Societe Generale hits record profit as retail rebound offsets trading slump

The bank’s revenue climbed 4.5% to €7.1 billion, prompting management to raise its full-year return on tangible equity target to approximately 11%. This upward revision follows a period of aggressive cost-cutting that pushed the cost-to-income ratio below the initial 60% threshold. In a move to reward shareholders, the lender announced a €1.5 billion extraordinary share buyback and an interim dividend of €0.75 per share.

Despite the group-level success, the bank’s trading arm struggled, marking its third consecutive quarter of shrinking revenue. Fixed income and currencies trading fell 11.3%, trailing the performance of major European rivals like BNP Paribas and Deutsche Bank. While equities revenue saw a modest 5.5% increase, the bank remains under pressure to prove it can sustain growth against agile digital competitors and a crowded investment banking market. Since taking the helm in May 2023, Krupa has focused on capital efficiency and internal execution, a shift that has seen the company's share price triple under his tenure.