Societe Generale: Second quarter and first half 2025 results
RESULTS AT 30 JUNE 2025
Press release Paris, 31 July 2025, 6:25 a.m.
GROUP NET INCOME OF EUR 3.1BN IN H1 25, UP +71% VS. H1 24
UPGRADE OF 2025 TARGETS
FIRST ADDITIONAL SHARE BUY-BACK OF EUR 1BN
NEW INTERIM CASH DIVIDEND OF EUR 0.611 PER SHARE
Group revenues at EUR 13.9 billion in H1 25, up +8.6% excluding asset disposals vs. H1 24, exceeding 2025 annual target > +3%
Costs down -2.6% in H1 25 vs. H1 24, excluding asset disposals, ahead of our 2025 annual target of a decrease higher than -1%
Cost / income ratio at 64.4% in H1 25, below the initial annual target of <66% for 2025
Solid asset quality with a low cost of risk at 24bps in H1 25, below the 2025 annual target of 25 to 30 basis points
Group net income of EUR 3.1 billion in H1 25, up +71% vs. H1 24, ROTE at 10.3%, above the initial annual target of >8% for 2025
As in H1 25, strong performance in Q2 25, C/I ratio at 63.8% (vs. 68.4% in Q2 24), Group net income of EUR 1.5bn (+31% vs. Q2 24) and ROTE at 9.7%
Upgrade of the 2025 financial targets driven by better than guided revenues and costs:
Cost / income ratio now expected below 65% in 2025
ROTE target for 2025 increased to ~9% in 2025
First distribution of excess capital in the form of an additional share buy-back of EUR 1 billion (~-25 basis points of the CET1 ratio), to be launched as soon as 4 August 2025
CET1 ratio at 13.5% at the end of Q2 25 after additional share buy-back of EUR 1bn, around 330 basis points above the regulatory requirement
The Board of Directors approved an amendment to the distribution policy, introducing an interim cash dividend payable in the fourth quarter of each year from 2025 onwards. For the first half of 2025, an interim dividend of EUR 0.611 per share will be paid on 9 October 2025
Slawomir Krupa, Group Chief Executive Officer, commented:
"We are once again reporting strong results this quarter with a solid commercial and financial performance in all our businesses. Revenue growth, cost reduction, cost income ratio and profitability improvement: we are ahead of all our annual targets for the first half of the year, and we have revised them upwards for the full year 2025. With a high capital ratio, well above our target, we decided to provide an additional distribution to shareholders in the form of a share buy-back and to introduce an interim dividend for the first half of 2025. I would like to thank all our teams for their commitment to our clients and to our Bank. We remain fully focused on the precise and methodical execution of our 2026 roadmap to continue delivering sustainable and profitable growth for all our stakeholders."
GROUP CONSOLIDATED RESULTS
In EURm
Q2 25
Q2 24
Change
H1 25
H1 24
Change
Net banking income
6,791
6,685
+1.6%
+7.8%*
13,874
13,330
+4.1%
+8.8%*
Operating expenses
(4,331)
(4,570)
-5.2%
-0.1%*
(8,935)
(9,550)
-6.4%
-2.6%*
Gross operating income
2,460
2,115
+16.4%
+25.3%*
4,939
3,780
+30.7%
+37.8%*
Net cost of risk
(355)
(387)
-8.2%
+0.7%*
(699)
(787)
-11.1%
-4.9%*
Operating income
2,105
1,728
+21.8%
+30.6%*
4,240
2,993
+41.7%
+48.8%*
Net profits or losses from other assets
75
(8)
n/s
n/s
277
(88)
n/s
n/s
Income tax
(477)
(379)
+25.8%
+37.7%*
(967)
(653)
+48.1%
+58.3%*
Net income
1,702
1,348
+26.3%
+34.6%*
3,557
2,265
+57.1%
+64.4%*
o/w non-controlling interests
249
235
+5.8%
+11.5%*
496
472
+5.0%
+11.3%*
Group net income
1,453
1,113
+30.6%
+39.6%*
3,061
1,793
+70.8%
+78.1%*
ROE
8.6%
6.5%
9.1%
5.1%
+0.0%
+0.0%*
ROTE
9.7%
7.4%
10.3%
5.8%
+0.0%
+0.0%*
Cost to income
63.8%
68.4%
64.4%
71.6%
+0.0%
+0.0%*
Asterisks* in the document refer to data at constant scope and exchange rates
Societe Generale's Board of Directors, at a meeting chaired by Lorenzo Bini Smaghi on 30 July 2025, reviewed the Societe Generale Group's results for the second quarter and first half of 2025.
