(Boursier.com) — Societe Generale is in last position on the CAC40 this weekend with shares losing 1% to 22.8 euros. The bank is penalized by hardly favorable news. Goldman Sachs first downgraded the title of the Defense establishment to ‘sell’ while cutting its target from 31 to 22.25 euros. GS cites the absence of catalysts given limited capital flexibility, lower return on tangible equity (ROTE) and downside risks to dividend forecasts.
Furthermore, SocGen announced Thursday evening that it had been notified by the ECB that the minimum requirements applicable to the group on a consolidated basis will be established on January 1, 2024 at 10.22% for the CET1 ratio, a key measure of solidity. financial. This represents an increase from the 9.36% required a year earlier. SocGen had a CET1 ratio of 13.3% at the end of September.
If the French bank’s capital ratios are above the minimums set by regulators, an increase in capital requirements means the bank must hold more capital in reserve, thereby increasing operating costs and potentially reducing its capacity to generate higher returns on equity.
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