €1.70 billion, up 5.5% from a year earlier and roughly 9% above the analyst consensus of €1.55 billion.
Operating expenses fell 6% year-on-year to €4.33 billion. That’s about double the bank’s own annual cost reduction target of 3%, and below the consensus estimate of €4.40 billion.
The cost-to-income ratio improved to 60.9% from 65% a year ago. On an IFRIC 21 linearised basis, it came in at 57.6%, below the bank’s full-year target of under 60%.
Return on tangible equity hit 11.7%, above the consensus of 10.4% and ahead of the bank’s full-year target of above 10%. On an adjusted basis, ROTE reached 12.7%.
Net banking income edged up just 0.3% to €7.11 billion, slightly below the €7.15 billion consensus. At constant perimeter and exchange rates, revenues rose 4.4%.
The French Retail, Private Banking and Insurance division posted net income of €625 million, up 48.4% year-on-year. The unit’s return on normative equity rose to 13.7% from 9.5% in Q1 2025.
The recovery in French retail has been a central focus for CEO Slawomir Krupa. A miscalculated interest-rate hedging policy previously cost the unit more than €2 billion. Krupa took direct oversight of the division after taking the top job in 2023.
The unit benefited from a cut in the Livret A savings rate, a more stable deposit mix, and stronger lending volumes, all of which boosted net interest income.
The investment banking division told a different story. Global Banking and Investor Solutions net income fell 9.7% to €773 million.
FICC trading revenue dropped 18.2% to €571 million. The bank pointed to weak commercial momentum and unfavorable conditions in European rates markets.
That performance stood out against peers. JPMorgan’s FICC revenue rose 21% in the quarter. Goldman Sachs fell 10%, Deutsche Bank slipped 1%, and BNP Paribas was broadly flat — all ahead of SocGen’s drop.
Equities revenue was a bright spot, hitting a record €1.12 billion, up 5.5%.
The net cost of risk came in at €355 million, or 25 basis points — the low end of the bank’s 2026 guidance range of 25 to 30 basis points and well below the consensus of €396 million.
The CET1 ratio stood at 13.5% at end-March, roughly 325 basis points above the regulatory minimum.
Digital unit BoursoBank generated €92 million in profit in Q1 and is targeting a full-year contribution of more than €300 million.
Jefferies analysts noted BoursoBank pulled back on promotional offers in Q1, which they see as a sign of a clearer path to sustainable profitability.
Investors are already focused on the bank’s next mid-term strategic plan, due September 21.
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