Net banking income
Net banking income stood at EUR 6.8 billion, up +1.6% vs. Q2 24 and +7.1% excluding asset disposals.
Revenues of French Retail, Private Banking and Insurance were up +6.5% vs. Q2 24 (+10.7% excluding asset disposals). They stood at EUR 2.3 billion in Q2 25. Net interest income grew strongly in Q2 25 by +14.8% vs. Q2 24, and by +2.4% when restating the disposals and the impact of short-term hedges recognised in Q2 24 (around EUR -150 million). Assets under management in Private Banking (excluding disposals of the Swiss and UK operations) and life insurance outstandings increased by +6% and +5% in Q2 25 vs. Q2 24 respectively. Lastly, BoursoBank continued its strong commercial development with ~424,000 new clients during the quarter, and has reached 8 million clients in July 2025, ahead of its initial 2026 guidance given at the Capital Markets Day in September 2023.
Global Banking and Investor Solutions maintained a high level of revenues of EUR 2.6 billion in Q2 25, up +0.7% vs. Q2 24 owing to the continued sustained activity in Fixed Income and Currencies and in Financing and Advisory. Global Markets posted a revenue base up +0.8% in Q2 25, compared with a level that was already very high in Q2 24. The Equities business maintained a very high level of revenues, although this fell slightly by -2.9% in Q2 25, compared with an elevated level in Q2 24, mainly due to the positive commercial momentum in derivatives. Fixed Income and Currencies grew by 7.3%, driven by buoyant activity in flow and financing products. Securities Services posted a slight decrease in revenues of -3.1% due to the impact of the fall in interest rates. Global Banking & Advisory benefited from the strong performance of the acquisition finance, fund financing and project finance businesses, as well as from the solid momentum in loan origination and distribution. Lastly, despite robust commercial activity with corporate and institutional clients, Global Transaction & Payment Services recorded a fall in revenues of -4.7% compared with Q2 24, also due to the contraction of interest rates.
In Mobility, International Retail Banking and Financial Services, revenues were down -5.6% vs. Q2 24 mainly due to a scope effect of around EUR -260 million in Q2 25. Excluding the impact of asset disposals, they were up +7.3%. International Retail Banking recorded a -12.1% fall in revenues vs. Q2 24 to EUR 0.9 billion, due to a scope effect related to the disposals completed in Africa (mainly Morocco and Madagascar). They rose +2.7% at constant perimeter and exchange rates. Revenues from Mobility and Financial Services were up +0.4% vs. Q2 24 and up +11.7% excluding the disposal of SGEF. Ayvens' revenues grew by +10.6% vs. Q2 24, with notably improved margins. Consumer Finance posted a revenue increase of +12.6%, notably driven by higher net interest income.
The Corporate Centre recorded revenues of EUR -160 million in Q2 25.
In the first half of the year, the Group's net banking income increased by +4.1% vs. H1 24 and +8.6% excluding asset disposals.
Operating expenses
Operating expenses came to EUR 4,331 million in Q2 25, down -5.2% vs. Q2 24 and -0.6% excluding asset disposals.
The slight decrease in operating expenses in Q2 25 excluding asset disposals largely results from the accounting of an exceptional charge of approximately EUR 100 million2 related to the launch of a Global Employee Share Ownership Programme in June 2025. Restated from this non-recurring item, operating expenses were down -2.8% vs. Q2 24, confirming the strong cost control at Group level. In Q2 25, transformation charges fell by EUR -93 million vs. Q2 24.
