SocGen enjoys record Q2 profit as retail bank beats weak trading
Group net income rose 23% to a record 1.79 billion euros (US$2.04 billion) that reached forecasts
Published Thu, Jul 30, 2026 · 01:10 PM
[PARIS] French bank Societe Generale (SocGen) posted record quarterly profit on Thursday (Jul 30) and upped its 2026 profitability target, as a recovery in retail banking and tight cost controls offset a third consecutive quarter of shrinking revenue at its trading arm.
Group net income rose to a forecast-beating 1.79 billion euros (US$2.04 billion) in the second quarter, up 23 per cent from a year earlier and reaching a record, ahead of the 1.57 billion euro average of 13 analyst estimates compiled by SocGen.
Revenues also came in ahead of expectations, up 4.5 per cent to 7.1 billion euros, with lower-than-anticipated costs.
France’s second-biggest listed lender by market valuation now expects a full-year return on tangible equity – a key measure of profitability – of around 11 per cent, up from a previous target of above 10 per cent.
SocGen, which delivers its next strategy update in September, also lifted its cost-cutting goal after the bank’s cost-to-income ratio came in below a full-year target of 60 per cent.
Chief executive officer Slawomir Krupa has embarked on one of Europe’s most closely watched banking turnarounds since he took the helm in May 2023.
After a rocky start, the efforts are paying off: SocGen’s share price more than tripled since he took over, outperforming the Euro Stoxx Banks Index, as investors cheer his focus on capital, costs and execution.
But the bank, still worth only half of larger French rival BNP Paribas, faces the tougher task of proving it can generate sustained growth in a competitive landscape, with digital lenders such as Revolut expanding rapidly and US banks continuing to gain ground in investment banking.
SocGen also announced a 1.5 billion euros extraordinary share buyback starting Aug 3, alongside an interim cash dividend of 0.75 euros per share, up 23 per cent from a year earlier.
SocGen traders falling behind rivals
SocGen’s second-quarter results follow a run of European bank earnings lifted by a trading boom fuelled by Iran war-driven volatility and a wave of dealmaking.
Unlike BNP, Barclays, UBS and Deutsche Bank, which all posted strong gains, SocGen’s trading arm disappointed.
Sales from trading in fixed income and currencies fell 11.3 per cent, missing expectations, which the bank blamed on an “unfavourable environment” for a business mix heavily exposed to Europe and rates trading.
This is the third quarter in a row in which SocGen has reported falling year-on-year revenue from its trading business.
Equities revenue rose 5.5 per cent to just over one billion euros, helped by derivatives, financing and prime services activity, lower than the pace seen at BNP and at Barclays.
SocGen’s overall investment banking unit, however, saw revenue grow 2.7 per cent from a year earlier. REUTERS
