Societe Generale Raises 2026 Profitability Target After Q4 Beat, Signals Capital Return Momentum

Societe Generale said fourth-quarter net income rose 36% year-on-year to €1.42 billion, beating analyst expectations, while revenue increased to €6.73 billion and operating expenses came in slightly below projections. The bank framed the result as progress in a multi-year reset under CEO Slawomir Krupa, where cost discipline and stronger capital generation are central to restoring credibility after years of underperformance.

The mix mattered: management pointed to improving French retail banking—helped by a rebound in net interest margin, alongside solid contributions from insurance and asset management. That performance allowed SocGen to lift its 2026 return on tangible equity target to “more than 10%,” up from a prior 9%–10% range, and it reiterated expectations for revenue growth above 2% in 2026 and roughly 3% cost reduction. It ended 2025 with a CET1 ratio of 13.5%, above its self-set 13% target for 2026, giving it flexibility to fund organic growth while still returning cash to shareholders.

Capital return became a headline in its own right: the bank announced a €1.46 billion share buyback and said it would propose a €1.61 per-share dividend in 2026. In a strong governance signal, SocGen’s board unanimously decided to renew Krupa’s mandate for another four years beginning in 2027, reinforcing continuity ahead of the next strategic plan and an investor day scheduled for September 21.

The main soft spot was the investment bank. SocGen’s investment-banking division saw sales fall 2.3% to €2.41 billion, missing expectations, and fixed income, currencies and commodities (FICC) trading revenue dropped 13.3%, a notable divergence from peers that reported steadier or stronger trading. With the next strategic plan expected to emphasize “cost efficiency,” investors may read this quarter as validation of the turnaround playbook, but also as a reminder that market-facing revenue remains the swing factor in sustaining improved returns.