The cost-to-income ratio stood at 63.8% in Q2 25, down from Q2 24 (68.4%) and below the initial guidance of <66% for 2025.
In the first half of the year, operating expenses fell significantly by -2.6% vs. H1 24 (excluding asset disposals). The cost-to-income ratio stood at 64.4% (vs. 71.6% in H1 24), also ahead of the initial 2025 guidance of <66%.
Revenues and costs in H1 25 being ahead of the initial targets in H1 25, the C/I ratio target is now at <65% in 2025.
Cost of risk
The cost of risk remained low during the quarter at 25 basis points, or EUR 355 million and is still at the lower end of the target set for 2025 of between 25 and 30 basis points. This comprises a EUR 390 million provision for doubtful loans (around 27 basis points) and a reversal of a provision for performing loans for EUR 35 million.
At end-June, the Group had a stock of provisions for performing loans of EUR 3,011 million, down by -3.8% from 31 March 2025, mainly driven by asset disposals and FX impact.
The gross non-performing loan ratio amounted to 2.77%3,4 at 30 June 2025, down compared with its level at end-March 2025 (2.82%). The net coverage ratio on the Group's non-performing loans stood at 81%5 at 30 June 2025 (after netting of guarantees and collateral).
Net profits from other assets
The Group recorded a net profit of EUR 75 million in Q2 25, mainly related to the accounting impacts resulting from the sale of Societe Generale Burkina Faso, completed in June 2025.
Group net income
Group net income stood at EUR 1,453 million for the quarter, equating to a Return on Tangible Equity (ROTE) of 9.7%.
In the first half of the year, Group net income stood at EUR 3,061 million, equating to a Return on Tangible Equity (ROTE) of 10.3%, higher than the target set for 2025 of >8%.
Considering the performance in the first half of 2025, the Group is now targeting a ROTE of around 9% in 2025.
Shareholder distribution
The Board of Directors approved an amendment to the distribution policy, introducing an interim cash dividend payable in the fourth quarter of each year from 2025 onwards. Based on the financial statements for the first half of 2025, the Board of Directors has decided the payment of an interim dividend of EUR 0.61 per share. The ex-dividend date will be on 7 October 2025 and the payment on 9 October 2025.
In addition, as part of the first application of a possible option of the Group's new distribution policy announced on 6 February 20256, a distribution of excess capital will be made in the form of an additional EUR 1 billion share buy-back. Authorisations, including the one from the ECB, have been obtained7 to launch this programme, which will start on 4 August 2025.
ESG: PREPARING FOR THE FUTURE
The Group announced the composition of its Scientific Advisory Council this quarter. The role of this body is to provide the General Management with ESG insights, taking a science-based approach to the key emerging trends that will influence the economic environment and the Group's activities in the future. Composed of eight expert members with complementary skills, the Council will provide holistic views in order to identify long-term opportunities and challenges (for more details, see Societe Generale unveils the composition of its Scientific Advisory Council, Societe Generale).
At the same time, Societe Generale is continuing to develop its actions for the energy transition, as well as innovative financing solutions to support its customers:
During the United Nations Ocean Conference (UNOC), Societe Generale recalled its efforts to protect marine ecosystems and its key role in the transition to a more sustainable maritime economy. It acted as the exclusive advisor to Eurazeo for the "Maritime Upgrade" debt fund (Eurazeo and Societe Generale to join forces to support the sustainable transition of the maritime sector, Wholesale Banking).
Through its subsidiary REED, Societe Generale has invested in Voltekko Tech, a platform specialising in energy-efficient data centres. A total of nine investments, mainly in the energy sector, have been made since the acquisition of REED.
Lastly, Societe Generale received the Euromoney award for "The World's Best Bank for ESG", together with an excellent rating from Sustainalytics, at 15.4, an improvement on the rating assigned by the agency in its last review, which positions it among the world's best banks (top 12%).
THE GROUP'S FINANCIAL STRUCTURE
At 30 June 2025, the Group's Common Equity Tier 1 ratio stood at 13.5%, or around 330 basis points above the regulatory requirement. Likewise, the Liquidity Coverage Ratio (LCR) was also well above regulatory requirements at 148% at end-June 2025 (149% on average for the quarter), while the Net Stable Funding Ratio (NSFR) stood at 117% at end-June 2025.
All liquidity and solvency ratios are well above the regulatory requirements.
30/06/2025
31/12/2024
Requirements
CET1(1)
13.5%
13.3%
10.22%
Tier 1 ratio(1)
15.8%
16.1%
12.14%
Total Capital(1)
18.4%
18.9%
14.71%
Leverage ratio(1)
4.4%
4.3%
3.60%
TLAC (% RWA)(1)
29.9%
29.7%
22.33%
TLAC (% leverage)(1)
8.3%
8.0%
6.75%
MREL (% RWA)(1)
33.4%
34.2%
27.44%
MREL (% leverage)(1)
9.2%
9.2%
6.13%
End of period LCR
148%
162%
>100%
Period average LCR
149%
150%
>100%
NSFR
117%
117%
>100%
In EURbn
30/06/2025
31/12/2024
Total consolidated balance sheet
1,551
1,574
Shareholders' equity (IFRS), Group share
68
70
Risk-weighted assets
388
390
O.w. credit risk
314
327
Total funded balance sheet
923
952
Customer loans
456
463
Customer deposits
594
614
8
As of 30 June 2025, the parent company has issued EUR 13.5 billion of medium / long-term debt under its 2025 financing programme, including EUR 4.5 billion of pre-financing raised at end-2024. The subsidiaries had issued EUR 1.8 billion. In total, the Group has issued a total of EUR 15.3 billion in medium / long-term debt since the start of the year.
As of 30 June 2025, the parent company's 2025 financing programme is around 80% complete for vanilla issuance.
The Group is rated by four rating agencies: (i) Fitch Ratings, Issuer default rating "A-", stable outlook, senior preferred debt rating "A", short-term rating "F1"; (ii) Moody's - long-term rating (senior preferred debt) "A1", stable outlook, short-term rating "P-1"; (iii) R&I - long-term rating (senior preferred debt) "A", stable outlook; and (iv) S&P Global Ratings - long-term rating (senior preferred debt) "A", stable outlook, short-term rating "A-1".
FRENCH RETAIL, PRIVATE BANKING AND INSURANCE
In EURm
Q2 25
Q2 24
Change
H1 25
H1 24
Change
Net banking income
2,269
2,131
+6.5%
4,568
4,146
+10.2%
Of which net interest income
1,036
902
+14.8%
2,097
1,729
+21.3%
Of which fees
1,013
1,027
-1.4%
2,069
2,045
+1.1%
Operating expenses
(1,477)
(1,649)
-10.4%
(3,043)
(3,377)
-9.9%
Gross operating income
791
482
+64.3%
1,525
770
+98.2%
Net cost of risk
(146)
(173)
-15.4%
(317)
(420)
-24.5%
Operating income
645
309
x 2.1
1,208
350
x 3.5
Net profits or losses from other assets
20
8
x 2.6
27
8
x 3.3
Group net income
488
240
x 2.0
909
271
x 3.4
RONE
11.2%
5.7%
10.4%
3.3%
Cost to income
65.1%
77.4%
66.6%
81.4%
Commercial activity
SG Network, Private Banking and Insurance
The SG Network's average outstanding deposits amounted to EUR 227 billion in Q2 25, down -3% compared with Q2 24, and -1% vs. Q1 25.
The SG Network's average loan outstandings contracted by -2% on Q2 24 to EUR 194 billion and were stable excluding repayments of state-guaranteed loans (PGE). Mortgage loan production saw a sharp increase of +175% vs. Q2 24.
The average loan to deposit ratio came to 85.5% in Q2 25, down -1 percentage point relative to Q2 24.
Private Banking saw its assets under management9 grow by +6% vs. Q2 24 to EUR 132 billion in Q2 25. Net asset inflows totalled EUR 2.3 billion in Q2 25, with asset gathering pace (annualised net new money divided by AuM) standing at +6% in H1 25. Net banking income amounted to EUR 308 million for the quarter and EUR 669 million for the first half of the year.
Insurance, which covers activities in and outside France, posted a strong commercial performance. Life insurance outstandings increased by +5% vs. Q2 24 to reach EUR 150 billion in Q2 25. The share of unit-linked products remained high at 40%. Gross life insurance savings inflows amounted to EUR 4.8 billion in Q2 25.
BoursoBank
BoursoBank reached 7.9 million clients in Q2 25, the threshold of 8 million clients being reached in July 2025. In Q2 25, the bank recorded a +22% increase in the number of clients vs. Q2 24, bringing growth in the number of clients to +1.4 million year on year. Onboarding remained high during the quarter (~424,000 new clients in Q2 25), while the attrition is very low, at less than 4%.
BoursoBank once again confirmed its position as the French market leader, as shown by the award received from Euromoney for best digital bank in France10.
Average outstanding savings, including deposits and financial savings, totalled EUR 69.8 billion, the average outstanding deposits increasing sharply by +16% vs. Q2 24. Average life insurance outstandings increased by +7% vs. Q2 24 (the share of unit-linked products was 48%) and gross inflows being up +12% vs. Q2 24. The brokerage activity recorded a strong increase in the number of market orders of +33% vs. Q2 24.
Average loan outstandings rose +10% compared with Q2 24 to EUR 16.7 billion in Q2 25.
Net banking income
Revenues for the quarter amounted to EUR 2,269 million (including PEL/CEL provision) up +6.5% compared with Q2 24 and +10.7% excluding asset disposals. Net interest income grew by +14.8% vs. Q2 24 and +2.4% excluding asset disposals and the impact of short-term hedges in Q2 24. Fees were down -1.4% compared with Q2 24 and up +1.4% excluding asset disposals.
First-half revenues came to EUR 4,568 million (including PEL/CEL provision), up +10.2% on H1 24 and +13.6% excluding asset disposals. Net interest income grew by +21.3% vs. H1 24. It is up +0.6% excluding asset disposals and the impact of short-term hedges in H1 24. Fee income rose +1.1% vs. H1 24 and +3.7% excluding asset disposals.
Operating expenses
Operating expenses came to EUR 1,477 million for the quarter, down -10.4% vs. Q2 24 and -5.7% excluding asset disposals. The cost-to-income ratio stood at 65.1% in Q2 25, an improvement of 12.3 percentage points vs. Q2 24.
During the first half of the year, operating expenses amounted to EUR 3,043 million, down -9.9% compared with H1 24 and -6.2% excluding asset disposals. The cost-to-income ratio stood at 66.6%, an improvement of 14.8 percentage points vs. H1 24.
Cost of risk
The cost of risk amounted to EUR 146 million, or 25 basis points, for the quarter, which was lower than in Q2 24 and Q1 25 (29 basis points in both cases).
In the first half of the year, the cost of risk totalled EUR 317 million, or 27 basis points.
Group net income
Group net income totalled EUR 488 million for the quarter. RONE stood at 11.2% in Q2 25.
In the first half of the year, Group net income totalled EUR 909 million. RONE stood at 10.4% in H1 25.
GLOBAL BANKING AND INVESTOR SOLUTIONS
In EUR m
Q2 25
Q2 24
Variation
H1 25
H1 24
Change
Net banking income
2,647
2,628
+0.7%
+2.4%*
5,542
5,259
+5.4%
+5.5%*
Operating expenses
(1,630)
(1,647)
-1.0%
+0.2%*
(3,385)
(3,404)
-0.5%
-0.4%*
Gross operating income
1,017
981
+3.6%
